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How to Find the Best Washington Mortgage Rates How to Find the Best Washington Mortgage RatesComments Off on How to Find the Best Washington Mortgage Rates

Finding the Best Washington Mortgage Rates:

With today’s historically competitive mortgage rates, many folks within Seattle, Tacoma, Spokane, and Vancouver appear to be asking what the best way is to obtain the best washington mortgage rates. Here are a few suggestions to assist consumers in identifying the best mortgage rates:

Broker Vs. Banker:

There can be two main types of mortgage providers to consider. The first are brokers who from a technical perspective tend not to fund the transactions using their own money, nevertheless they generally feature the greatest selection of secondary market investors to place the mortgage loans with (these “big banks” being Wells Fargo, Citibank, Chase, and GMAC just to name a few). The downside connected with a broker not utilizing their own funds to actually close your transaction is their outsourcing of essential services. This will sometimes bring about extra headaches for borrowers hoping for the easiest transaction conceivable. As opposed to brokers, mortgage bankers are similar but almost always have in-house underwriters that approve the transaction to fund and they ultimately close the mortgage loans independently which gives them the last authority in accepting closing conditions.

Understanding Cost Structures and How These Banks Bring In Money is really Crucial to Getting You the Very Best Washington Mortgage Rates

It is crucial you fully understand that Broker organizations usually have the smallest expenses which could mean the absolute lowest rates. However, a large number of buyers still shy away from them because they also commonly outsource many of the important aspects that go into getting your loan to the closing table and that can bring about some of the head aches outlined above in Tip #1. On the other hand, the “Big Investors” such as Wells Fargo, Chase, and Citi have the absolute greatest expenses and that often end up charged to to the customer in the form of undesirable rates. The Big Banks have to carry enormous on-going expenses such as billboards, tv and radio commercials, web banner advertisements, countless levels of operations, loss mitigation departments, legal departments, and the list goes on. Due to this, you can usually getgoing with the lender in the middle of the spectrum: the mortgage bankers. Mortgage bankers usually possess relatively low overhead costs however still have the control of crucial services in-house, specifically underwriting and closing departments.

You may have seen some lenders advertising and marketing no costs, especially for refinance transactions. Be cautious though because in most cases they have rolled those fees into the rate in one way or another. For instance, it should be up to you whether you’d prefer the closing fees paid at closing in cash, built into the new mortgage, or, taken care of by the mortgage lender but in exchange for a slightly increased interest rate. Characteristically with mortgage bankers that include Bridgeview Bank, they might cover the majority of or all of your closing costs and still get you a rate that is more favorable compared with any of the “big banks”.

Article author “Joe Mortgage” is a sales pioneer who is owner of hotratequote.com and is focused to delivering his subscribers with important and also valuable information. Take a look at the following url for a Zero cost refinance consulting as well as knowledgeable assistance on how to obtain the best washington mortgage rates.

HARP Rates – How Does PMI and LPMI I Affect Refinancing? HARP Rates – How Does PMI and LPMI I Affect Refinancing?(20)

HARP PMI – How Does PMI Affect Refinancing?

With the new HARP 2.0 program in full swing now, many folks are needing to know if they will qualify with their current mortgage insurance, both PMI(private mortgage insurance) as well as LPMI (lender paid mortgage insurance) scenarios.  That being said, HARP PMI has quickly become a major question in determining HARP eligibility so we’ve put together a little Q&A:

HARP PMI Question #1 – If my current loan has PMI, will my new loan it too?

If your current (Conventional) loan has monthly PMI included, then your new loan would as well under the new HARP 2.0 program.  Essentially, the PMI certificate from your existing loan is simply transferred to the new loan and you would continue paying the same amount.  Please note that not all PMI companies and end lenders allow this so its best to complete our simple live rate quote form and discuss your scenario with on of our qualified lenders to see if your scenario will w0rk.

HARP PMI Question #2 – If my current mortgage has LPMI(Lender Paid Mortgage Insurance) will my new one have it?

This depends on whether your current lender paid the entire LPMI amount up front when you last closed or whether they are paying it monthly behind the scenes.  If its the later of the two, then you can sometimes just transfer that way of having it paid to the new lender and pay a slightly higher rate with the new lender to offset them taking on the LPMI.  However, if the LPMI was paid by your current lender all at once, then that is usually a sunk cost and you’d need to pay for LPMI again one way or another on the new loan.  Still, its not too expensive to have the LPMI rolled in so be sure to ask lenders what their LPMI options are.

HARP PMI eligibility can be a tricky subject so its best to consult with one of our qualified lenders.  Simply complete the free Live RateQuote form on this website to see if your scenario will work.

Question #3 – If I have to take on new LPMI with my HARP refinance because my original lender paid it all at once, how much should my new LPMI cost?

Generally speaking, if your new lender needs to roll LPMI into your rate, the rate should only be about .125% – .375% higher and then you would not be paying any monthly PMI on the new loan.  The lender essentially buys out of the PMI requirement by using the extra premium they earn by charging the slightly higher rate and use that money for the PMI buy-out.  The result is that you would not be required to pay monthly PMI on the new loan.

Conclusion:

All this HARP PMI and LPMI stuff may seem a bit confusion and may would agree with you that it shouldn’t have to be this complicated.  It’s best to consult with one of our qualified lenders to see if your scenario will work with the new HARP 2.0 program in relation to your loan’s PMI or LPMI.

