Mortgages by Jeremiah Phillips

I will be available at a NJ Open House hosted by Dan Bozza of RE/MAX Central this coming Sunday from 1pm til 3:30 pm. at 2 Crane Way in Toms River New Jersey. Stop by for your free Homebuyers Tool Kit!  I’ll be doing on the spot no obligation pre-approvals as well as answering any questions or concerns related to financing. See you there!

I am now back working at First Mutual Corporation.  Here is my new contact information:

Jeremiah Phillips
856-663-7800 Ext. 566
888-331-6300 Ext. 566 Toll Free
866-266-1966 EFax
609-760-9234 Cell
jphillips@firstmutualcorp.com
First Mutual Corp.

Seller Paid Closing costs is almost becoming commonplace on all new purchases.  Why is this trend picking up across the country?
There are a few reasons:

 

Over the last 4 years second mortgage rates have been so low that they were actually lower then the Mortgage Insurance alternative.  Currently the prime rate which affects the Home Equity Line of Credit (HELOC) rates which a lot of people have (myself included) is 8.25%.  Now depending on the margin you have on this HELOC could mean your rate can be between 7.75% – any where above.  If you were one of the lucky ones and got a Prime MINUS rate.  Then you are sitting around the 7.75% rate. 

Over the last 6 months to a year we have switched gears to fixed rate seconds.  Now in the last blog we were talking about the changes in the industry.  The second mortgage rates are also changing.  The second mortgage’s are also starting to have problems with people making the payments.  They are starting to raise the rates up so high that people just won’t take them.

 For Example – I had given a quote to someone at a rate of 9.75% second (this was a 100% loan – always a little higher) was kicking the competiton’s butt and then as of March 9th – that second mortgage program is not allowed for 100% financing and the next loan that allows 100% is a rate of 15%.  I then went back to my 100% one loan program and the overall payment with mortgage insurance saved this gentlemen – $200 a month over the popular 80/20 loan we have all known to love. 

If you are someone who has been pre-approved in the last 3 months and were looking at 100% financing – Please double check with your mortgage professional and have them double check that you are still in the  best program combination to suite your needs. 

If any one wants to get a second opinion please do not hesitate to reach out to me for some friendly advice… www.todayslendingrates.com

Have a great weekend!

There are a lot of changes happening right now in the mortgage industry as a whole. 

Who is it affecting?

• People with lower credit scores that need 100% financing.  A lot of big companies right now that use to give someone 100% financing are now out of business.  They are out of business because the people that took these loans are going into foreclosure.
• A Lack of credit – someone that doesn’t have the creditors’ history.  A good history to have is three creditors over a 2 year period.  This will not hurt to start now if you don’t have them, even if it is a secured credit card.  Credit Card (revolving) creditors on your credit are a major plus when paid on time.  Note: do not max out the credit card that will in turn hurt you again.  Keep it below 50% of the high credit limit and it will look good.

How can we get by this?

• FHA Mortgages- with a minimum down payment of 3% I have a lot of flexibility to getting you approved with today’s going rates with out a credit score requirement.
• Example: I had a friend of mine who had got hurt on the job. He could not pay his bills with out a pay check coming in.  Once he went back to work all his bills were current we were able to go FHA and get him a rate at 6% on a 30 year fixed.
• Conventional Loans @ 100%.  Right now with a minimum credit score of 575 I am able to still get you approved to 100%.  This loan does have mortgage insurance but is a great replacement for the high rate mortgages people are use to.
  

 

If you are in one of these high rate mortgages – what do you do?
 

• The best thing to do is give me a call or send me an email and I can see if you fit into one of the programs above or another loan that will save you thousands of dollars a year.  With a lot of the changes you would be surprised at how much I can actually save you monthly. 
  

 

 

 

Great news about mortgage insurance!  This part of a mortgage payment use to mean nothing more then sending more money with your mortgage payment, NOW it is can be used as a tax deduction. Read the article at this link http://www.privatemi.com/finallydeductible/ to see if you qualify. 
Taking a loan with mortgage insurance over the past few years was replaced by the infamous 80/20 or first and second mortgage loan.  This option was more viable because the interest on the second mortgage was a tax deduction making it a cheaper payment up front and during tax time.  In doing comparisons going back to loans with Mortgage Insurance could stick because the good part about mortgage insurance is it can be cancelable – http://www.privatemi.com/finallydeductible/cancelable.htm.
In looking to purchase a new home or possibly refinance to see if you can reduce your payments – please give me a call and I will show you a comparison sheet between these different plans and see which option meets your short and long term goals. 
 

Stop and think for a moment- what is your biggest payment you pay out each month.  For most it will be your mortgage or rent payment.

