Category: Mortgage and Financing

Is it Time to Refinance Your Mortgage?

Guaranteed Rate has listed the five most important questions for you to answer as to whether refinancing is for you.

Time to refinance your mortgage

 

But before you refinance, there are a few important things to think about.
Research and preparation are the keys to a smooth and useful refinancing experience. Guaranteed Rate has put together this short e-book to shine some light on how you can get started now.
The Five Most Important Questions to Answer When Refinancing Your Mortgage are:
– Can you refinance your loan?
– Should you refinance?
– How do you get the best rate?
– What else can you do to lower your monthly payments when refinancing?
– What details can reveal new savings opportunities?

If you have any questions after reading this, you can call Sanette Isa-Bruton, Loan Officer ( at 708-995-3061) or one of Guaranteed Rates other Home Loan Experts at 1-866-934-7283, post your question on their Facebook page (http://facebook.com/guaranteedRate1) or tweet them @GuaranteedRate.

 

Home Loan in Process? Some Things to Know…

 

While your loan is in process there are a few housekeeping tips to remember, from Rebecca, our office PHH/Coldwell Banker Home Loans Mortgage Advisor…

1)Please do not incur any new debt while your loan is in process including increased credit card debt.

2) If you are retaining another home you will need 6 mths reserves for each retained home (these funds can be from your 401k)

3) If you are not retaining a home you will need only 2 mths reserves for conventional financing

4) Any large deposits other than your pay check into your bank account will need to be sourced and documented. Along with a letter of explanation.

5) Gift funds are acceptable as long as you have 5% of your own funds.

If you are buying new construction please send in updated bank statements each month and a updated pay stubs.

6) If there is a change in your job please notify us immediately. (we will need 30 days worth of pay stubs)

7) If you gave earnest money to the builder or agent to purchase a home, please send in the bank statement (s) showing those funds clearing your account.

Housing Affordability Hits Four-Year Low

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  • October 12, 2013, 5:00 AM ET

Number of the Week: Housing Affordability Hits Four-Year Low

By Nick Timiraos

16%:The average mortgage payment on the median priced home in August as a share of the median income, according to data compiled by the National Association of Realtors.

Housing affordability hit a four-year low in August amid steady gains in home prices during the spring and higher interest rates during the summer.

While the data released earlier this week show affordability has been dented, homes are still more affordable than any time between 1989 and late 2008, according to the NAR’s figures.

At prevailing interest rates in August, the mortgage payment on the median priced home stood at $851, or around 16% of the median U.S.income. By contrast, the equivalent mortgage payment one year earlier,at $683, accounted for 13.3% of the median income.

The NAR data isn’t adjusted for seasonal factors. Median home prices tend to peak in June, when there are more home transactions,particularly at the more expensive end of the market. Because the affordability figures are pegged to median home prices, the data typically show housing becoming more affordable during the winter and less affordable in the summer.

But the affordability figures show unmistakable evidence of how rising interest rates hurt housing affordability in July and August because median prices didn’t rise in those months, even as the average monthly payment went up due to rising rates. The average monthly payment rose from $787 in June to $851 in August — even though median prices fell slightly from June to August.

Monthly payments last stood above $850 in November 2008, and monthly payments as a share of income last stood at 16% in July 2009.

Mortgage rates have declined modestly since August, which means that the 16% figure could be — for this year, at least—the high watermark for the payment-as-a-share-of-income metric.

Declining affordability is a big reason why the housing market’s frenzied price gains during the first half of the year are likely to  the second half. Home sales data for September won’t be released until Oct. 21, but already there are more signs that competition for homes has eased as buyers digest the impact of higher rates.

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