Author Joe Karns is a seasoned mortgage banker and owner of the mortgage blog, hotratequote.com, is dedicated to bringing his subscribers relevant and useful information. Want a free mortgage checkup? Check out Joe Karns at the following link for more a FREE refinance consultation.  Or, click here for a free quote and to determine if your HARP PMI scenario qualifies

 

HARP Eligibility – 2.0 Calculator HARP Eligibility – 2.0 Calculator(38)

HARP Eligibility Calculator

The new HARP 2.0 program seems to be all the rave these days as it is designed to help folks refinance who are deeply “under water”.  Still, for most it is still difficult to decipher whether or not their loan and scenario qualify.  So what determines HARP eligibility?  Here’s a few easy questions to help you figure it out:

HARP Eligibility Question #1 – Is your loan currently owned or guaranteed by Fannie or Freddie?

An easy way to validate this first step of HARP eligibility is to check on each of their websites:  Fannie:  http://www.fanniemae.com/loanlookup/ and Freddie:  https://ww3.freddiemac.com/corporate/  If the answer to this is YES, then you’ve passed the first question of HARP eligibility.

HARP Eligibility Question #2 – Did your existing loan close on or before May 31st of 2009?

If the answer to this question is YES, then you’ve passed the second question of HARP eligibility.  Only loans that were funded AND guaranteed/sold to Fannie or Freddie prior to 5/31/09 are eligible for HARP 2.0.

HARP Eligibility Question #3 – Have you utilized the HARP program already since June 1st of 2009?

If the answer to this question is NO, then you’ve passed the third question of HARP eligibility.  The Government apparently doesn’t want you to have already taken advantage of the HARP program.

HARP Eligibility Question #4 – Have you been current on your mortgage payments for the last six(6) months AND have you had no more than one(1) 30-day late payment within the last twelve(12) months?

If you’ve answered this last two-part question as YES, then you’ve passed question #4.  Borrowers must not have had more than one late payment within the last 12 months and no late payments at all during the last six months to be eligible for HARP 2.0.

HARP Eligibility Question #5 – Is your home’s mortgage within the allowable conforming loan limit for your area? ($417,000 for most areas but check the Fannie Mae website to double check what the max is in your area).

If you answered this as YES and your mortgage amount is within the allowable conforming limit for your area, then you’ve passed question #5.

HARP Eligibility Question #6 – Is your mortgage currently at 80% LTV (loan to value) or higher?

In other words, do you currently have less than 20% equity in your home based on today’s value?  If so, then you’ve passed question #6.

Results:

If you’ve answered all of these question correctly then it appears as if you’ve passed and you MAY be eligible for a HARP 2.0 refiannce.  You may also qualify for the “no appraisal / streamline” version which means even less headaches.  To find out if you qualify for sure and what the rates/terms would be, contact a certified mortgage banker today:

Author Joe Karns is a seasoned mortgage banker and master of getting you the HARP 2.0 Eligibility, is dedicated to bringing his subscribers relevant and useful information. Want a free mortgage checkup? Check out Joe Karns at the following link for more a FREE refinance consultation.  Or, click here for a free quote and to determine your HARP Eligibility.

 

Best HARP 2.0 Rates Best HARP 2.0 Rates(3)

Best HARP 2.0 Rates

One of the top questions from homeowner’s these days seems to be, “What lender can get me the best HARP 2.0 rates on my refinance?”, but this question should actually be second to the most important factor:  “What lender can even do my HARP refinance?”.  Unlike most standardized mortgage programs we’ve all come to know, there are many factors that will determine which lenders can complete your transaction.  There are also different “pricing hits” for various aspects of your scenario which are important to know before you start your search for the best HARP 2.0 rates.  In this piece we’ll be focusing on how to best educate yourself on the potential  pricing hits:

Best HARP 2.0 Rates – Loan Level Hits to Watch for:

Though we’d all like to get our hands on the best HARP 2.0 rates, its important to know what the various “big banks” who will ultimately service these loans view as additional risk factors.  The most common loan-level price adjuster is LTV(Loan-to-Value).   There are also loan level hits for credit score, property type, and occupancy type (owner-occupied, investment property, etc.).  Lets first focus on the most common:  LTV pricing hit:

Best HARP 2.0 Rates – Price add-on’s for LTV:

Now while this new version of HARP is not supposed to limit the LTV, there are only a select few banks willing to accept any loans over 125% LTV.  In regard to pricing hits specifically, the best HARP 2.0 rates can be obtained with the lowest LTV.  For example if your home is at 80%-85% LTV, there shouldn’t be much of a pricing hit at all.  However, once you exceed the higher LTV thresholds such as 90%, 95%, 105%, and especially the 125% LTV, now you should expect to pay about .25% higher in rate, depending on the lender.  A good rule of thumb when looking for the best Harp 2.0 rates is to first ask the lender if they have the ability to complete your transaction based on your expected LTV, and second, what the pricing hit will be for your expected LTV.

During your search for the best HARP 2.0 rates, the first question should be, “can this lend actually do this deal given my property’s current LTV?” 

Best HARP 2.0 Rats – Pricing Hits Fee Structure for Credit Score and Property Type:

Other aspects to consider when searching for the best HARP 2.0 rates is credit score and property type.  As you would probably expect, with less than perfect credit comes a bit higher rate.  There are usually very little hits if you’re at 680+ but typically there will be a small hit once you get below 660.  Additionally, there is a hit for property type.  Specifically, condominiums usually come with about .125% hit to rate (75bps to price) if the LTV is over 75%.  This is an industry-wide Fannie Mae hit so plan on getting this bit higher rate if you own a condo and are over 75% LTV.

As you can see, there isn’t a one-size-fits-all rate/price for this program and its important to take all aspects into consideration when in search of the best HARP 2.0 rates.

Author Joe Karns is sales and marketing leader and master of getting you the best HARP 2.0 rates, is dedicated to bringing his subscribers relevant and useful information. Want a free mortgage checkup? Check out Joe Karns at the following link for more a FREE refinance consultation and expert advice on finding the Best Refinance Lenders.  Or, click here for a free quote on Best HARP 2.0 Rates.

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