The mainstream mortgage market is no longer run or controlled by the banks. Wall Street has replaced the traditional bank and now pulls purse strings of this vast mortgage market via “mortgage backed securities.” A mortgage backed security (MBS) is simply a bond instrument in which anyone can invest. MBS’s are trading in the free …
Sometimes, either by choice or for reasons out of your control, you find yourself trying to buy a new house before you sell the one you are living in. This poses two potential challenges; 1) Can you qualify for both home loans? and 2) what is the source of the down payment for the new …
PMI Deduction In 2020 If you obtain a new home loan with PMI (private mortgage insurance) in 2020 you might be able to deduct the cost of the insurance on your tax return. The rules are just as complicated as most other tax laws, so you should consult a CPA for guidance. What is PMI? …
For normal conventional loans (loan sizes from $50,000 – $1,000,000) for borrowers with average to above average credit that can document their income, qualification is generally an automated process. We take a standard loan application over the phone or via the internet, pull your credit and the file is then uploaded to one of two …
What does the appraisal report contain? Each report must reflect a credible estimate of value and must identify the following: The client and other intended users. The intended use of the report. The purpose of the assignment. The type of value reported and the definition of the value reported. The effective date of the appraiser’s …
A home purchase is the largest, single investment most people will ever make. Whether it’s a primary residence, a second vacation home or an investment, the purchase of real property is a complex financial transaction that requires multiple parties to pull it all off. So who makes sure the value of the property is in …
When you refinance and pay closing costs, you can certainly roll in these expenses to the new loan if you so desire as long as you have enough equity to avoid paying PMI. If you will be over the threshold by rolling in your closing costs we could set you up with a small 2nd …
Oftentimes it may seem like a good idea to refinance to combine a first and second mortgages. If you have enough equity to keep your combined loans under 80% of the appraised value of your home this may work. There are some considerations however. If you’re existing 2nd mortgage was not used to originally to …
There may be some out of pocket funds required at closing depending upon a couple of factors. If you have an escrow account for taxes and insurance, it does not roll over to your new mortgage. This means we must collect for the new escrow account whatever amount should be in that account at this …
Will I have to write a check at closing with my refinance? Read More »
Convert your adjustable to a fixed rate When you bought your home originally or refinanced your home the last time, you most likely predicted that you would be moving prior to the expiration of your initial fixed rate period on your adjustable rate mortgage. Or because the rate was much lower at the time, it …
