Nevada Real Estate >> Las Vegas Real Estate Specialist: California: Carlsbad

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FHA lender Carlsbad

New idea by the Fed to allow everyone to refinance regardless of how underwater they are on their home. This was first suggested in 2008 but quickly put on the back burner as mortgage note holders complained it would affect their return on investment. With the housing market not showing much improvement this idea is back on the table to help stabilize property values and reduce foreclosures.

Ever wonder how some people can consistently and accurately predict what rates will do? There are only a few of them and they all use this type of technology. You'll find this information here in this short video of The Epic Perspective.

San Diego Mortgages. San Diego FHA and VA direct lender

 

Trying to figure out why your loan amount differs from what you calculated with no good explanation can be frustrating. 

If you buy a home and subtract the down payment then the reamining amount should be your loan amount. 

Not so fast!  FHA loans have fees and allow some of these fees to be financed into your loan.  This is why borrowers never have the sdame loan amount as their loan officer.

Best way to avoid frustration is with knowledge. This is how we calculate mortgage insurance (MI) on FHA loans to figure out a monthly MI payment. 

 

What exactly is PMI or MI?  You can view PMI a simple explanation for more clarification.

 

What you will need:

A standard calculator

A piece of paper/pen

A little patience

An understanding of MI factor 

An understanding of UFMIP

Here is the formula - 

Loan amount multiplied by to monthly MI factor divided by 12 equals your monthly MI payment.

MI factor is the number used to calculate the sum.  FHA rules change but as of now these are the guidelines.

If you have a down payment less than 5% then your monthly MI factor is 1.15   If you have 5% or greater down payment your monthly MI factor is 1.10

UFMIP is a one time payment to FHA. It stands for Up Front Mortgage Insurance Premium.  Easy way to think of it is similar to buying or leasing a car.  You put a down payment and then have monthly payments. UFMIP is equal to 1% of the loan amount.

Hypothetical scenario:

Purchase price $300,000 - 3.5% down payment ($10,500) = $289,500 loan amount

Apply UFMIP - Loan amount $289,500 X 1% (2,895) = $292,395.  This is your new loan amount with the UFMIP financed. 

Base loan amount - $289,500 X 1.15.  Divide by 12 = $277.44

The monthly FHA MI payment in this scenario would be $277.44 per month.

If the down payment is 5% or greater then use 1.10 instead of 1.15

 

Feel free to contact us with any mortgage related questions.

High unemployment.  Increasing food and energy prices.  Future worldwide water shortages.  Amidst all of this we still see the long line at Starbucks. Paying for a single cup of coffee what would get you a full breakfast at a diner.

People carting out new HD 3D TV's.  New cars, smartphones, ipads, ipods when they aren't needed for work.  I think It's high time we live hard times and use real estate to build wealth.

Americans are proud to be one of the most productive countries in the world.  As a result we "deserve" all of our conveniences and we make sure to indulge.  Unfortunately these conveniences can't be had by all. 

The mainstream media glorifies money and power persuading a lot of people to believe that more is better.  So those who can't afford the unrealistic lifestyle, taken in by these advertisements tend to live outside of their means. What do they spend money on?  "Things".

There's been a shift in America's consciousness about living within our means but it isn't enough.  Time to get serious America.  Get your finances in order because playing the credit card shuffle is nothing more than a pyramid scheme and the banks always win. 

Focus on building wealth instead.  Great way to do that is through real estate.  Sure you have seen home losses but for every one loss you show me I'll show you 8 with huge gains.  A lot of people lost money in the stock market March 2009 but those who held out and bought more stocks at that low, have since recovered and made huge profits.

It won't be long before you say, "Wow, I remember when that $400,000 house was only $250,000 a few years ago and rates were less than 5%.  I wish I would have..."  I wish means regret.  Don't wish and regret, act!

Opportunity only knocks once- Go get the door, your door. Now that home prices are low and interest rates low you can buy low.  In the future when you no longer need to live it that home you can sell high and take up to $250,000 profit tax free if you are single or $500,000 if you are married filing jointly tax free.  Did you catch that..TAX FREE! Learn more. Yes, there are ways to buy a home with little to no money down.  If you don't try you will never know if you can or can't.

 

Click here to apply for a home loan and start building wealth 

 

Click the red X in the top right corner to keep going nowhere

 How a fully approved loan gets denied for funding after the borrower has signed loan docs.

Underwriter views an updated credit report verifying no new activity since original approval was issued and the new debt disqualifies the buyer(s). 

