Hawaii Mortgage

Archive for February, 2010

my current 2yr fixed rate deal runs out in jan09 so what would be the best mortgage to go for in the current climate? i’m looking for around about 65% of the propertys’ value. also, how soon can i have my new deal in place before my previous one expires so that i dont pay twice in one month.

thanks in advance.

The term ‘best’ deal is extremely important and one which your mortgage broker should explain to you in detail. Of the various mortgage rates which are available on the market it is necessary to look at all the various aspects of the mortgage deals to work out which is the best.

In order to do this you must look at the overall cost of the mortgage.For example, when comparing 2 year fixed rates it is necessary to total the monthly payments up over 24 months and then add back in the associated arrangement fees. Also bear in mind certain products will have ‘incentives’ such as free valuation and free legals which need to be factored in to the overall cost.

It would be impossible to assess what would be the best mortgage deal for you at the moment without knowing all of your personal circumstances. Also, in the current climate it may be best for you to remain on your lenders Standard Variable Rate (SVR). With many lenders reducing their SVR, in certain instances this can be cheaper than any new mortgage deal on the market.

In order to assess what the best mortgage deal for you, take advice from an independent mortgage broker.

http://www.wwfp.net/mortgage/mortgage-broker.html

Disclaimer:
The answers above are for guidance only and should not be acted upon without you receiving professional mortgage advice relevant to your circumstances. To find an independent mortgage adviser please go to http://www.impartial.co.uk.

I pay my home mortgage to American Home Mortgage and I just saw online today that they are filing for bankruptcy.

it means nothing to your obligation to pay. keep paying on time and in full.

the loan will belong to someone after all the dust settles and they’ll still want all the money promised.

there may be paperwork fun for AHM, its trustee in bankruptcy, etc. .. but that isn’t your worry.

***
Btw, most of the mortgages outfits like this service are actually sold to someone else … you simply aren’t told of that because you do not need to know — the servicing outfit handles it.

it may be that a new servicing outfit will be chosen somewhere down the road. if this happens, you’ll be told in writing in plenty of time to change the name and address you send your payments to …

if/when that happens, I recommend continuing to put AHM’s name on the check for a few months but to use the new address. If it really has been transfered to the new outfit, they’ll have authority to use AHM’s name for a bit. If it is a scam on ‘official’ letterhead, the scammer will have to lie to his bank to get the money and then you’ll be able to get it back afterward.

Can’t be too careful these days, i’m afraid.

I would like to sell subprime mortgages but need to understand who I am looking for and what their needs are. As well as some good lenders to work with. Thanks!

good luck

Countrywide 30yr fixed/5SPP

Hello,

I completely agree with wanting to invest your money. Afterall, what’s the point of making money if you can’t make more money with your money (got that?)? Anyway, I’ve tried all different investments from stocks and bonds to IRA’s, 401k’s, and real estate. I’m really a big fan of diversification.

However, the only investment I’ve really been happy with so far is real estate. Over the past 5 years, I’ve bought 3 different properties (all have tenants, and I’m making more than the mortgage payments on 2 properties).

The 3rd property I got was using Carleton Sheets no money down methodology (he’s a GURU in real estate, and yes, his methods do work!). You can actually buy a property for absolutely nothing down (NO MONEY FROM YOUR OWN POCKET). I payed over $500 for his course 3 years ago, and I just saw it online for $9.95!!!! This is a steal at $9.95 (I’m actually going to buy it for my friends for Christmas). It was featured on TV, so I got the website from there.

Before you invest in anything, I highly suggest the Carleton sheets course. http://www.alllsite.info/real-estate.php

I am hopefully completing on my first property next Friday. How does the first mortgage payment work? Will it be a double payment?

No.

On your mortgage, you always pay interest in arrears. This is part of the reason that you end up paying so much money over the life of your loan.

If you carefully review the HUD-1 Form that you received from the Escrow Company (Closing Statement), you will see that you were charged interest from the day of closing through the end of the month. Since your first payment won’t be until after the next month, it includes interest for the prior month.

So, if you close in March, your HUD-1 includes interest through March 31. You have no payment to make in April. Your May 1 payment includes the April interest. What many people don’t realize is that your mortgage company will probably accrue interest beyond the first, until the day they receive your check. This is common practice, but it really is a violation of the terms of your mortgage. Good luck enforcing this one later.

So, the answer to your question is no, the first payment is not a double payment, but you are welcome to pay extra each month as additional payments to principal. If you choose to do this, be sure to include a letter explaining that you want the excess applied to additional principal, or else the mortgage company will simply consider that a prepayment of the next month’s payment. This means you won’t get an interest credit, if you don’t tell them your intentions.

