Posts Tagged ‘fha mortgages’
Mortgage Services Money Talks – Do All Mortgage Companies Provide The Same Type Of Mortgage Services?
October 6th, 2011 | 
Author: Mortgage services companies as opposed to Mortgage SERVICING companies are generally understood to be businesses that provide residential mortgages for people who want to refinance their existing mortgage or take out a new mortgage for a new home purchase.
Mortgage servicing companies – by the way – are the companies who “service” your mortgage. That is, they are the company who you write your mortgage payment to and who manage your mortgage escrow account.
The level of mortgage services – though - varies throughout the industry.
Just do an online search of mortgage services and you’ll see lots of results. There are a ton of mortgage companies out there.
Are they all the same?
The answer is “No.”
Some mortgage services companies are large and close a lot of mortgages per month. Others are smaller and close fewer mortgages per month. Some mortgage companies take a longer time to close a mortgage; others not so much.
Some mortgage companies may employee loan officers or mortgage processors who don’t have experience, which can make the mortgage process more turbulent for you.
They all provide the same mortgage services; however, some may be mortgage brokerage businesses and others may be mortgage lenders.
What’s the difference between a mortgage brokerage business and a mortgage lender?
Mortgage brokerage businesses take a mortgage application and send it to a wholesale mortgage company who will underwrite, close and fund the mortgage loan. The mortgage brokerage business – in effect – acts like a middleman.
Mortgage lenders – most commonly called correspondent lenders – underwrite, close and fund the mortgage “in house.”
The mortgage application is not brokered out.
The mortgage services to the consumer that both the mortgage brokerage business and mortgage lender offer are the same: a standard residential mortgage.
The mortgage rates and fees may be different and the mortgage process is set up differently; however, the bottom line mortgage service is the same.
Don’t confuse mortgage services with CUSTOMER service or the ease with which you get a mortgage. Those are completely different items.
In my next post, I’ll address the question “How to find a good mortgage company?”
Is it all about mortgage rate and fees? Stay tuned.
Related Posts:
Should You Take Out An FHA Mortgage?
I get a lot of people asking me ”should I take out an FHA mortgage.” The short answer is “it depends.”
FHA mortgages provide many benefits over conventional mortgages; however, the FHA mortgage is designed for a certain borrower profile.
An FHA mortgage would be the right mortgage if you’re buying a new home and you only want to put down 3.5% as a down payment. This doesn’t always apply to first time home buyers. FHA mortgage are available for those who’ve already owned a home before – however, you cannot use a FHA mortgage for a second home or rental property.
A conventional mortgage requires 5% down payment and very good credit scores.
An FHA mortgage allows you to have mediocre credit.
In the “old” days, credit scores weren’t even a consideration for a FHA mortgage. Now most lenders won’t do a FHA mortgage with credit scores below 620. It’s going to be tough to qualify for a conventional mortgage with a 620 credit score.
An FHA mortgage would be the right mortgage if you’ve filed bankruptcy between 3 and 7 years ago. You won’t be eligible for a conventional mortgage with a bankruptcy filing within the past 7 years.
If you want to take the maximum mount of cash out of your home, the FHA mortgage will allow you to take cash out to 85% of the value of your home. On a conventional mortgage, your capped at 80% of the home’s value.
So, in conclusion, if you’re credit profile is good, you have equity in the home (if you’re refinancing) or if you’re putting down more than 5% on a home purchase, it is cheaper for you to go into a conventional mortgage.
I talk to borrowers who have great credit scores and have a relatively low loan to value ratio who are advised by loan officers or mortgage brokers to take out an FHA mortgage. WRONG ADVICE.
Either the mortgage loan officer doesn’t know what they’re doing or they’re trying to maximize their commission (as they will be paid more on an FHA mortgage) – all things being equal.
Again, the mortgage terms are better on a conventional mortgage (which is a mortgage that is bought by Fannie Mae or Freddie Mac) if you have a good credit rating and equity in your home.
