Replacing the current mortgage with some other kind of financing thus securing the same asset.

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "Replacing the current mortgage with some other kind of financing thus securing the same asset."

Transcription

1 MORTGAGE REFINACING Replacing the current mortgage with some other kind of financing thus securing the same asset.

2 TYPES SOF REFINANCING 1. Standard fixed mortgage g with better terms. a. Lower rate is offered b. Equity in home has increased positioning the home owner for better interest rate. refinancing mortgage so only the bottom value of the home is now being mortgaged.

3 Types of Refinancing Continued II No closing Cost Refinances Reduces upfront fees but the interest rate offered is generally higher than if closing costs were not rolled into loan.

4 Types of Refinancing Continued III. Cash out loan-refinancing a loan or series of loan debts Assists the borrower in paying off high-interest debt, e.g. credit cards, with lower interest rate financing Net savings can be applied toward debt or other purposes Non-tax deductible debt can be transformed to taxdeductible debt. This could lower taxes and put the client in a more advantageous tax bracket.

5 Know Your Client Evaluate your clients financial and personal situation. Understand physical, behavioral and psychological signs of distress. Know your client s financial situation-past, present and future.

6 Information you need to help your client decide if they should refinance. 1. Why is your client refinancing? 2. What type of refinancing are they considering? 3. What are other alternatives for your client? 4. Where did your client get the idea to refinance?

7 Know your client continued 5. Is this a scare tactic from a debt collector? 6. Did they attend a get rich seminar? 7. Did their current mortgage company initiate this refinancing idea? 8. Is it really a tax advantage?

8 PRO S OF MORTGAGE REFINACING I. Lower Monthly Payments Reduce interest costs-refinance to a lower rate. Money saved can be used to pay down principal of loan, further reducing number of payments. Longer term loan-reduce amount of payment From ARM to Fixed continued affordability of the home.

9 Pro s continued II. Reduce Risk From Adjustable Rate Loan to Fixed Ensure a steady interest rate over term of loan and insure constant amount for payment and interest

10 Pro s continued III Liquidate equity to pay off other debt a. Cash out refinancing Assist borrower in paying off high-interest debt such as credit cards with lower interest debt. Net savings can also help pay down mortgage debt early.

11 CON S OF MORTGAGE REFINACING I Closing Cost Fees a. Fees may out weigh savings expected from refinancing. Clients generally are looking for the bottom line or what their monthly payment going to be and do not realize that they are being offered loaded loans.

12 Con s Continued II Greater Risk Even if the payment is lowered, the total loan may result in larger total interest costs over the life of the loan Bad spending habits continue after refinancing i Client becomes upside down with loan-to-value.

13 Example: Con s Continued Original mortgage $100,000 at 7% interest. Remaining life on the loan is 26 years (has made payments for 4 years of $665.30). Total interest paid for 4 years - $27,409. Loan balance at end of 4 years $95,475 If held loan for 30 years total interest = $139,509 Refinance mortgage for $100,000 at 6% interest (assume closing costs & pre-paid to set up escrow = $4,525) Monthly payment $ (increase in monthly cash flow of $65.75) Total interest over life of loan = $115,838 + interest paid on original mortgage $27,409 = $143,247 Overall result of refinancing: Increase in monthly cash flow of $65.75 per month or $789 per year. However, 4 years are being added d to the mortgage so would make additional mortgage payments for that time Paid 2 sets of closing costs

14 Con s continued III Penalty Clauses language in the mortgage contract being refinanced charges the borrower a substantial fee for paying off debt early in the life of the loan. cost to cover penalty increases amount of new loan substantially.

15 EDUCATE CLIENTS 1. Consider refinancing if they will stand to save a substantial amount of money over time. 2. If there is a need to pay off unexpected costs, e.g. medical. However, rolling unsecured debt into a secured loan is not recommended. 3. Explore alternatives especially when the refinancing i is being considered d do to poor spending choices. 4. Make sure the client knows what a predatory loan is: IF IT SEEMS TO GOOD TO BE TRUE IT PROBABLY IS.

16 STREAMLINE REFINACING BY FHA STREAMLINE REFIANANCING BY FHA The streamline refers to the fact that t there is reduced d documentation ti required and reduced underwriting requirements for lender. It does not mean that there are no costs in the refinancing. BASIC REQUIREMENTS: The mortgage to be refinanced must already be FHA insured The mortgage to be refinanced should have payments current The refinancing is to result in lowering the borrower s monthly principal and interest payments No cash may be taken out on mortgages refinanced using the streamline refinancing process

17 Streamline Refinancing Continued TYPES OF STREAMLINE REFINANCING Some lenders offer "no cost" refinances (actually, no out-of-pocket expenses to the borrower) by charging a higher rate of interest on the new loan than if the borrower financed or paid the closing costs in cash. From this premium, the lender pays any closing costs that are incurred on the transaction. Lenders may offer streamline refinances and include the closing costs into the new mortgage amount. This can only be done if there is sufficient equity in the property, as determined by an appraisal. Streamline refinances can also be done without appraisals, but the new loan amount cannot exceed the original loan amount.

