Rates on 30-year mortgages rose for a third straight week, hitting the highest level in eight months.

Mortgage giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages averaged 6.42 percent in its nationwide survey this week.
That was up slightly from 6.37 percent last week and represented the highest point for 30-year mortgages since they averaged 6.43 the week of Sept. 14.
Analysts attributed the increase to signs of economic strength outside of housing, such as the April rise in orders for big-ticket manufactured goods. Five-year, adjustable-rate mortgages averaged 6.19 percent, up from 6.02 percent. All signs point towards a gradual increase in rates, so if you waiting to lock in a rate or buy a property with a mortgage, now is the time.

An investment company backed by insurer American International Group (AIG) is offering to let home owners cash out their equity in exchange for a right to part of the proceeds when the home is eventually sold.

For instance, the owner of a home valued at $750,000 might obtain $100,000 in cash by giving the firm, REX & Co., a 50 percent share of the change in the homes value. If the home sold for $850,000, REX would receive $150,000 - the original $100,000 plus half of the increase in value. If the home sold for $650,000, REXs share would be $50,000, half of what it invested.

REX says its product is currently available in nine states - California, New Jersey, Virginia, Florida, Illinois, Washington, Colorado, New York and North Carolina - but the company plans to offer it nationwide within a couple of years.

Rates on 30 year mortgages fell for the first time in six weeks due to the fact that inflation is in check The 30 year fixed mortgage dropped to 6.17 percent this week according to Freddie Mac down from 6.22 percent the previous week.
Inflation markers showed the slowest growth since May of 2006 keeping investors in a happy mood and keeping interest rates low.
Rates on 15 year fixed mortgages, a popular choice for refinancing, dipped to 5.89 percent, down from 5.90 percent last week.
A year ago, rates on 30-year mortgages stood at 6.53 percent while 15 year mortgages were at 6.17 percent. Five-year adjustable-rate mortgages averaged 6.16 percent and one-year adjustable-rate mortgages were at 5.63 percent.

If you are one of the many people in this country having trouble keeping up with your mortgage payment, you may have a way out. With all of the problems in the mortgage market today, many banks are willing to renegotiate the terms of your loan. All it takes is a phone call to the right person in your lending institution.
The truth is banks would rather keep you paying at a reduced rate than have to foreclose on your home. Banks lose roughly 40 percent of the value of the loan when a foreclosure takes place. It is much more profitable for the bank to keep you paying.
There are other creative ways for you to get out of your mortgage all together. For more information on these methods, please call or email us today!

A lack of definitive economic data helped keep mortgage rates at the lowest point since mid-December, Bankrate.com reports.

Mortgage rates declined for the fourth time in the past five weeks, with the average 30 year fixed mortgage rate dropping to 6.19 percent. According to Bankrate.coms weekly national survey of large lenders, the 30-year fixed rate mortgages had an average of 0.3 discount and origination points.

The average 15-year fixed rate mortgage popular for refinancing was unchanged at 5.95 percent. On larger loans, the average jumbo 30-year fixed rate inched higher to 6.42 percent. Adjustable rate mortgages were mixed, with the average 5/1 ARM moving up to 6.04 percent and the average one-year ARM sliding to 5.94 percent.

Mortgage rates remained low on evidence of slower economic growth. Last week, the fourth quarter Gross Domestic Product was revised sharply lower. This week, both productivity and factory orders came in lower than forecast. Although a survey of the manufacturing sector was stronger than expected, the larger services sector slowed notably. The prospects for slower economic growth help buoy demand for Treasury securities, pushing bond prices higher and yields lower. Mortgage rates are closely related to yields on long-term government bonds.

Fixed mortgage rates are notably lower than last summer when the Fed last raised interest rates. At the time, the average 30-year fixed mortgage rate peaked at 6.93 percent, and a $165,000 loan carried a monthly payment of $1,090.00. With the average 30-year fixed rate now 6.19 percent, the same loan originated today would carry a monthly payment of $1,009.50. Fixed mortgage rates are a refinancing alternative for adjustable rate borrowers facing sharp payment adjustments.

Adjustable-rate mortgages are decreasing in popularity, but don not count them out just yet.

New ARMs dropped to a 25 percent share of the market late last year, according to Freddie Macs annual ARM survey. That is down from a high of 33 percent in 2004.