Good luck, and enjoy your new home!

Right now I have a fixed-rate mortgage at 6.25% but the job situation is bad and both my wife and I cannot afford to pay the mortgage and our debt. Is it possible to negotiate with our current lender to lower the interest rate to what the government has out now? (lower than 5% I think). How does that process work? I don’t want to refinance, I just want to negotiate for lower interest rate.

I think a loan modification would be your best bet in this situation. Refinancing would cost a lot in the end with the closing cost and commissions to the loan officer. I’ve done a couple loan modifications and the people are usually in a much better situation afterward but there are never any guarantees. I suggest you go to someone experienced in loan modifications and goes through an attorney because they’ll be a lot more qualified to negotiate with the lender. As long as you have a decent cash flow going and your showing a real effort to try to stay in your home. One last thing is that loan modifications are only available for people in hardship meaning you have to be behind at least one payment. But for sure consult a professional before you take any action.

I have shopped around but cant get the amount that i need,this is the only lender which is able to get what i need,and is 6.78% fixed rate for 2 years a good rate? lenders charge is £1999 added to the mortgage and introducers fee of £499
any help will be much a appretiated

It is difficult to answer this question without knowing the circumstances of your application. Nevertheless, any application made to a lender is judged, by the lender, on its merits and the risk the application presents to the lender; it is important to remember that all lenders operate in the mortgage market to make money. Any deal that is presented to the market is offered on the principle that someone will accept the deal, otherwise there is little point in marketing such a proposition. Currently fixed rate deals are not in great supply, therefore any deals that are out there that, on the face of it look attractive, tend to be more expensive. The lender needs to recoup their costs of bringing fixed rate money to the market; in this case the lender has chosen to pass these costs directly onto the customer, up front. Other lenders choose to apply extended tie-ins with redemption penalties, either way, they will recoup their costs one way or another.

I had applied for a loan, Wells Fargo had receive all banking accounts, retirement accounts, savings accounts, W-2"s. I applied online I received a Pre-Approval/Priortiy Buyer letter, my agent said I should now start looking for a home, she new I was looking in Hawaii. I spent money for inspections, my hotel, car rental, dog boarding, food and gasoline. I spent $4468.55 on this trip, 7days before closing I was contacted by Wells Fargo, my current agent had left and I was assigned a new agent, Wells Fargo stated Amy Gooch and Wells Fargo had made a mistake on the paper work and could not lend me the money. I’ve contacted CEO’s and VP’s in the Co. Region, I received a form letter stating I would not receive the loan, ok, fine with that, what about the $4468.55, they refuse to give me that back after their mistake, do I have a leg to stand on or should I contact a my lawyer? And if anyone knows anyone from Wells Fargo, I’d like to set-up an appointment with them to discuss this matter

This is a tough one, because many times, applicants are "Pre-approved" as you state you were, and then later denied the loan they were applying for.

Pre-Approval only means that you met the minimum requirements for approval, but you haven’t been completely approved yet, because the company still needed to screen your credit for other things. It’s very often that pre-approvals end in denials for loans or credit.

So because you made purchases before actually being formally approved for the loan, you’re going to have to eat that one. Unfortunately, the company never approved you for the loan before you made those purchases, so you don’t have a leg to stand on with this one.

Try to find another loan that will cover the $4468.55 you spent before you were approved.

My parents bought their home 4 years ago at a 4% rate, which is due to change next year when their loan rate. With the market crunch and the new strict lending that’s bound to occur as a result of this, they are worried about what refinancing has in store for them. The good news is that they have flawless credit (they successfully removed their PMI, and they are early every month on their mortgage payments —and they pay an extra couple of hundred dollars than they should. Not to mention their credit card debt is very low (only a couple of thousand dollars). They’ve both been at their great paying jobs for over a decade; but they are still worried about whether they will be able to secure a decent fixed rate when their mandatory refinance is up. Any hope?

The biggest impact on our market is the following:

1. – There is no longer any subprime lending
2. – Jumbo loan rates have been rising disproportionate to the rest of the market
3. – The ALT-A market has all but vanished
4. – FHA Loans have become increasingly attractive.
5. – Fannie Mae loans have for the most part remained unaffected.

While I certainly cannot predict what the market will be like a year from now (if I could I wouldn’t be writing loans and training loan officers for a living) I don’t see subprime on the radar for quite some time. Everything else will come around and normalize.

Here’s a point that everyone seems to be missing. For the most part this is a market problem – Given time the market will correct the problem. Not the Senate.

How to get the best mortgage rates and find the right lender

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