FEDS Are Raising Rates --- Now Is The Time To Deal With That Uncomfortable Mortgage Payment!!

Are You As Uncomfortable In Your Mortgage Payment As This Penguin Is In His Suit? 

As you may be aware, the Federal Reserve has already begun its path to raising interest rates.  We are expected to see an additional 1.0% increase by the Feds over the next year.  Because of this, there will NEVER be a better time to revisit your mortgage to make sure that you are in the best loan structure possible.

Here are several items that you could benefit from:

• Cutting your term to a 15 or 10 year mortgage -- rates on these mortgages are EXTREMELY low and could have your mortgage paid off for good in a very short time
• Values HAVE increased!!!  This may allow you to get rid of PMI or even roll a higher rate second mortgage into your first at a lower rate
• Move from a higher rate government loan, such as FHA or Rural Development, to a lower cost conventional mortgage 

 Regardless of your situation, there may never be a better time to review your current loan.  As always, I will be able to do this quickly and with as little stress as possible.

Call or E-Mail me soon!!  734-433-0922 or jon@mykalamortgage.com

Imagine Being Able To Step Back In Time To Get Something You Missed!!

Rates have moved down --- but not for much longer --- I think this is a WINDOW OF OPPORTUNITY that is going to slam shut by mid year.

The Federal Reserve's actions/comments at the end of 2013 drove mortgage rates back up, and at one point, even breached 5.0%.   Rates have now pulled back, so if you are considering buying a home or refinancing or taking advantage of the government's HARP Refi, now is DEFINATELY the time to do so.  This is an opportunity that actually allows you to "step back in time" and grab the rates we saw at the mid point of last year.

If you are considering buying or building, I have a fantastic article, The Cost of Waiting.  This article
explains the relative increase in the cost of your potential home if rates continue to go up.  You can call or e-mail in order to receive a FREE copy for yourself or a friend.

By the way, if you are wondering about Home Values in the State of Michigan, here is a great article I found on Zillow.com -- http://www.zillow.com/local-info/MI-home-value/r_30/

Who Esle Would LIke To Build A New Home?

With the substantial rebound in the local real estate markets, and the lack of viable homes available, many people are looking at building a new home to solve the "lack of inventory" problem.

I am excited to announce the release of our new JUST BUILD IT! Construction Loan.  This loan offers a down payment of only 5%, allows for just one closing, so that your rate is locked in up front and provides for flexible terms over the length of your intended construction project. 

In addition, this loan is very Builder friendly, and provides a service oriented support group to assist builders with managing the draws.

Some of the most frequently asked questions regarding this program are provided below:

Is my rate locked at closing ? We have both One Note & Two Note Construction Loans.   One Note Loans provide the ability to lock your end mortgage rate at closing and there is no need to refinance upon construction completion.  The Two Note closing provides a more flexible end mortgage amount, but your end rate is not locked and you will be required to refinance your construction loan upon completion into an end mortgage.

 How will my payments be structured throughout the process? During the construction of your home, you will be responsible for making interest only payments on the amount drawn on the account. When construction is complete, your loan will be amortized according to the permanent financing you chose.

Am I required to Escrow Taxes & Insurance?  We do not collect escrows for taxes and insurance during construction.   Because of this you are responsible for paying any of these bills that come due during construction.  Upon completion of construction, you may be required to establish an escrow account.  This is dependent upon your loan program and Loan To Value.  Generally loans under an 80% Loan To Value are not required to have an escrow account.

 What is the minimum down payment required for a construction loan?  For loan amounts under $417,000.00, our minimum down payment is 5%.

 Can Land Equity be used to meet down payment requirements?  If your land has been owned for 12 months or more, we can generally use the appraised value of your land for down payment requirements.  If your land is owned for less than 12 months, potential equity may be used, but the value will be dependent on how the land was acquired.

 What do I need to begin the construction process?  Upon receipt of a fully executed Building Contract, including specifications and plans, we can begin your construction loan process if you already own your land.  If your land is being acquired as a part of the construction process, we will also need a fully executed purchase agreement and legal description of the property.

Close Your Home Loan In 2 1/2 Weeks!!

