Government Backed Loans

Posted on July 24, 2021 by

Government backed loans are more popular since they every often offer features not

VA Loan Veterans Affair Concept

available through conventional loans. The rate may be lower. The down payment may be lower. It may be easier to qualify.

Government-backed loans are secured by a federal agency. Several federal agencies offer mortgage programs, including the FHA and VA.

or each loan type, the backing agency insures, or guarantees, the loan amount, which protects the lender in the event a borrower can’t repay the loan. This removes significant risk, making it easier for lenders to offer lower rates and lower-to-no down payment options.

Government-backed mortgage loans are different from conventional loans in that:
Conventional loans are not insured by a government agency.

They are riskier for lenders, so they tend to have stricter eligibility requirements.

Conventional loans are generally more popular and accessible than government-backed mortgage loans.

Government-backed loans have different cost structures than conventional loans, including upfront fees and mortgage insurance requirements.

Government-backed loans have eligibility requirements that you won’t see with conventional loans. For example, VA loans are reserved only for members of the military and their families.

Ruth Schoenherr can help you find an FHA mortgage, a VA mortgage or a conventional mortgage. Call today for an appointment.

Ruth Schoenherr is a mortgage broker who will help you find home loans in the Clearwater, Palm Harbor, Largo, Safety Harbor, St Petersburg and Tampa Bay area. For more information, go to her web site at www.ClearwaterMortgageBroker.net or call at 727 447-2418.

Make Your Home Energy Efficient

Posted on June 19, 2021 by

Energy efficiency in the home provides numerous benefits to the homeowner, including driving down energy costs, increasing the property value and creating a cleaner, healthier living space.

Duke Energy offers a program where they come to your home and do an energy audit. The audit is free. in the audit, they identify specific things that y0u can do to make your home more energy efficient. We strongly recommend that you take advantage of this program.

In Addition, there are several steps you can take to boost your home’s overall efficiency.

Air Filters. Make sure filters in all appliances throughout your home are cleaned and replaced regularly, which can significantly enhance their effectiveness. The Energy Department noted that replacing your air conditioner’s dirty filter can improve its efficiency by up to 15%.

Transportation. Decrease the amount of energy your family uses by relying more on energy-efficient forms of transportation. That means carpooling, taking the bike and using public transit whenever possible.

Reduce, reuse, recycle. You can also make major strides toward reducing your carbon footprint by reusing and recycling waste products and other unused items. More than just chucking plastics in the recycling bin, you can also donate worn clothing, compost food scraps and sell used electronic equipment to the right IT companies.

Solar Panels. Finally, you can invest in renewable energy like solar. Solar panels don’t generate any emissions and gather their power from the sun, and they can save you more than $1,300 a year on energy costs.

Getting Pre-approved for a Mortgage

Posted on May 9, 2021 by

This is a real estate market like nothing else in many years. As you know, there is a huge shortage of homes, which means houses are usually sold quickly and there very often are multiple offers. If you are competing for a home, if you are not pre-approved for a mortgage, you are going to be at a disadvantage with the competition.

There are some advantaged to be pre-approved:

Going through the pre-approval process with several lenders allows a home buyer to shop interest rates and find the best deal.
A seller often wants to see a mortgage pre-approval letter and, in some cases, proof of funds to show that a buyer is serious.
The first step is filling out a mortgage application and supplying your Social Security number so the lender can do a credit check on you.
You’ll also need to provide extensive documentation of job history, assets and liabilities, income tax returns, and more. Self-employed buyers may need to provide additional documentation.
After reviewing your application, a lender will offer pre-approval or pre-approval with conditions, or deny pre-approval.

When looking at your application for pre-approval, the first thing they will look at is your credit score and your credit history. They will also consider whether you have too much debt. They will see if you are employed and how long you have had your been in your current position. They obviously will consider how much you make and what assets you have.

We’re Not Too Busy to Help You

Posted on April 18, 2021 by

There seems to be a frenzy of people moving to Florida. There seems to be a frenzy of people looking to buy houses. There seems to be a frenzy of people refinancing their homes while interest rates are still low.

