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Tag Archives: Build equity

Are you overwhelmed by the loan process?


Are you overwhelmed by how to research and find a good lender or how to compare the rates and fees?

Confused by what the broker says?

Wondering if your quote is competitive or who to trust?

I’m the Mortgage Fee Coach. I help you, the borrower, find the best quality lender and the lowest rates & fees.

If you have a quote(s) from a lender(s), I help you compare it with other lenders.

Don’t have a lender? I provide suggestions.

If I find you a better quote, than I will provide the lender information.

I only get paid when I save you money and I receive nothing from any lender!

My average client has saved over $10,000 because I helped them either negotiate a better rate and fees with their current lender or directed them to a better lender.

You will have peace of mind that you received the best possible loan.

Call now to learn how I can save you $$$$, 949-484-6322

(Copyright 2013 Mortgage Fee Coach, Inc. All rights reserved. This posting or any portion hereof may not be reprinted, sold or redistributed without the written consent of Dan Stone).

 

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Searching for the right mortgage lender? Watch a “Priceless” client testimonial


Are you overwhelmed by the loan process? Wondering who to trust? Confused how to find the lowest mortgage rates and fees? Unsure how to compare it all? Would you like a personal shopper to do it all for you, at virtually no cost?

Watch this video to learn more about how I can save you $1,000’s, which includes a clients’ “priceless” testimonial experience.

I compare many different lenders rates and fees for you. I help you shop for the best deal between many types of lenders. I also research the quality of each lender and loan officer, their Better Business Bureau rating and many other social media websites for you. Having 24 years experience in mortgage banking, I provide the information in a simple and easy to understand format so you can make a better informed decisions about which lender to apply for a loan. Best of all, I only get paid by you when I save you $. I saved a recent client over $1,800 more than the lender they were going to choose. Call now for a free consultation and I’ll show you how.

Description of Mortgage Fee Coach services:
– helping borrowers compare & negotiating lower rates and fees on home mortgage loans
– compare the quality of mortgage lenders
– client testimonial, saved them over $1,800 on their loan
– providing clients peace of mind through the process by an impartial mortgage professional
– services are virtually free, because I’m paid 20% commission on the amount I save you.  If I don’t save you $$$$, then there is no cost to you.

 

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Want to improve your odds of buying a home? 7 steps to a mortgage loan pre-approval


If you are considering buying a home and are not paying cash as many investors or foreign buyers are doing lately, it helps to level the playing field. Nowadays, sellers are deciding quickly on which offers to consider. If you have a pre-approval attached to your offer, it is much more likely to be considered. Follow these 6 steps to improve your chances of buying your dream home.

  1. Begin by preparing your information. Gather statements of current income, including last 2 months of paystubs, last personal federal tax return, W2’s, 2 months bank statements for all borrowers and assets information. Also gather your employment history, usually last 2 years of consistent employment. If self-employed, be prepared to prove your income and projected income sustainability.
  2. Do you know your credit score? Maybe you think you do by accessing your free annual credit report, but those reports are not the same as reports accessed by banks & lenders. For now, I suggest requesting each borrowers free annual credit report, as it is better to know any credit score and potential derogatory information. Begin resolving issues ASAP & look at my blog post How to save $100’s to $1,000’s: 11 tips to manage your credit score.
  3. Research many lenders, click here for my blog post. Do you know the loan program you need? Did you know there are many down-payment assistance programs to help 1st time homebuyers? Cities and states also offer down-payment and assistance programs. Do these lenders have experience with these programs? Find a lender that has the program that best fits your needs. I suggest asking an impartial person, such as the Mortgage Fee Coach, if the lender is right for you. This is one of the areas I bring the most value.
  4. After finding the right lenders, request rate and fee quotes from each of them. You will be surprised at home much their rates and fees differ. If using the Mortgage Fee Coach services, rates and fees will be compared for you in an plain format, so the least expensive option is clear. The Mortgage Fee Coach will clearly save you money in this area.
  5. After finding the best lender, complete an application, provide copies of the required documentation, and keep the originals. Ask how long they require for pre-approval?

    Be aware, due to the new government regulations, you will have to prove beyond a reasonable doubt that you have the ability to repay the loan. The underwriter will review all the information, including verifying current income and historical income from two years of consistent past employment.

  6. Keep in contact with the lender every 3-4 days, until your loan is approved. The Loan Officer should help you feel at ease and the process is moving forward timely. They may also need additional information. Provide it as quickly as possible.
  7. Become pre-approved for the mortgage loan. Know the maximum loan amount for which you qualify. Pre-approvals may be valid up to 120 days, but the lender may ask for updated paystubs and other information after 60-90 days.

