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.
Friday, September 27, 2013
Tuesday, September 24, 2013
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!!
Saturday, February 4, 2012
Round 1, 2, 3......
Will it ever end? QE 1, 2 and 3? The Feds are once again making an attempt to improve the housing market by lowering rates and with the looming bond crisis in Europe, investors are supporting the Feds with their buying of US Treasuries and Mortgage Backed Securities to help drive up bond prices and thus reducing rates again.
With 30 year fixed rate mortgages now under 4.0% and 15 year fixed rates in the low 3s, rates continue to move south.
However, this low interest rate environment has still not stabilized the housing market as foreclosures continue at a record pace and a weak job market has many would be buyers sitting on the side lines waiting for a bottom. Interestingly enough we have seen several markets in Michigan actually begin to increase in value.
In regards to refinances, many have already benefited from the Home Affordable Refinance Program (HARP) and a new revision to the program is slated to take affect this coming March 2012. Under this revision, eligible home owners will be allowed to refinance REGARDLESS of the value of their homes. Currently there are caps between 105 - 125% of the Loan To Value.
In addition, the current fees that are associated with the HARP loan are being revised, providing further incentive to many borrowers who may currently qualify but have refained from refinancing because of prohibitive costs.
With 30 year fixed rate mortgages now under 4.0% and 15 year fixed rates in the low 3s, rates continue to move south.
However, this low interest rate environment has still not stabilized the housing market as foreclosures continue at a record pace and a weak job market has many would be buyers sitting on the side lines waiting for a bottom. Interestingly enough we have seen several markets in Michigan actually begin to increase in value.
In regards to refinances, many have already benefited from the Home Affordable Refinance Program (HARP) and a new revision to the program is slated to take affect this coming March 2012. Under this revision, eligible home owners will be allowed to refinance REGARDLESS of the value of their homes. Currently there are caps between 105 - 125% of the Loan To Value.
In addition, the current fees that are associated with the HARP loan are being revised, providing further incentive to many borrowers who may currently qualify but have refained from refinancing because of prohibitive costs.
Saturday, July 23, 2011
Mortgage Rates At 2.99%?!?!
The recent drop in rates over the last 30 days has presented multiple opportunities. Home buyers are able to take advantage of significant discounts in home prices, coupled with extremely low payments, to make housing more affordable than ever.
I have also been advising current clients that this is a perfect opportunity to utilize low mortgage rates to cut the term on their existing mortgages --- many of my clients are taking advantage of this and moving to 15 and even 10 year mortgages.
For clients who are being VERY aggressive with the pay-off of their mortgage, we are now offering 5 year fixed rate mortgages below 3%!!!!! Absolutely unbelieveable!!!
To see the effects of selecting a short term mortgage vs. a 30 year mortgage, call or e-mail me, and I can provide you with a detailed schedule showing you the incredible interest savings and how this can help you build wealth by freeing up cash flow after your pay-off, assist in accelerating retirement savings, funding education accounts or to simply live without STRESS being debt free!!
I have also been advising current clients that this is a perfect opportunity to utilize low mortgage rates to cut the term on their existing mortgages --- many of my clients are taking advantage of this and moving to 15 and even 10 year mortgages.
For clients who are being VERY aggressive with the pay-off of their mortgage, we are now offering 5 year fixed rate mortgages below 3%!!!!! Absolutely unbelieveable!!!
To see the effects of selecting a short term mortgage vs. a 30 year mortgage, call or e-mail me, and I can provide you with a detailed schedule showing you the incredible interest savings and how this can help you build wealth by freeing up cash flow after your pay-off, assist in accelerating retirement savings, funding education accounts or to simply live without STRESS being debt free!!
Thursday, June 23, 2011
NO-COST LOANS
Refinancing at today's extremely low interest rates can prove to be a tremendous savings. But with increased closing fees and stricter underwriting guidelines, how do you know whether refinancing is right for you?
One sure way to guarantee savings is to use a No-Cost Loan. A No-Cost Loan is designed to eliminate closing fees that often run around $2,000 ---- and even as high as $5-6,000 with some of the new government refinance programs such as the Home Affordable Refinance Program (H.A.R.P.). By using a No-Cost Loan there is no need to calculate a "break even" point or worry about the savings in the reduced monthly payment being enough to recoup the closing fees that you would pay otherwise.
