Home Refinancing in Massachusetts: Should You Wait?


Refinanicng Your Home in Massachusetts:  Is it the Right Move?

Home Refinancing in MassachusettsSuddenly, now that the mortgage refinance train is chugging away at warped speed, mortgage lenders are having trouble keeping pace, leaving many borrowers waiting for more than two months. For years mortgage rates have behaved like a crazy rollercoaster ride at Disney World–taking extreme dips and turns no one saw coming. As rates leveled off and even rose last November, mortgage brokers and financial institutions saw a decrease in overall refinance demand and fired a large chunk of its staff. Last April Wells Fargo slashed 4,500 employees from its mortgage division and closed several refinance centers throughout the country. The refinance era appeared to be dead and buried until suddenly early fall, it started showing signs of life. Within the past month, rates took another unexpected dive, which spurned the latest voracious craving for refinance. Now mortgage lenders are trying to process more mortgage loan paperwork with less people. According to the Mortgage Bankers Association, refinance applications increased a staggering 83% from this year’s low in February to the end of August. The increase comes on the heels of the average 30-year fixed loan rates dropping from 5% to 4.15% in mid August, which is the lowest reported level by Freddie Mac since 1971. This week the 30 year fixed mortgage rate is now below 4% for the first time ever–hovering at 3.94%. Why So Much Gridlock? Many borrowers wonder with the tremendous upgrades in automation, why they have to wait 60 days or more for their refinance to be approved. Stew Larsen, head of mortgages at Bank of the West (San Francisco, CA) says that no matter how much you try to automate the process it still comes down to people. “The industry has come a long way in terms of automation, but it’s still a people-driven industry. Mortgage insurers, appraisers, and title companies, all those surrounding industries, they downsized as well.” Larsen adds that the continued focus on stricter underwriting and disclosure requirements has also dragged down the process, which is leaving no room to shorten the process. Another issue is what does the mortgage lender do during this race to refinance? Hire staff back, only to have to re-furlough employees once this trend cools? Many mortgage brokers used to hire temporary staff and outsource work during times of loan surges, however this practice is somewhat frowned upon after the robo-signature debacle. In fact this conundrum may even tinker with economic recovery as the Obama Administration continues to develop plans for a housing recovery. Initial blueprints point to ways to promote refinancing through Freddie Mac and Fannie Mae for underwater borrowers, however mortgage companies are already overloaded with applications. Approximately 11 million U.S. homeowners (23% of Americans with a mortgage) are considered to be underwater. Should You Wait to Refinance Your Home? As in the past, you’ve got to know when to hold them and know when to fold them. In previous months economists have told us that we’d already seen the best of the rates as rates began to climb to 5%. Now this. What’s a borrower to do? According to Greg McBride, senior financial analyst for Bankrate.com, borrowers should consider anything at 4.5% or less to be an ideal time to refinance. “When mortgage rates got below 4.5%, that opened the door for people who previously (refinanced) at 5 and 5.25%,” he said. “Even at 4.75%, if you can snag a rate below 4, it makes sense.” Today refinancing goals are not completely about lowering mortgage payments. Ken Perlmutter, president of Perl Mortgage says that borrowers have numerous reasons to refinance (or not). “It depends on what you’re trying to accomplish,” he explains. “Do you want a lower payment? You want to go to a 30-year. If you’re at a different point in your life and you want to accumulate wealth (a 15-year means), you’re paying down the principal faster, you’re building equity faster.” In fact the 15 year product is more popular than ever, current hanging around the 3.25% mark. Either way, continuing to wait for lower rates may not be in the borrower’s best interest. Even if, for some reason rates could actually drop again, borrowers will still receive the “deal of the century” with a refinance today. That’s why mortgage professionals advise borrowers to shop around, pack their patience and wait out the process. Companies also continue to remind borrowers to have their financial house in order before applying. According to mortgage broker Mark Goldman, credit scores are still a big deal. The best rates will still be awarded to those with credit scores of 720 or more and only approximately 40% of U.S. homeowners have a score that high. However the 720 score is not set in stone across the country. Mike Anderson, mortgage broker at Essential Mortgage Company in Baton Rouge, LA says that a score of 680 will suffice. Additionally, you must have 10% to 20% equity in their home, depending upon where you live. Goldman says, “It’s tough to refinance a loan these days. Only the select few can qualify.”  Refinancing your home in Massachusetts is a serious decision that one should consider if you haven’t already.

