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FHA Streamline- Lower Interest Rates Spark Refinance Savings

Posted in Credit Notes,Financing- Loss Mitigation,Lender News Reports by Administrator on the October 15th, 2012

FHA Streamline- Lower Interest Rates Spark Refinance Savings

Mortgage rates continue to reach new lows, as FHA streamline refinance is in more demand. Homeowners with higher rate FHA mortgages pre-2009 are beginning to see the savings. Over 3 million FHA borrowers have a 5% or more rate.

You can almost guarantee that refinancing with an FHA streamline will save you money instantly. FHA guarantees it or you won’t be able to close the transaction.  It’s called “Net Tangible Benefit” you either qualify for a benefit by doing the refinance or lenders can’t refinance you. Borrowers with loans that were closed prior to June 1, 2009 would be most likely to see the largest savings – the minimum benefit is 5%. Those Borrower’s also find they are eligible for a reduced upfront mortgage insurance premium of .01%, as compared to the current upfront premium for a new loan which is 1.75%.

FHA’s mortgage insurance premiums also offer a lower premium cost as an added benefit.

FHA does not require an appraisal and therefore doesn’t have a Loan to Value ceiling.  So borrowers with upside down mortgages are more likely to qualify and closing costs are lessened. The only down side is “no cash out.”  It is expected that some Borrower’s could actually lessen their monthly mortgage debts to the point of reducing their loan terms which will eventually lessen the overall interest they pay over time.

FHA intended the streamline refinance program to reward borrowers that have paid their mortgages on time and have maintained their credit standing. It also has the power to help those with lower incomes to refinance due to it’s low documentation requirements.

If you are looking for more information on the FHA streamline refinance, you can email your request to ContactUs@ProfessionalRealtyPartners.com

Were you in foreclosure in 2009 or 2010? Important Announcement Information

Posted in Welcome by Administrator on the October 6th, 2012

Were you in foreclosure in 2009 or 2010?

2009-2010 foreclosure help

2009-2010 foreclosure help- Federal Government review of Foreclosure filings.

Help for Homeowners in foreclosure during 2009 thru 2010

 http://bcove.me/izfwpunb -the Federal Governments Video explanation.   

www.IndependentForeclosureReview.com This is the site that you need to review in order to make sure that if you were foreclosed between 2009 and 2010 that you have the right to make sure that your file was handled properly.  You must apply for review before 12-31-2012 so please make sure that you do get the Free review in case you are entitled to part of the monies set aside for reimbursment by the government for wrongful filings.

Help for Homeowners during 2009-2010

Federal reserve video vault-  You can find Spanish and English video information to help you understand what is happening with the help for homeowners during those years.

You must file by 12-31-2012 in order for the federal govenment to be able to review your situation whether you are still in foreclosure or your home has already been sold at sheriff’s sale.  It is to your benefit for the government to review your file and make sure you were properly foreclosed upon.

Low appraisal valuations could turn your loan approval refinance sideways

Posted in Financing- Loss Mitigation,Lender News Reports,Real Estate by Administrator on the October 6th, 2012

Low appraisal valuations could turn your loan approval refinance sideways

appraisal value check

Make sure you know the recent sales in the area and their Square Footage.

My immediate subdivision has been hit hard by foreclosures and short sales. This makes my refinancing risky, especially when the appraisal numbers might not come in.   Accepting the fact that my condo is worth less today than when I bought it; I’m guessing the value of my condo is somewhere around the value of my existing mortgage.  Appraisals are expensive and so is the time a loan officer puts in to bring my refi forward so the best course of action… research!

“You can have everything in line- Credit Scores, Debt vs Income to manage the mortgage payments but low appraisal value is the No. 1 reason why loans are declined.

The most important thing is to have key information like an accurate square footage of the residence called GLA or Gross Living Area.  In Illinois-Cook County GLA is expressed as above ground living space.  In the case of split level houses; some houses, will not include lower level rooms or Square Footage and in others it will be included.  This poses another issue that owners need to be aware of when selling.  If it’s not in your benefit changing SFage on the tax records may not be important until you go to sell your home.

Checking thru your property assessors information will help you ferret inaccurate information that the appraisers use to value property.  The assessors office is the authority used to measure one home against the other.

Information as to what has sold in the last 6 months in your neighborhood is very important because the appraiser is going to go on the list of transactions from the assessors office and Multiple Listing Service.

Errors are common, checking in on the comparables in the area and doing your own research to make sure the comparables used are going to be valid is something you can do to make sure the appraiser used the right comparables.  In city environments a .5 or less radius or in the suburbs up to 3 miles may be used.  By the way, don’t blame the appraiser, blame the stored information.  Using a Realtor can help you to gather the information you’ll need to assure a smoother appraisal process, just ask for a CMA and look for similar units to yours that have recently sold.  You’ll need a minimum of 3 solds and 3 active listings with similar SFage to your home.  If they are high enough to warrant a refinance on your mortgage venture forward and begin the process.

One reason the SFage numbers are skewed and homeowners don’t care is that Property taxes are based on those assessor report cards.  This means if you think you are paying too much- you should be checking those numbers.  In many cases homeowners don’t opt to change the tax records because changing them would mean increased property tax payments.

Thanks to an election year and optimisim that our 2008/2009 low prices are behind us, we may in fact be seeing the 1st glimmer of light and improving pricing.  This means refinancing is becoming more of a possibility and homeowners trying to refi into a lower mortgage payment is becoming more of a reality.  Just make sure you check your surrounding area for values before you spend your money on an appraisal.

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