While one-year ARMs have fallen out of favor, hybrid ARMs have not. For example, 40 percent of all ARMs in the 2006 survey were 5/1 hybrids, according to Freddie Mac, with an average initial rate of 5.96 percent fixed for the first five years. Most of them never get past the reset date because they are either refinanced or paid off, according to Frank Nothaft, chief economist for Freddie Mac.

In areas of the country where housing costs are high, ARMs are still popular. Here are the top 10 states by share of adjustable-rate mortgages, according to the Mortgage Bankers Association:

For more information on adjustable rate mortgages, please contact us today 786-586-4778.

1. Nevada: 43 percent

2. California: 40 percent

3. District of Columbia: 35 percent

4. Arizona: 33 percent

5. Florida: 33 percent

6. Colorado: 33 percent

7. Illinois: 28 percent

8. Washington: 27 percent

9. Maryland: 26 percent

10. Virginia: 26 percent

Home loan interest moved north for a third consecutive week, according to Freddie Mac. The mortgage financier reported the 30-year rate at 6.18 percent, up from 6.13 percent last week but still a far cry from this year's high of 6.8 percent set in July.

Rates for 15-year fixed products, meanwhile, climbed to 5.93 percent from 5.89 percent; while five-year, adjustable-rate mortgages bumped up to 5.98 percent from 5.96 percent. One-year ARMs also rose to 5.47 percent from 5.44 percent.

The recent upward pattern follows a sustained period of lower rates that helped precipitate a comeback in new- and existing-home sales. The lower mortgage rates in November and early December are giving the housing market a bit of relief at years end, says Freddie Mac chief economist Frank Nothaft, who also notes that recent favorable reports on consumer spending and home sales suggest that the worst of the residential property slump is over.

The market data also is being interpreted by the financial community as a sign that the Federal Reserve will not move quickly to lower rates early next year to prop up a softening economy. Many economists speculate, in fact, that the Fed will keep rates in a holding pattern until mid-2007.

Federal arrest warrants were issued for five people, including a Cape Coral, Florida, police officer in connection with an alleged investment property scheme in South Florida. Those named in the criminal complaint were:

Ronald D. Luczak
Lisa Luczak (wife of Ronald Luczak)
Nelson Alex Gonzalo, Cape Coral Police Officer
Patricia Martin, escrow officer
Sandra Mainardi, mortgage loan officer

According to the criminal complaint, in September 2005, shortly after his June 20, 2005 release from 48-months of federal incarceration in connection with his role in a stock fraud that he conducted while employed as a broker in New York and while on supervised release for that crime, Luczak began a scheme to purchase properties in Cape Coral, Florida through his companies, Cape Coral Equity and Development Group, Inc. and Cape Coral Equity and Development Group, LLC both established under his wifes name, Lisa Luczak.

» Continue reading "South Florida Mortgage Fraud Scheme Involves Convicted Felon and Police Officer"

The average rate on 30 year, fixed rate mortgages dropped to 6.14 percent, down from 6.18 percent a week ago and 6.26 percent a year earlier. The 30 year fixed rate is the lowest it has been since Jan. 26 of this year, according to Freddie Mac.

The 15-year, fixed rate mortgage averaged 5.87 percent, down from 5.91 percent last week but up slightly from 5.81 percent a year ago. The rate is the lowest for 15 year fixed mortgages since Feb. 2, 2006.

The average five year adjustable rate mortgage rate was 5.95 percent, down from last weeks 5.99 percent but up from 5.76 percent a year earlier. The average one year ARM rate was 5.46 percent, compared with 5.49 percent a week ago and 5.16 percent last year.

Mortgage rates drifted lower this week, bringing long-term rates to levels below those of this time last year, says Frank Nothaft, Freddie Mac vice president and chief economist. Mortgage applications for home purchases in November have remained healthy, largely because of the drop in mortgage rates and a softening in home prices in some areas.
Lower rates should help keep to stimulate a sluggish Miami real estate market.

Experts predict a mini refinancing boom, as the 30-year fixed mortgage rate has hit a 10-month low of 6.15 percent.
The Mortgage Bankers Association says refinancing accounted for about half of all home-loan applications last week, and the number could rise if mortgage rates decrease further.
JP Morgan Chase economist James Glassman, for instance, speculates the 30-year mortgage rate could fall as low as 5.75 percent in the coming months. While many borrowers are refinancing out of adjustable-rate, payment-option and interest-only loans, Amy Crews Cutts, Freddie Mac deputy chief economist, says some are refinancing to extract equity.

