The Mortgage Brothers Show

If you’re looking to move to Maricopa County in Arizona, or you already live here and want to own your home, you will need to apply for a mortgage. For many prospective homeowners, this process can be daunting, yet filled with excitement. However, if you want to secure a home loan in Arizona and have less than ideal credit, then you’ll be met with a series of challenges.

Securing an Arizona mortgage when you’re self employed can be a frustrating challenge. There was a time when you could use your bank transactions as evidence of your income, but that’s no longer the case. Today, you need to show not only two years’ worth of income on your tax returns, but you also likely have to put down 20% or more and have up to six months’ worth of savings that can cover not only your mortgage payments, but also all of your other bills as well.

Once the housing market took a turn for the worse in 2007 and 2008, it seemed that the days of getting an Arizona mortgage with little to no money down were well behind us. That meant that a vast number of potential homebuyers (those that had qualifying credit and solid employment but not enough resources to afford a large down payment) would be left out of the market, at least for the time being.

During recent weeks, the mortgage interest tax deduction that has been discussed in Washington with regard to saving money, closing loopholes, and avoiding the ‘fiscal cliff’ has created a bit of controversy. While the interest deduction has no bearing on Arizona mortgage rates, it’s a good idea to become familiar with it: what it’s about, how it could save you money, and why losing it can cost you money over time.

We’ve heard for years now the term ‘fiscal cliff’ and while the leaders in Washington battle to steer us away from that edge, a home loan in Arizona, as well as everywhere else, could be directly impacted by the decisions they make in D.C. There hasn’t been a major overhaul of tax codes in this country in decades, but with the economic crisis growing worse each year, it appears that homeowners who have been struggling since 2008 could be in for more rough seas ahead.

The chief housing regulator for the United States recently expressed optimism for the real estate market having muddled through several years of strife and struggle and that means now is the best time to apply for an Arizona mortgage. Phoenix home loan rates will not be as low as they are anytime in the near future, and may never be this low again. Coupled with the incredibly low housing prices in Maricopa County, this may very well be the perfect scenario that eager potential homeowners have been waiting for.

As an Arizona mortgage broker, I am often asked a number of questions that would-be home buyers are confused about when it comes to approval and the affordability of a home loan. I am always open to answer questions from potential homebuyers, and while some of their questions tend to revolve around points, fees, and percentages, many people don’t realize what they can do to prepare for the opportunity to buy a home.

For now, mortgage rates remain at all-time lows. According to Freddie Mac’s weekly mortgage rate survey, the average, conforming 30-year fixed mortgage rate held firm last week for mortgage borrowers willing to pay an accompanying 0.8 discount points plus applicable closing costs. 1 discount point is equal to one percent of your loan size.

Mortgage markets are impacted by economic developments around the world, as well as economic developments right here in the United States. One of the reasons is that the secondary market for mortgages is ultimately controlled by Fannie Mae, Freddie Mac and the Federal Housing Administration.

Every month, the National Association of Home Builders (NAHB) publishes the HMI, a report that studies the confidence level of the nation’s home builders. Based on a scale of 1 to 100, a score of 50 and higher bodes well for the industry. This signifies that home builders believe sales conditions will be positive. On the other hand, a score of 49 and below could mean that home builders have negative sentiments toward the industry’s future.

There are many developments in Mesa, Tempe, Chandler, Scottsdale, Glendale, and the greater Phoenix area that may appear like condos but they are actually townhomes. They both have similar HOAs and are often marketed to the public as one and the same. Most people think there isn’t a difference between a condo and townhouse but in fact there is a big difference. The difference is in the way ownership is legally structured.

A borrower called me today and said that they were approved for $120,000 mortgage to purchase a home in Mesa, Arizona. They wanted to do an FHA mortgage on a condo so they could put 3.5% down payment. The borrower wanted to know if they could do a conventional loan to save on some money. The borrower said they have 3-5% down payment available and a 675 FICO score.

If you have an Arizona mortgage that was originated and sold to Fannie Mae and Freddie Mac before May 31 2009, you are eligible for the Home Affordable Refinance Program (HARP). The original HARP program was limited to borrowers who had a loan to value of 125% or below. Many homeowners have loan to values above 125% and have been unable to take advantage of the low interest rates in the market. Arizona, Nevada, and Florida will benefit the most from these changes to the program since these states have seen the greatest depreciation in home values throughout the country since 2007.