As COVID-19 continues to affect the job market, it’s playing a totally different role on the housing market.

Mortgage lenders are staying busy with people flocking to refinance their homes. That’s mainly due to historic low interest rates allowing people to save money during these uncertain times.

Many, if not most banks still have their lobbies closed. Banks seem to have used COVID-19 as an excuse to give bad service.

Don’t be discouraged. You can still get good service from Ruth Schoenherr. When you call her number, you don’t get a corporate staff – you get Ruth. Ruth doesn’t work bankers hours. She goes the extra mile to help you get your mortgage on time. Call Ruth today to discuss your situation.

Why Are Interest Rates Rising?

Posted on March 20, 2021 by

The big news in the housing market is that interest rates are rising. The consensus is that the economy is on the mend, and concerns about inflation are driving rates up. But one shouldn’t panic yet. You can still get a 30 year mortgage for about 3 percent, which is a historic low. However, one shouldn’t wait too long if you are considering purchasing or refinancing a home.

According to CNBC, February 17th, 2021

POINTS

Interest rates are rising because of expectations for better economic growth, and they should continue to move up but moderately.
Inflation is a fear in the market, but strategists do not yet see it as a main catalyst for interest rates.

WHY ARE TREASURY YIELDS RISING? Part of it is rising expectations for inflation, perhaps the worst enemy of a bond investor. Inflation means future payments from bonds won’t buy as much – because the price of a banana or a bouquet of flowers will be higher than it is today.

For years, yields have been ultralow for Treasurys, meaning investors earned very little in interest for owning them. That in turn made stocks and other investments more attractive, driving up their prices. But when Treasury yields rise, so does the downward pressure on prices for other investments.

Rising interest rates are not good news for the stock market.

When You Should Refinance

Posted on March 17, 2021 by

It’s pretty easy to calculate, really. First figure out how much you will save on your monthly payment. Then figure out what your closing costs will be, with hone inspections, appraisals and fees. Let’s say for example that it will cost you $5,000 to refinance and you will save $100 a month. It will take you a little over 4 years to break even. How long do you think you will stay in your house? Obviously it you are going to be there less that 4 years, it wouldn’t make sense to refinance.

What about a 15 year mortgage? If you refinance, and you can afford to go with a 15 year mortgage. This could have a major effect on your long term retirement strategy. I know if you’re under 40, you may not be focused on retirement. But retirement will be here before you realize it, and your retirement years can if the best years of your life, if you plan properly.

Are the advertised rates real? That’s one thing to watch out for. There is one way to find 0ut – submit an application. There’s another way. Call Ruth Schoenheer and have a consultation.

Home Inspections and Appraisals

Posted on February 19, 2021 by

If you haven’t bought a home before, you might not know the difference between a home inspection and an appraisal.

Home Inspection

A home inspector goes through your house and looks for potential problems, particularly in big ticket areas like the roof and your air conditioner. Many people get a home inspection before they put the house on the market, because it is better to be aware of any problems and get them fixed before you hit the market. Many house buyers get a home inspection when they are making an offer on a house to make sure they didn’t miss anythings. Many times people make an offer on a house contingent on a satisfactory home inspection.

Appraisal

An appraisal is made when a professional appraiser places an arbitrary value to a house based on factors such as number of square feet, amenities and comparable prices of houses that have sold nearby. Sometimes a homeowner gets an appraisal before they put their house up for sale to make sure that their asking price is sensible. If a mortgage is involved, the mortgage company usually requires an appraisal before the grant the mortgage, to make sure that they don’t lend more than the house is worth.

Similarities

Both appraisals and home inspections require a trained professional to visit the home to fulfill a checklist
Both are usually paid for by the buyer
Appraisals and inspections are completed before closing
Both result in detailed reports that highlight a property’s functionality and integrity.

Differences

Home inspections deal with the condition of the property
Appraisals are used for determining the value of the property
Most lenders require an appraisal so that a fair value is placed on the property. This protects all parties involved.
Home inspections deal solely with the property being purchased
Appraisals also take into consideration the comparable sales in the area, market trends, and any other information pertinent to local home sales
Home inspections are nearly always funded by the buyer. The buyer may pay for all or part of an appraisal.

