Spend Less — Refinance Your Mortgage
If you are stretching to meet your monthly payments on your San Diego Ca Mortgage, you may need to consider refinancing options. If you can get a lower interest rate than you currently have, you’ll be able to save substantially on your monthly payment. The key is to look down the road. Don’t get yourself into an incredibly low interest 3 year ARM program unless you plan to sell your home or refinance again within that timeframe.
Refinance — Fixed or ARM?
Refinancing is very popular nowadays, especially since interest rates have been low. There are also several different refinancing options you may explore. For instance, you can opt for a fixed rate or an adjustable rate mortgage. A fixed rate mortgage will usually be for a term of 15 or 30 years and the interest rate will stay the same for the duration of the loan. An adjustable rate mortgage (ARM) means that after a term (usually of 3-5 years), your interest rate can change (usually upwards).
Home Improvements? Cash Out Refinancing!
If you have equity built up in your home and you have an expanding family, you may want to improve your existing home. After all, with the way many home prices are going, you might not be able to afford to move back into your own neighborhood! If you decide to improve your home, you can easily refinance and pull out money to add a bathroom, a bedroom or upgrade your septic system. Banks and mortgage companies often offer special incentives for home improvement equity loans. In some cases they even have special loan programs for higher amounts.

Source: AOL Money & Finance

Questions to Expect From Mortgage LendersData Provided By Know what to expect before you apply.

Your mortgage lender will want to know a lot about you before approving your loan application, and justifiably so; they and their underwriters want to be assured that you meet their minimum level of creditworthiness before lending you money.
Areas of questioning.

Here are the general areas of questioning you can expect from a lender: 
1. Employment and income 
2. Outstanding debts 
3. Cash reserves and assets 
4. Down payment 
5. Loan purpose 
6. Property use 
7. Property type
 
Employment and income
Where do you work?
How much do you make?
How long have you been at your job?
How is your income derived — steady salary or irregular income? If it’s the latter, you may need to provide more details to obtain a favorable interest rate.
Outstanding debts
What recurring debts do you have?
How much do you pay a month for auto loans?
Credit cards? How much of your monthly pretax income do these debts consume?
Cash reserves and assets
How much money do you have in the bank?
How much will be left after you pay your down payment and closing costs?
Down payment
How much money are you putting down?
Is this your own money?
If not, is it a gift from your parents?
A nonprofit agency grant?
Loan purpose
Is this San Diego ca mortgage for a home buy or refinance?
If it’s a refinance, do you want to take cash out at closing to pay off other debts? If so, how much?
Property use
Do you plan to live in the house?
Is it investment property?
Property type
A condominium?
A duplex?
The following responses tend to work in your favor:
Steady employment (two or more years) with the same employer or in same line of work.
Low debt: no recent major buys (such as automobiles) and a debt-to-income ratio of 36 percent or less.
Loan is for straight home purchase (or rate-and-term refinance).
Property is detached single-family home to be used as primary residence.
Down payment of at least 5 percent of sales price with your own money.
You’ll have at least two months’ worth of mortgage payments in the bank after closing.
These responses tend to work against you:
Self-employed or contract worker.
High debt: credit cards maxed out, total debt-to-income ratio more than 36 percent.
Property is a duplex or condominium, to be used as a vacation home or rental.
No cash left after home buy and closing costs.
Down payment is 3 percent or less of buy price and money is borrowed.
Source: Move.com

