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

  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.
Featured Sponsor
Compare Rates in Your Area
 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

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

——————————————————————————–
Source Pcql.com

Fixed vs Adjustable Rates

A typical fixed rate example has a fifteen or thirty year term and a fixed rate. This is a popular choice for a San Diego Ca Mortgage option because the consumer knows that his interest rate will not change during the life of the loan. The fifteen-year term is a comfortable timeframe for many customers as well, although a thirty year term can also be the better choice for some. Many San Diego homeowners are more attracted to an adjustable rate San Diego mortgage loan. This option can actually cost less in the long run. However, it is a bit of a gamble. If interest rates increase, so does your home mortgage loan rate. If you can afford it if rates increase, and weigh the possibility of higher rates, then to refinance home loans with an adjustable rate can save money. And if the rates are in your favor, this option can really help with your monthly expenses over the course of time.

Costs To refinance your home mortgage loan

Remember, there are charges for a San Diego Ca mortgage home loan refinance. At times the costs outweigh the benefits. However, in many cases the homeowner can save a significant amount of money throughout the term of the loan. When consumers refinance home loans, they are not simply reducing your payments or changing your interest rates. This process consists of paying off the original loan in full. The refinanced loan is completely new in spite of the fact that you have been making payments for the same property. Since the mortgage loan is brand new according to the lender, it is subject to the same fees, points and other fees you paid for your initial mortgage loan agreement.

There is another significant fee that many homeowners do not consider when they try to get a San Diego home mortgage refinancing loan. Pre-payment penalties can be pretty costly, and you should not get a loan that includes them. You can check with your lender and with the regulations in your state to see if the pre-payment penalties apply to your specific loan or not.

The process of finding the right home mortgage refinancing package does require some preparation and homework. However, you can find a great deal that will pay off over time.

Source sportyhealth.com

The governmenst main objective is to assit borrowers of Freddie Mac guaranteed, insured home loans, to keep their homes affordable and reduce foreclosures by keeping payments affordable. Under Freddie Mac’s Home Affordable Refinance program, known as the Relief Refinance Mortgage, the program may be used to reduce the borrower’s loan interest rate, shorten the loan term repayment period or replace an adjustable-rate mortgage, interest-only mortgage or balloon/reset mortgage with a fixed-rate loan.

How to qualify for the new refinance program, first the borrower must have an existing mortgage that is owned or guaranteed by Freddie Mac. To find out whether Freddie Mac owns or guarantees your loan, call (800) 373-3343, call your San Diego loan mortgage servicer, San Diego Mortgage Broker or search for your loan on Freddie Mac’s Web site at Freddiemac.org.

You should contact your original lender or loan servicer to apply for this program.

The property may be a vacation/second home if the existing San Diego Ca mortgage was originated as a second-home loan or the borrower now occupies the home as a principal residence.

The new Freddie Mac Refinance mortgage can be a 15-, 20- or 30-year, fixed-rate loan or an adjustable-rate mortgage  with an initial term of five, seven or 10 years. The loan must be fully amortizing (i.e., not an interest-only or payment-option loan).

If you have an existing fixed-rate mortgage loan, than the lender can not refinance with an ” ARM”  Adjustable Rate Mortgage.

The loan, may be a so-called “super-conforming” loan limit within the applicable loan limit for the area.

The property may be an investment property if the existing San Diego Ca mortgage was originated as an investment property or the borrower now occupies the home as a principal residence.
 
If the original loan is covered by mortgage insurance, the insurer must agree to transfer the insurance to the new loan.

The new loan cannot be used to make a payment on or pay off a second loan.

Lenders are encouraged to use Freddie Mac’s automated valuation model, or AVM, to estimate the property’s current market value. Borrowers should ask whether a new appraisal will be required.

The borrower may be able to finance transaction costs of up to $2,500.
Borrowers whose monthly payment increases 20 percent or more must provide income and employment documentation and have an acceptable credit score and debt-to-income ratio to demonstrate they can afford the new higher payment.

If your loan does not meet these qualifications and you can not qualify for a typical refinance program,  You may want to consider modifying your home loan with a home loan mortgage modification.  This will allow you to lower your monthly mortgage payments, lower your current interest rate on youir San Diego California mortgage, or possibly reduce the principal balane of your home loan mortgage.

More information can be obtained at the Freddie Mae web site or at the Home affordable modification webs site.

A San Diego, Ca home loan often involves many fees,
such as loan origination or underwriting
fees, broker fees, and transaction,
settlement, and closing
costs. Every lender or broker should
be able to give you an estimate of its
fees. Many of these fees are negotiable.
Some fees are paid when you
apply for a loan (such as application
and appraisal fees), and others are
paid at closing. In some cases, you
can borrow the money needed to pay
these fees, but doing so will increase
your loan amount and total costs. “No
cost” loans are sometimes available,
include the rate that you have agreed
upon, the period the lock-in lasts, and
the number of points to be paid. A fee
may be charged for locking in the San Diego Ca mortgage loan rate.