Interest rates were down slightly and mortgage applications were up almost even with last year, despite a week shortened by the Veterans Day holiday, according to the Mortgage Bankers Association.
The Market Composite Index, a measure of mortgage loan application volume, was 647.5, an increase of 4.3 percent on a seasonally adjusted basis from 620.9 one week earlier. On an unadjusted basis, the index was down 0.1 percent compared with the same week one year earlier.
The refinance share of mortgage activity increased to 48 percent of total applications from 46.3 percent the previous week. The refinance share is at its highest level since February 2005.
The average interest rate for 30-year fixed-rate mortgages decreased to 6.15 percent from 6.24 percent. The average rate for 15-year fixed-rate mortgages decreased to 5.85 percent from 5.96 percent. And the interest rate for one-year ARMs decreased to 5.87 percent from 5.89.

That is a great question, and the answer varies from person to person. The traditional 30 year fixed mortgage is being used less and less in today's real estate market because of all the new options that are available. Most people in South Florida will only own a home or condo for three to five years before they sell. That being said, the interest only with a five or seven year lock is one of the best products on the market today. Just about every lending institution offers this type of loan. I recently refinanced my home and this is the loan I chose. It helps to keep the monthly payment down and gives you the comfort of knowing you will have the same mortgage payment for the next several years.

Rates on 30 year mortgages fell for the fifth consecutive week according to mortgage giant Freddie Mac. Most analysts are predicting a rise in the mortgage rates in 2006, but don�t expect it to be too much. Mortgage rates overall have dipped a little with the release of new economic information confirming that inflation is not on the rise as much a once thought. This is all good news for the Miami Real Estate Market in general. While we have seen other market such as Las Vegas have their shore of troubles in the last few months, Miami Real Estate continues to grow and be in high demand. For more information on Miami Real Estate please call Paul Hansen 786-586-4778.

According to survey results released by Radian Guaranty, more than half (52%) of all U.S. homeowners said they were not at all or only somewhat knowledgeable about the mortgage options available to them at the time they purchased their homes. Harris Interactive� conducted the survey on behalf of Radian Guaranty, a provider of mortgage insurance products and services and subsidiary of the global credit risk management company Radian Group Inc.

�These survey results suggest that lenders and others in the financial services arena have a real opportunity to help Americans by educating them about their personal finances, particularly the many mortgage options available to home buyers. A home is generally the largest purchase individual Americans will ever make, and they have a right to know how to find and negotiate the best deal they can make for themselves,� said Mark Casale, Executive Vice President, Mortgage Insurance.

According to the survey, two-thirds (66%) of Americans own their homes and nearly half (47%) have a home mortgage.

Among all homeowners, only 48 percent said they were knowledgeable or very knowledgeable about the mortgage options available to them when they were purchasing their homes. Those claiming to be knowledgeable or very knowledgeable about mortgage options are most likely to be homeowners over the age of 55 (55%), divorced, widowed or separated (54%) and have at least a college education (51%). In general, similar proportions of women and men homeowners said they were knowledgeable or very knowledgeable (49% and 46%, respectively).

Slightly larger proportions of homeowners in the Northeast (50%) and West (50%) consider themselves knowledgeable or very knowledgeable about mortgage options as compared to homeowners in the South (46%) and Midwest (45%).

Half of homeowners (51%) who had secured a mortgage on their primary residence within the last two years felt knowledgeable or very knowledgeable about mortgage choices, while a substantial number of homeowners (59%) who secured a mortgage three or more years ago felt not at all or only somewhat knowledgeable.

�In recent years, many more mortgage options and financing choices have been made available to home buyers. It makes sense that those who purchased or refinanced a home recently would feel more knowledgeable about their mortgage options than those who have not,� said Casale.

Advice to New Home Buyers

When asked what advice they would give to a prospective home buyer about the process to obtain a mortgage, homeowners said first and foremost home buyers need to understand just how much of a home they can afford to purchase (55% mention this as the first or second piece of advice they would give), followed by researching and determining the best mortgage options available that would suit their needs (45%), and getting pre-approved for a mortgage before searching for a home (36%).

