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Information About Rent-to-Own Purchase Transactions Information About Rent-to-Own Purchase Transactions(1)

What’s a Rent-to-Own?

Men and women that are desperate to have their own property, but cannot pay for to to get a whole new home, there’s one alternative that they can do to pay for it. It’s the alternative of rent-to-own.  The lease to own alternative is this sort of another that’s gaining reputation with customers and retailers alike. This informative article discusses the details about lease to own that can serve as a information for everyone who wishes to make it happen.

Just before everything else, I’d prefer to commence by discussing what rent-to-own is. Rent-to-own is surely an arrangement that is created between the vendor of a housing home and likely purchaser who for a single explanation or an additional is unwilling or not able to undertake and commit by themselves to some conventional revenue transaction. The arrangement will permit the likely purchaser to live in the actual estate property as being a renter for the specified level of time ahead of a last revenue contract must be consummated.

Why a rent-to-own may be right for you:

1.            They do not have the essential funds down payment for the conventional property loan. Rent-to-own arrangement allows them to maneuver into a new property as renters with a reduce down payment.

2.            They have loan problems that’s why these are not able to secure a loan.

3.            They can boost their credit score rating whenever they lease which can then capable them to avail for the larger property loan.

4.            Sellers of rent-to-own homes benefit in this sort of transaction when they promote their homes once the marketplace is down.

5.            Sellers get inactive earnings from the month-to-month payment with the renters plus they can collect a lot more money above time with a hire to individual arrangement than with a immediate sale.

How a rent-to-own transaction works:

As previously stated, Rent-to-own can be an arrangement that is produced among the vendor of your real-estate property and likely purchaser who for one particular reason or an additional is unwilling or not able to undertake and commit by themselves into a traditional profits transaction. The marketing price tag with the residence is negotiated among the 2 celebrations, as will be the date by which the buyer/renter need to finalize the sale together with the seller/landlord. It enables buyers to live in the new residence, shell out month-to-month hire for the offered timeframe, give the asked down payment plus they may have the home as their very own when all of the funds had been settled and entirely compensated.

An increasing number of individuals are finding this sort of property owning arrangement a great way to have their own ownership compared to the standard property owning procedure. It lessens the fiscal burden that’s associated with all the standard property owning.

Author Joe Karns is a seasoned mortgage banker and master of teaching you about HARP 2.0 Eligibility, is dedicated to bringing his subscribers relevant and useful information. Want to learn more about this topic?  Click here for a free consultation on how to approach the seller of a property about structuring a  Rent-to-Own.

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.

How to Find the Best Refinance Lenders in Today’s Market How to Find the Best Refinance Lenders in Today’s Market(1)

Best Refinance Lenders – How to find the pro’s?

During the past couple years in which the mortgage market has been in turmoil, determining who are the best refinance lenders has become a real challenge.  While current interest rates are still at historic lows, the fact remains that the lending guidelines have tightened up to a degree that is unprecedented.   So much, in fact,  that the average loan officer has trouble keeping up with the constant guideline changes and hoping to provide a high level of customer service.  This challenge is resulting in the weaker loan officers leaving the industry and the pro’s within the best refinance lenders now getting the lion’s share of the market.

During your search for the best refinance lenders, its crucial to remember that the same primary hot buttons remain unchanged:

1) Keep in mind that the lenders with the lowest rates may not be the best deal overall.  Even the best refinance lenders often forget to properly disclose the fact that their apparently low rate includes “discount points”.  This additional fee may be getting you what appears to be a great low rate, but you do not necessarily need to pay any additional fees to get a good rate.  Always ask even the best refinance lenders to give you options and proceed carefully.

How to find the best refinance lenders?

Whenever you embark on a search for the best refinance lenders, you will find numerous lenders trying to attract you with their seemingly lucrative offers.  However, you must know that not all of them can offer you the best loan.  Some of the best refinance lenders’ reputable brand comes from millions of dollars they spend on expensive advertising.  Those TV ads and billboards may help you recognize their brand, but it works against you in regard to their ability to get you the lowest rate.  All that overhead costs money, some of which is passed down to you, the customer.  The key to remember is that the best refinance lenders are not always the ones with the most well known brand name.  Do your research on websites like HotRateQuote to compare mortgage rates and terms so you have all the necessary information to form an education decision.