This fee may be refundable at
closing. Lock-ins can protect you from
loan rate increases while your loan is being
processed; if rates fall, however, you
could end up with a less favorable
rate. Should that happen, try to
negotiate a compromise with the
lender or broker.

Remember:
Shop, Compare,
Negotiate
When buying a San Diego home, remember to
shop around, to compare costs and
terms, and to negotiate for the best
deal. Your local newspaper and the
Internet are good places to start
shopping for a mortgage loan. You can usually
find information both on interest rates
and on points for several mortgage lenders.
Since rates and points can change
daily, you’ll want to check your newspaper
often when shopping for a San Diego Ca mortgage loan.

But the newspaper does not list the fees, so be sure to ask the San Diego lenders
about them.
The San Diego Mortgage Shopping Worksheet
that follows may also help you. Take it
with you when you speak to each
San diego lender or San Diego Mortgage broker and write down the
information you obtain. Don’t be afraid
to make lenders and brokers compete
with each other for your business by
letting them know that you are shopping
for the best deal.
Fair Lending Is
Required by Law
The Equal Credit Opportunity Act
prohibits lenders from discriminating
against credit applicants in any aspect
of a credit transaction on the basis of
race, color, religion, national origin,
sex, marital status, age, whether all or
part of the applicant’s income comes
from a public assistance program, or
whether the applicant has in good faith
exercised a right under the Consumer
Credit Protection Act.

The Fair Housing Act prohibits discrimination
in residential real estate
transactions on the basis of race,
color, religion, sex, handicap, familial
status, or national origin.
Under these laws, a consumer cannot
be refused a loan based on these
characteristics nor be charged more
for a San Diego Ca mortgage loan or offered less favorable
terms based on such characteristics.
Credit Problems?
Still Shop, Compare,
and Negotiate
Don’t assume that minor credit problems
or difficulties stemming from
unique circumstances, such as illness
or temporary loss of income, will limit
your loan choices to only high-cost
lenders.

Source Hud . Gov

Home loans are available from several
types of lenders—thrift institutions*,
commercial banks, mortgage companies,
and credit unions. Different
lenders may quote you different
prices, so you should contact several
lenders to make sure you’re getting
the best price. You can also get a
home loan through a San Diego Ca mortgage broker.
Brokers arrange transactions rather
than lending money directly; in other
words, they find a lender for you. A
broker’s access to several lenders can
mean a wider selection of loan products
and terms from which you can
choose. Brokers will generally contact
several lenders regarding your application,
but they are not obligated to
find the best deal for you unless they
have contracted with you to act as
your agent. Consequently, you should
consider contacting more than one
broker, just as you should with banks
or thrift institutions.
Whether you are dealing with a lender
or a broker may not always be clear.
Some financial institutions operate as
both lenders and brokers. And most
brokers’ advertisements do not use the
word “broker.” Therefore, be sure to
ask whether a broker is involved. This
information is important because
brokers are usually paid a fee for their
services that may be separate from
and in addition to the lender’s origination
or other fees. A broker’s compensation
may be in the form of “points”
paid at closing or as an add-on to your
interest rate, or both. You should ask
each broker you work with how he or
she will be compensated so that you
can compare the different fees. Be
prepared to negotiate with the brokers
as well as the lenders.

Obtain All Important
Cost Information
Be sure to get information about
mortgages from several lenders or
brokers. Know how much of a down
payment you can afford, and find out
all the costs involved in the loan.
Knowing just the amount of the
monthly payment or the interest rate is
not enough. Ask for information about
the same San Diego Ca mortgage loan amount, loan term, and
type of loan so that you can compare
the information. The following information
is important to get from each
lender and broker:

Ask each lender and broker for a
list of its current mortgage interest
rates and whether the rates being
quoted are the lowest for that day
or week.
• Ask whether the rate is fixed or
adjustable. Keep in mind that when
interest rates for adjustable-rate
loans go up, generally so does the
monthly payment.
• If the rate quoted is for an
adjustable-rate loan, ask how your
rate and loan payment will vary,
including whether your loan payment
will be reduced when rates go
down. 

Rates

Ask about the loan’s annual
percentage rate (APR). The APR
takes into account not only the
interest rate but also points, broker
fees, and certain other credit
charges that you may be required
to pay, expressed as a yearly rate.
Points
Points are fees paid to the lender or
broker for the loan and are often linked
to the interest rate; usually the more
points you pay, the lower the rate.
• Check your local newspaper for
information about rates and points
currently being offered.
• Ask for points to be quoted to you
as a dollar amount—rather than just
as the number of points—so that
you will actually know how much
you will have to pay.
Fees

Source: Hud . Gov