  When John Jordan and his wife went to refinance the mortgage on their Washington, D.C., townhouse, their appraisal came in too low. But thanks to a new government program, that didn’t kill the deal. “We’re quite happy the program was there, or else we would not have been able to proceed with the refinancing,” says Jordan, who purchased the home in 2004.
Home Description:  Select One Single Family Multi-Family Condominium Townhouse Mobile Home Manufactured Home Your Credit Profile:  Select One Excellent Good Fair Needs Improvement Poor 
AdvertisementAppraisals have always been key to refinancing. Traditionally, the mortgage amount could not exceed the property’s current market value. Those with Adjustable Rate Mortgages stuck with unaffordable mortgage payments, or those tempted by historic low interest rates have good reason to want – or need – to refinance their loans. Luckily, the federal government has introduced programs to help.
The Obama Administration’s Home Affordable Refinance Program, launched early this year, allowed refinances for those whose first mortgage was as high as 105 percent of a comparable market analysis (CMV). A July expansion now allows participation by borrowers current on payments, but up to 125 percent “underwater.” This especially helps those in down markets, such as Las Vegas, where about two-thirds of current mortgage holders owe more than the worth of their homes. Nationwide, 4 to 5 million homeowners whose mortgages are owned or guaranteed by Fannie Mae or Freddie Mac might reach more affordable monthly payments through the program, which falls under the broader Making Home Affordable initiative.
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 Select One Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming  Those with government-based Federal Housing Administration (FHA) loans also have new refinance opportunities thanks to the American Recovery and Reinvestment Act of 2009. The revised single-family loan limits now reflect the higher loan limits set by the Economic Stimulus Act of 2008 or the Housing and Economy Recovery Act of 2008, all determined by county or metropolitan area. Effective through the end of 2009, those limits range from $271,050 to $729,750 and permit FHA to insure loans on amounts up to 125 percent of the 2007 area median house prices.
Additionally, this past May, the Helping Families Save Their Homes Act removed some administrative and technical hurdles that made last summer’s HOPE for Homeowners Act so difficult to implement that most people didn’t bother trying. The bill helps homeowners with FHA or USDA rural housing loans to modify or refinance their mortgages.
Jorge Gomez, president of the Illinois Association of Mortgage Professionals (IAMP), says, “In theory, [new loan limits] will open up many new opportunities for people to refinance.” Still, borrowers with a second mortgage may not benefit, since the law doesn’t require second lien holders to comply by subordinating their debt.
Regarding the program for Fannie Mae and Freddie Mac loans, Marve Stockert, executive director of IAMP, urges anyone who can’t sell their home to use it, “because this type of program may not come around again.” Home Affordable Refinance expires on June 10, 2010.
Dan Milstein, CEO of Gold Star Mortgage Financial Group in Ann Arbor, Mich., notes that while “extra room in terms of value will be helpful in the refinance process,” the true impact of the change from 105 percent to 125 percent “remains to be seen.” Besides the second mortgage issue, he explains that loan guidelines remain the same, with verification required for all information. There’s a slight increase of getting an appraisal waiver, but full appraisals are often still required for these transactions.
Those best suited for these programs, says Milstein, are homeowners “who originally had 20 percent or more equity in his or her home and then lost that equity not due to increased borrowing, but rather to the slump in the housing market.”
The bottom line: The refinancing rules are changing everyday. As the Jordans can attest, there’s no reason to let a decrease in your home value hold you back from attempting to refinance. Be proactive and investigate how new stimulus programs might help you lower your interest rate and save on your monthly mortgage payments.

Source: http://www.walletpop.com/mortgages/eim/article/government-programs-mean-easier-refis/578989

This is the time to think carefully about what you want and what you can afford. If your offer is accepted, it becomes a legally binding contract. Make sure you don’t include anything in the offer that you’re not totally comfortable with doing.

Make sure you put everything in writing. Offers usually include items like:

• Proposed purchase price
  Remember, the seller may counter-offer with a higher purchase price – consider that when you decide on your proposed purchase price.
• Concessions
  This includes things you’d like the seller to help pay for, like closing costs.
• Conveyances
  This covers any personal property to be included in the sale, like the washer and dryer or the refrigerator.
• Home inspection contingencies
  Make sure you’re prepared if the home inspection report shows major problems. Know what you will ask the seller to fix prior to buying the home and what you will ask a reduction in price for to account for the cost of repairs that you will do yourself.
• Earnest money
  Earnest money is a deposit you offer to show you’re serious about purchasing the house. Earnest money is usually held in escrow and applied to your closing costs at settlement. If you fail to meet the terms of your contract, you may lose this deposit.
• Acceptance
  This covers how long the seller has to respond to your offer before the offer is no longer binding.
• Mediation and arbitration
  These are legal methods for handling contract disagreements between you and the property seller. These methods are not necessarily beneficial to you, and you do not need to agree to them.

When the Offer Becomes a Contract

Once the seller accepts your offer, the offer becomes a contract. What’s in a contract varies from state to state, depends on the state where the house resides, but some common things you’ll find include:

• Legal description
  This describes the property you are buying in terms of its dimensions relative to a fixed point (like a road) or in relation to a recorded subdivision plat or declaration of condominium. It often includes the street address of the property.
• Selling price and deposit
  This is the price you and the buyer agreed upon, as well as the amount of earnest money you’ll pay when you sign the contract.
• Mortgage contingency
  A contingency protects you by stating that the sale depends on a lender approving you for a specific San Diego Ca mortgage, rate, and term.
• Closing date and location
  The closing date (also called the settlement) can be several weeks to several months away to meet the seller’s and your needs.
• Conveyances
  Double check these conveyances to make sure that the items are there and are what you and the seller agreed on in the offer.
• Home inspection
  If you’ve made the contract contingent on a home inspection, this will set an inspection date and provide an explanation of what will happen if the inspection identifies any problems.
• Possession date
  This is the date you can move in. It’s usually the closing day or very soon after it.
• Property insurance
  This details the home insurance policy that will cover the property until the closing date. This can be the buyer’s or seller’s policy.
• Property disclosures
  This includes legal notification of any required information concerning the property. For example, it could contain copies of the documents from the homeowners’ association. This section would also outline any problems with the property that must be disclosed.  
• Source Freddie Mac

Be sure you’re serious about buying before you make an offer. If the seller accepts your offer, it becomes a legal contract after a few days.