Here are some points to consider while searching for the best refinance lenders for your your home loan:

1) Start by leveraging the power of the internet.  A simple search for the best refinance lenders on online will yield thousands of results, but the key is to start with the more reputable “portal sites” such as BankRate.com, LendingTree.com, and HotRateQuote.com.  Try to not be diverted by flashy-looking promotional ad banners and buzz word offers but instead try and focus on the numbers:  rates, APR, total fees, etc.  These websites have gotten really good and organizing the best refinance lenders’ rates and terms so check to see what the top 3-5 offers appear to be within the name loan type category.

 

2)  Be weary of excessive fees.  In most cases, the  “lowest rate” offer often comes with some hidden costs, which can quickly add up since they are usually percentage-based figures tied to the loan amount.  These extra costs, also known as ” junk fees”, can make your refinance a costly transaction and sometimes not even worth it anymore.    These “junk fees” include but are not limited to:  “processing fees, application fees, doc prep fees, courier fees for mortgage brokers, etc.”  A good rule of thumb to use when considering the total cost, even with the best refinance lenders, is “how long will it take for the proposed monthly savings to exceed the total cost of this transaction?”.  Example:  Lets say you stand to save $52/month but the total fees are $3572.  It would take you a whopping 68 months (over 5 years) to break even!  Any break even point longer than 24 months is not a good deal.

3) Think you’ve found the best deal now?  Be careful, you might also want to ask what documentation is going to be required.  This is a major factory in getting any refinance transaction closed these days.  Some bank’s guidelines have got so ridiculous that it seems like the hurdles between you and the closing table can never be overcome.  Most banks follow the same set of guidelines nowadays, all requiring the standard two years tax returns with W2’s, last two pay stubs, and last two bank statements.  However, I’ve heard of some real world situations recently that you probably wouldn’t even believe.  A good friend of mine was trying to get the third round of underwriting conditions satisfied when she was then told that she also needed to produce the original building permit for the apparent renovation work that was done to her kitchen from 9 years ago, when she had only owned that home for the last 5 years!  This means that she was forced to take a full day off work and beg City Hall to dig up old building permit records just to satisfy the lender and get her refinance closed.  Crazy, huh?   But you’d be surprises how often even the “best refinance lenders” come up with these crazy underwriting conditions.  The key is to always ask what documentation will be required up front.

Go with the “pros” – Go with the best refinance lenders

Finally, once you have narrowed the best refinance lenders down to your top two or three, and you’ve asked all the right questions, its time to compare their rates, terms, cost, and most of all:  their reputation and credibility.  If you “go with the pro” and grade the best refinance lenders on their credibility and experience first, you will have the best chance for a smooth and efficient transaction.

Author Joe Karns is sales and marketing leader 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:  Best Refinance Lenders

VA Streamline | IRRRL | Mortgage Refinance Loan VA Streamline | IRRRL | Mortgage Refinance Loan(22)

VA Streamline – What are the benefits and do I qualify?

Whether you are active military looking to secure a lower interest rate to help the financial well being of your family back home, or even retired military just looking to lower your monthly payments, it is a great time to consider a VA Streamline refinance.

VA Streamline – Tip#1:  Understand the benefits of this program.

VA Streamline refinances, also known as “IRRRL” loans (interest rate reduction refinance loans) are very popular among veterans because there are many benefits while the underwriting guidelines are more lenient than your average conventional or FHA loan.  First, if you currently have a VA mortgage, many lenders will qualify you based on the original income and assets from when you were originally approved for the mortgage during the purchase and therefore not require updated income and asset documentation during the VA Streamline refinance.  Also, on VA Streamline transactions, there is usually no appraisal required as long as you go through the same lender who is currently servicing your mortgage.  In today’s tough real estate market, any loan program that doesn’t require an appraisal is very popular and that is definitely the case with a VA Streamline refinance.

VA Streamline – Tip#2: Find out if you meet the general guidelines.