For those of you who have filed bankruptcy between 3 and 7 years ago, have mediocre credit or have little equity in the home, the FHA mortgage is the better loan type.
Related Posts:
Posted in Fha, FHA Information, Fha Mortgage | 
Tags: federal housing administration, FHA, FHA mortgage, fha mortgages, Home, mortgage, refinance | 
No Comments »
Mortgage Services ALERT! Mortgage Rates Drop. September 1, 2011
Mortgage bond prices opened higher this morning and mortgage rates have dropped as a result!
Initial Jobless Claims dropped 12,000 to 409,000 from last week’s revised figure of 421,000, according to the U.S. Dept. of Labor. This is more or less in line with market expectations of 407,000.
The four-week moving average increased to 410,250, an increase of 1,750 from last week’s revised moving average. July’s month end four-week average was 408,250. The Labor Department cited no special factors in this week’s report.
Nonfarm business sector labor productivity decreased at a 0.7 percent annual rate during the second quarter of 2011, the U.S. Bureau of Labor Statistics reported today, with output and hours worked rising 1.3 percent and 2.0 percent.
The report points to rising labor costs and decreased productivity, signs that may keep some businesses reluctant to hire.
Tomorrow brings the nonfarm payroll report. This can have a big impact on mortgage rates. If the jobs number comes in higher than expected, we may see mortgage rates rise. Conversely, if the jobs number comes in lower than expected, we could see mortgage rates drop more.
If you’re surrently floating your rate and are gaming the market to get a lower mortgage rate, you may want to consider locking the rate as there is the potential to lose what you already have.
To see current mortgage rates, do a personalized mortgage rate search on the blue Amerisave Mortgage box on the right side of this page. It’ll show you current mortgage rates, payments, and closing costs.
Related Posts:
FHA Mortgage FAQ – What’s The Difference Between An FHA Mortgage And Conventional Mortgage?
A lot of mortgage questions I get are about FHA mortgages.
People I talk to do personalized rate searches then ask what’s the difference between an FHA mortgage and conventional mortgage? A natural question for someone shopping for a mortgage.
The first question I ask is “how’s your credit”?
For someone who has poor credit, an FHA mortgage may be a less expensive loan type.
If you have good credit, a conventional mortgage is a better mortgage. It’s that simple – really.
Also, if you have little equity in your home, FHA may be a better mortgage. Equity, by the way, is the difference between the current mortgage balance and what the home is worth.
FHA will allow you to finance a mortgage to 96.5% of the home’s value with mediocre credit. Still pretty good.
On a conventioanl mortgage, you can get 97% financing; however, your credit will have to be over 720.
If you want to take cash out of your home, FHA will allow you to go to 85% of the value of your home, while you’re capped at 80% for a conventional mortgage. The reason your capped at 80% is because it’s going to be tough getting a private mortgage insurance PMI company to write private mortgage insurance while FHA (or HUD) will insure the loan to 85% cash out of the home’s value.
Another difference that used to be in the favor of FHA is the mortgage insurance premium.
FHA mortgage charges a 1% upfront mortgage insurance premium MIP that is added to your loan amount.
So on a $200,000 loan, the upfron mortgage insurance premium will be $2000. Oh, by the way, you have to pay that no matter what the loan to value LTV ratio is.
FHA also charges a monthly MIP.
The monthly MIP premiums have increased as of April 2010, making them almost prohibitive.
Again, it doesn’t matter what the loan to value ratio is, you have to pay it for 5 years and you need 22% equity in the property before it can be removed.
On a conventional mortgage, there is no upfront mortgage insurance premium.
You will have to pay monthly PMI if the loan to value ratio is over 80%; however, you can request the mortgage servicer remove the PMI after 2 years and you have 20% equity in the property.
So, in conclusion, if your credit scores are good and you have equity in your home, a conventioanl mortgage would be a less expensive mortgage.
If your credit scores are mediocre and you have little or less equity in your home, a FHA mortgage may be better.
You can do a personalized rate search in the blue Amerisave Mortgage box on the right side of the screen.