No-Cost Loans will generally have a slightly higher interest rate than a mortgage with fees. Over a longer period of time, a lower rate may save more in interest expense, but the savings on a short term mortgage is almost inconsequential. For example, I am currently recommending 15 and 10 year mortgage options to many of my clients. The time that it takes to recoup closing fees is often near the end of the term on a 10 year mortgage, so a No-Cost Loan provides flexibility and IMMEDIATE savings.
For more detailed information regarding No-Cost Loans at First Place Bank, call me direct at 734-433-0922 or apply on-line at www.firstplacebank.com/jonmykala. A direct link to the application can be found to the right of this blog.
One sure way to guarantee savings is to use a No-Cost Loan. A No-Cost Loan is designed to eliminate closing fees that often run around $2,000 ---- and even as high as $5-6,000 with some of the new government refinance programs such as the Home Affordable Refinance Program (H.A.R.P.). By using a No-Cost Loan there is no need to calculate a "break even" point or worry about the savings in the reduced monthly payment being enough to recoup the closing fees that you would pay otherwise.
No-Cost Loans will generally have a slightly higher interest rate than a mortgage with fees. Over a longer period of time, a lower rate may save more in interest expense, but the savings on a short term mortgage is almost inconsequential. For example, I am currently recommending 15 and 10 year mortgage options to many of my clients. The time that it takes to recoup closing fees is often near the end of the term on a 10 year mortgage, so a No-Cost Loan provides flexibility and IMMEDIATE savings.
For more detailed information regarding No-Cost Loans at First Place Bank, call me direct at 734-433-0922 or apply on-line at www.firstplacebank.com/jonmykala. A direct link to the application can be found to the right of this blog.
Friday, May 20, 2011
Having A Hard Time Finding A Nice Home?
With foreclosures at an all time high you would think that you would have your choice of homes in the market. But the reality is, the inventory of nice homes is dwindling.
What can you do to help with this dilemma?
Consider adjusting your focus. If you are looking for homes in a lower price range with the hope of "making improvements", you will often find that after all of the time and costs involved with purchasing a "rehab property" that you can buy a slightly higher priced home in better condition, better neighborhood and also save yourself the headache and frustration related to buying a rehab home.
If you are looking for a property in need of attention, you should also investigate a rehabilitation loan to help you with funding your new project. Rehab Loans are extremely useful tools, but you should be fully aware of all the issues related to a rehabilitation loan and the risks associated with this type of loan.
For more information on rehabilitation loans or further suggestions that may help you with finding your dream home, please call my office for an individual consultation.
What can you do to help with this dilemma?
Consider adjusting your focus. If you are looking for homes in a lower price range with the hope of "making improvements", you will often find that after all of the time and costs involved with purchasing a "rehab property" that you can buy a slightly higher priced home in better condition, better neighborhood and also save yourself the headache and frustration related to buying a rehab home.
If you are looking for a property in need of attention, you should also investigate a rehabilitation loan to help you with funding your new project. Rehab Loans are extremely useful tools, but you should be fully aware of all the issues related to a rehabilitation loan and the risks associated with this type of loan.
For more information on rehabilitation loans or further suggestions that may help you with finding your dream home, please call my office for an individual consultation.
Thursday, January 7, 2010
Will Mortgage Rates Blow Up?
There has been much talk lately about the Feds raising interest rates to fight off the potential risks of inflation from a recovering economy. As far as I can see, this is a mistake that will only exacerbate a problem that we have not yet solved.
While some of the Fed Governors continue to point to signs of a recovering economy, based on economic data, it doesn't take a rocket scientist to know that a significantly large portion of interest only and adjustable rate mortgage loans are coming due in the next 18 months. This is going to present a wave of more foreclosures and cause additional inventory on real estate market that is already full of supply.
The positive comments yesterday from the Feds regarding the potential extension of the Asset Purchase Program for Mortgage Backed Securities, was encouraging. I do hope that our Fed Insiders look at these practical matters and don't react to soon to 'interpretive data'.
While some of the Fed Governors continue to point to signs of a recovering economy, based on economic data, it doesn't take a rocket scientist to know that a significantly large portion of interest only and adjustable rate mortgage loans are coming due in the next 18 months. This is going to present a wave of more foreclosures and cause additional inventory on real estate market that is already full of supply.
The positive comments yesterday from the Feds regarding the potential extension of the Asset Purchase Program for Mortgage Backed Securities, was encouraging. I do hope that our Fed Insiders look at these practical matters and don't react to soon to 'interpretive data'.
Subscribe to:
Posts (Atom)