 An easy resolution this year is to make sure that your mortgage payment is as low as it can be.  A lot of people have mortgage insurance that don’t know it.  They now qualify for loans that you didn’t qualify for that could lower your payment hundreds of dollars a month. 

I am here to offer a FREE Consultation.  I will send you a copy of your credit report and go over it from top to bottom to make sure your credit score is at it’s max potential. 

If you currently don’t own a home – my consultation will be a little different and show you what you pre-qualify for.  A lot of times people don’t know what they’re true loans they can get approved for are.  It is my job to educate you and fulfill the joys of being a homeowner. 

 I can be reached toll free at 1-800-869-2631 X 208 or my direct number is 856-504-8608.  You can also apply online at http://www.todayslendingrates.com.

 I look forward to speaking to you and Happy New Years!!!

I want to put this out to the any one that has a question about financing? I would like to make this blog about what you have questions on?

For instance – couple hot topics in the market right now:

- The NEGATIVE AMORTIZATION loan… Option Arm
- What are rates going to do? Keep going up?
- How can I fix my credit in under 30 days and be corrected?
- How can I buy my first investment property with little to no money out of pocket?
- Can I close a loan in 7 business days? Yes- Ask me how.

Please tell me what your questions are…

My email address is jphillips@firstmutaulcorp.com

My direct # at my office is 856- 663-7800 x 566 or just respond right to the blog.

Mortgage Secrets For The Self-Employed And High-Net-Worth Individuals

Greetings From Jeremiah Phillips,
The word count for this e-newsletter is: 615; Approximate time to read: About 5.5 – 6.0 minutes.

Obtaining a mortgage with good terms from a lender can be a headache for the self-employed, the wealthy, public officials, and others requiring financial confidentiality. In addition, bankers and other lenders tend to overestimate the risk of loans to self- employed people–even doctors and lawyers.

Usually they require that you provide a large amount of private financial information, and the issue won’t be just the size of the payment, but the volume of paperwork and your privacy. Suppose you are a well- known businessman, actor or politician and the local newspapers are fixated on your private life. Can you trust the clerks at the usual mortgage operation, especially if it’s based in your own home town?

There are two possibilities of loans to protect your privacy and make the borrowing process much easier: “No Income Verification Mortgage Loan” and the “No Documentation Required Loan.” Within these two loans, there are several hundred different ways of structuring a mortgage loan interest rates and repayment terms.

Possibility #1: The “No Income Verification” Mortgage Loan
The easiest and most popular way for self-employed borrowers to qualify for a mortgage is through the “Stated Income” or “No Income Verification” mortgage loan. Such loans are usually made available through mortgage loan brokers and usually not through traditional banks.

You do not have to prove income to pay back a mortgage loan as long as you have good credit and the down payment or equity is at least 10% of the value of the property. Best of all, the interest rates on these loans might be even lower than traditional full-documentation loans. This is because the borrowers’ character and collateral measurements are usually very high. You simply must be able to claim enough income to qualify for the loan and show enough collateral to complete the transaction and still have some money left over in the bank.

The nice part is you don’t need to provide any pay stubs, 1099′s, W-2′s, personal or business tax returns or financial statements. Granted, there may be a slight increase to the interest rate if you’re not strong enough in the character and collateral departments. But the loan application process is so easy that sometimes even salaried borrowers use no income verification loans.

Possibility #2: The “No Documentation Required” Loan

The next level of reduced-paperwork mortgage loans is the “No-Doc” program or “No Documentation Required” loan programs. It’s great for those needing confidentiality.

You do not need to prove your income or liquid assets as long as your credit history is excellent and there is at least a 10% down-payment or equity position in the property. These loans are most popular among borrowers whom want to disclose as little as possible about their financial situation.

On this type of loan there is also a modest increase in the loans interest rate to offset the lenders increased risk in making a loan without documentation to support it.

Possibility #3: The “Don’t Ask, Don’t Tell” Mortgage Loan
There are other mortgage loan programs available that even mitigate the character requirements. These loans typically require the borrower to have at least a 35% down payment or equity position in a property to qualify for the loan.

Such loans are used almost exclusively by people whom have no documentation or credit to show or simply require the highest level of personal privacy. These loans are very popular in the Washington, DC, area among foreign nationals.

In any case, regardless of what a borrower’s situation is, there is almost always a way of accommodating the need for privacy.

Finding The Right Home Loan Has Never Been Easier!

Greetings From Jeremiah Phillips,

The word count for this e-newsletter is: 615; Approximate time to read: About 5.5 – 6.0 minutes.

Moving into a larger home is an exciting time for a family. However, there are common mistakes homebuyers make when selling their existing home.

We’ve summarized six of the most common mistakes homeowners make when moving to a larger home.