Connecticut Mortgages

How to be mortgage ready

By on Jan 2, 2014 in Connecticut Mortgages | 0 comments

What is mortgage ready, you ask. It’s a term I like to use to say that all your ducks are in a row and you are bullet proof to all of the scrutiny you will be going under getting approved for your dream home. The first thing is to make sure you have no outstanding collection accounts on your credit report. If you do, they must be paid off with a letter to that fact. Second is your bank statements and the deposits going into it. Believe it or not lenders care more about where your deposit money is coming from than ever before. Whenever you have a deposit you must show a source of that where that money came from, that’s called sourcing funds and is a major deal to lenders. If you are the type to make cash deposits than you will have to curtail that activity for a minimum of 60 days and only deposit money you can back up its source like direct deposit of a paycheck or a birthday gift from the parents. Third, but not last is having a good handle on all of your pertinent and recent paperwork like tax returns, paystubs, and bank statements. If you have these documents at your disposal than it will be a much less stressful transaction for you. Either way, if you contact an experienced mortgage professional we can guide you down the right path from the beginning. If you have any questions feel free to contact...

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Rent to own mortgages

By on Dec 22, 2013 in Connecticut Mortgages | 0 comments

In today’s tight credit market rent to own is becoming an ever growing trend. What a lot I people don’t understand that in certain cases like fha mortgages you cannot currently occupy your future purchase as a tenant. Today’s rent to own prospects are not as plentiful and they used to be but they are still out there. The way they typically work is that whoever the owner is charges a certain rental rate and in return gives the tenant a credit of a specified dollar amount for the rental period giving the tenant a built up down payment. One important fact to consider if you end up as a tenant in that situation, by all underwriting rules, the landlord is only allowed to give you monthly credit above and beyond whatever fair market value is for the rental. For example, the market value for a condo your renting to own is $1200 and your rent is $1250, the bank will only count $50 per month as down payment money. Always consult your mortgage consultant before entering into a rent to own...

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A.R.M vs fixed rate mortgage

By on Dec 21, 2013 in Connecticut Mortgages | 0 comments

So, the age old question, do I get an adjustable rate mortgage or fixed rate mortgage? Quite a few years ago, 2005, arms were as popular if not more than fixed rate mortgages and the main reason was there was such a massive margin between them that even a loan amount of $200,000 would have such vast savings they were hard to resist. Now, that difference is virtually erased, and in some cases 7/1 arms are higher in rate than their fixed counterparts. In that case you obviously never go with an adjustable, but when should you go with an arm? Typically your arm buyer is in need of a jumbo, super jumbo, or specialty loan that will make the rate difference substantial enough to incur the risk. The rule of thumb I like to use is that if the savings is not 15% of the principal and interest payment than it’s not worth the risk. With that being said if you know definitely, without a shadow of a doubt that you will be selling the property or paying it off within the fixed time period of the loan always got the fixed rate. Life is always evolving and changing and the fixed rate option is a constant so peace of mind is factor #1. In some cases such as construction loans, or home equity loans there are no fixed rate options so that decision is easy since you really don’t have that option. You can always visit my site for more information on arms....

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Zero down mortgages and what they are

Zero down mortgages and what they are

By on Dec 20, 2013 in Connecticut Mortgages | 0 comments

Since the great crash of 2008 alot of people have assumed that zero down mortgages no longer exist. Well, that information is incorrect and I will show you the products that are still available with zero down payment requirement. The first product is called a VA loan and the only borrowers that are eligible are Veterans of the armed forces and must have served with credentials to match. The second product is called a USDA mortgage and that has specific guidelines for location and income levels. This loan was enacted to help people who wanted to live in rural areas of the country but found it hard to obtain financing because of the property type. The restrictions dont stop at the property, they also take into consideration the number of people in the household as well as the annual income coming into that household as well.   Please contact a local mortgage professional for more information on either of these...

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Reverse mortgage myths debunked

By on Dec 19, 2013 in Connecticut Mortgages | 0 comments

Reverse mortgages are as widely misunderstood as the elusive Yeti. I am here to debunk these myths and give you the straight facts and uses for this loan. All mortgage loans should be used like tools, have them ready when you need them, and know how to use them when you need them. Reverse mortgages are no different in that they play an incredibly crucial and life saving role in our society. A reverse mortgage is a government insured loan available to any senior who is 62 and over and lives in the house as their primary residence. The first myth is that you no longer own the home after you close on a reverse…this is INCORRECT..you still hold title to the home with a first mortgage lien on it just like when you bought it. The second myth is that if you miss a payment the government seizes the house and kicks you out…INCORRECT.. Their are no principal or interest payments required on a reverse mortgage, the borrower is obligated to pay taxes and insurance on the property. Yes, that was correct, their are no payment requirements as far as principal and interest on a reverse mortgage Ever as long as certain conditions are met. Condition one is that you must reside in the home as your primary residence, and condition two is that you keep the taxes and insurance curre The money used in a reverse mortgage can be used for anything the homeowner wants or needs and the loan amount is a moving target and is based on the borrowers age, property value, and property condition. Currently there are no income or credit minimums to meet to obtain the loan, but in January of 2014 the government may have certain specific standards for the borrower to meet to obtain the loan. The best thing you can do is call a qualified reverse mortgage specialist such as myself to find out your options, what you can qualify for, and what your options...

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Refinancing to pay off debt

By on Dec 18, 2013 in Connecticut Mortgages, Loan Programs, Uncategorized | 0 comments

Also known as cash out refinancing can be an incredibly powerful tool to a homeowner. The most asked question by clients is should I pay off credit card and car loans with the equity in my house. There are a lot if different answers to this question but if you take out the emotional side of things typically the answer is yes. The average credit card rates are around 13% and that’s for the ideal card holder and in the area of 23% for the rest of the people. With that being said you have to compare apples to apples and add up all of your current monthly debt and compare them to the new mortgage payment after using a mortgage to pay these off. The rule of thumb I like to use is that if the savings is over $250 per month and you aren’t adding too many years to your mortgage than your answer is “YOU HAVE TO REFINANCE” Typically people pay near minimums on their credit cards and by doing this it turns into a 25 year debt anyway at an average rate of 18% your loosing tens of thousands by not refinancing. Take the savings and reapply it to the new mortgage and before you know it your principal balance on your mortgage is shrinking a lot faster than you...

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