Home Refinancing in Massachusetts: Should You Wait?

Find the Best Mortage Brokers


Refinancing Your Home in

Massachusetts:  Is it the Right Move?

 

Home Refinancing in MassachusettsSuddenly, now that the mortgage refinance train is chugging away at warped speed, mortgage lenders are having trouble keeping pace, leaving many borrowers waiting for more than two months. For years mortgage rates have behaved like a crazy rollercoaster ride at Disney World–taking extreme dips and turns no one saw coming. As rates leveled off and even rose last November, mortgage brokers and financial institutions saw a decrease in overall refinance demand and fired a large chunk of its staff. Last April Wells Fargo slashed 4,500 employees from its mortgage division and closed several refinance centers throughout the country. The refinance era appeared to be dead and buried until suddenly early fall, it started showing signs of life. Within the past month, rates took another unexpected dive, which spurned the latest voracious craving for refinance. Now mortgage lenders are trying to process more mortgage loan paperwork with less people.

According to the Mortgage Bankers Association, refinance applications increased a staggering 83% from this year’s low in February to the end of August. The increase comes on the heels of the average 30-year fixed loan rates dropping from 5% to 4.15% in mid August, which is the lowest reported level by Freddie Mac since 1971. This week the 30 year fixed mortgage rate is now below 4% for the first time ever–hovering at 3.94%. Why So Much Gridlock? Many borrowers wonder with the tremendous upgrades in automation, why they have to wait 60 days or more for their refinance to be approved. Stew Larsen, head of mortgages at Bank of the West (San Francisco, CA) says that no matter how much you try to automate the process it still comes down to people. “The industry has come a long way in terms of automation, but it’s still a people-driven industry. Mortgage insurers, appraisers, and title companies, all those surrounding industries, they downsized as well.” Larsen adds that the continued focus on stricter underwriting and disclosure requirements has also dragged down the process, which is leaving no room to shorten the process.

Another issue is what does the mortgage lender do during this race to refinance? Hire staff back, only to have to re-furlough employees once this trend cools? Many mortgage brokers used to hire temporary staff and outsource work during times of loan surges, however this practice is somewhat frowned upon after the robo-signature debacle. In fact this conundrum may even tinker with economic recovery as the Obama Administration continues to develop plans for a housing recovery.

Initial blueprints point to ways to promote refinancing through Freddie Mac and Fannie Mae for underwater borrowers, however mortgage companies are already overloaded with applications. Approximately 11 million U.S. homeowners (23% of Americans with a mortgage) are considered to be underwater.

Should You Wait to Refinance Your Home? As in the past, you’ve got to know when to hold them and know when to fold them. In previous months economists have told us that we’d already seen the best of the rates as rates began to climb to 5%. Now this. What’s a borrower to do? According to Greg McBride, senior financial analyst for Bankrate.com, borrowers should consider anything at 4.5% or less to be an ideal time to refinance. “When mortgage rates got below 4.5%, that opened the door for people who previously (refinanced) at 5 and 5.25%,” he said. “Even at 4.75%, if you can snag a rate below 4, it makes sense.”

Today refinancing goals are not completely about lowering mortgage payments. Ken Perlmutter, president of Perl Mortgage says that borrowers have numerous reasons to refinance (or not). “It depends on what you’re trying to accomplish,” he explains. “Do you want a lower payment? You want to go to a 30-year. If you’re at a different point in your life and you want to accumulate wealth (a 15-year means), you’re paying down the principal faster, you’re building equity faster.” In fact the 15 year product is more popular than ever, current hanging around the 3.25% mark. Either way, continuing to wait for lower rates may not be in the borrower’s best interest. Even if, for some reason rates could actually drop again, borrowers will still receive the “deal of the century” with a refinance today.