Interesting Theory on the Housing Market

Posted on January 16, 2021 by

We talked to an attorney recently who works in the bankruptcy area. We all know that the housing market is red hot right now, and there is a shortage of single family homes. My friend thinks that many people are reluctant to put their houses up for sale right now because of the virus. They don’t want a herd of strangers trampling through their home, potentially bringing the virus.

My friend thinks that 9 months from now, when many people have been vaccinated, that a lot of houses will be put on the market, and that there will be excess inventory, and plunging housing prices.

Let us be clear that we are not agreeing or disagreeing with this theory. We have only said that we find it interesting. The only thing we know for sure is that no one can predict the housing market or stock prices. Another thing that we do know is that one of the reasons that the housing market is strong is because mortgage rates are at an all time low. Perhaps you should get in on these low interest rates.

Covid and Relief

Posted on December 21, 2020 by

The following from the Consumer Finance Division of the Federal Government.

Relief for all federally or GSE-backed mortgages

Under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, and guidance from federal agencies and the GSEs, there are two protections for homeowners with federally or GSE-backed (Fannie Mae or Freddie Mac) or funded mortgages:

First, for federally or GSE-backed loans, your lender or loan servicer may not foreclose on you until at least December 31, 2020. Specifically, the CARES Act and the guidance from the GSEs, the FHA, the VA, and the USDA, prohibit lenders and servicers from beginning a judicial or non-judicial foreclosure against you, or from finalizing a foreclosure judgment or sale. This protection began on March 18, 2020, and extends through at least December 31, 2020.
Second, if you experience financial hardship due to the coronavirus pandemic, you have a right to request and obtain a forbearance for up to 180 days. You also have the right to request and obtain an extension for up to another 180 days (for a total of up to 360 days). You must contact your loan servicer to request this forbearance. There will be no additional fees, penalties or additional interest (beyond scheduled amounts) added to your account. You do not need to submit additional documentation to qualify other than your claim to have a pandemic-related financial hardship. Some federally backed mortgages have a December 31, 2020 deadline for requesting an initial forbearance. If you are facing financial hardships, you should ask for forbearance immediately, so you don’t lose that right.

Mortgage forbearance

Forbearance is when your mortgage servicer or lender allows you to pause (suspend) or reduce your mortgage payments for a limited period of time while you regain your financial footing.

The CARES Act provides many homeowners with the right to have all mortgage payments completely paused for a period of time.

Seven things you should know about mortgage forbearance during the COVID-19 national emergency

Forbearance doesn’t mean your payments are forgiven or erased. You are still required to repay any missed or reduced payments in the future, which in most cases may be repaid over time. At the end of the forbearance, your servicer will contact you about how the missed payments will be repaid. There may be different programs available.

Covid and Mortgages

Posted on November 26, 2020 by

How is Covid affecting the mortgage industry? It’s no secret that certain segments of society who have been affected more by the virus than others are having financial difficulty. Mortgage rates have been driven down by economic conditions, and partly because of that, the housing industry is booming.

Here is an answer by Erin Lantz, Chief Revenue Officer at Ethos Life, in his session on Quora:

When people are getting a mortgage it’s typically one of two scenarios: getting a new mortgage with the purchase of a home or refinancing an existing mortgage to lower the monthly payment rate.

The economic challenges related to COVID-19 have caused interest rates to drop significantly, compared to pre-pandemic levels. What that means for a lot of people is that you can qualify for a new mortgage with a lower monthly payment. If you’re buying a home now, you would get a lower monthly rate than you would have pre-COVID. But when mortgage rates get low, more customers look to refinance at lower rates, and lenders get busy. That can cause other challenges. When lenders are busy, they often don’t have the capacity to handle new customers, so sometimes they actually increase prices to compensate. We’ve seen some of that amid the pandemic – rates are more volatile for customers despite an overall lower interest rate environment.

RefinanceClearwater.com

Ruth Schoenherr

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