With the Holidays fast approaching, you still have time to be in your new home before they are upon us.  If you have an accepted Purchase Agreement on a home, contact us immediately to begin your loan applicaton.  In order to accomplish this AMAZING request, I am even making myself available over the weekend to accomodate your needs.  Call me by cell phone at 734-223-8555.  Let us show you how our PREMIER Mortgage Planning Service and over 20 years of experience can benefit you and your family by moving into your new home JUST IN TIME FOR THE HOLIDAYS!!

Government Shutdown -- How Can This Affect Applying For A Mortgage?

With the Government Shutdown now going on its 4th day, I thought I would add provide you with my "opinion" and several facts about home loans in relation to the shutdown.

 We are a very RESILIENT country.  Every issue, including the Great Depression, the 911 Tragedy, to even our most recent Financial Crisis in 2008; we have survived and grown from the experiences left in the wake of those calamities.  By no means am I equating the current Shut Down to these events --- I’m just stating that we are a country composed of ambitious, creative, faith bearing, resolute people that will ALWAYS find a way!

 This is NOT the first time our country has experienced a “Shut Down”.

It is a FACT that most of the Shut Downs that we have experienced have only lasted a period of a few days!!

I recall the last “shutdown” in the 90s, when I was relatively new to the mortgage business and at the time was fearful that FHA loans were going to be eliminated!!  The issue was resolved in short order and we moved on to continue writing loans as normal – as a matter of fact, I don’t recall even one loan being affected back then.  (The 1995 Shut Down only lasted 5 Days)

 Based on MY OPINION, the current Shut Down will also be resolved in short order.  I whole heartedly believe that we will not see any lost business or “blown up” deals over this event.  The Markets tend to agree with me as well --- The Dow Jones and S&P have only had marginal vairations since the Shutdown.  

Having said that I am confident that we will be past this “news festival” shortly, here are the FACTS related to the Shut Down.  Below is a statement regarding our bank's stance and its relation to lending today:

• Fannie Mae and Freddie Mac are not impacted because their operations are paid for by fees charged to lenders.
• The FHA will be able to endorse single family loans during the shutdown.
• The VA will be able to continue to issue loan guarantees during the shutdown.
• USDA employees have been furloughed. If the shutdown is short, the impact should be minimal. If the shutdown is extended this will affect the Rural Development program. Please proceed with caution and communicate to your borrowers how the government shutdown is affecting this particular loan program.
• In their shutdown contingency plan, the IRS has indicated that they will not process any forms, including tax transcripts. As a result, we expect the processing of these forms to stop until further notice.

So, with this in mind, the only current impacts, IF this is prolonged, is RD funding, 4506 transcript review and VOEs of federal workers that may be affected.

Again, personally, I think we will see this resolved by the early next week.

 I have also attached a link below regarding 7 MYTHS related to the Shut Down.

http://watchdog.org/108182/7-myths-about-a-federal-government-shutdown/

 

 

Featured Loan -- Month of October - 5% Down -- NO PMI!!

For the month of October, I will be featuring and promoting a unique loan program that is actually slated to go away in November.  This program has been an INCREDIBLE money saver for many of my clients over the last 24 months and I am sad to bid it farewell.  However, before it goes by the wayside, like so many other loan products over the last 5 years, we are going to give this old friend a glorious send off!! 

The 5% Down, conventional mortgage, with no monthly PMI, is a fantastic program and can be a HUGE money saver to qualifying borrowers.  For example, if the monthly mortgage insurance on a $150,000 FHA loan is $168 per month.  Not having to pay that extra cost would equate to saving over $2,000 per year!!!

For more information regarding this soon to be forgotten program, please call me for a personal review.

Life Is All About Change!!

In the ever changing environment of the mortgage industry, Kristy and I recently made the decision to migrate our Mortgage Planning Services to Northpointe Bank.  Northpointe is a Michigan based bank that embraces the same fundamental principals of lending and client service that Kristy and I adhere to.  We are extremely excited about the move for our clients, our agents and buidlers and ourselves.  Please call or visit.  We look forward to hearing from you!!