18 REFINANCING DO S &DON T S HANDOUT 13 RULES FOR HOMEOWNERS FROM THE NATIONAL CONSUMER LAW CENTER

Streamline VS FHA to FHA refinance

Streamline VS FHA to FHA refinance Streamline VS FHA to FHA refinance Streamline - Max loan amount is the borrower s unpaid principal balance plus up to 30 days of interest minus applicable UFMIP refund. Borrower will either need to bring

More information

Section C. Maximum Mortgage Amounts on Streamline Refinances Overview

Section C. Maximum Mortgage Amounts on Streamline Refinances Overview Section C. Maximum Mortgage Amounts on Overview In This Section This section contains the topics listed in the table below. Topic Topic Name See Page 1 General Information on 3-C-2 2 Without an Appraisal

More information

Paragon 5. Financial Calculators User Guide

Paragon 5. Financial Calculators User Guide Paragon 5 Financial Calculators User Guide Table of Contents Financial Calculators... 3 Use of Calculators... 3 Mortgage Calculators... 4 15 Yr vs. 30 Year... 4 Adjustable Rate Amortizer... 4 Affordability...

More information

PURCHASE MORTGAGE. Mortgage loan types

PURCHASE MORTGAGE. Mortgage loan types PURCHASE MORTGAGE Mortgage loan types There are many types of mortgages used worldwide, but several factors broadly define the characteristics of the mortgage. All of these may be subject to local regulation

More information

When calculating your monthly loan payments, the interest rate, and not the APR, is used.

When calculating your monthly loan payments, the interest rate, and not the APR, is used. FAQ on Mortgages RATE The posted interest rate is the actual rate used to calculate your monthly loan payment. The interest rate that you will be charged on your loan is set once you have completed our

More information

Loan Estimate. Loan Terms. Projected Payments. Costs at Closing. Save this Loan Estimate to compare with your Closing Disclosure.

Loan Estimate. Loan Terms. Projected Payments. Costs at Closing. Save this Loan Estimate to compare with your Closing Disclosure. Loan Estimate DATE ISSUED APPLICANTS PROPERTY SALE PRICE Loan Terms Save this Loan Estimate to compare with your Closing Disclosure. LOAN TERM 30 years PURPOSE Purchase PRODUCT 5 Year Interest Only, 5/3

More information

Section B. Maximum Mortgage Amounts on No Cash Out/Cash Out Refinance Transactions Overview

Section B. Maximum Mortgage Amounts on No Cash Out/Cash Out Refinance Transactions Overview Section B. Maximum Mortgage Amounts on No Cash Out/Cash Out Refinance Transactions Overview In This Section This section contains the topics listed in the table below. Topic Topic Name See Page 1 No Cash

More information

RESIDENTIAL MORTGAGE PRODUCT INFORMATION DISCLOSURE

RESIDENTIAL MORTGAGE PRODUCT INFORMATION DISCLOSURE RESIDENTIAL MORTGAGE PRODUCT INFORMATION DISCLOSURE Whether you are buying a house or refinancing an existing mortgage, this information can help you decide what type of mortgage is right for you. You

More information

Welcome. 1. Agenda. 2. Ground Rules. 3. Introductions. Your Own Home 2

Welcome. 1. Agenda. 2. Ground Rules. 3. Introductions. Your Own Home 2 Your Own Home Welcome 1. Agenda 2. Ground Rules 3. Introductions Your Own Home 2 Objectives If you are a pre-homebuyer: Explain the advantages and disadvantages of renting versus owning a home Identify

More information

Preparing for homeownership

Preparing for homeownership Preparing for homeownership What we ll cover 1. Getting ready for homeownership 2. Mortgage basics 3. What you need to buy a home 4. Finding the right home 5. Resources 2 Getting ready for homeownership

More information

THE OXBRIDGE FHA FACILITY FHA TERM SHEETS

THE OXBRIDGE FHA FACILITY FHA TERM SHEETS THE OXBRIDGE FHA FACILITY FHA TERM SHEETS Set forth below are the various types of FHA Loans for which the Oxbridge FHA Facility will provide GAP funding (i.e. funding of borrower equity requirement) to

More information

Also in 2013 MIP Will No Longer Expire Currently MIP Expires in five years and when loan to value drops to 78%

Also in 2013 MIP Will No Longer Expire Currently MIP Expires in five years and when loan to value drops to 78% FHA MORTGAGE INSURANCE PREMIMUM (MIP & UFMIP) FHA charges Two Mortgage Insurance fees on each loan; Up Front Mortgage Insurance Premium (UFMIP) typically financed in the loan and Annual mortgage Insurance

More information

Chapter 3. Maximum Mortgage Amounts on Refinance Transactions Table of Contents

Chapter 3. Maximum Mortgage Amounts on Refinance Transactions Table of Contents Chapter 3, Table of Contents Chapter 3. Maximum Mortgage Amounts on Refinance Transactions Table of Contents Section A. Refinance Transaction Overview Overview... 3-A-1 1. General Information on Refinance

More information

Understanding Home Equity Conversion Mortgages

Understanding Home Equity Conversion Mortgages Understanding Home Equity Conversion Mortgages Discover how to Unlock the Equity in your Home Reverse Lending Experts What Are Your Financial Goals? Are you on track to meet your retirement needs and satisfy

