Homeowners who have non-Fannie or Freddie related mortgages should contact their loan servicer’s loss mitigation department to see if special programs might be available at that institution.

With mortgage rates at record low levels, February saw a huge jump in refinances, but there should be more to come.  Fannie Mae said its refi business was three times January levels.  A new initiative coming out of the administration’s Making Home Affordable foreclosure prevention program will give another boost to refinances and reach some who have been ineligible for a refi under the old rules.

The Home Affordable Refinance will provide expanded refinance opportunities to borrowers with mortgages held or guaranteed by Fannie Mae.  A similar Freddie Mac plan is called the Relief Refinance Mortgage.  The initiatives are for borrowers who have demonstrated an acceptable payment history on their mortgage but due to a decline in home prices or where mortgage insurance (MI) is not available, have been unable to refinance to obtain a lower payment or move to a more stable product. 

The new program incorporates additional flexibility, notably, the maximum loan-to-value ratio has been raised to 105 percent to assist borrowers who have experienced home price declines. Qualifying refinancers can get fixed-rate mortgages up to 40-years duration or ARMs fixed for at least five years. 

The cost of the new Fannie Mae loan is determined according to a matrix of credit scores and LTV ratios.  Scores of 720 and up will generally get the very best rates and pay the lowest costs.  Those with the worst credit scores and high LTVs can be hit with discount point add-ons of as much as 3% of the loan amount in the Fannie Mae program. 

Freddie Mac’s risk fees are limited to 0.25%.  Aside from the risk fees, another big difference in the two programs is that Fannie Mae will allow borrowers to shop any Fannie Mae approved lender for the lowest closing costs.  Freddie Mac requires borrowers to refinance through the company that services their current loan.  The new Fannie and Freddie programs end June 10, 2010. 

Fannie and Freddie also are implementing loan modification programs under the Making Home Affordable plan for at-risk homeowners whose loans are owned or guaranteed by the two and who have either fallen behind on their mortgage payment or are in danger of doing so. 

You can contact me to find our whether Fannie Mae or Freddie Mac owns your loan.   For general information on the Making Home Affordable program, go to www.makinghomeaffordable.gov .

Josh Burley of Choice Finance

www.joshburley.net

Should I pay down my mortgage?
In the old days (much of the last century), many people stayed in their homes for 30+ years, long enough to pay off their mortgages and live mortgage-free ever after.  In the more recent past, mortgages became transient instruments, remaining in existence barely longer than a subatomic particle, long enough only to get to the next cashout or rate/term refinance.

Is this you?

Visitor: I bought a condo at 220K in 2006 when the price was high. Now, the value is really depreciated, I have a conventional fixed 15 years and I would like to refinance with FHA but no appraisal since the price in 2009 is really low
Visitor: MD 20705
Choice: fha streamline w/NO appraisal is for borrowers who are already in an fha loan
Choice: there might still be help for you given the new legislation for borrowers like you
Choice: we should know more on Friday
Visitor: so I cannot refinance then? because the price is reduced by 80K, and this is not fair
Visitor: and I still pay for 220K, is there no solution for that ?
Choice: there might still be hope for borrowers like you due to the new legislation for people who don’t have enough equity to refinance.
Choice: affordability and stability plan
Visitor: so something will happen this Friday, I mean tomorrow?
Choice: hopefully. we can contact you if that’s the case and then let you know if you qualify
Visitor: could you keep my email, and contact me pls
Choice: There may be help on the way very soon.  Contact me with your situation and I’ll keep you on file.  If circumstances are created where you are able to refinance, given your lack of equity,
I will contact you immediately to to start the process. 
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--Click the contact link above or call me directly. 
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Josh Burley, Choice Finance^®
301-881-8900, ext. 125
888-475-0700, ext 125
 

The Homeowner Affordability and Stability Plan was signed into law on Feb 17th, 2009.
COMING VERY SOON
We are working hard to put this into play for homeowners. 

This plan is designed to help:
1)  Loan modification– Borrowers who are at risk of foreclosure or with high debt-to-income ratios for qualifying may re-structure their current mortgage through a loan modification.
2)  Refinance– Borrowers who lost value in their home and are currently ineligible to refinance will be able to if they have been current on their existing mortgage payments on their Fannie Mae or Freddie Mac loan. 

More details are expected to be announced by next Wednesday, March 4th, at which time Choice Finance^® may begin accepting refinance applications.