Generally this won’t happen in a 30 day time-frame, but borrowers
should anticipate a new credit report being pulled if the time from an
original credit report to funding is more than 60 days.

Purchases involving short sales or foreclosures tend to drag on for several months, so this approval / denial scenario is common.

 

 

It’s An Ugly Cycle

 

1. First Time Home Buyer receives loan approval and thinks everything is done so makes a credit impacting decision (applies for a loan on a new car, furniture or runs up credit card balance.  Loan documents are signed and the funder gets new credit report sees any of these scenarios and denies the loan.

In the hopes of stemming the senseless slaughter of perfectly acceptable approvals, we’ve developed a “Ten credit do’s and don’ts” list to help ensure a smoother loan process.

These tips don’t encompass everything a borrower can do prior to and after the Pre approval process, however they’re a good representation of the things most likely to help and hurt an approval.

DO continue making your mortgage or rent payments

 

Remember, you’re trying to buy or refinance your home – one of the first things a lender looks for is responsible payment patterns on your current housing situation.

Even if you plan on closing in the middle of the month or have already given notice, continue paying that rent until you’ve signed your final loan documents

DO stay current on all accounts

 

Much like the first item, the same goes for your other types of accounts (student loans, credit cards, etc).

Nothing can derail a loan approval faster than a late payment coming in the middle of the loan process.

DON’T make a major purchase (car, boat, big-screen TV, etc…)

 

This one gets borrowers in trouble more than any other item.

A simple tip: wait until the loan is closed before buying that new car, boat, or TV.

 

DON’T buy any furniture

This is similar to the previous, but deserves it’s own category as it gets many borrowers in trouble (especially First Time Home Buyers). Remember, you’ll have plenty of time to decorate your new home (or spend on your line of credit) AFTER the loan closes.

DON’T open a new credit card

Opening a new credit card dings your credit by adding an
additional inquiry to your score, and it may change the mix of credit
types within your report (i.e. credit cards, student loans, etc).

Both of these can have a negative impact on your score, and could result in a denial if things are already tight.

DON’T close any credit card accounts

The reverse of the previous item is also true. Closing
accounts can have a negative impact on your score (for one – it
decreases your capacity which accounts for 30% of your score).

DON’T open a new cell phone account

Cell phone companies pull your credit when you open a new
account. If you’re on the border credit-wise, that inquiry could drop
your score enough to impact your rate or cause a denial.

DON’T consolidate your debt onto 1 or 2 cards

We’ve already established that additional credit inquiries will hurt your score, but consolidating your credit will also diminish your capacity (the amount of credit you have available) resulting in another hit to your credit.

DON’T pay off collections

Sometimes a lender will require you to pay of a collection prior to closing your loan; other times they will not.  Pay off collections when necessary to ensure a loan approval. Otherwise, needlessly paying off collections could have a negative impact on your score.  Consult your loan professional prior to paying off any accounts.

DON’T take out a new loan

This goes for car loans, student loans, additional credit cards, lines of credit, and any other type of loan.  Taking out a new loan can have a negative impact on your credit, but also looks bad to underwriters and investors alike.

Follow these Do’s and Don’ts for a smoother mortgage approval and funding process.

 

Remember the simple tip: wait until AFTER the loan closes for any major purchases, loans, consolidations, and new accounts.

San Diego FHA - Here's how to calculate FHA monthly MI payment

 

What exactly is PMI or MI?  You can view PMI a simple explanation for more clarification.

 

What you will need:

A standard calculator

A piece of paper/pen

A little patience

An understanding of MI factor 

An understanding of UFMIP

Here is the formula - 

Loan amount multiplied by to monthly MI factor divided by 12 equals your monthly MI payment.

MI factor is the number used to calculate the sum.  FHA rules change but as of now these are the guidelines.

If you have a down payment less than 5% then your monthly MI factor is 1.15   If you have 5% or greater down payment your monthly MI factor is 1.10

UFMIP is a one time payment to FHA. It stands for Up Front Mortgage Insurance Premium.  Easy way to think of it is similar to buying or leasing a car.  You put a down payment and then have monthly payments. UFMIP is equal to 1% of the loan amount.

Hypothetical scenario:

Purchase price $300,000 - 3.5% down payment ($10,500) = $289,500 loan amount

Apply UFMIP - Loan amount $289,500 X 1% (2,895) = $292,395.  This is your new loan amount. 

Base loan amount - $289,500 X 1.15 = 3,329.25.  Divide by 12 = $277.44

The monthly FHA MI payment in this scenario would be $277.44 per month.