More information

Mortgage Terms Glossary

Mortgage Terms Glossary Mortgage Terms Glossary Adjustable-Rate Mortgage (ARM) A mortgage where the interest rate is not fixed, but changes during the life of the loan in line with movements in an index rate. You may also see

More information

Chapter 11: Refinances

Chapter 11: Refinances Chapter 11: Refinances 11.1 Overview 11.2 Trust Land Documentation 11.3 Type of Refinances 11.1 Overview The Section 184 loan can be used to refinance a single family one- to- four unit dwellings located

More information

Chapter 7. Mortgage Insurance Premiums (MIP) 1. Types of Mortgage Insurance Premiums (MIP)

Chapter 7. Mortgage Insurance Premiums (MIP) 1. Types of Mortgage Insurance Premiums (MIP) HUD 4155.2 Chapter 7 Chapter 7. Mortgage Insurance Premiums (MIP) 1. Types of Mortgage Insurance Premiums (MIP) Introduction This topic contains information on the types of mortgage insurance premiums

More information

Reverse Mortgage Information Guide

Reverse Mortgage Information Guide Reverse Mortgage Information Guide Table of Contents FHA Reverse Mortgages 3 Common Misconceptions about Reverse Mortgages 4 How the Program Works 4 Benefits of a HECM loan 4 HECM vs. Traditional Mortgage

More information

UNDERSTANDING THE LOAN ESTIMATE

UNDERSTANDING THE LOAN ESTIMATE The following breaks down the Loan Estimate by section with examples from Encompass followed by official commentary. Also attached, is a copy of a completed Loan Estimate form provided by the Encompass..

More information

Refinancing Your Home Loan

Refinancing Your Home Loan Refinancing Your Home Loan Part 1: Should You Refinance? Reasons and Strategies Related Topics Part 2: Refinancing Costs Part 3: Reconveyance A Final Step When You Pay Off a Loan Quick summary: If you

More information

Introduction. Instructor and student introductions. Module overview. Your Own Home

Introduction. Instructor and student introductions. Module overview. Your Own Home Introduction Instructor and student introductions. Module overview. 2 Student Introductions Your name. Your expectations, questions, and concerns about buying a home. 3 Purpose : Gives you information

More information

A Home Equity Loan: Is it right for you?

A Home Equity Loan: Is it right for you? A Home Equity Loan: Is it right for you? 2004 CBR. This document was produced by the CBR Foundation for Financial Education, Inc., in Racine, Wisconsin. CBR is a non-profit organization dedicated to providing

More information

Reverse Mortgage Is it right for you?

Reverse Mortgage Is it right for you? Reverse Mortgage Is it right for you? Reverse Mortgages are being hyped as a tremendous tool for retirement income. This type of mortgage uses part of the equity in a home as collateral. A Reverse Mortgage,

More information

Chapter 7. Mortgage Insurance Premiums (MIPs) Table of Contents

Chapter 7. Mortgage Insurance Premiums (MIPs) Table of Contents HUD 4155.2 Chapter 7, Table of Contents Chapter 7. Mortgage Insurance Premiums (MIPs) Table of Contents Chapter 7. Mortgage Insurance Premiums (MIPs) 1. Types of MIPs... 7-1 2. Up Front Mortgage Insurance

More information

Secure your financial future with a Reverse Mortgage today!

Secure your financial future with a Reverse Mortgage today! Steve Rivas President Call me with any questions always here to help. (888) 944-6262 steve@wphomeloans.com www.wphomeloans.com Secure your financial future with a Reverse Mortgage today! 1 What Are Your

More information

The. Path. Refinancing. www.totalmortgage.com October. totalmortgage.com 877-868-2503

The. Path. Refinancing. www.totalmortgage.com October. totalmortgage.com 877-868-2503 The Path Refinancing totalmortgage.com 877-868-2503 www.totalmortgage.com October 1 2012 The Path Refinancing Over time, many things change and need adjustment, and the reality is your home financing is

More information

TILA RESPA Integrated Disclosure

TILA RESPA Integrated Disclosure FEBRUARY 7, 2014 TILA RESPA Integrated Disclosure H-25(E) Mortgage Loan Transaction Closing Disclosure Refinance Transaction Sample This is a sample of a completed Closing Disclosure for the refinance

More information

Lender Company Name 2.3 Street Address, City, State, ZIP 23.2.1 Save this Loan Estimate to compare with your Closing Disclosure. Loan Estimate 0.1 DATE ISSUED 1.1 APPLICANTS 2.1 123 Anywhere Street Anytown,

More information

Real Estate Principles Chapter 12 Quiz

Real Estate Principles Chapter 12 Quiz Real Estate Principles Chapter 12 Quiz 1. A prudent lender who is deciding whether or not to make a real estate loan to a prospective borrower will ensure that: A. the market value of the property is greater

More information

Refinancing Your Existing Mortgage

Refinancing Your Existing Mortgage Refinancing Your Existing Mortgage Your home is your largest single asset and it can be a powerful financial tool. As you build up your equity over time, you will have access to a variety of borrowing

More information

Refinancing may be an option for you to consider if your loan is adjusting to an interest rate that's higher than the current market rates.