Finally, take the time to build a quality relationship with your lender as early in the process as possible. The earlier you start the loan approval process, build the down payment and cash reserves, resolve credit issues and document required income, the sooner you will be able to buy your home and live the American Dream.

 

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Why refi from 30 year fixed to 15 year fixed?


Mortgage advertising is everywhere these days. Sometimes a 15 year mortgages is mentioned instead of the traditional 30 year mortgage.  Before I give you reasons why it will save you money, let’s first discuss your overall financial plan. Do you have credit card balances, paying finance charges of 10.99% or more? Do you have 6 months cash reserves for living expenses? Have you started saving for your kids college expenses? Do you have large car loans? Do you owe anyone money? If you answered yes to any of these questions, refinancing from a 30 to a 15 year fixed may not be in the best decision. Interest rates are at historical lows, so borrowing money is cheap right now. To view the current average U.S. 30 year mortgage rate, look at http://www.bloomberg.com/markets/rates-bonds/key-rates/ Even though you would save money on interest paid and pay the loan off sooner, it is more important to save money for children(s) college, saving 6 months cash reserves, or paying off expensive credit cards and car loans is a much better use of funds. Ask a certified financial planner to determine the right answer for you.

Reasons why it will save you money:

  1. The mortgage loan will be paid off 15 years faster.
  2. In the 15 year loan payment, more money goes toward the principal portion of the loan sooner. As a result, equity is built-up more quickly.
  3. Making higher payments during a shorter timeframe will save tens, even hundreds of thousands of dollars in interest.
  4. A shorter term can also provide a tax break. The New York Times recently noted, by restarting the mortgage you’ll pay more in interest in the loan’s early years, which will increase the mortgage-interest deduction as compared to the waning years of a 30-year loan.
  5. Rates on 15 year fixed are currently lower than 30 year by approximately .50% – .625% or more, which will save money.
  6. At times, investments are losing money. By paying more on the mortgage loan, you may be earning a higher return.

Reasons to refi from 30 year to 15 year fixed:

  1. Pay-off your mortgage before retirement.
  2. Build equity in your home twice as fast compared to refinancing back into a 30 year mortgage.
  3. Save more than 1/2 the interest paid. Per Bankrate.com, on a $100,000 loan, 30 year fixed at 6% versus 15 year at 5.75%, the savings is $66,364. http://www.bankrate.com/calculators/mortgages/15-year-30-year-mortgage-calculator.aspx
  4. Lock in a 15 year mortgage rate at historical lows, as borrowing money is cheap currently.
  5. Financial and payment stability, knowing the mortgage payment will not change for 15 years.
  6. Often, when borrowers choose the 15 year term, they usually have a better understanding of their finances, better budgeting and more organized cash management to afford the higher payment. Described in another way, they are spending less on frivolous things.
  7. If the 15 year fixed rate is lower than your current 30 year rate by .75% or more, it may be more cost effective to refinance. See my earlier post about when you should refinance and the breakeven analysis, found at: Bankrate.com mortgage calculator

Reasons NOT to refi from 30 year to 15 year fixed:

  1. The 15 year payment is higher by more than 35%, which may be difficult to manage.
  2. If you have a prepayment penalty on your current loan which is excessive and increases the cost of refinance this could make it difficult to recoup the cost by the time you plan to sell the home.
  3. If you do not have a steady job and income, than committing to a higher payment may be too risky. It would be better to commit to a 30 year loan, then if possible, pay the higher 15 year amortized payment as much as possible, thereby reducing the term and interest payments.
  4. If you are trying to qualify for a streamline refinance, which is less loan information and documentation, it is not possible when changing from a 30 to a 15 year fixed rate.
  5. If you know you are moving in a few years, it does not make sense to refi to a shorter term.
  6. If you are a first-time home buyer, you may not fully understand the costs involved in home maintenance and taxes. So, committing to a higher 15 year payment may limit other spending on your home.
  7. The expense to refinance versus simply paying the 15 year payment instead of the 30 year payment.

Interesting fact:

Per Freddie Mac, the Government Sponsored Entity(GSE), “Of borrowers who refinanced during the second quarter, 30 percent reduced their loan term, while 67 percent of borrowers kept the same term as the loan they had paid off. So, almost 1/3 of the borrowers thought it was a good idea, based on their situation.

http://freddiemac.mediaroom.com/index.php?s=12329&item=131537

 
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Posted by on September 19, 2012 in mortgage, mortgage refinance, refinance

 

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