Profile picture for Bob Brenner

Bob Brenner

Lender

Certified Mortgage Planning Special (29 years experience)

Specialties:
Purchase Loan,
Refinancing,
Mortgage Planning,
Manufactured Homes

Advice

  • (47 Contributions,
  • 2 Best Answers,
  • 9 Helpful)

Contributions are sorted newest to oldest.

Is it cheaper to finance a house before buying, after paying with cash, or the same?

Answer

From an income tax standpoint as to what is deductable, an aquistion loan is always going to be cheaper than a refinance.  First of all, you can deduct all points paid for that tax year as opposed to having to amortize points paid over the life of the loan with a refinance.Second of all, for Aquisition loan amounts exceeding the "Home Improvement Loan Limit" for a refinance, the interest paid on the aquistion loan is entirely deductable where the home improvement loan interest over and above the limit is not.

  (0)
When can I lock rates?

Answer

Higher fee, yes.  Much higher rate and fee, no.  Typically the difference between a 15 and 30 day rate lock should only be about .25% in fee for the same rate. 

  (0)
Will credit scores requirements remain high for long? When will they go back down

Response

I agree with Andrew, come on pal, are you serious?  620 or even 640 is not high particularly after what the industry has been through these last few years.  Prior to the industry adopting credit scoring, many of  today's borrowers with scores higher than 680 would had been rejected due to deficient credit with most conventional programs.  The scores are not going down anytime soon if ever.  Not everybody is "entitled" to own a home.  They have to earn it starting with good credit. 

  (0)
bought a home, 6 months they rasied the taxes, what shall i do, not able to afford

Answer

Need more info to provide a more difinative answer.  Specifically, your monthly property tax expense should be close to what your lender used to qualify you for the loan.  In California that is 1.25% of the purchase price.  Other assessments, like a Mello-Roos balance should also have been factored into your disclosed expenses.  Bottom line, if you sell now, you will lose. Whatever can be done to bring in more income to offset the unexpected increase will be the short-term strategy to avoid a significant loss.

  (0)
Does it make sense to do a streamline FHA refi right now?

Best Answer

No.  With HUD's recent change increasing the monthly mortgage insurance premium, it will not make any sense given your current rate.If you can pay down the mortgage to get into a 90% conventional, the private mortgage insurance premium will be less along with still lower conventional rates, your total payment will be lower than with a FHA streamline. 

  (0)