Refinancing may be an option for you to consider if your loan is adjusting to an interest rate that's higher than the current market rates. How does an adjustable rate mortgage (ARM) work? Like many homebuyers, you may have been attracted to the low initial interest rate of an adjustable-rate mortgage (ARM). While adjustable-rate mortgages

More information

Secure your financial future with a Reverse Mortgage today!

Secure your financial future with a Reverse Mortgage today! Secure your financial future with a Reverse Mortgage today! 1 What Are Your Retirement Goals? Are you on track to meet your needs and satisfy your wants, now and in the future? Pay off your existing mortgage*

More information

Nationwide Mortgage Licensing System #222955

Nationwide Mortgage Licensing System #222955 Nationwide Mortgage Licensing System #222955 Senior Concerns Is your mortgage paid off? Is your Social Security and/or pension sufficient? Rising costs of living: gas, health care, food, utilities, medications,

More information

MORTGAGE TERMS. Assignment of Mortgage A document used to transfer ownership of a mortgage from one party to another.

MORTGAGE TERMS. Assignment of Mortgage A document used to transfer ownership of a mortgage from one party to another. MORTGAGE TERMS Acceleration Clause This is a clause used in a mortgage that can be enforced to make the entire amount of the loan and any interest due immediately. This is usually stipulated if you default

More information

Understanding Home Equity Conversion Mortgages

Understanding Home Equity Conversion Mortgages Understanding Home Equity Conversion Mortgages Discover how to Unlock the Equity in your Home Stephen Gargano Manager NMLS # 64495 Reverse Mortgage Dept SEFCU MORTGAGE SERVICES 1131 Rte 55, Suite 4 Lagrangeville,

More information

Presented by Concorde Mortgage Co.

Presented by Concorde Mortgage Co. Presented by Concorde Mortgage Co. Zanesville Office (740) 454-8876 Coshocton Office (740) 623-2995 Toll Free (800) 579-1291 Website: www.concorde-mortgage.com 1) Are You Ready to Buy? 2) Important Financing

More information

January 28, 2015 Kauffman Conference Center

January 28, 2015 Kauffman Conference Center January 28, 2015 Kauffman Conference Center Changing Housing Needs for Older Adults Reverse Mortgages: Opportunities and Challenges Pete Mendenhall, CRMP, CAPS North American Savings Bank Understanding

More information

Welcome. 1. Agenda. 2. Ground Rules. 3. Introductions. Loan To Own 2

Welcome. 1. Agenda. 2. Ground Rules. 3. Introductions. Loan To Own 2 Loan To Own Welcome 1. Agenda 2. Ground Rules 3. Introductions Loan To Own 2 Objectives Identify various types of installment loans Identify the factors lenders use to make home loan decisions Identify

More information

Home Equity Loans and Lines of Credit

Home Equity Loans and Lines of Credit Delaware County Bank P.O. Box 1001 Lewis Center, OH 43035 740-657-7000 inforequest@dcb-t.com Home Equity Loans and Lines of Credit Page 1 of 5, see disclaimer on final page Home Equity Loans and Lines

More information

WELCOME. To the Wonderful World Of Reverse Mortgages

WELCOME. To the Wonderful World Of Reverse Mortgages WELCOME To the Wonderful World Of Reverse Mortgages Reverse Mortgage Loans Borrowing Against Your Home Basic Questions: 1. Do you really need a reverse mortgage? -- Why are you interested in these loans?

More information

NORTH AMERICAN TITLE COMPANY Like Clockwork. www.nat.com/cfpb

NORTH AMERICAN TITLE COMPANY Like Clockwork. www.nat.com/cfpb NORTH AMERICAN TITLE COMPANY Like Clockwork www.nat.com/cfpb UNDERSTANDING THE NEW LOAN ESTIMATE AND CLOSING DISCLOSURE FORMS American Title, we want to make sure all of our customers have the information

More information

HOMEBUYER S GUIDE. Know what it takes to buy your first home

HOMEBUYER S GUIDE. Know what it takes to buy your first home HOMEBUYER S GUIDE Know what it takes to buy your first home homebuyer s guide If you re thinking about buying a home, we say congratulations. Most likely, it s the biggest purchase decision you ve made

More information

What You Need to Know Before Considering a. Reverse Mortgage. Fair Housing Legal Support Center & Clinic

What You Need to Know Before Considering a. Reverse Mortgage. Fair Housing Legal Support Center & Clinic What You Need to Know Before Considering a Reverse Mortgage Fair Housing Legal Support Center & Clinic Reverse Mortgage Pros and Cons Pros A reverse mortgage may allow senior homeowners to age in place

More information

Guide to FHA Streamline Refinances. By J.J. Sawicki, CMP AVP Third Party Lending/Merrimack Mortgage

Guide to FHA Streamline Refinances. By J.J. Sawicki, CMP AVP Third Party Lending/Merrimack Mortgage Guide to FHA Streamline Refinances By J.J. Sawicki, CMP AVP Third Party Lending/Merrimack Mortgage What is a streamline refinance? The FHA streamline refinance has become an increasingly attractive option

More information

Financing Residential Real Estate

Financing Residential Real Estate Financing Residential Real Estate Chapter 1: Finance and Investment Borrowing Money to Buy a Home Investments and Returns Types of Investments Ownership Investments Debt Investments Securities Investment

More information

Chapter 10 6/16/2010. Mortgage Types and Borrower Decisions: Overview Role of the secondary market. Mortgage types:

Chapter 10 6/16/2010. Mortgage Types and Borrower Decisions: Overview Role of the secondary market. Mortgage types: Mortgage Types and Borrower Decisions: Overview Role of the secondary market Chapter 10 Residential Mortgage Types and Borrower Decisions Mortgage types: Conventional mortgages FHA mortgages VA mortgages

More information

Senior Concerns. Will you outlive your money?