�Homeowners in this survey have the right idea,� said Casale. �Those who are entering the market for the first time or who are looking to move up, need to first determine what they need in a home and how much home they can afford. Certainly, having the foresight to get pre-approved will help prospective buyers focus on the right price range for their home-buying search.�

As one of the largest U.S. mortgage insurance providers, Radian continually monitors the national housing market to ensure that home buyers alike make the best, most-informed decisions possible. To that end, said Casale, Radian views the survey results as a call to action for the company to continue to foster a more educated homeowner community.
�Researching mortgage options will help them determine how they can achieve their aspirations for a home that suits their needs, while managing their finances to ensure an affordable opportunity,� said Casale.

Methodology

Harris Interactive� conducted the online study on behalf of Radian Guaranty between October 25 and 27, 2005, among a nationwide cross section of 2,003 U.S. adults aged 18 or older, of whom 1,310 own their current residence. Figures for age, sex, race, education, region and household income were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was also used to adjust for respondents� propensity to be online.

In theory, with probability samples of this size, one can say with 95 percent certainty that the overall results have a sampling error of plus or minus 3 percentage points, while the homeowner results have a sampling error of plus or minus 4 percentage points. Sampling error for the various homeowner sub-samples is higher and varies. This online sample is not a probability sample.

Low interest rates have ensured that mortgage bankers had to do relatively little to attract new business in recent years. But this likely will change as borrowing costs rise and bankers now worry some lenders will make risky loans to keep their businesses alive.

Mortgage bankers processed close to $4 trillion of mortgages in 2003, a banner year. While business in the last two years has been exceptional -- twice the annual average in the 1990s -- it is expected to fall off some 18% in 2006 from 2005�s projected $2.78 trillion, according to the Mortgage Bankers Association (MBA), an industry trade group.
Much of that drop is expected because higher rates make home purchases more expensive and fewer home owners will have the incentive to refinance their home loans.

Rates for 30-year mortgages had been below 6% for much of this year, encouraging home buying and price appreciation. But these rates are half a percentage point higher than a year ago and they are expected to continue their climb. By next fall, rates for 30-year mortgages, now at around 6.21%, are seen hitting 6.65%, according to the MBA.

According to the MBA, 15% of American homeowners have adjustable rate mortgages, loans which reset once a year and are correlated to short-term interest rates such as Treasury bills. So a homeowner who borrowed $100,000 three years ago at a rate of 4% now pays 7% interest, thanks to recent interest rate hikes like the one announced recently by the Federal Reserve Board. That means payments initially set at $477 a month are now $650 and could rise again if there are future rate hikes.

The industry trade group estimated each quarter point increase in short-term interest rates means consumers with ARMs spent about $500 million more a month on loan payments.
The rise in borrowing costs comes at a time when home buyers are spending more of their income to buy a bit of the American dream.

According to data compiled by the National Association of Realtors, home buyers were spending close to 21 cents out of every dollar earned on monthly mortgage payments during the second quarter of 2005, up from previous years when mortgage rates were lower. The group�s housing affordability index -- a measure of consumers� ability to make monthly mortgage payments started in 1970 -- was at a low during the second quarter of 2005 not seen since 1991.

Ray Morris, director of business development at GMAC Mortgage Corp. predicted that more banks will lend to risky borrowers, or what is known as the sub-prime market, to keep their businesses going.

�Will there be some (risky lending)? I am sure there will be,� said Regina Lowrie, president and founder of Pennsylvania-based Gateway Funding. But she said this would be the exception and not the rule.

Lowrie said bad loans could be costly to her firm, so she has increased scrutiny of loan terms, property values and credit histories of borrowers.

Some of that aggressive lending to less-creditworthy borrowers, though, may already going on.

�People are getting in trouble by buying out of their price range. They are dreaming really big,� said Tina Smith, an executive with String Information Services, a company that provides back-office support to mortgage banks. �That could be a disaster later,� she said.

» Continue reading "Risky Home Loans Likely to Increase"

The feverish real estate market that hit a new peak last week has been fueled not just by historically low interest rates but also by a host of new home mortgage products that might make a banker of yesteryear keep a hand on his or her wallet.

Is the house you want beyond your financial reach? Maybe not with an interest-only mortgage. Need a loan with no proof of income or assets? You may well get one called a "no-documentation loan."

