The Mortgage Brothers Show

Borrowers who are self-employed, underemployed, over age 50, retired, or in the military, may want to think about taking job loss insurance for their Arizona mortgage. With such high unemployment rates right now, no one’s job is totally secure. Job loss insurance is now being offered by a variety of lenders and new home builders.

If you pay your Arizona mortgage on a bi-weekly basis, you can save money on the interest because you would be paying your mortgage balance off five years sooner. By paying twice a month, you end up paying an extra mortgage payment per year because there are 26 bi-weekly payment periods a year. Some borrowers like this idea especially if they get paid bi-weekly. You may have to pay an extra fee to do this so check with your lender to make sure they will allow you to do so. Not all lenders accept bi-weekly payments.

If you are in the market for a luxury property, and don’t want to pay super jumbo or jumbo rate mortgage costs, then you may want to put more money down on your mortgage to qualify for a conforming loan or get two loans. Jumbo loans are much harder to obtain because of the new mortgage lending regulations. They have higher interest rates and points than conforming loans.

Strategically defaulting by walking away from your Arizona mortgage because your home’s value has substantially decreased can cause all sorts of difficulties for you. You will ruin your credit and have to pay higher interest rates on new credit or you may not even qualify for any new credit including another Arizona mortgage for at least 3 or 4 years or longer. Your credit score can dip as much as 300-400 points by defaulting on your Arizona mortgage and having your lender foreclose on your home.

Your lender or Arizona mortgage broker will spend time pre-qualifying you to figure out how much you can afford to spend on your Phoenix home mortgage. You will need to let the broker know the amount of your monthly income, whether you have any bonuses or other income such as spousal support and how often you get paid. For self-employed borrowers, you will need to provide copies of your income tax returns for the last two years to document your income.

You will find Arizona mortgage rates advertised on the Internet and in the newspapers. What you need to know is the mortgage industry is highly competitive. Many lenders advertise their best rates, but those are not necessarily the rates that you may receive most of the time.

The Obama Administration is penalizing loan servicers who fail to meet goals under the government’s Making Home Affordable Program. Four out of ten loan servicers were identified as requiring “substantial improvements”. The government is withholding incentive payments to Bank of America, J.P. Morgan Chase Bank, Ocwen Loan Servicing, LLC and Wells Fargo Bank.

If you are looking for an Arizona mortgage for a second home, vacation home or investment property, there are still some good products available. You will need at least a 10% down payment for a second home or vacation home. For investment property loans, figure between 20% to 25% down payment. FHA and VA mortgages are not available on these types of properties.

The current phase of the Phoenix Green Building program started on July 1, 2011. The program makes it easier for businesses and homeowners to get their projects certified as environmentally sustainable without having to go through multiple agencies such as LEED and time consuming processes.

You can expect to receive more disclosure notices when you apply for your Arizona mortgage. For instance, expect to see a credit score notice, which tells you how your credit score compares to other consumers’ scores and includes information about the credit agency that provided the information so you can check your credit report for any errors. Or you may receive a risk based pricing notice or account review notice instead of the credit score notice, which includes information on how you can obtain a free credit report and where to request one within 60 days after receiving the notice.

Foreclosure may be voided if the lender who did not originate the note was unable to produce the chain of title (ownership). This chain of title would need to be presented by the lender listing every beneficial owner of the deed in a chronological order including their name and address, the date of recordation and the recordation number and a description of the instrument used to convey the transfer of title to each beneficiary.

Knowing the mortgage language or terminology when you go to obtain an Arizona mortgage would be very helpful. This way you will feel comfortable when you complete a Arizona mortgage application and the process will be a smoother one. Here are some common terms that you will come across: