Tag Archives: mortgage

Why are refinancing rates higher than mortgage rates?

Great question. Ace Watansuparp, Executive Vice President at Citizens Bank, has your answer.  All things equal, refinance and purchase have the same rates. But in a refinance boom with interest rates at an all time low, as we have now, two things tend to happen: 1) Refinance volume dramatically increases. Because purchase transactions have hard deadlines - closing dates, etc. - many times refinances can affect the banks ability to deliver the loans to meet those hard deadlines. Interest rates on a refinance slightly increase to dictate the amount of volume coming in relative to the banks capacity in order to maintain a high level of service on the purchase transactions. 2) We see lock-jumpers. When a client applies for a refinance it is not always guaranteed that the loan closes: – there could be appraisal issues where the value does not come in at the target value. – if rates … Read More.

I’m thinking of purchasing a home. What do I need to know about doing a title and lean search in order to protect myself as a buyer?

Q: I know that before you purchase a house, you should do a title and lien search to protect yourself as the buyer. What are the key factors to look for? What are some “red flags”? What parts of each search document are vital? What are the terms I need to know, their meaning, etc.? Please explain in simple detail… Thank you. Read More.

How can I tell if a credit repair company is legitimate?

Q: I am thinking of purchasing a property within the next year and I need to fix my credit. How can I tell if a credit repair company is legitimate? Read More.

Is the 20% down payment for a co-op negotiable or a solid requirement?

Q: I’m looking for an apartment in Manhattan. I’ve pre-qualified for a mortgage, and have a steady income to afford what I’m looking for, but I’ve only been working for a few years and thus don’t have enough saved for a 20% down payment. When co-ops say that they require 20% down, is that generally a solid requirement or can it be negotiated? Read More.

I want to use my current home as an income-producing property, but am having trouble getting a loan. Can you help?

Q: I own a three-family home in Holyoke, Massachusetts, and would like to use it as a rental/income property and purchase a home in a more rural area. Can you help me find a lender who doesn’t see in only black and white? I spoke with a lender who said that they would not consider the rents from all three apartments because it wasn’t on my taxes as such. I tried to explain that I am living in one apartment and my mother in another, so the two apartments weren’t rented out. I have all three apartments rented out–$700, $700, and $850 per month covers ALL the mortgage, taxes and insurance, and leaves me with $950 income at the end of the month. I am so frusterated and any help on such a lender or your professional suggestions would be … Read More.

We’re being told that there’s an accepted offer on a short-sale property that we love, but I don’t believe that this is accurate information. How do we proceed?

Q: I found a short sale that we love, but the real estate office keeps telling us that there is an accepted offer on the property. If there was an accepted offer, then why would they drop the price on the property today? Is there any way around this real estate company? They aren’t being honest and I believe that someone in the office wants the property. Read More.

I recently refinanced my home at an interest rate of 5.25%. Is it better for me to pay the entire amount owed, continue making small payments at the refinanced rate, or refinance again at 4% interest?

Q: I am retired and re-financed from 15 to 30 year fixed in order to lower my monthly payments. The  interest rate was at 5.25 %. Is it worth to pay off the entire amount owed, which is $160,000, from my savings, or should I continue paying the lower monthly rate for the rest of my life? Or, a third option I am considering would be to refinance again at 4 %. My income is approximately $5,000/month, and comes from Social Security and pension. Financial advisors usually say to keep the mortgage and invest the money. What do you think? I tried to downsize and sell the house, but had it on the market for a year with no luck. Read More.

What do I do if I’m behind on my mortgage payments?

Q: I haven’t paid my mortgage in over a year. They haven’t sent us any foreclosure notices yet, but when they do, I was wondering how I should respond and what to do to get loan modification.  Read More.

We were told our loan was going through and now they are saying our debt to income ratio is probably too low.

Q:  We have a house appraised at $720,000. We recently applied for a refi and home equity loan since our current mortgage is based on LIBOR and we are concerned about interest jumps on our adjustable. We have never had an issue with not being able to make payments till now. My husband is a financial adviser and hasn’t been able to earn enough to pay our bills. We have dwindled our savings to nearly nothing. We were told our loan was going through until the mortgage guy was fired last month and now they are saying our debt to income ratio is probably too low. We need the home equity loan to hold us over until we can figure out how to increase our income, etc. Now what? My income has doubled but is very low given my profession … Read More.

How does a Short Sale work & how long does the process take?

Q:  Explain how a Short Sale works & how long process takes after you get a buyer? Read More.