Can't scrape together a down payment? You may not need it because mortgage bankers are offering so-called 80/20 loans that combine first and second mortgages in one package, even for first-time buyers. As little as a decade ago, such nontraditional mortgages accounted for barely a sliver of the home-loan business. But in white-hot coastal markets, where housing has become unaffordable to average buyers, they have become commonplace, and they quickly are gaining ground in heartland regions, including Western Pennsylvania.

The most popular of the new mortgage vehicles are interest-only loans, which allow borrowers to defer principal payments for five years or more.

Last year, interest-only mortgages exploded to nearly 23 percent of all home loans. That was more than a tenfold increase from 2001 when interest-only mortgages represented less than 2 percent of all home loans, according to Loan Performance LLC, a San Francisco firm that gathers and analyzes mortgage market data.

In San Diego, interest-only mortgages claimed nearly half the home loan market last year, 25 times the number in 2001.

In Pittsburgh, with its relatively stable housing prices and slow real-estate market, the share for interest-only mortgages last year stood at 5.7 percent.

But even here, the appetite for interest-only mortgages is growing, said Andrew Dodd, regional vice president of Citizens Bank's mortgage unit. Four years ago, fewer than 1 percent of Pittsburgh mortgages were of the interest-only variety.

"At the high 1/8income3/8 end, we see quite a bit of activity," Dodd said.

What these new mortgage options bode for the housing market, for homeowners and for the economy remains to be seen.

For the most part, bankers deny the new products are inherently risky. The new mortgage options, they contend, are merely a way of customizing loans to suit more buyers, particularly among high-income borrowers whose earning power can't always be measured by pay stubs and whose tax and investment considerations weigh into where they deploy cash.

As for lending standards, it's not that they have changed, bankers argue. Rather, automated application processing has enabled mortgage underwriters to refine how they measure risk -- taking into account a host of factors affecting creditworthiness that could not all be considered when applications were processed by hand.

As more people take out these mortgages, however, some economists and industry analysts say there's reason for wariness. Particularly in robust markets, many of the nontraditional mortgages are being underwritten based on expectations that borrowers will see either significant appreciation in their home values or gains in income.

Moreover, current default rates, which have been falling, are not a reliable indicator of what the future holds because the most popular of the new mortgages shield buyers from the full impact of their debt for five years or more.

"We are in uncharted territory," said Susan Wachter, a real estate economist at the University of Pennsylvania's Wharton School.

Wachter said a combination of Wall Street capital and demand in markets where average housing costs have far outpaced average household incomes are among the factors behind the proliferation of the nontraditional mortgages.

One thing is certain: It's not your father's mortgage market anymore.

"You can literally walk into a bank and get a mortgage loan with no money down," said Keith Gumbinger, vice president of HSH Associates, a New Jersey-based publisher of mortgage and housing market data. "Ten years ago, that was the stuff of late night TV."

The most flexible new products are Option ARMs, a twist on adjustable rate mortgages that enable borrowers to change payment options monthly, much like credit cards. Under the options, borrowers pay interest only, or pay interest and principal, or make a minimum payment. By choosing the minimum, buyers are deferring not only principal but also interest.

In lenders' jargon, this results in "negative amortization." In plain English, it adds to the homeowner's total mortgage debt.

In addition, Gumbinger said, borrowers can get mortgages with monthly payments that amount to as much as 35 percent of their monthly gross incomes, up from 28 percent a decade ago. Total debt payments for mortgage borrowers, including credit cards, may now go as high as 50 percent of monthly gross income, up from the old standard of 38 percent, he said.

» Continue reading "It's not your father's mortgage market anymore"

