Mortgage issues to watch during Obama's 2nd term
You probably knew that homeowners can refinance underwater mortgages through the Home Affordable Refinance Program. HARP is now available for other types of properties as well. You probably knew that homeowners can refinance underwater …
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Home Affordable Loan Modification Can Help Homeowners Keep Their Homes
The Obama administration devised the homes affordable modification program just for hard-working property owners who are having a tough financial time right now. This government-sponsored plan offers different ways to aid a person, order buy more about and they are …
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Question by Lucy S: What are the disadvantages of refinancing when ones property is devalued by about , and 000?
I would like to know if it is worth it to refinance a mortgage that has only about 12 years left, recipe just to take advantage of a lower rate, approved so as to pay less monthly mortgage. I am between jobs and finding it difficult to pay. Also does refinancing put cash back in your hands? Please help!
Best answer:
Answer by KateG
Refinancing has costs for you to do, and while it may lower your payments, since your loan is so far into it, refinancing might actually set you back. You are now paying down equity, while in the early part of a loan, you are paying interest only. You need to figure out what the loan cost would be, what the monthly payments would be and your equity situation. And no, refinancing does not put cash in your hands. Refinancing is taking the value of the home and rewriting a loan, so essentially you are starting over. You are better off right now trying to work it out, using other cost cutting measures to save money elsewhere. Unless you are paying an excessively high mortgage rate, I wouldn’t do it.
http://moneycentral.msn.com/content/banking/homefinancing/p42715.asp
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Question by stephren88: Does anyone know much about Calpers FHA home loan programs?
My husband and I are in the market to buy a home. We were thinking about Calpers FHA home loan. I have a credit score of 580, symptoms long story, search and my husband has a credit score of 724. Can we qualify for a home loan? It seems like the rules are always changing
Best answer:
Answer by mgonvelez
If both you & your husband are applying for the FHA via Calpers, sickness they will go for the higher credit score (your husbands) They also usually pull all 3 credit scores too. You should contact them, CalPers has excellent service with answering any of your questions concerning this. This also applies with credit unions too.
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FHA Loan Limits Are Tailored to Ohio's Housing Market
FHA loan limits are the maximum amounts that the federal government is willing to insure, sildenafil which vary from place to place. The great majority of Ohio has an FHA loan limit of $ 271,500 for a single family home, $ 347,000 for a duplex, $ 419,425 for three …
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FHA Nears Need for Taxpayer Funds
The New Deal-era FHA, which doesn't actually make loans but instead insures lenders against losses, has played a critical role helping the housing market by backing mortgages of borrowers who make down payments of as little as 3.5%—loans that most …
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Jeffrey R. Scharf, Everybody's Business: The next tax sinkhole?
Instead of hoping the FHA will get lucky, Congress should get smart by mandating higher down payments and cutting FHA lending limits ASAP. Jeffrey R. Scharf is chairman of Scharf Investments. Contact him at jeffrey@scharfinvestments.com. Copyright 2012 …
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Question by babyitsyou31: What mortgage company would be best for first time home buyers in New England?
I’m looking for info regarding a fixed-rate, cost low interest home loan.
I’d rather not inquire through a dozen different companies, doctor right away, because they will all run a credit check. And every time your credit is checked, it looks bad on your credit. Sort of.
Thank you for any help or leads you can give me.
Best answer:
Answer by godged
Ask friends and family for recommendations of lenders in your area that they have used and appreciated the service.
If that doesn’t work, go to 3 lenders in your area. Ask about everything, interest rate, transaction fees, appraisal fees, closings costs (get a good faith estimate), pre-payment penalties, late fees, anything that could potentially cost you money. Compare the whole package, not just interest rate.
Don’t go to internet lenders, they won’t know about local programs that you may qualify for.
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Question by : How does dwelling coverage amount and mortgage loan amount work together?
My mortgage amount is $ 242, approved 000 how much coverage is needed? My insurance agent is saying I only need $ 169, buy more about 000 of dwelling coverage but I think that’s a bit low. If I insure it for only $ 169,000 and we experience a total loss what happens to the other $ 73,000 on our loan amount? Do my husband and myself have to come up with the rest? Not sure what to do or where to go to get an honest answer.
Best answer:
Answer by Margarita D
The amount your home is insured for has nothing to do with the mortgage amount. Home insurance is based on how much it would cost to rebuild that home from the ground up in the event of a total loss. When you purchased your home, you bought the structure and the land. However, the insurance company only bases the amount of insurance on the structure itself. You should not have to pay insurance on the cost of the lot since this will not burn. The other scenario is that the home purchase price is based on the market which as you can now see can fluctuate widely — for example you can purchase a foreclosure in some areas for about 1/4 of what it would cost to rebuild the structure just because of what is going on in the marketplace. By the same token — you purchased a home for $ 242,000 even though the cost to rebuild determined by your agent using a replacement cost analysis is $ 169,000. It would not be to your benefit to insure yourself for $ 242,000 as the insurance company will not give you one dime more than what it would cost to rebuild or $ 169,000.
If there is a total loss of the structure, your bank would work with the insurance company to rebuild so no you would not need to come up with the rest of the mortgage balance unless you decided not to rebuild and decided to walk away. At that point you would have to sell the lot and hope that what the insurance pays (which will be based on the depreciated value) and the proceeds from the sale would be enough to pay off the mortgage. Look at it this way, the agent gains nothing by selling you less insurance since he or she makes less commission so I do not think the agent is being dishonest in the amount of insurance being recommended.
I hope this information helps. Good Luck
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Most likely, your mortgage paperwork says you must carry enough coverage to be 100% of the replacement value of the house, or 100% of the loan value, whichever is LESS. Keep in mind, part of that mortgage value, is the LAND. The land can’t get stolen, can’t burn down, etc. It will still be there, even if the house is a total loss.
The insurance company will NEVER pay more than the value of the house. If you have a $ 250,000 house, and insure it for $ 5,000,000 and it burns down, they pay . . .. $ 250,000.
You can always ask your agent to do another inspection, and update the cost estimator he used. You can also hire a private inspection company to do a replacement cost calculation on your house. And you can get a quote from another agent, send them out to your house, to let THEM calculate the cost to rebuild your home, thus the value of your policy.
If your house burns to the ground, and you have a total loss, you can either rebuild, or sell the land, presumably for $ 73,000 plus whatever you put down on your house.
Even if there is a total loss to the building, the land might still be worth something. If the land is not worth $ 73,000, then yes, you would have to pay the rest.
If your agent really told you to get an amount of insurance that is less than the mortgage amount (minus the value of the land) and is less than the value of the house, then get a different agent.
If the house is only worth $ 169,000, then the agent is correct. Even if you get $ 242,000 of coverage, the insurance will not cover more than the value of the house. You would still have to pay $ 73,000 (minus the value of the land).