 As we know more we will let you know..  This is great news and will help lower monthly mortgage payments for so many people right now given the low interest rates available.

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David Wexler, Choice Finance^®

Mutual respect when refinancing your mortgage 
A new but old problem has popped up again in the mortgage industry due to the volatility of rates.  When to lock in your rate..and honoring that lock once it has been done.  Loan Officers should be telling not selling in my opinion.  When speaking to a prospective client, they should listen to the customers objective(s) and propose options.
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If the client feels that one of the proposal meets or exceeds expectations, the next question is “Should I lock?” and “What happens if rates get better?”  There is no simple answer.  We get rates from many wholesalers.  These banks all have different policies on floating down rates.  A lender that has the best rate one day, may have a terrible policy or no float-down policy at all.  The loan officer must communicate this to the customer.  “ I can get you X rate today but the wholesaler offering this does not have a float down policy.” Should you the customer be punished because of bank float down policy…NO, but (there’s always a but)…  What we say to the customer is “we ask you stand by us if rates improve by .125%, (in other words honor your commitment to lock).  If rates get better by .25% however, we will float you down.”  As long as the lines of communication stay open, we will resolve the rate issue.  We never want to punish the customer for locking with us.
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The most frustrating turn of events is when a customer says they just locked with someone else who gave a better rate.  You have a right as a consumer to continually shop your mortgage.  Isnt it fair however, to call your broker first and say, “I am being offered X, can you tell me why? can you match it?”  More often than not, the mortgage was priced out incorrectly, the competing loan officer didn’t know the full story, or sometimes, the timing is such that they called before us on a day when rates were better.  It happens. 
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We implore you to call the loan officer you have been working with, before locking in with someone else.  It is a professional courtesy.  Your loan officer and others have spent time on your file, rushing to get you closed as quickly as possible.  Our relationships suffer with our wholesalers when we cancel locks.  Often times most of the work has been done already…isn’t it fair to give the person you chose to work with in the first place the benefit of the doubt? 
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We commit to excellent service, excellent rates, and counseling form experienced Loan Officers.  We only ask that you commit to honest and frank communication.  It is a very competitive market.  We will do what it takes to earn AND MAINTAIN your business and trust.\-

-David Wexler of Choice Finance Corporation

Do I refinance now or do I wait and see what the market does? That is the question being asked by borrower’s everyday, and the answer is simple. If you’re happy with the rate and payment based on today’s rates, take it and run.

Mortgage rates are as volatile as they have ever been, with rate changes happening multiple times a day. A rate that is quoted in the morning may not be there the same afternoon. My suggestion is to be prepared to lock your rate if you are happy with the results your new loan will provide. I have seen many borrowers play the waiting game; hoping rates will get even lower than the already low rates, only to get burned when rates go up. The only thing that is definite about rates is that you won’t know they’ve hit bottom until they start going back up! Set a goal that you wish to accomplish with your refinance.

Whether it be saving $150/mo or taking 25,000 worth of cash from your equity while keeping your payment the same. Think big picture. Dropping your rate .75% may not seem like huge deal, but saving $70,000 worth of interest over the life of your loan is. I think if we have learned anything during the economic crisis, its to pay attention to all aspects of your personal economic situation and to expect the unexpected. Save what you can when you can, because the mortgage industry changes daily. It only takes one guideline change to turn a potentially easy transaction into a dead loan.

Josh Peretzman, Loan Officer with Choice Finance Corporation
301-881-8900 x225
888-475-0700 x225