Senior Concerns. Will you outlive your money? NMLS #64997 Senior Concerns Is your mortgage paid off? Is your Social Security and/or pension sufficient? Rising costs of living: gas, health care, food, utilities, medications, etc. Fixed income with

More information

Introduction. Purpose. Student Introductions. Objectives (Continued) Objectives. Instructor and student introductions. Module overview. Your name.

Introduction. Purpose. Student Introductions. Objectives (Continued) Objectives. Instructor and student introductions. Module overview. Your name. Introduction Instructor and student introductions. Module overview. Your Own Home 2 Your name. Student Introductions Your expectations, questions, and concerns about buying a home. Purpose Your Own Home:

More information

Definitions. In some cases a survey rather than an ILC is required.

Definitions. In some cases a survey rather than an ILC is required. Definitions 1. What is the closing? The closing is a formal meeting at which both the buyer and seller meet to sign all the final documentation required for the buyer's mortgage loan. Once the closing

More information

Table of Contents How to Use the Closing Dis closure (CD)... 42 How to Compar e the Closing Dis closur e t o the L oan Estima

Table of Contents How to Use the Closing Dis closure (CD)... 42 How to Compar e the Closing Dis closur e t o the L oan Estima 1 Table of Contents Refinance Process Checklist... Refinance Process Timeline... Refinance to Lower Your Interest Rate... Refinance to Reduce Your Mortgage Term... Refinance to Convert Your Adjustable

More information

Home Finance Seminar. Presented by Commonwealth Credit Union Mortgage Department

Home Finance Seminar. Presented by Commonwealth Credit Union Mortgage Department Home Finance Seminar Presented by Commonwealth Credit Union Mortgage Department Times have changed Then Any employee could provide mortgage loan information 100% financing was an option The disclosure

More information

FHA Reverse Mortgages for People 62 Years and Older

FHA Reverse Mortgages for People 62 Years and Older FHA Reverse Mortgages for People 62 Years and Older If you are age 62 or older you may want to participate in FHA's Home Equity Conversion Mortgage (HECM), better known as the Reverse Mortgage, program.

More information

The Guide to Single Family Home Mortgage Insurance

The Guide to Single Family Home Mortgage Insurance U.S. Department of Housing and Urban Development Office of Housing Office of Single Family Housing The Guide to Single Family Home Mortgage Insurance www.hud.gov espanol.hud.gov Becoming a Homeowner Many

More information

Buying a Home in Today s Mortgage Environment? Time to Refinance?

Buying a Home in Today s Mortgage Environment? Time to Refinance? Buying a Home in Today s Mortgage Environment? Time to Refinance? Presented by John Garofalo, Regional V.P. Equity Resources, Inc. NMLS # 206793 15752 Crabbs Branch Way Rockville, Maryland 20855 House

More information

VA Homeowners Guide PRESENTED BY. www.lowvarates.com

VA Homeowners Guide PRESENTED BY. www.lowvarates.com VA Homeowners Guide PRESENTED BY www.lowvarates.com TABLE OF CONTENTS Introduction to LowVARates Why a VA Loan? VA Loan Eligibility What is a COE? Occupancy Requirements Credit/Income Requirements VA Funding

More information

FHA Office of Single Family Housing. Training: Origination Through Post-Closing/ Endorsement

FHA Office of Single Family Housing. Training: Origination Through Post-Closing/ Endorsement Training: Origination Through Post-Closing/ Endorsement 1 Module 8A Programs and Products: Refinance Single Family Housing Policy Handbook 4000.1 Title II Insured Housing Program Forward Mortgages Origination

More information

Chapter 19. Residential Real Estate Finance: Mortgage Choices, Pricing and Risks. Residential Financing: Loans

Chapter 19. Residential Real Estate Finance: Mortgage Choices, Pricing and Risks. Residential Financing: Loans Chapter 19 Residential Real Estate Finance: Mortgage Choices, Pricing and Risks 10/25/2005 FIN4777 - Special Topics in Real Estate - Professor Rui Yao 1 Residential Financing: Loans Loans are classified

More information

Table of Contents Reverse Mortgage O verview... Reverse Mortgage K ey Questions... 5 Reverse Mortgage Pros and Cons... 7 Reverse Mortgage Borr

Table of Contents Reverse Mortgage O verview... Reverse Mortgage K ey Questions... 5 Reverse Mortgage Pros and Cons... 7 Reverse Mortgage Borr 1 Table of Contents Reverse Mortgage Overview... Reverse Mortgage Key Questions... Reverse Mortgage Pros and Cons... Reverse Mortgage Borrower Qualification... Reverse Mortgage Key Items... Reverse Mortgage