Details and planning are important. Know what you would like to pay but also think about the most you’re willing to pay and the total pre-approved mortgage loan amount. Be specific, and put everything in writing. Also, having a pre approved mortgage loan will place you ina better negotiting posistion when making a real estate offer.

What are the steps in making an offer?

Negotiating a Sales Price
Before you negotiate a sales price, it’s important to determine if you or the seller has the stronger position. Knowing this will help you plan your negotiation.  A mortgage tip to consider would be to offer full price and have the seller buy down your San Diego Ca mortgage loan rate.  This will allow you to qualify for a higher loan amount amd provide you with lower payments.

The seller may have the stronger position if:

The local real estate market is strong and homes are selling quickly.
They aren’t in a rush to move.
Similar houses have sold for close to or above their asking price.
There are other offers being made on the house at the same time as you.
The buyer may have the stronger position if:

The local real estate market is weak.
The seller needs to move quickly.
The house has been on the market for a long time.
When negotiating, more information is better. Look at your notes from when you looked at the house. If there’s anything that needs to be repaired or replaced, you may want to consider including these costs in the negotiation. If you want certain appliances or fixtures to stay, be sure to include them as well. You may also want to make your offer contingent upon your obtaining financing or the house passing a professional home inspection, especially if it is an older home.

There are several steps to negotiating:

Asking price.
This is the price the sellers have originally listed. In a buyer’s market, you may be able to successfully offer below the asking price. However, in a seller’s market you may want to be prepared to offer more. Before making an offer in a seller’s market, know how much above asking price you are willing, and able, to bid in case the seller gets multiple offers.

Initial purchase offer.
This is your first offer. It may include contingencies (such as a requirement that the home pass a professional inspection or that you receive adequate San Diego Ca mortgage loan financing from your lender.)

Acceptance of offer or counter-offer.
The seller can accept your offer or make a counter-offer of a new price or additional contingencies.

If you’ve made a home inspection part of the contingencies and something serious is found during the inspection, you may want to submit a new counter-offer and discuss the situation with your lender. The process may go back and forth several times before you and the seller reach an offer that is acceptable to you both. Remember that in some instances, your lender may not approve your mortgage if the home has serious deficiencies that could affect its value.

Source Freddie Mac

President Obama’s Mortgage Modification Program – Do You Qualify?
Published by mortgageloanmodification October 15th, 2009 in Finance.
Obama’s $75 Billion Modify Mortgage program can seem like a dream come true for many people who are at risk of losing their biggest investment – their home. But how do you know if you even qualify?

Even if you’ve been turned down by your bank in the past, you can still apply for this mortgage modification program. If you are two or three payments behind, or you foresee financial hardship in the near future, you can apply and get your mortgage payment reduced.

Here are the basic guidelines you need to adhere to in order to qualify for the loan modification plan:

The home that you live in must be your primary residence
Your total mortgage balance must be less than $730,000
Your monthly payment must equal 31% or more of your total monthly income.
Your mortgage must have commenced before January 1, 2009
Check If You Qualify……….!
You will obviously have to provide proof of your income and expenses in order to be considered for Obama’s San Diego Ca Mortgage Loan Modification plan. Make sure you have all your documents, tax receipts, copies of bills, etc. to make your application stronger. This is an extremely important step, as every applicant will be approved on a case-by-case basis.

Interested homeowners are encouraged by the U.S. Treasury Department to apply for Obama’s Home Loan Modification Plan and lenders are expecting a surge of applicants. There is no cost to apply, but it is advisable to take some time and learn everything you can about the process and what you can do to increase your chances of being accepted.

One way to increase your chances of being approved is to download The Complete Mortgage Loan Modification Guide from making home affordable government website.  You will be guided step by step on what you need to do to apply, how to fill out the necessary forms, calculate your debt ratio and putting everything together in a professional looking package that you can take to your lender. This is your chance to get back on the path to financial independence.

To see if you qualify and learn how to apply for Obamas Mortgage Refinance Plan you can go to http://www.loanmodificationca.net

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Source Pcql.com