email sent to a client
Attached is an estimate for your review so you can see what’s involved.  I estimated worse case scenario for everything.  As we get closer we’ll modify #’s and loan amount so it has you bringing to settlement close to what you want to bring.   I put 145/month for both insurances; homeowner’s and flood.  Everything on there goes to a vendor and not in our pockets.  The wholesaler we may sell your loan to, the title company, and the state of Virginia. 
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I used 75,000 as your current amount to ‘payoff’ the current lender (balance plus one month’s interest).  Another variable, when your taxes were last paid will determine how many months we need to collect to establish your new escrow account.  If they were just paid, the lender will want 6 months plus 2 reserves…  I put 5 in your estimate.  5 months X 408/month is $2k.  A Virginia refinance we had close yesterday collected 4 months.  Once we are closer to settlement and know exactly, we can adjust your loan amount accordingly.  You can decide what loan amount that will keep you at what you want to bring to the table.. if anything.  This estimate has you coming to the table with $0.  You can tell me to leave that way or adjust for the amount you’d like to bring.  Keep in mind, your current lender will cut you a check for whatever amount they’ve collected from you so far for your tax escrows.  Same thing applies to Homeowner’s and Flood Insurance. 
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Also, if you close in January, you will not have a February mortgage payment to make.  PLEASE let me know any questions you have.  If you are fine with it, we collect upfront for the appraisal and credit report, $370.66.  You can mail a check or give me a credit card.  I’ll also need to get your last 2 years’ W-2’s, paystubs, and a checking /savings account. You don’t need to show me everything, just something so they see you have a few months reserves on hand. 
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Actually, I’ll send you a 2^nd email with an entire loan application to sign and a checklist of what to get.  I think we should lock now, but if you still want to wait and take your chances, you can sign it and get me everything so we can pull the trigger when it’s time.  Happy New Year!!

2009 VIRGINIA Jumbo-conforming (FNMA) and Super Conforming (FHLMC) limits
Fannie Mae and Freddie Mac
Fannie Mae single-family mortgage loan limits  |  Freddie Mac higher conforming loan limits
Maryland mortgage limits — Florida mortgage limits
FHA mortgage limits

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$417,000 ACCOMACK,
$437,000 ALBEMARLE, VA
$417,000 ALLEGHANY, VA
$535,900 AMELIA, VA
$417,000 AMHERST, VA
$417,000 APPOMATTOX, VA
$625,500 ARLINGTON, VA
$417,000 AUGUSTA, VA
$417,000 BATH, VA
$417,000 BEDFORD, VA
$417,000 BLAND, VA
$417,000 BOTETOURT, VA
$417,000 BRUNSWICK, VA
$417,000 BUCHANAN, VA
$417,000 BUCKINGHAM, VA
$417,000 CAMPBELL, VA
$535,900 CAROLINE, VA
$417,000 CARROLL, VA
$535,900 CHARLES CITY, VA
$417,000 CHARLOTTE, VA
$535,900 CHESTERFIELD, VA
$625,500 CLARKE, VA
$417,000 CRAIG, VA
$417,000 CULPEPER, VA
$535,900 CUMBERLAND, VA
$417,000 DICKENSON, VA
$535,900 DINWIDDIE, VA
$417,000 ESSEX, VA
$625,500 FAIRFAX, VA
$625,500 FAUQUIER, VA
$417,000 FLOYD, VA
$437,000 FLUVANNA, VA
$417,000 FRANKLIN, VA
$417,000 FREDERICK, VA
$417,000 GILES, VA
$458,850 GLOUCESTER, VA
$535,900 GOOCHLAND, VA
$417,000 GRAYSON, VA
$437,000 GREENE, VA
$417,000 GREENSVILLE, VA
$417,000 HALIFAX, VA
$535,900 HANOVER, VA
$535,900 HENRICO, VA
$417,000 HENRY, VA
$417,000 HIGHLAND, VA
$458,850 ISLE OF WIGHT, VA
$458,850 JAMES CITY, VA
$535,900 KING AND QUEEN, VA
$417,000 KING GEORGE, VA
$535,900 KING WILLIAM, VA
$442,750 LANCASTER, VA
$417,000 LEE, VA
$625,500 LOUDOUN, VA
$535,900 LOUISA, VA
$417,000 LUNENBURG, VA
$417,000 MADISON, VA
$458,850 MATHEWS, VA
$417,000 MECKLENBURG, VA
$417,000 MIDDLESEX, VA
$417,000 MONTGOMERY, VA
$437,000 NELSON, VA
$535,900 NEW KENT, VA
$417,000 NORTHAMPTON, VA
$417,000 NORTHUMBERLAND, VA
$417,000 NOTTOWAY, VA
$417,000 ORANGE, VA
$417,000 PAGE, VA
$417,000 PATRICK, VA
$417,000 PITTSYLVANIA, VA
$535,900 POWHATAN, VA
$417,000 PRINCE EDWARD, VA
$535,900 PRINCE GEORGE, VA
$625,500 PRINCE WILLIAM, VA
$417,000 PULASKI, VA
$417,000 RAPPAHANNOCK, VA
$417,000 RICHMOND, VA
$417,000 ROANOKE, VA
$417,000 ROCKBRIDGE, VA
$417,000 ROCKINGHAM, VA
$417,000 RUSSELL, VA
$417,000 SCOTT, VA
$417,000 SHENANDOAH, VA
$417,000 SMYTH, VA
$417,000 SOUTHAMPTON, VA
$625,500 SPOTSYLVANIA, VA
$625,500 STAFFORD, VA
$458,850 SURRY, VA
$535,900 SUSSEX, VA
$417,000 TAZEWELL, VA
$625,500 WARREN, VA
$417,000 WASHINGTON, VA
$417,000 WESTMORELAND, VA
$417,000 WISE, VA
$417,000 WYTHE, VA
$458,850 YORK, VA
$625,500 ALEXANDRIA, VA
$417,000 BEDFORD IND, VA
$417,000 BRISTOL, VA
$417,000 BUENA VISTA, VA
$437,000 CHARLOTTESVILLE, VA
$458,850 CHESAPEAKE, VA
$535,900 COLONIAL HEIGHT, VA
$417,000 COVINGTON, VA
$417,000 DANVILLE, VA
$417,000 EMPORIA, VA
$625,500 FAIRFAX IND, VA
$625,500 FALLS CHURCH, VA
$417,000 FRANKLIN IND, VA
$625,500 FREDERICKSBURG, VA
$417,000 GALAX, VA
$458,850 HAMPTON, VA
$417,000 HARRISONBURG, VA
$535,900 HOPEWELL, VA
$417,000 LEXINGTON, VA
$417,000 LYNCHBURG, VA
$625,500 MANASSAS, VA
$625,500 MANASSAS PARK, VA
$417,000 MARTINSVILLE, VA
$458,850 NEWPORT NEWS, VA
$458,850 NORFOLK, VA
$417,000 NORTON, VA
$535,900 PETERSBURG, VA
$458,850 POQUOSON, VA
$458,850 PORTSMOUTH, VA
$417,000 RADFORD, VA
$535,900 RICHMOND IND, VA
$417,000 ROANOKE IND, VA
$417,000 SALEM, VA
$417,000 STAUNTON, VA
$458,850 SUFFOLK, VA
$458,850 VIRGINIA BEACH, VA
$417,000 WAYNESBORO, VA
$458,850 WILLIAMSBURG, VA
$417,000 WINCHESTER, VA