More information

A GUIDE TO. reverse mortgages. Live the retirement you dreamed

A GUIDE TO. reverse mortgages. Live the retirement you dreamed A GUIDE TO reverse mortgages Live the retirement you dreamed Guide Content 14What Is A Reverse Mortgage? 24How Do I Qualify? 34 What Can A Reverse Mortgage Be Used For? 44How Much Money Could I Qualify

More information

Frequently asked questions for advisors

Frequently asked questions for advisors 1. How does your client qualify for a reverse mortgage? To become eligible for a reverse mortgage, the borrower must be at least 62 years old and own their home And have enough equity in the house to pay

More information

Section D. Reverse Mortgage Loan Features and Costs Overview

Section D. Reverse Mortgage Loan Features and Costs Overview Section D. Reverse Mortgage Loan Features and Costs Overview Contents This section contains the following topics: Topic See Page 1. Types of Reverse Mortgage Products 5-D-2 2. Reverse Mortgage Loan Limits

More information

Guide to Purchasing a Home

Guide to Purchasing a Home Your journey to homeownership starts at your credit union. Purchasing your first home is a big decision, and it may even seem overwhelming. Rest assured Beacon Credit Union is here to assist you in understanding

More information

Reverse Mortgage. by Jeffrey D. Smith

Reverse Mortgage. by Jeffrey D. Smith There are finance companies that are offering the "Reverse Mortgage" to seniors (at least age 62). Seniors with a substantial amount of equity in their residence are targets of this aggressive predatory

More information

Homebuyer s Handbook

Homebuyer s Handbook Homebuyer s Handbook Understanding the home buying process Buying a home is one of life s most exciting events and is still one of the smartest investments you can make. But the process of finding, buying

More information

FHA Streamline Refinance Program. Do not distribute. Use the Administrator Guidelines for reference. Copyright ehousingplus 2015.

FHA Streamline Refinance Program. Do not distribute. Use the Administrator Guidelines for reference. Copyright ehousingplus 2015. FHA Streamline Refinance Program REQUIREMENTS ELIGIBLE LENDERS Must be an approved TDHCA TMP 79 Lender. ELIGIBLE LOANS Loans funded through TMP-79 are eligible for refinance as long as the loan was closed

More information

The New Tool For Retirement Income Planning. Presented by: Becky Bell, Regional VP, Mortgage Banking

The New Tool For Retirement Income Planning. Presented by: Becky Bell, Regional VP, Mortgage Banking The New Tool For Retirement Income Planning Presented by: Becky Bell, Regional VP, Mortgage Banking Why Consider a Reverse Mortgage? Allows Clients to Take a Dormant Asset (Home Equity) and Put it to Work

More information

Home Mortgage Search Process By Geoff Wells

Home Mortgage Search Process By Geoff Wells Home Mortgage Search Process By Geoff Wells 2013 1 Introduction The purpose of document is to provide home mortgage shopping information for new home buyers and existing home buyers looking to refinance.

More information

Achieving your goals through Financing. Cooperative Financing Models that may work for you

Achieving your goals through Financing. Cooperative Financing Models that may work for you Achieving your goals through Financing Cooperative Financing Models that may work for you Overview Cooperative Financing Overview of the environment Interest Rates Why now is the best time to borrow Reasons

More information

800.550.9435 www.pwsb.com

800.550.9435 www.pwsb.com 800.550.9435 www.pwsb.com Thinking of buying your first home? Bet you re pretty nervous, huh? Maybe even cold sweats nervous. How in the world are you going to afford it? Where do you start? All these

More information

Home Buying Seminar. A presentation by The Summit Federal Credit Union

Home Buying Seminar. A presentation by The Summit Federal Credit Union Summit Branches are located in Rochester (7), Seneca Falls (1), Buffalo (3), Syracuse (5) and Cortland (2) Home Buying Seminar A presentation by The Summit Federal Credit Union What We Will Cover Today

More information

Nontraditional Mortgages Fixed Rate Products

Nontraditional Mortgages Fixed Rate Products Nontraditional Mortgages Fixed Rate Products Overview MortgageEducation.com All Rights Reserved - 1 - I. Introduction II. Buydown Mortgage A. Buydown Mortgage Features 1. Temporary Buydown 2. Permanent

More information

Chapter Review Problems

Chapter Review Problems Chapter Review Problems Use 2 decimal places for all answers. Unit 13.1 Home ownership and mortgage payments 1. Your personal residence is considered personal property rather than real estate because you

More information

Dr. Debra Sherrill Central Piedmont Community College

Dr. Debra Sherrill Central Piedmont Community College Dr. Debra Sherrill Central Piedmont Community College 1 2 Describe the benefits and pitfalls of renting versus owning a home. List the steps required to obtain a mortgage loan. Identify mortgage options

More information

Welcome. 1. Agenda. 2. Ground Rules. 3. Introductions. Borrowing Basics 2

Welcome. 1. Agenda. 2. Ground Rules. 3. Introductions. Borrowing Basics 2 Borrowing Basics Welcome 1. Agenda 2. Ground Rules 3. Introductions Borrowing Basics 2 Objectives Define what credit and a loan is Distinguish between secured and unsecured loans Identify three types of