It’ll show you conventional and FHA mortgage options, the differing mortgage payments as well as the FHA mortgage upfront and monthly mortgage premiums amounts. It’s a great tool.
Related Posts:
Posted in Fha, FHA Information, Fha Mortgage |
Tags: FHA mortgage, fha mortgages, Home, mortgage, mortgage rates, Mortgages, Rates, refinance, refinancing, yale roth |
No Comments »
Mortgage Services ALERT! Mortgage Rates Rise. August 29, 2011
I don’t know about you, but it was hard to wake up this morning.
Not the Monday morning blues per se, it’s just getting my kids ready for school and racing around to make sure we’re not late for the bus, cooking breakfast, etc. etc.
I have to wait for next Sunday to relax a bit. Oh well…
The mortgage rate roller coaster ride continues as mortgage bonds opened lower this morning pushing mortgage rates downward a bit.
The Bureau of Economic Analysis released personal income statistics for July 2011 this morning. The report met market expectations for a 0.3 percent increase in income and beat market expectations for spending with a 0.8 percent increase.
On the inflation side, which directs mortgage rates, the price index component of the report showed a 0.4 percent increase, following a 0.1 percent increase in June.
The report shows that the consumer is not on the sidelines though job growth would certainly help increase these numbers.
This week is full of economic data with the Case/Shiller Home Price Index (which measures home sales/appreciation/depreciation), ADP Employment (which is a big Fed inflation measurer), productivity and manufacturing data, as well as the official Employment report for July adding to the normal weekly data.
The employment data will be out on Friday, so you may want to consider locking your rate before this economic indicator is released. Just depends on what you tolerance for risk!
I’m going to be updating my soon and am really excited about it. It’ll give you the opportunity to ask me any mortgage related questions, allow you to get a second opinion, check to see if you’re getting ripped off, or just get valuable and honest information.
I’ll keep you posted. In the meantime, if you haven’t looked into saving money on your mortgage or home loan, do a personalized search on the blue Amerisave box on the right side of the page. It’ll show you current mortgage rates, mortgage payments, and the fees (or no fees).
Related Posts:
Posted in Mortgage Rate, Mortgage Rate Update (by date), Mortgage Rates, Refinance |
Tags: FHA mortgage, fha mortgages, Home, loan, mortgage, Rates, refinance, yale roth |
No Comments »
Mortgage Services ALERT. Mortgage Rates Drop. August 26, 2011
I don’t know about you, but TGIF!
Mortgage backed securities opened higher this morning pressuring mortgage rates down.
The Bureau of Economic Analysis released its second estimate of U.S. GDP for the 2nd quarter of 2011 this morning with some not so surprising news.
The report revised Q2 GDP from 1.3 percent growth to 1.0 percent growth. A sluggish economy indeed.
This was more or less in line with market expectations of a revision to 1.1 percent growth.
There is little market change on the news as it appears most participants are awaiting Fed Chairman Ben “Helicopter” Bernanke’s speech at 10a.m. EST.
Mortgage rates are very low, including rates on the FHA mortgages.
Do a personalized rate search on the blue Amerisave window to see the mortgage rates for the conventional and FHA mortgages.
It’s free, takes no more than 10 seconds to see the rate results and will also show you mortgage payment and closing costs.
That all the information you need to see whether you’ll be able to save money.
more to come…
Related Posts:
Posted in Interest Rates, Mortgage Rate Update (by date), Mortgage Rates, Refinance |
Tags: fha mortgages, Home, loan, mortgage, mortgage rates, Mortgages, Rate, Rates, refinance, yale roth |
No Comments »
NEW! Mortgage Rates – Where Are They Today? August 24, 2011
What a ride!
For those of you following my mortgage rate commentary, you see the choppiness in the mortgage market,as mortgage rates slip and slide, gain some, then lose some.
Despite the choppiness, mortgage rates remain very low right now even though the mortgage bond market opened slightly down this morning.