That’s why mortgage professionals advise borrowers to shop around, pack their patience and wait out the process. Companies also continue to remind borrowers to have their financial house in order before applying. According to mortgage broker Mark Goldman, credit scores are still a big deal. The best rates will still be awarded to those with credit scores of 720 or more and only approximately 40% of U.S. homeowners have a score that high. However the 720 score is not set in stone across the country. Mike Anderson, mortgage broker at Essential Mortgage Company in Baton Rouge, LA says that a score of 680 will suffice. Additionally, you must have 10% to 20% equity in their home, depending upon where you live. Goldman says, “It’s tough to refinance a loan these days. Only the select few can qualify.”  Refinancing your home in Massachusetts is a serious decision that one should consider if you haven’t already.

Understanding Good Faith Estimates when Refinancing or Buying a Home in Massachusetts

Massachusetts mortgage good faith estimatesGood Faith Estimates in Massachusetts

A Good Faith Estimate, or sometimes referred to as a GFE, is a way for you, the buyer, to get a good idea about the costs associated with refinancing or buying your home.  Here a few things to be aware of:

Fees and Charges in Good Faith Estimates

These usually fall into six categories:

  • Loan fees
  • Fees to be paid in advance
  • Reserves
  • Title charges
  • Government charges
  • Additional charges

Each of these start with a number making it easier to compare the fees with other mortgage brokers that you might be working with.  I’ve typically seen most GFE’s in Massachusetts to be very similar.  Of course there are differences here and there, so it’s still critical to get the best one.  But, don’t always just choose the lowest fees.  Make sure your Massachusetts mortgage broker is giving you the best rate as well.

Sometimes, mortgage brokers will give you a low Good Faith Estimate in fees, but charge a higher interest rate.  Remember, unless you shop around, you typically are going to be paying for points up front or on the back end because the broker, or the bank, needs to make money.

Here are some of the descriptions of the different Good Faith Estimate Fees in Massachusetts:

  • 801 – Loan Origination Fee

This fee is a charge for originating or creating the loan

  • 802 – Loan Discount

This is an upfront charge paid to the lender to get a lower mortgage rate – the same as what some brokers call “buying the rate down.”  Sometimes brokers will use this to give you a more competitive rate, but again, you’re paying for it one way or the other typically.

  • 803 – Appraisal Fee

This is the cost of the independent appraisal. It is usually paid by the buyer.

  • 804 – Credit Report

This is the cost of the credit report

  • 805 – Lender’s Inspection Fee

This is the lender’s cost of inspecting a property – some may double check the appraisal provided by an independent appraiser

  • 808 – Mortgage Broker Fee

This is the upfront charge that a mortgage broker charges. Brokers can also earn a “rebate” from the lender which is not listed here

  • 809 – Tax Related Service Fee

Lender fee, usually small, for handling tax related matters

  • 810 – Processing Fee

This is the charge for processing the loan – collecting the buyer’s application, running credit, collecting pay stubs, bank statements, ordering appraisal, title, etc.

  • 811 – Underwriting Fee

This is the cost of the loan underwriter (approver)

  • 812 – Wire Transfer Fee

This is the cost of wiring the money around, which is usually done by escrow.

I hope this helps as you obtain your Massachusetts good faith estimate from your mortgage broker or bank.  Just pay attention and things should turn out ok.

Refinance Your Massachusetts Home? Three Tips to Make Sure it Goes Smoothly

Refinancing Your Massachusetts Home

If you haven’t already decided to refinance your home, you should.  The rates are extremely loa and it looks like the way the economy is going that interest rates could begin to rise.  So, if you’re above 5%, it’s best to start looking around.  Here are three tips for refinancing your Massachusetts home:

1.  Mortgage Brokers: Good and Bad

As you search for mortgage brokers, you are going to run into good ones and bad ones.  It can be tough to know the good from the bad.  That’s why if you can get a referral from a friend or family member, that will usually help.  Also, on www.massachusettsmortgagebrokers.net you can find some good broker to help refinance your home.  But, either way, you should understand that mortgage brokers make their money off of the interest rate points that they are allowed from the bank that they are brokering the loan to.  Please understand that this is how they have to make money.  But what you can learn from this is there is always room for negotiation on the rate with the mortgage broker.  So don’t be afraid to talk about it.