More information

Appraisal A written analysis prepared by a qualified appraiser and estimating the value of a property

Appraisal A written analysis prepared by a qualified appraiser and estimating the value of a property REAL ESTATE BASICS Affordability Analysis An analysis of a buyer s ability to afford the purchase of a home, reviews income, liabilities, and available funds, and considers the type of mortgage a buyer

More information

"Reverse Mortgages are a powerful tool to help eligible homeowners obtain

Reverse Mortgages are a powerful tool to help eligible homeowners obtain Dear Friend: Being a senior myself I am constantly looking for ways to improve my quality of life, have more liquid assets, reduce my cost of living and looking for ways to have passive income. My wife

More information

Borrowing Basics. FDIC Money Smart for Young Adults. Building: Knowledge, Security, Confidence

Borrowing Basics. FDIC Money Smart for Young Adults. Building: Knowledge, Security, Confidence Borrowing Basics FDIC Money Smart for Young Adults Building: Knowledge, Security, Confidence Purpose Help you to determine: How to use credit appropriately What forms of credit best suit your needs 2 Objectives

More information

HOMEOWNERSHIP: Understanding What You Can Afford, Mortgages, and Closing Costs. Illinois Association of REALTORS. Springfield, IL 62701

HOMEOWNERSHIP: Understanding What You Can Afford, Mortgages, and Closing Costs. Illinois Association of REALTORS. Springfield, IL 62701 Illinois Association of REALTORS 522 S. Fifth Street Springfield, IL 62701 www.illinoisrealtor.org www.yourillinoishome.com HOMEOWNERSHIP: Understanding What You Can Afford, Mortgages, and Closing Costs

More information

FHA Home Loans 101 An Easy Reference Guide

FHA Home Loans 101 An Easy Reference Guide FHA Home Loans 101 An Easy Reference Guide Updated for loans on or after January 26, 2015 Congratulations on Starting Your Journey to Home Ownership This guide offers a quick look at vital information

More information

Energy Efficient Mortgages & HERS Ratings. Peter V. Vargo Nu-Tech Energy Solutions, Co LLC

Energy Efficient Mortgages & HERS Ratings. Peter V. Vargo Nu-Tech Energy Solutions, Co LLC Energy Efficient Mortgages & HERS Ratings Peter V. Vargo Nu-Tech Energy Solutions, Co LLC PA Housing & Land Development Conference February 20, 2013 Energy Efficient Mortgages & HERS Ratings Peter V. Vargo

More information

Assumable mortgage: A mortgage that can be transferred from a seller to a buyer. The buyer then takes over payment of an existing loan.

Assumable mortgage: A mortgage that can be transferred from a seller to a buyer. The buyer then takes over payment of an existing loan. MORTGAGE GLOSSARY Adjustable Rate Mortgage (ARM): A mortgage loan with payments usually lower than a fixed rate initially, but is subject to changes in interest rates. There are a variety of ARMs that

More information

Table of Contents Introduction Purchasing Time-line II. Before You Buy

Table of Contents Introduction Purchasing Time-line II. Before You Buy Table of Contents I. Introduction Purchasing Time-line II. Before You Buy Are You Ready to be a Homeowner? III. Determining What You Can Afford IV. Shopping for a House Role of the Real Estate Broker Selecting

More information

Transaction Information. Michael Jones and Mary Stone 123 Anywhere Street. Anytown, ST 12345. Steve Cole and Amy Doe 321 Somewhere Drive

Transaction Information. Michael Jones and Mary Stone 123 Anywhere Street. Anytown, ST 12345. Steve Cole and Amy Doe 321 Somewhere Drive Closing Disclosure This form is a statement of final loan terms and closing costs. Compare this document with your Loan Estimate. Closing Information Date Issued 4//20 Closing Date 4//20 Disbursement Date

More information

Outstanding mortgage balance

Outstanding mortgage balance Using Home Equity There are numerous benefits to owning your own home. Not only does it provide a place to live, where you can decorate as you want, but it also provides a source of wealth. Over time,

More information

FHA Streamline Training: Broker Edition. January 22, 2014

FHA Streamline Training: Broker Edition. January 22, 2014 FHA Streamline Training: Broker Edition January 22, 2014 1 Jeff Walsh President of LDWholesale 2 What Is It? FHA Streamline refinance provides existing FHA borrower s an opportunity to lower monthly payments

More information

A Roof Over Your Head

A Roof Over Your Head A Roof Over Your Head FDIC Money Smart for Young Adults Building: Knowledge, Security, Confidence Objectives Identify initial and continuing costs of renting an apartment. List questions to ask when determining

More information

(FMS- Mortgage Package- 19 October 2011)

(FMS- Mortgage Package- 19 October 2011) Greetings From Constellation s Loan Team! Thank you for your interest in Constellation Federal Credit Union s mortgage program. We can help you buy or refinance your primary, secondary, or vacation home