When you compare mortgage rates on a VA Streamline refinance, its important to first determine whether you will qualify based on the general guidelines.  VA Streamline refinances’ guidelines are fairly easy to meet.  Generally speaking, as long as you are a member of and of the Armed Forced, you currently have a VA loan that you’ve been paying on time, you have at least a 640 middle credit score, and you are still employed, you should qualify.  There are other criteria but those are the primary requirements for qualifying for a VA Streamline refinance.

When you compare mortgage rates for a VA Streamline Refinance, many would argue the most important factor is to go with your current lender, or, a different lender that will not require a new appraisal.

VA Streamline – Tip#3: Really try to keep your finances in order.

Since there are few qualifications for becoming approved for a VA Streamline refinance, its essential to focus on those few criteria that exist in an effort to stay eligible.  We realize that time are hard right now and especially for military families, but if times get really tough and some bills need to be paid late, its essential to prioritize and try to make your mortgage payment on time.  The reason is that when you apply for a VA Streamline Refinance, most lenders will require you have made timely mortgage payments for at least the last 12 consecutive months. Those who don’t make timely payments likely wont qualify for a VA Streamline refinance and would therefore miss out on today’s historically low interest rates that would otherwise be able to provide real financial relief.

Author Joe Karns is sales and marketing leader and master of the VA Streamline 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 a  Va Streamline.

Compare Mortgage Rates Compare Mortgage Rates(32)

Compare Mortgage Rates the smart way and come out on top.

Whether you are a consumer looking to purchase a home or a seasoned homeowner looking to refinance, there are a number of key factors to consider when you compare mortgage rates.

Compare Mortgage Rates Tip#1: Consider the Source

When you compare mortgage rates, you must first consider the integrity of the lender.  Its best to compare mortgage rates of local banks, mortgage bankers, and also brokers.  Typically brokers will have the absolute lowest bare bones rates, but they are also have the least control over the fulfillment of your transaction since they are required to outsource the underwriting and sometimes also the processing.  On the other side of the spectrum, local banks as well as the “big banks” may have the most well-known brand name, however when you actually compare interest rates between them and the mortgage bankers, the actual banks usually have higher rates since all of their massive advertising costs big money which they pass on to you the consumer.  At the end of the day, the reputable mortgage bankers are usually the best mix of low rates, control over the entire process, and overall integrity.

Compare Mortgage Rates – Tip#2: Consider the costs

When you compare mortgage rates among various lenders, be sure to consider what the total cost of the transaction is, regardless of whether the fees are required to be paid out of pocket or whether they are being rolled into the new loan. Ideally, you’ll be able to negotiate the lender to pay some or all of the closing costs while also providing a competitive interest rate. Always consider the “APR” as well as the actual note rate to get the complete picture of costs associated with the transaction.

When you compare mortgage rates, many would argue the most important factor is the experience and integrity of the loan officer.

Compare Mortgage Rates – Tip#3: Consider the Loan Officer

There is much more to a great rate than the pricing and rate itself.  Due to today’s turbulent and uncertain mortgage market, there are a multitude of things that could go wrong and/or cause your mortgage process to go sideways.  To position yourself for the best chance of an efficient mortgage process, only compare mortgage rates among reputable loan officers and lenders.  That may seem obvious but its very easy to get sucked into an online ad flashing an ultra low interest rate.  Whether that rate is legitimate or not, its important to consider the integrity of the source.  The absolute lowest interest rates are usually advertised by bare bones broker shops or “refi houses” that don’t even employ actual loan officers, but instead have telemarketers and processors doing most of the handling of the loans.  Those types of lenders may actually have the lowest rate but usually offer the highest fall-out rate when it comes to missing crucial aspects of the scenario that any experienced loan officer would catch early on and usually get resolved before it becomes an issue.  In short, always consider the experience of the loan officer when you compare interest rates.

Author Joe Karns is sales and marketing leader 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:  Compare Mortgage Rates

Best Refinance Lenders – How to find the pro’s? Best Refinance Lenders – How to find the pro’s?(2)

Best Refinance Lenders – How do I find the pro’s?