WASHINGTON -- May 13, 2005 -- Rates on 30-year mortgages, after falling for five straight weeks, edged up a bit this week, reflecting in part indications that the recent economic slowdown would be short-lived.
Mortgage giant Freddie Mac reported Thursday in its weekly survey that rates on 30-year, fixed-rate mortgages averaged 5.77 percent this week, up from 5.75 percent last week.
It marked the first increase in rates since March 31 when the 30-year hit 6.04 percent, the high point so far this year.
Analysts attributed this week's increase to stronger-than-expected economic reports including news that the economy added 274,000 jobs in April. But analysts said they did not expect mortgage rates to rise quickly, given continued uncertainty about the economy's direction.
"The bond market isn't exactly sure how fast or slow the economy will expand in the long term and thus bond yields have remained remarkably low," said Frank Nothaft, Freddie Mac's chief economist.
The housing market has continued at a strong pace this year, reflecting the still historically low mortgage rates.
Analysts predicted that mortgage rates will rise in the months ahead but at a gradual pace that would leave the 30-year mortgage at around 6.5 percent by the end of the year.
Borrowing costs for other types of mortgages also rose this week, Freddie Mac reported.
Rates on 15-year, fixed-rate mortgages, a popular option for refinancing, rose to 5.33 percent, up from 5.31 percent last week while rates on one-year adjustable rate mortgages edged up to 4.23 percent, compared to 4.22 percent last week.
Rates on five-year hybrid adjustable rate mortgages rose to 5.21 percent, up from 5.16 percent last week. These hybrid mortgages have a fixed-rate for five years and then adjust each year after that.
The nationwide averages for mortgage rates do not include add-on fees known as points. The 30-year mortgage carried a nationwide average fee of 0.5 point while the other three mortgage categories carried an average fee of 0.6 point.
A year ago, 30-year mortgages averaged 6.34 percent, 15-year mortgages were at 5.72 percent and one-year ARMs averaged 3.90 percent. Freddie Mac does not have historical data on the five-year ARM which it began tracking this year.

HansenHomesAventura.com

Rates on 30-year mortgages hit highest level in seven months

Rates on 30-year mortgages hit the highest level in seven months, reflecting four straight weeks of rising rates, a national mortgage survey reported Thursday.

Freddie Mac, the mortgage company, said its weekly survey showed that rates on 30-year, fixed rate mortgages averaged 5.85 percent this week, up from 5.79 percent last week.

It was the fourth consecutive weekly increase after 30-year mortgages had fallen for six straight weeks, hitting a low for this year of 5.57 percent the week of Feb. 10. Rates now stand at the highest level since the 30-year mortgage averaged the same 5.85 percent the week ending Aug.12.

Analysts said that last week's good news on employment, showing that the economy created more than a quarter-million jobs in February raised worries in financial markets about possible future inflation caused by stronger-than-expected economic growth.

"Last Friday's employment report reinforced the perception that the economy is on sure footing, leading bond markets to push interest interest rates higher again this week," said Freddie Mac economist Amy Crews Cutts. "Although inflation remains tame, the recent spike in oil prices does put inflationary pressures on the economy and was an additional factor causing higher interest rates."

Still, analysts said mortgage rates should rise only gradually this year if the Federal Reserve keeps to its current course of gradual quarter-point increases in short-term rates.

Freddie Mac is forecasting that the 30-year mortgage will be around 6.25 percent at the end of the year.

Sales of both new and existing homes set records for four straight years, but analysts are predicting a slight fall-off in the sales pace this year as mortgage rates continue rising.

Other mortgage rates were up as well this week, Freddie Mac reported.

HansenHomesAventura.com

Rates on 15-year, fixed-rate mortgages, a popular option for refinancing, rose to 5.38 percent this week, up from 5.33 percent last week. Rates on one-year adjustable-rate mortgages climbed to 4.24 percent this week, compared to 4.14 percent last week.

Five-year hybrid adjustable rate mortgages averaged 5.22 percent this week, up from 5.17 percent last week. These hybrid mortgages have a fixed-rate for five years and then adjust each year after that.

The nationwide averages for mortgage rates do not include add-on fees known as points. The thirty-year mortage, 15-year and five-year ARM all carried a fee of 0.6 point. The one-year ARM had a financing fee of 0.7 point.

A year ago, 30-year mortgages averaged 5.41 percent while the 15-year mortgage was at 4.69 percent and the one-year ARM was at 3.41 percent. Freddie Mac does not have historical data yet on the five-year ARM.

Aventura Condos

10 Easy Steps to Buying your New Home

Who said the home buying process was easy? Because we realize that you can't quit your day job to go home loan shopping, we dedicated our day jobs to making the process easier for you!

Step 1
Determine How Much House You Can Afford
You've made the decision to buy a house, but before you start looking, you need to figure out how much you can afford. Based on your monthly income and debts, our calculator can help you determine how much you can afford.

» Continue reading "10 Easy Steps to Buying your New Home"

Understanding Your Credit

What is FICO?