2.  Refinance Your Home with Fixed Rates or ARM

 Before the whole mortgage loan meltdown a few years ago, people were refinancing their homes with crazy loan options!  Now, there are a few options, and it’s important to know the difference:

  1. Fixed Rate:  The interest rate is what it sounds like, a fixed rate.  The rate will not fluctuate over time and you can feel rest assured that the rate will never change.
  2. Adjustable Rate Mortgage (ARM):  Some people are scared about this one, but it doesn’t have to be scary.  If you are going to be in your home forever, DON’T do this loan.  However, if you feel you are going to be in the home for only 3-7 years, an ARM can be great.  You’ll get a cheaper interest rate, and you’ll probably never have to see the increase once the ARM is up for renewal.

    A key point with the ARM:  Make SURE you get an ARM that has a cap.  Most legitimate ARM’s have a cap of 2-4% so you’ll never have to work about it going sky high if the market completely tanks.  Also, make sure the rate adjusts only once a year.

If you follow these tips for refinancing your home in Massachusetts, you will find a great mortgage broker and you’ll get a good loan.

Refinancing Your Home in Massachusetts

Refinancing Your Home in Massachusetts, Different Options Available

This video will explore the option of refinancing a home loan in Massachusetts as opposed to taking out a second mortgage. When you refinance a mortgage you are taking out a secured loan that will replace your existing mortgage. As the numbers of foreclosures increase around the country, it…

Getting a Home Loan in Massachusetts Shouldn’t be Scary

Home Loans in Massachusetts

Getting a Home Loan in Massachusetts

 

It’s always a little scary getting a home loan in Massachusetts, or anywhere quite frankly.  There are many things that could cause some to be a little scared because, after all, this is a huge investment, probably the biggest financial decision you’ll ever make.

Here’s are a couple of books to help aid you in making this big decision:

So You Want to Refinance: An Insiders Guide to Refinancing Adjustable Rate Mortgages and Home Loans
by: Kristina Benson
publisher: Equity Press, published: 2006-09-20
ASIN: 1933804637
EAN: 9781933804637
sales rank: 1655897
price: $16.95 (new), $7.92 (used)

“A must-have for any home owner looking to refinance” -Terri Williams, Homeowner Are you paying more than you need to? In this book a mortgage lending insider reveals her answer to this question – and more – in her best selling So You Want to Refinance. If you are baffled by the dizzying array of mortgage companies, sales pitches, and loan products, this book is for you. The book walks you through each step of the loan process in easy-to-understand language to help you make an informed decision that’s good for YOU-not for your loan officer. The book explains how to asses and rebuild your credit score, accurately calculate the equity in your home, and how to make sure that you present your situation in the best possible light. More than just an introduction to getting a home loan – this book will show you how to get the best deal possible. This book is a must-have for any current or potential homeowner thinking of refinancing. Key topics include: -Refinancing Adjustable Rate Mortgages (ARMS) -Understanding Broker Incentives -Getting the Best Appraisal -Processing and Underwriting -Cleaning up your Credit Report -Signing Tips, Tricks, and Negotiation Strategies

Mortgages For Dummies, 3rd Edition
by: Eric Tyson
publisher: John Wiley & Sons, published: 2008-10-06
ASIN: 0470379960
EAN: 9780470379967
sales rank: 207931
price: $6.99 (new), $5.97 (used)

Need a mortgage but worried about the market? In Mortgages For Dummies, 3rd Edition,bestselling authors Eric Tyson and Ray Brown give you proven solutions for obtaining a mortgage, whether you want to buy your first home, refinance, or tap into your equity. You get the latest on sub-prime and adjustable-rate mortgages, finding the best lender, avoiding fiscal pitfalls and foreclosure, and much, much, more!