During the past couple years in which the mortgage market has been in turmoil, determining who are the best refinance lenders has become a real challenge.  While current interest rates are still at historic lows, the fact remains that the lending guidelines have tightened up to a degree that is unprecedented.   So much, in fact,  that the average loan officer has trouble keeping up with the constant guideline changes and hoping to provide a high level of customer service.  This challenge is resulting in the weaker loan officers leaving the industry and the pro’s within the best lenders now getting the lion’s share of the market.

During your search, its crucial to remember that the same primary hot buttons remain unchanged:  1) Keep in mind that the lenders with the lowest rates may not be the best deal overall.  Even the best refinance lenders often forget to properly disclose the fact that their apparently low rate includes “discount points”.  This additional fee may be getting you what appears to be a great low rate, but you do not necessarily need to pay any additional fees to get a good rate.  Always ask even the best refinance lenders to give you options and proceed carefully.

How to find the best refinance lenders?

You will find numerous lenders trying to attract you with their seemingly lucrative offers.  However, you must know that not all of them can offer you the best loan.  Some of the best refinance lenders’ reputable brand comes from millions of dollars they spend on expensive advertising.  Those TV ads and billboards may help you recognize their brand, but it works against you in regard to their ability to get you the lowest rate.  All that overhead costs money, some of which is passed down to you, the customer.  The key to remember is that the best refinance lenders are not always the ones with the most well known brand name.  Do your research on websites like HotRateQuote to compare mortgage rates and terms so you have all the necessary information to form an education decision.

Here are some points to consider while searching for the best refinance lenders for your your home loan:

1) Start by leveraging the power of the internet.  A simple search for the best refinance lenders on online will yield thousands of results, but the key is to start with the more reputable “portal sites” such as BankRate.com, LendingTree.com, and HotRateQuote.com.  Try to not be diverted by flashy-looking promotional ad banners and buzz word offers but instead try and focus on the numbers:  rates, APR, total fees, etc.  These websites have gotten really good and organizing the best refinance lenders’ rates and terms so check to see what the top 3-5 offers appear to be within the name loan type category.

 2)  Be weary of excessive fees.  In most cases, the  “lowest rate” offer often comes with some hidden costs, which can quickly add up since they are usually percentage-based figures tied to the loan amount.  These extra costs, also known as ” junk fees”, can make your refinance a costly transaction and sometimes not even worth it anymore.    These “junk fees” include but are not limited to:  “processing fees, application fees, doc prep fees, courier fees for mortgage brokers, etc.”  A good rule of thumb to use when considering the total cost, even with the best lenders, is “how long will it take for the proposed monthly savings to exceed the total cost of this transaction?”.  Example:  Lets say you stand to save $52/month but the total fees are $3572.  It would take you a whopping 68 months (over 5 years) to break even!  Any break even point longer than 24 months is not a good deal.

3) Think you’ve found the best deal now?  Be careful, you might also want to ask what documentation is going to be required.  This is a major factory in getting any refinance transaction closed these days.  Some bank’s guidelines have got so ridiculous that it seems like the hurdles between you and the closing table can never be overcome.  Most banks follow the same set of guidelines nowadays, all requiring the standard two years tax returns with W2’s, last two pay stubs, and last two bank statements.  However, I’ve heard of some real world situations recently that you probably wouldn’t even believe.  A good friend of mine was trying to get the third round of underwriting conditions satisfied when she was then told that she also needed to produce the original building permit for the apparent renovation work that was done to her kitchen from 9 years ago, when she had only owned that home for the last 5 years!  This means that she was forced to take a full day off work and beg City Hall to dig up old building permit records just to satisfy the lender and get her refinance closed.  Crazy, huh?   But you’d be surprises how often even the “best refinance lenders” come up with these crazy underwriting conditions.  The key is to always ask what documentation will be required up front.

Go with the “pros” – Go with the best refinance lenders

Finally, once you have narrowed the best lenders down to your top two or three, and you’ve asked all the right questions, its time to compare their rates, terms, cost, and most of all:  their reputation and credibility.  If you “go with the pro” and grade the best refinance lenders on their credibility and experience first, you will have the best chance for a smooth and efficient transaction.

Author Joe Karns of Bridgeview Bank is one of the very best best refinance lenders and is a seasoned mortgage professional 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:  Compare Mortgage Rates

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