"Our Clients will be Educated, Encouraged, and Empowered
to a more Self-Reliant Attitude toward Home Loan Financing."

·        To reduce your interest rate

·        To reduce the term of the loan

·        To switch from an Adjustable rate to a Fixed rate

·        To remove a portion of your equity to pay down debt

A refinance will cost between 4% and 6% of the loan's principal amount. You will have to follow the same process as if you were purchasing the property new in terms of required documentation.

It takes years to recoup that cost with the savings generated by a lower interest rate or shorter term. So, if you are not planning to stay in the home for more than a few years, the cost of refinancing may negate any of the potential savings.

Securing a Lower Interest Rate

One of the best reasons to refinance is to lower the interest rate on your existing loan. Historically, the rule of thumb was that it was worth the money to refinance if you could reduce your interest rate by at least .75 to 1%.

Should You Refinance?

Refinancing can be a great financial move if it reduces your mortgage payment, shortens the term of your loan or helps you build equity more quickly. When used carefully, it can also be a valuable tool in getting your debt under control.

Before you refinance take a careful look at your financial situation, and ask yourself:

·        How long do I plan to continue living in the house?

·        How much money will I save by refinancing?

Your mortgage consultant should provide you with a ROI (return on investment) analysis that will show you how long it will take the savings to offset the cost of the transaction.

What is a Loan Modification?

We have been doing “Loan Modifications” since 2005, and have found that of the "loan modification" is by far the most cost effective and consumer friendly.

A loan modification is a restructuring of the original terms of your mortgage through one or a combination of the following methods:

1. An adjustment of the interest rate

2. The addition of the delinquent interest amount to the current unpaid principle             balance.         

3. An extension life or term of the mortgage

A loan modification requires the prior approval of the investor and payment of a modification fee. A cash contribution toward any loss to the investor may be required, as well as compliance with any additional requirements of the lender and/or the investor.

Most lenders had a very small loan modification / loss mitigation department until late 2007. All of a sudden, lenders were flooded with millions of inquiries for loan modifications. Lenders have now set their own guidelines for loan modifications. Currently, lenders are running at several months behind in processing those requests.

According to a recent study done by Freddie Mac and Roper Public Affairs and Media, a full 57 percent of homeowners don't know that simply talking to the lender or mortgage servicer may open up some alternatives to foreclosure. Homeowners are urged to contact their lender at the first sign of trouble. Lenders prefer to deal with the homeowner rather than a "third party" person.

Unfortunately, 90% of homeowners handling loan modification themselves end up getting rejected by their lenders because they do not know how to prepare their package properly to meet lender's requirements. That is where we can help!

Also, since most loans are repackaged and sold to multiple investors, sometimes it is the investor who will be the one to make the final decision on your loan modification and not the lender. Therefore, each loan modification may be treated differently.

Lenders simply do not have the time nor the financial incentive to educate each homeowner who calls them asking for a reduced loan payment without any knowledge of how it works.   

We realize that if you are reading this it is very likely that you are experiencing a financial hardship so we recommend that you call us immediately.

What is a Reverse Mortgages?

A Reverse Home Mortgage Can Turn Your Home Equity into a Paycheck

To be eligible for most Reverse Mortgages, you must own and reside in your home and be a senior 62 years of age or older.
 

(In most cases second homes, apartment buildings and homes less than a year old are not eligible for a reverse mortgage.)

A Reverse Mortgage or Reverse Home Mortgage is a great financial product for seniors to use in their retirement plan. When looking for ways to get cash from their home, most people consider selling their house or borrowing against their home equity and making monthly loan repayments on a home equity loan.

With a reverse home mortgage, you get all the benefits of selling your house and all the benefits of getting a home equity loan - but you can still live in and retain ownership of your home and you don’t have to pay back the loan.

No matter how you structure a reverse mortgage, you typically don't pay anything back until you die, sell your home, or permanently move out. And, your ability to secure a reverse mortgage is not dependent on your credit history, income level, health or any other factors that might make a home equity loan expensive or problematic.

By converting your home equity into income, a reverse mortgage is a way to stay in your home and get cash to use for any purpose. There are no restrictions on how you can use money from a reverse mortgage. So, what is the catch? To many, a reverse home mortgage sounds too good to be true.

The only big disadvantage of a reverse mortgage is the high closing cost - which is only problematic if you plan to stay in your home for a short period of time. Generally speaking, if you don’t think that you will remain in the house for longer than another five years, a reverse mortgage might not be the most financially advantageous retirement income planning strategy.

Mortgage Assistance Program
Phone: 281.674.5897 Fax: 713.634.2838
rlavong@ev1.net