This easy-to-understand, objective, and jargon-free guide helps you fine-tune your finances, figure out what you can afford, and improve your credit score before you go mortgage shopping. You’ll get familiar with the advantages and disadvantages of fixed- and adjustable-rate mortgages, 15- and 30-year loans, and conforming and jumbo packages. You also get help finding and working with reputable professionals, comparing programs, and securing terms you can live with. Discover how to:

  • Match your mortgage to your financial goals
  • Qualify for a mortgage even when money is tight
  • Find the right loan for you
  • Choose the best lender/broker
  • Negotiate the best terms
  • Calculate your costs and payments
  • Understand and complete all paperwork
  • Refinance an existing mortgage
  • Understand and consider special situation loans
  • Explore reverse mortgages and other options
  • Decipher amortization tables and comparison worksheets
  • Use the Internet wisely when mortgage shopping

Now, more than ever, you need clear, reliable information that helps you get the mortgage you need at a price you can afford. You need Mortgages For Dummies, 3rd Edition!

Bill Rayman from Mortgage Capital Partners Discusses Loan Payment Options
Bill Rayman for www.mortgagehelplosangeles.com and Mortgage Capital Partners. Let Bill answer all of your questions and teach you all you need to know about home mortgages. In this installment, Bill explains what your options are when paying off a loan, and how you can use this information in the home mortgage industry.

Choosing the Right Massachusetts Mortgage Broker

Picking the right Massachusetts Mortgage Broker

Massachusetts mortgage brokers are the crucial components of the property finance loan procedure. At times, they could suggest the gap between having a superb home mortgage and battling a financial pitfall. Home loan brokers work as the middlemen between you, the customer, and the loan companies. They are really your leads throughout the mortgage maze. If you’re applying for your first home mortgage, taking in every single bit of data with regard to the mortgage loan method could be frustrating. Picking out the help of a reliable mortgage broker will probably take a great deal of load from your back.

Massachusetts mortgage brokers are really well-versed in the science of locating the optimal mortgage loans. They are fully aware their way throughout the house loan maze. Their own authority is often mirrored by whether or not they are prosperous. They likewise have distinct areas of expertise. You may decide upon a regular mortgage broker or an online mortgage broker. If You are looking for convenience, you might like to look at online mortgage brokers and the mortgage calculators they offer. A mortgage calculator is a formidable software that permits you to figure out the charges associated with your mortgage loan.

Not all mortgage brokers are similar regarding functionality and performance. Several are more competent at delivering results when compared to others. Many utilize expertise while many utilize technology. Popularity is invariably of utmost importance. You might like to request your bank to suggest you three brokers. Spend some time in carrying out research about these brokers so that you will get an idea regarding the solutions they provide. You can even call them and ask questions yourself. Ask them about precisely how long they have been in the business, their rate of success in addition to the commission payment they receive. Agents normally obtain a commission rate of around 1.5% to 5% of the mortgage’s overall amount. So if you are securing a $200,000 mortgage, your broker could get around $3,000 to $10,000 worth of commission. Do not fret, the fee usually originates from the mortgage’s proceed and never from your spending budget.

Mortgage brokers are certified and managed per territory. Licensing is essential when selecting which broker to work with. As outlined by financing professionals, you can find mortgage brokers available on the market that have no permit. Professional home loans have to adhere to the tight regulations, high expectations of competence, and must have substantial amount of experience. Remember the fact that you are in reality shelling out a great deal of funds, and that means you ought to be careful with the mortgage broker to work with.

Aura of Night

Mortgage secret codes revealed

A step by step guide on how to take control of the mortgage process and also How to beat the brokers and avoid mortgage ripoffs.

Why Use a Mortgage Broker in Massachusetts?
Educational video on the value of a professional mortgage broker

mortgage calculator

Massachusetts Mortgage Brokers: Ways to Eliminate Critical Mistakes in Finding the Right Mortgage Broker in Massachusetts

Welcome to Massachusetts Mortgage Brokers

Looking for a mortgage broker in Massachusetts is a process that can be considered very difficult, especially when there are lot’s of mortgage brokers out there. This can be considered a very important stage, considering that when you hire the best Massachusetts mortgage broker, you will also be able to get the finest prices and other mortgages being called for by the particular situation. If you do not want to settle for decisions that might just let you regret it in the end, it is a must for you to eliminate the really critical mistakes when looking for a reliable mortgage broker.

Look around for Recommendations for the best Massachusetts mortgage broker

First off, to avoid mistakes, the first thing that you need to do will be to ask some of your colleagues and friends for recommendations, or look at the recommendations from this site. Inquiring from dependable realtors and financial advisors is also an advisable way to find the right mortgage brokers in Massachusetts. On the other hand, it will be wiser if you will not completely rely on these suggestions made by your friends since they themselves might not have actually found the best Massachusetts mortgage broker.