If the down payment is 5% or greater then use 1.10 instead of 1.15

Contact us with any mortgage related questions.

We are a full eagle direct lender and we fund approximately 70 million in FHA loans each month.

Our FHA loan experts are here to answer all of your FHA loan questions. FHA insured loans have very specific requirements. If you need to know anything about FHA loans we have the answers. We have an FHA resources center with plenty of information for any home buyer. Request info

Don't lose your home to an inexperienced loan officer. Contact us today and you will be assigned an FHA expert loan officer to help guide you through the process.

In business since 1977

FHA authority in San Diego can answer all of your FHA loan questions.  Rehab loans, Get your home for 50% of the list price using the Good Neighbor Next Door program, standard purchase loans and many more.  We have an FHA resources center with information relating to FHA loans and are adding content frequently.

If you are a real estate agent needing a full time loan brokerage knowledgeable in FHA loans contact us.  If you are a first time home buyer or a seasoned home buyer with a small down payment looking for an FHA loan to buy a primary residence or second home contact us.

 

Meeting Exceeding your expectations!

Current mortage rate trends have improved but without any reason.  The countrys experts are split on the state of the economy.  Half think we are improving and the other half think we are spiraling into a second recession or even depression.  Since the dollar is still the world reserve currency we have a while before we lose our status.

Current mortgage rate trends for those seeking mortgages in Carlsbad are looking good if buying a home or refinancing an existing home. Mortgage rates may remain at their current level for a few months but do not be fooled, mortgage rates will go higher.  India, China, Europe are all raising their interest rates and we are soon to follow. If you are still thinking about buying or refinancing you may think yourself out of affordability if you don't act in the next few months.  Contact us for your mortgage needs. FHA broker Carlsbad

Carlsbad mortgages - mortgages Carlsbad

Current mortgage rate trends remained flat throughout the day and most of this week. The reason why is because there hasn't been any news causing investors to sell their stocks and buy mortgages which are considered a safer investment during bad economic times.  Bad economic news usually drops mortgage rates and good economic news usually raises mortgage rates.

 

                    

Try our Mortgage Calculators      Get a mortage rate quote      Apply for a pre approval    

Ben Bernanke the Fed chairman held a meeting after the FOMC meeting and basically side stepped questions.  Several reporters asked Mr. Bernanke how long the improvement would have to go before he would raise overnight interest rates (not the same as mortgage rates) and he sounded like a broken record.  When we determine the economy is back on track and it is sustainable we will act accordingly.  He did not answer their question about how long it would have to remain good before he raises rates.

When is a good time to buy a home?  Now.  Mortgage rates aren't likely to improve and with inflation being a future concern we could see mortgage rates jump.  I would speculate in the 7%-8% range.  I have nothing to back this up, just my gut feeling.  Not to mention, home prices are really low.  Low price and low rates.

 

Mortgages Carlsbad - Carlsbad Mortgages

There are only a few vehicles to grow your money tax free.  Most people think it is the Roth IRA.  You pay taxes before you make your contribution and are allowed to withdraw the balance at age 59 1/2 or older without any income taxes due. What if I told you there was a better way?

 

Real estate - Many people only think about the annual tax deduction they get on their mortgage and forget that a married couple filing jointly can walk away with a cool $500,000 tax free on the gain of their home.  Single people can walk with up to 250,000 tax free.  The often overlooked tax free investment.

 

 

 

 

Example:  Home purchased in 1975 for $35,000   Home sold in 2010 for $535,000.  The married couple get to keep the entire $500,000 gain tax free.  In addition their interest payments reduce their taxable basis annually netting them a larger savings over time.  This is how the rich get richer- tax loop holes.

Talk about a tax advantaged vehicle! 

 

Take the blinders off when it comes to comparing monthly rent to monthly mortgage because they do not compare.

Contact us for a pre approval and start looking for a home.

Current mortgage rate trend is remaining stable this morning.  There is some positive news but not enough to make mortgage rates rise.  Remember that good economic news is bad news for mortgage rates and bad economic news usually drives mortgage rates lower.

Long term expect to see mortgage rates rise.  My advice is to not lock but rather float cautiously.  If you are thinking about buying, stop thinking and call me to get started now.  Otherwise be prepared to pay tens of thousands more in interest to buy the same house.  Contact us. 

Current mortgage rate trend is a daily update written by Nevin Williams.  Contact Nevin with any questions or if you would like to be placed on his daily e mail list.

mortgages carlsbad - carlsbad mortgages

We make it easy to understand

 

Rate lock advice:

Current mortgage rate trends are headed higher and unless you have more than 30 days to close your loan I suggest you lock your rate immediately.  Rates are starting the day worse than yesterdays close.

 

Why

The Fed makes decisions that can impact whether mortgage rates increase or decrease.  Right now the Fed is split on when would be the right time to start raising the Federal Funds rate (This rate is different than mortgage rates) which would signal the beginning of the end of Federal help for banks. 

Once the Fed is done helping they will have to do a balancing act of helping to keep the economy growing and simultaneously keeping inflation in check. These two items will cause mortgage rates to increase or decrease.  Based on popular belief, mortgage rates are headed higher.

Current mortgage rate trends can change if investors buy or sell mortgage bonds (mortgage bonds are mortgage loans that are bundled and sold to investors on the bond market)  The odds are stacked against you if you are waiting to see if mortgage rates will improve.  If you have more than 30 days to close your loan you have a decent chance of getting a better rate by waiting but I suggest you do this cautiously by being prepared to lock your interest rate at a moments notice.

 

Great news!  Investors are hungry for subprime mortgage bonds and are lining up to buy them from the Fed.  This will heal the housing market because:

The Fed holds billions of dollars of subprime mortgage bonds which nobody wanted.  Investors hungry for higher returns are awaiting the Fed to auction subprime bonds which in turn means that banks are more willing to begin offering more risky loans that are not purchased by Fannie Mae or Freddie Mac aka "Non Agency". 

Fannie Mae and Freddie Mac overreacted to the housing crisis by tightening lending standards to all borrowers including those with excellent credit and plenty of assets.

This is a shot in the arm that the real esate market needs.  With more financing options available more buyers could obtain home loans.  Some of you may be thinking that riskier loans will spur another housing crisis but I disagree. 

Common sense underwriting may come back but I don't see any lender willing to take on wreckless underwriting.  All of the financial reforms will make a big difference.

Unemployment is dropping and the Fed is expected to raise interest rates next year.  If you have an adjustable equity line of credit and have the option of either paying it off or getting a fixed rate I would do it before years end because the prime rate will be increased.

Good news is our economy is continuing to shows signs of a comeback but higher mortgages rates are inevitable.  Read more in this Yahoo article.

 How a fully approved loan gets denied for funding after the borrower has signed loan docs.

Underwriter views an updated credit report verifying no new activity since original approval was issued and the new debt disqualifies the buyer(s). 

Generally this won’t happen in a 30 day time-frame, but borrowers
should anticipate a new credit report being pulled if the time from an
original credit report to funding is more than 60 days.

Purchases involving short sales or foreclosures tend to drag on for several months, so this approval / denial scenario is common.

 

 

It’s An Ugly Cycle

 

1. First Time Home Buyer receives an approval
2. Thinks everything is done
3. Makes a credit impacting decision (applies for a loan on a new car, furniture or runs up credit card balance)
4. Funder gets new credit report, sees any of these scenarios and denies the loan

In the hopes of stemming the senseless slaughter of perfectly acceptable approvals, we’ve developed a “Ten credit do’s and don’ts” list to help ensure a smoother loan process.

These tips don’t encompass everything a borrower can do prior to and after the Pre approval process, however they’re a good representation of the things most likely to help and hurt an approval.

DO continue making your mortgage or rent payments

 

Remember, you’re trying to buy or refinance your home – one of the first things a lender looks for is responsible payment patterns on your current housing situation.

Even if you plan on closing in the middle of the month or have already given notice, continue paying that rent until you’ve signed your final loan documents

DO stay current on all accounts

 

Much like the first item, the same goes for your other types of accounts (student loans, credit cards, etc).

Nothing can derail a loan approval faster than a late payment coming in the middle of the loan process.

DON’T make a major purchase (car, boat, big-screen TV, etc…)

 

This one gets borrowers in trouble more than any other item.

A simple tip: wait until the loan is closed before buying that new car, boat, or TV.

 

DON’T buy any furniture

This is similar to the previous, but deserves it’s own category as it gets many borrowers in trouble (especially First Time Home Buyers). Remember, you’ll have plenty of time to decorate your new home (or spend on your line of credit) AFTER the loan closes.

DON’T open a new credit card

Opening a new credit card dings your credit by adding an
additional inquiry to your score, and it may change the mix of credit
types within your report (i.e. credit cards, student loans, etc).

Both of these can have a negative impact on your score, and could result in a denial if things are already tight.

DON’T close any credit card accounts

The reverse of the previous item is also true. Closing
accounts can have a negative impact on your score (for one – it
decreases your capacity which accounts for 30% of your score).