FICO is a mathematical model created by the Experian credit bureau as a tool for lenders to use in evaluating the risk associated with lending you money. FICO stands for Fair Isaac Company, the company that created the original scoring model. Similar models have been programmed by the other credit bureaus but they are all referred to as FICO scoring.
Click Here for the Credit Grade Guide

How is my Score Calculated?

» Continue reading "Understanding Your Credit"

Top Ten Mistakes

If you're like most people, purchasing a home is the biggest investment you'll ever make. If you're considering buying a home, you're likely aware of the complexity of the endeavor. Because of the numerous factors to consider when purchasing a home, it's important to prepare as best you can. Some common home-buying principals and caveats are presented here for your consideration. By keeping them in mind, you'll help create a successful and more enjoyable experience. These Top Ten lists are by no means exhaustive. Since your home could cost you 25 to 40 percent of your gross income, it's important to conduct research, ask questions and study the process carefully.

Buying a home

1. Looking for a home without being pre-approved.

As a potential buyer competing for a property, you'll have a better chance of getting your offer accepted by being as prepared as possible. Consider this hierarchy of preparedness:
o Neither pre-qualified nor pre-approved
o Pre-qualified
o Pre-approved

The benefits available at each level can be easily understood when

» Continue reading "Top Ten Mistakes"

Mortgage Tips

Shopping for a mortgage can be quite an overwhelming experience. Especially if you are a first time home buyer and have little to no knowledge about the loan process. If you have shopped online you have already found hundreds of mortgage sites quoting low ball rates for every loan term under the sun. One would think that if you just spend a few hours online you will find the lowest rate available and receive the best deal. This is not rarely the case. Don't play the interest rate game without a load of information, Read this first!

Not all low rates are considered equal...

» Continue reading "Mortgage Tips"

Learn About The Loan Process

Organize your documents

If you are buying or refinancing a home

1. If you are salaried: provide two years W-2 and one month of paystubs OR if you are self-employed: provide two years tax returns and a YTD profit and loss statement.

2. If you own rental property, please provide rental agreements and two years tax returns.

3. If you wish to speed up the approval process, please also provide three months bank statements for each bank, stock and mutual fund account.

4. Provide recent copies of any stock brokerage or IRA/401K accounts that you may have.

5. If you are requesting a cash out refinance please provide a letter explaining what you plan to do with the proceeds.Provide a copy of divorce decree if applicable.

» Continue reading "Learn About The Loan Process"

Select the Right Loan For You

There are so many lenders out there to choose from and with current interest rates pushing an historic low, it's easier than ever to customize your own loan terms. Below are a few of Worldwide Financial Resources�s suggestions to help save you money on your next loan:
No Closing Cost Loans
This is a loan in which the lender pays all of your closing costs including title & escrow fees, appraisal, lender's fees, credit report fees and other expenses which are non-recurring. That way there is no immediate cost to you. No closing cost loans are easiest to get when refinancing, but not impossible when purchasing a new home. Their popularity stems from their ability to generate immediate interest rate & payment savings with no up front investment in closing costs. In a market where interest rates are continuing to decline, this is the best way to refinance your home because it enables you to refinance again soon, if you choose to, without having to bite the loss of the initial closing costs.

Hybrid Loans
Perfect for someone looking for the security of a fixed-rate mortgage & the low interest rate of the adjustable rate mortgage (ARM).

» Continue reading "Select the Right Loan For You"

Mortgage Document Checklist

Most Lenders take full advantage of an automated underwriting system that allows them to request as little information as possible to verify the data you provided during your loan application. Gone are the days when it was necessary to verify every piece of data collected during the application. The automated underwriting system compares your financial situation with statistical data from millions of other homeowners and uses that comparison to determine the level of verification needed. In many cases, a single W-2 or pay stub can be used to verify your income or a single bank statement can be used to verify the assets needed to close your loan.

In order to fully assist you, your lender is going to need to reference some important documents. You might want to start with your W-2 forms and federal tax returns for the past 2 years, year-to-date pay stubs, documentation of additional income, investment records, debt/creditor records and cancelled mortgage/rent checks.

Listed below are some documents that may be required during the mortgage application process (some loan programs may require additional information).

» Continue reading "Mortgage Document Check List"

Improve your Credit!

Lower Your Payments

Combining all your bills into one payment is an excellent way to rid yourself of high interest credit card bills and late fees, and to lower your overall monthly payments. If your are a homeowner with a good amount of equity in your home you may still be able to lower your monthly mortgage by refinancing.