More information

ORIGINAL 5/5 ADJUSTABLE RATE MORTGAGE LOAN 5/5 POWER PURCHASE MORTGAGE LOAN

ORIGINAL 5/5 ADJUSTABLE RATE MORTGAGE LOAN 5/5 POWER PURCHASE MORTGAGE LOAN 5/5 ARM HOME LOAN RATES AND TERMS Effective October, 015 and subject to change. Get flexibility, stability and no closing costs 1 with SDCCU s 5/5 Adjustable Rate Mortgage Home Loan. Your rate can only

More information

US Department of Housing and Urban Development. FHA Single-Family Mutual Mortgage Insurance Fund Programs

US Department of Housing and Urban Development. FHA Single-Family Mutual Mortgage Insurance Fund Programs US Department of Housing and Urban Development FHA Single-Family Mutual Mortgage Insurance Fund Programs Quarterly Report to Congress FY 2010 Q1 December 31, 2009 US Department of Housing and Urban Development

More information

Adjustable Rate Mortgage (ARM) a mortgage with a variable interest rate, which adjusts monthly, biannually or annually.

Adjustable Rate Mortgage (ARM) a mortgage with a variable interest rate, which adjusts monthly, biannually or annually. Glossary Adjustable Rate Mortgage (ARM) a mortgage with a variable interest rate, which adjusts monthly, biannually or annually. Amortization the way a loan is paid off over time in installments, detailing

More information

FHA STREAMLINE REFINANCE PRODUCT PROFILE

FHA STREAMLINE REFINANCE PRODUCT PROFILE Terms 30 Year Terms 15 Year Terms Maximum LTV/CLTV LTV/CLTV Score LTV/CLTV Score Non-Credit Qualifying N/A N/A Credit Qualifying 97.75% 97.75% Applies to Case Numbers assigned on or after January 26, 2015

More information

0701 Completing the 203K Worksheet

0701 Completing the 203K Worksheet *** For Purchase Loans *** (see below section for Refinance Transactions). 1. Start from the Borrower Information Screen. 2. Enter actual Sales Price. 3. Click the Mtg Insurance button at the bottom of

More information

he Utah Housing Corporation offers six exciting loan programs to assist low- and moderate-income homebuyers with the purchase of a home.

he Utah Housing Corporation offers six exciting loan programs to assist low- and moderate-income homebuyers with the purchase of a home. he Utah Housing Corporation offers six exciting loan programs to assist low- and moderate-income homebuyers with the purchase of a home. All loan programs offer reasonable interest rates and three of the

More information

Everything You Need to Know About Mortgage Refinancing

Everything You Need to Know About Mortgage Refinancing Everything You Need to Know About Mortgage Refinancing 1 Table of Contents Content Page Overview 3 Chapter 1: Types of Mortgages 4-8 Chapter 2: Types of Mortgage Interest 9-10 Chapter 3: Types of Lenders

More information

FHASecure Presented by: US Department of Housing and Urban Development (HUD)

FHASecure Presented by: US Department of Housing and Urban Development (HUD) FHASecure Presented by: US Department of Housing and Urban Development (HUD) Last Revision: 10/30/07 General Assist borrowers currently in a conventional loan Delinquent Result of the ARM reset Must meet

More information

FHA STREAMLINE REFINANCE GUIDELINES

FHA STREAMLINE REFINANCE GUIDELINES Table of Contents FHA STREAMLINE REFINANCE GUIDELINES Maximum Mortgage Amount Calculations... 1 Streamline With Appraisal... 1 Streamline Without Appraisal... 2 Underwriting and Eligibility Criteria...

More information

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WASHINGTON, DC 20410-8000

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WASHINGTON, DC 20410-8000 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WASHINGTON, DC 20410-8000 ASSISTANT SECRETARY FOR HOUSING- FEDERAL HOUSING COMMISSIONER Date: March 6, 2012 To: All Approved es e Letter 12-4 Subject Single

More information

The VA Streamline Refinance (irrrl) Loan The VA Streamline Refinance is also known as the Interest Rate Reduction Refinance Loan (irrrl).

The VA Streamline Refinance (irrrl) Loan The VA Streamline Refinance is also known as the Interest Rate Reduction Refinance Loan (irrrl). VA STREAMLINE LOANS Update (August 8, 2015) : This VA Streamline Refinance information has been revised to include new information. Loan guidelines change constantly. If you get your VA Streamline Refinance

More information

U.S. Department of the Treasury Information Guide Regarding Reverse Mortgage

U.S. Department of the Treasury Information Guide Regarding Reverse Mortgage U.S. Department of the Treasury Information Guide Regarding Reverse Mortgage Federal Housing Administration U.S. Department of Housing and Urban Development Basics about Reverse Mortgages What is a reverse

More information

Numbers. on Case. Case numbers can MIP): Premium. April 18, 20111 REFINANCES. LTV Ratio >95 95 1.15% 1.10% 1.0. LTV Ratio >90 90 .50%.

Numbers. on Case. Case numbers can MIP): Premium. April 18, 20111 REFINANCES. LTV Ratio >95 95 1.15% 1.10% 1.0. LTV Ratio >90 90 .50%. ANNOUNCEMEN NT... #11-07, March 11, 2011 To: All Michigan Mutual, Inc. Brokers Topics Included in this Announcement: HUD Mortgage Letter 2011-10: Annual Mortgage Insurance Premium Changes and Guidance

More information