DON’T open a new cell phone account

Cell phone companies pull your credit when you open a new
account. If you’re on the border credit-wise, that inquiry could drop
your score enough to impact your rate or cause a denial.

DON’T consolidate your debt onto 1 or 2 cards

We’ve already established that additional credit inquiries will hurt your score, but consolidating your credit will also diminish your capacity (the amount of credit you have available) resulting in another hit to your credit.

DON’T pay off collections

Sometimes a lender will require you to pay of a collection prior to closing your loan; other times they will not.  Pay off collections when necessary to ensure a loan approval. Otherwise, needlessly paying off collections could have a negative impact on your score.  Consult your loan professional prior to paying off any accounts.

DON’T take out a new loan

This goes for car loans, student loans, additional credit cards, lines of credit, and any other type of loan.  Taking out a new loan can have a negative impact on your credit, but also looks bad to underwriters and investors alike.

Follow these Do’s and Don’ts for a smoother mortgage approval and funding process.

 

Remember the simple tip: wait until AFTER the loan closes for any major purchases, loans, consolidations, and new accounts.

Every time a rule is made regarding loans it affects the pay of everyone in real estate.  HVCC killed many transactions.  New underwriting guidelines make loans for self employed borrowers near impossible.  FHA increased MI premiums (they go up again soon!) make it more expensive for people to buy a home.  Now it is over regulation of brokers who cost consumers up to 2% less than big banks.



Why is the Fed speding so much money overregulating brokers when broker loan products and services are more consumer friendly?  Prices for loans will increase and it will make it harder for real estate agents and others in the real estate business to close transactions.

 

Let's compare the differences of broker vs. bank

 

I am not blaming the loan officer that works at the bank.  Just trying to understand why so much money is spent on the most  educated people in the mortgage industry?  Perhaps this is a conspiracy.  Maybe the higher ups in Washington are making money by manipulating and slowing the housing recovery by investing in stocks/bonds that pay well in times of economic challenges.  Maybe they really are that stupid to keep doing what they are doing to stifle our real estate recovery.

Most home buyers do their research before buying a home.  Especially first time home buyers who have never been through the process.  Discover how easy it is to get all of the information a first home buyer needs in one place.  

You will save time and frustration by using our free first home buyer information website.  We have current rates, mortgage calculators, rate lock advice and much more.

This video was made for first home buyers needing first time home buyer information.  If you choose to contact us we can also send you information on first time home buyer loan programs and down payment assistance programs.

Mortgage rates started off worse than yesterday in early trading and continues to feel pressure due to reports of a strengthening economy and lowering gas prices.  Signs of an improving economy is always bad for mortgage rates and vice versa.

Current mortgage rate trends for those seeking mortgages in Carlsbad are looking good if buying a home or refinance an existing home. I would suggest you take any improvement as a chance to get in during a lull because rates are headed higher. 

If you plan on locking in the next 7 days I suggest you float cautiously. If more than 7 days I suggest you lock. Offering FHA, jumbo, conventional and VA mortgages in Carlsbad and throughout the state of California. We are one of the few remaining mortgage brokers in Carlsbad and we are also a bank offering direct lending in Carlsbad.

Mortgages in Carlsbad- Carlsbad mortgage broker

Whenever I review a new customers current loan information and notice their interest rate is higher than what it should be the first thing I ask them is if they got a no fee loan.  Most of the time they say yes and are surprised that I know.  I know because a higher rate usually means less or no loan fees.

No fee loans sound like a great idea to most people. Little do they know it could be much more expensive than a traditional loan.  No fee loans certainly have a place in San Diego real estate for people that will keep their loan for a short period of time, meaning three years or less.  No fee loans in San Diego and all over the country are expensive if the loan is kept long term.  View my explanation on how a no fee loan can cost a lot of money.

 

 

Carlsbad and San Diego mortgages

 

mortgage carlsbad   - no fee loans in san diego - carlsbad mortgages

A lot of people pay credit monitoring companies about $300 or more per year to protect themselves from ID theft.  This quick video will show you how to do this yourself for free.  ID theft is growing so laws were passed allowing you to get one free credit report from each bureau every year.  Learn how to use this free benefit to your advantage!

Besides helping our clients with their mortgage needs we always provide helpful money saving tips and ideas.  When you use our mortgage services we make sure the decisions you make will fit into your financial plan and help you meet your goals.

mortgages carlsbad - carlsbad mortgage broker

 

 

I get asked this question all of the time.  If I have a short sale how long do I have to wait before I can get a loan to buy another home?