(Remember, there is an inverse relationship between mortgage bond price and mortgage bond yield. So when the mortgage bond price goes down, the yield goes up, and the mortgage rates increase.)
We’re getting a mixed bag re: economic data.
The Advance Report on Durable Goods Manufacturers’ Shipment, Inventories and Orders for July 2011 release by the U.S. Census Bureau and U.S. Dept. of Commerce showed new orders for manufactured goods increase 4.0 percent – good news indeed.
This is better than market expectations for a 2.0% increase.
If you remember the recent August data released from the Federal reserve manufacturing surveys (New York, Philly, and Richmond), August has shown modest slowdown.
Nonetheless, mortgage rates remain low today. If you haven’t refinanced your existing mortgage, you ought to do a personalized rate search to see the rates, payments and costs. This will give you the information you need to determine benefit.
Use the blue Amerisave Mortgage box on the right side of the screen. Again, I can’t stress, this is a very powerful tool and gives you accurate and current mortgage rate information
Related Posts:
Posted in Home Loan, Interest Rates, Mortgage, Mortgage Rate Update (by date), Mortgage Rates, Refinance |
Tags: Consolidation, fha mortgages, loan, Loans, mortgage, mortgage rates, Rate, Rates, refinance |
No Comments »
Mortgage Video FAQ – “What’s The Difference Between A FHA Mortgage And Conventional Mortgage”?
Watch this video:
http://www.YaleRoth.com In this video post Yale Roth answers one of the top mortgage FAQ “What’s the difference between a FHA mortgage and conventional mortgage”?
Yale outlines some of the differences between the two loan types and explains the benefits and drawbacks as well as which loan type would be more appropriate.
This video is very informative and will help people decide which loan type is better for them.
Yale Roth is a FHA Mortgage Specialist and provides mortgages for homeowners throughout the United States.
Call Yale at 561-350-7684 with any mortgage-related problems or visit his rate page at http://www.YaleHomeLoan.com
Related Posts:
Mortgage FAQ #7 – What’s The Difference Between A Cash Out And Regular (Rate/Term) Refinance?
Watch this video:
In this short video post Yale Roth answers a top mortgage FAQ “What’s the Difference Between a Cash Out Refinance and regular Refinance”?
If you’re in the process of refinancing, this video will give you more knowledge about your refinance transaction.
The video is very informative and lasts about 2 minutes.
Yale Roth is a FHA Mortgage Specialist and provides mortgages for homeowners throughout the United States.
Call Yale at 561-350-7684 with any mortgage-related problems or visit his rate page at http://www.YaleHomeLoan.com
Related Posts:
Posted in FAQ Mortgage Video Series, General Mortgage/Real Estate Information, Home Loan, Mortgage, Mortgage Loan Types, Refinance |
Tags: Call Yale, FHA mortgage, fha mortgages, mortgage faq, mortgage refinance rate term cash out faq home loan, mortgage specialist, refinance, top mortgage, United States, video post, yale roth |
No Comments »
Mortgage Rate Update – 1:00 PM ET – Thursday, March 11, 2010
Mortgage rates are unchanged today despite a drop in prices yesterday
Rates on the 30 yr fixed mortgages are starting in the mid 4% range with buydowns.
Rates on the 15 and 10 yr fixed mortgages are starting in the high 3% range with buydowns.
Use the Amerisave rate calculator if you want to get a personalized rate quote.
Tomorrow we see retail sales and the University of Michigan consumer sentiment report. Retail sales has the potential to move the bond market negatively if the number come in higher than expected.
As of 12:57 PM ET, the DJIA, NASDQ and S & P 500 are all slightly down.
Yale Roth is a FHA Mortgage Specialist and provides mortgages for homeowners throughout the United States.
For any specific mortgage-related questions, contact Yale at 561-350-7684 or email him at yroth@amerisave.com
Related Posts:
No Personal Info Required
Takes 10 Seconds
- Pay Your Mortgage Off Early!
- Save Thousands Of Dollars!
|
|