The Mortgage Brothers Show

An assumable mortgage is one in which the lender (the mortgage company) has included a provision or clause which stipulates that the mortgage may be assumed by a third party. Typically, this third party would be the person who is purchasing your home from you, the seller.

If the mortgage is not assumable, there will be a corresponding provision or clause stating that the mortgage is not assumable. Whether the mortgage is assumable or not, there will be a clause which states that it is either assumable or not assumable.

Here are some guidelines and advice:

• Calculate the APR (Annual Percentage Rate) of the mortgage to be assumed. In many cases the lender will ask for “points” from the person assuming the mortgage. Make sure these points are figured into the APR. Don’t look at just the interest rate. Add the interest points to it and calculate the APR.

• Make sure you can afford the monthly payment. Everything else being equal, an assumed mortgage will have a higher monthly payment amount than a new 30 year mortgage. If you can afford the payment, this may be a good option for you.

• When assuming a home mortgage, no property appraisal is required. This will save time and money for the borrower.

MIP is an insurance premium paid to the FHA for its guarantee of the mortgage to your lender. It is this FHA guarantee of your mortgage that motivated the lender to extend the loan to you. These insurance premiums fund the loan losses incurred by the FHA.

The Mortgage Insurance Premium is paid by the borrower in two parts. First, there is a premium paid when the loan is granted. Currently, this front-end premium is 1.75% of the loan amount. Then, there is an additional premium that is collected with each monthly loan payment.

Yes. There are a few ways to do this. One way is with an FHA mortgage. These loans are insured by the federal government. Your credit does not have to be spotless. Even with bankruptcy or collection activity, you can still qualify.

If you already have an FHA loan and want to refinance it, look at an FHA streamline refinance, which is a mortgage product only for current FHA borrowers. An FHA streamline refinance does not require an appraisal. So you can qualify for this loan even if you have no equity or your home is underwater. Also, an FHA streamline refinance is does not require job, income or credit verification.

A home loan refinancing occurs when someone with an existing mortgages gets a new mortgage to replace it. Funds from the new mortgage are used to pay off the old mortgage.

To refinance your home loan, there are basically three steps that you will take.

1) Assess: With your lender, assess if refinancing your mortgage is the right decision for you at this time. Then assess which program is best for you.

In Short: As of August 12, 2014 borrowers who had a past mortgage included in a past Chapter 7 bankruptcy, the borrower only has to wait 4 years from the date of the discharged bankruptcy to get a new conventional loan… you no longer have to wait 7 years!

Renovations under a 203k mortgage may be minor to major. Any FHA loan qualified property can qualify. When the property is appraised, two values are provided: an as-is value, and an after-improved value, taking into account the planned repairs. Your final loan amount is based on the after-improved value.

Applying for an FHA Mortgage is mostly the same as applying for a conventional mortgage. You must apply through an FHA-approved lender. Your lender will have the forms and know-how to get you through the loan process.

Are you interested in buying a home and getting a mortgage in Arizona, but don’t have a large cash reserve for your down payment? Do you know about the option of a seller carry-back? A seller carry-back is a great way for a buyer with too small of a down payment to purchase a home. And as a seller, offering a small seller carry-back, is a great way to incentivize buyers if interest in your property has diminished.

Many first-time homebuyers do not have the savings on hand for a large down-payment on their mortgage. This is why they often choose an FHA loan over a Conventional loan. Not only does an FHA loan only require 3.5% down on the loan, but it also allows for gifts to be accepted in order to help fund the purchase. A gift, in this case, refers to any funds the borrower receives from a private donor that do not have to be repaid. For example, parents giving their child money to put toward the downpayment counts as a gift.

Many home buyers understand that the state of their credit affects the type, amount, and interest rate of the loan that they will be able to receive. However, they may not always be aware of just how much of a role their credit plays in procuring a mortgage. We recently experienced an example of just how dramatic the effects can be with one of our borrowers.

Hiring a home inspector is one of the most important parts of purchasing a home, yet it is one step that numerous potential home buyers will neglect or rush through. Do not think of a home inspection as a formality; instead, see the valuable insight it offers into the state of the house behind the paint. A high-quality inspection can let an investor know what they could potentially find themselves paying for in the first few years of homeownership.

If you have had a foreclose on your home in recent years and are looking to re-enter into the housing market, you will have a hard time receiving another mortgage loan if the foreclosure is recent. However, there is good news in the realm of foreclosure loan options.

Considering an FHA loan? This federal government program is designed for worthy homebuyers who might not otherwise qualify for conventional loans; it’s especially helpful for first-time homebuyers, consumers with a limited credit history, and those who can’t afford to make a significant down payment.