Profile picture for James Barath

James Barath

Lender

Certified Mortgage Planner (17 years experience)

Specialties:
Purchase Loan,
Refinancing,
Mortgage Planning,
FHA, FHA $100 Down, VA, USDA

Advice

  • (37 Contributions,
  • 3 Best Answers,
  • 6 Helpful)

Contributions are sorted newest to oldest.

how do you get value of home if it is a duplex?

Answer

Latina08,The accuracy of the home value will be based on how it is zoned in public records. If each unit has it's own parcel/tax id, you will be appraised as an attached single-family residence. Generally speaking, town homes are of more value.Attempting to reclassify your home as a 2-unit duplex is not suggested in this lending environment, not only because of comparable sale comps but also the available buyer pool.Remember, Zillow can only provide a guesstimate. If you need the real value, you will need to get an appraisal. Work with a Certified Mortgage Planning Specialist (CMPS) and a TEAM of qualified professionals to best serve your needs.

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current total house payment 863.69 at 6.1%. I applied for a refi quoted 996. at 5.125, why more ?

Answer

Flynt1,In today's real estate market of declining/distressed home values, one aspect of the refinance that is often overlooked is mortgage insurance. Mortgage insurance is the required when you have less than 20% equity in your home. Whether or not you have mortgage insurance requirement on your new loan, it may be on your new loan.Another fact of the stricter guidelines is that a homeowner that is required to get mortgage insurance today, will pay a higher cost due to the fact that the mortgage insurance companies have been swamped with claims.If you need further assistance, please contact your local Certified Mortgage Planning Specialist (CMPS) for more details.

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Can I refiance my mortgage. I live in Chicago. 1st 587,000 @ 6.65%2nd 104000 @ 9.5% home value770k

Answer

Edoc23,Although the 90% loan-to-value may work, the underlying question will come down to subject property type, credit rating and whether the second loan was a purchase money mortgage. Since this will be a jumbo loan, fixed terms may not be any better than the average-weighted rate that you currently carry.If you are unsure of the details, please contact a Certified Mortgage Planning Specialist in your area.

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I bought my house in october 2008. Is it too early to refinance? Below 80% ltv. 6.25% currently.

Answer

Nac1989,Time is a relative question. Not only does it impact your eligibility for a refinance, but it will change the overall cost analysis of your purchase. Please understand that you will be limited to the lesser of purchase price or appraised value on the refinance. Another hurdle that you will have to address is the expense of the refinance as you will be responsible for new title, appraisal, underwriting, etc...To fully understand your eligibility and qualification based on new guidelines that were fully implemented at the beginning of this year, please consult with a Certified Mortgage Planning Specialist.

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Should I refi again??

Answer

LUPY48,Chasing a rate is like chasing a return on an investment. It never is a good approach to long-term stability. One really needs to understand the total cost of a refinance over the life of a loan which factors in not only the real costs, but also the opportunity costs.If you are not qualified to assess it properly, contact a Certified Mortgage Planning Specialist who can assist you.

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If trying to refi a rental property will the rates be higher than if it were a primary residence?

Answer

Jobremi,In years past, mortgage rates for rental properties were higher because many investors wanted to obtain these properties with the least amount of capital. Now that Fannie Mae&Freddie Mac have revised the guidelines, this is really no longer an option. Therefore, with the credit market operating as-is many owners of rental properties are subject to higher costs as opposed to higher rates.If you need further assistance, please contact a Certified Mortgage Planning Specialist who can address your specific scenario.

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what is the difference between FHA and a conventional loan?

Best Answer

A1covington,To begin with, FHA is not a loan. FHA alludes to the agency that insures the loan. Generally speaking, FHA still allows for the highest loan-to-value for both purchases and refinance transactions.A conventional loan refers to loans that meet agency (Fannie Mae&Freddie Mac) guidelines. In years past, FHA was passed over due to the flexibility of the loan types that agency provided.Now that the Federal Housing Finance Agency regulates FHA, Fannie Mae & Freddie Mac...all loan types require essentially the same documentation from the consumer. The big difference comes into play for consumers that put less than 20% down or have 20% of home equity.If you have a specific question that pertains to your scenario, contact a Certified Mortgage Planning Specialist in your area.

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what is Mortgage insurance (estimated) N/A (LTV <= 80%)

Answer

BigBoat3,Mortgage insurance is a requirement on loans that have less than 20% down on a purchase or less than 20% equity for a refinance. Consequently, since the loan-to-value (LTV) is less than or equal to 80% mortgage insurance is non-applicable.James

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Home value less than what I owe

Answer

Nayaghar,Depending on the Index of your 5 yr ARM, you may be in for a pleasant surprise when your rate adjusts downward in the coming year. Make sure you understand HOW your rate will adjust and not just WHEN.You home is not just something you make payments on...it is a place where you live and create memories. What your home is worth is much more than an appraised value.The real question becomes are you committed to your home and home ownership?Happy Holidays!

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