Real estate agents as well as financial advisors are commonly familiar with local brokerage corporations and they will surely have a sensible background about the reputation of each of these companies. If you are unsuccessful in obtaining somewhat reliable information regarding the particular company that has caught your interest, look for some advice from the countrywide accreditation businesses, such as NAMB or National Association of Lenders. The NAMB has listings that are associated with Massachusetts mortgage brokers throughout the state.

Recommendations from Financial Advisors

To be sure that the mortgage broker that you will hire is someone that will not give you headaches in the end, you can request for the qualifications of a potential candidate and inquire about their working experience. Brokers have various available certifications and majority of these are demonstrating some type of specialized understanding. In addition, in case this will be the very first time that you will buy or refinance a house, you should see to it that your chosen mortgage broker has the education and experience required in this field. Make sure that you will also be looking for adequate information in advance. Remember, most mortgages range from 15 to 30 years, which simply means that this choice is something that will be a part of your whole lifetime. Not every mortgage broker in can be expected to be uniformly knowledgeable as far as personal finance is concerned and this just means that there will be a need for you to check that you comprehend any types of the possible effects of the terms of the mortgage.

When you are done in narrowing done the big field into just several brokers, talk to them and make certain you are in good terms with these brokers. Since you will be dealing with your chosen Massachusetts mortgage broker for possibly quite some time, it is a must for the two of you to get along. In addition, mistakes will be eliminated if you will ascertain that the mortgage broker that you chose will listen to the requirements that you have laid out and guide you to be always informed during the whole duration of the process. Mortgages can become really complicated and just a minimal alteration might already create big impacts in the end, so see to it that you are regularly updated.

Choose a Good Mortgage Broker in Massachusetts

Since the process of choosing a mortgage is included in the biggest financial decisions that you will ever make, it is something very serious to put some time into choosing only the best financial company. With just some research combined with careful questions, you are at peace that your money is placed only in the correct hands.

Possibly, the most important element of looking for a specific home loan that will work best for you, you need to choose a mortgage broker in Massachusetts that is competent and understands what exactly he/she is doing. We have found some of the top mortgage brokers in Massachusetts to hopefully make your life easier, here on www.massachusettsmortgagebrokers.net.

Now everyone has heard about all the bad mortgages that happened throughout the first part of this decade. Even if a lot of the bad kinds of these mortgages were wiped out during the reformations that happened in 2008, you will not be hurt by moving forward with extreme caution. Luckily, it is much easier now to screen potential applicants if you will ask them these fundamental concerns.

“What is the best interest rate you can give me on this home loan, without having to put any additional points into it?”

Although it is extremely apparent, using the word “best” will surely create the tension needed. The mortgage broker will get his fee the moment that you are done signing all the paperwork for your mortgage. On the other hand, patience is very much needed in a broker and he must be able to keep you posted with any changes that may occur in the marketplace.

However, if you have locked in your rate, and close on time, your rate will not fluctuate with the marketplace. But, if you wait to lock in, you never know what may happen.
Also ask, “What type of settlement costs are going to be required for me to pay?” Get these numbers upfront, and you’ll get them with a Good Faith Estimate that will be provided by the broker.

Lastly, find out if there are any costs for extending the rate lock if needed. Check if there are any things connected to the costs of locking in prices and how long they are able to lock them for. Rates can change on a daily basis so an honest broker will tell you that and won’t guarantee anything until you lock it in. Don’t expect that rate to be there forever! It could change tomorrow so it’s important to find the best mortgage broker in Massachusetts and get started, if you’re ready to get a home loan.

By taking some time to find a good mortgage broker that understands the market and the process, you’ll be in good hands and can be confident that you are making the right move. Make sure you read the details of the loan as well, so you’re not stuck with some crazy variable home loan that will kill you down the road! Those types of loans are pretty gone, but it doesn’t hurt to be safe.

Look for a mortgage broker now in Massachusetts and take advantage of the low interest rates before they may start going up.