No closing cost refinance
With fixed rates so low right now, many homeowners are doing a refinance where the Lender pays all the closing costs.  If you are currently at 6.250% on your mortgage, and you can get .250% or more lower, for free… why not? 

Some quick rough math; if I owe $300,000 and I save .250%
.250% x $300,000= $750 interest
$750 / 12 months= $62.50/month interest
Actual payment will go down $48.50/month
Payment at 6.250%= $1,847.15 principal and interest
Payment at 6.000%= $1,798.65 principal and interest

Yes you will re-amortize your loan for 30 years.  However, you are still paying a lower rate.  Have your loan officer print an Amortization Schedule so you can see how much to pay every month and stay on track with your previous loan. 
You were 4 years into your previous loan?  Your Loan Officer will show you what to pay each month so you will still pay it off in 26 years.  Even better,  keep paying what you were already paying, and have your LO show you how fast this will pay your mortgage off.

Contact me to see if you can lower your rate for free |
Mark Zaidan, Choice Finance®

GRH USDA mortgage program | MD, VA, DE, FL, more..
Some key features of this program include:
-  No private mortgage insurance (pmi).  This is huge!
Also, VA loans have a funding fee, and this program has a Guaranteed Fee that can also be financed into the loan.
- 6% seller help/credit is allowed
- No minimum contribution from your own funds.  FHA has a 3.5% downpayment requirement and your typical conventional loan requires cash reserves.  This program requires neither.
- This program offers a fixed rate option for a one unit, primary residence.  Maximum loan amount is $417,000. 

See if your property is eligible here

     Contact me to discuss this program and get you qualified.
888-475-0700, Bill Mulligan
 

Debt Relief | Debt reduction | Debt consolidation
These programs are very popular right now.  Odds are you’ve heard or seen a commercial for them.  Choice Title, Inc. and Debt Relief Center, Inc. offer you a debt settlement option, and we will be happy to discuss a game plan to help you.
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What is DEBT RELIEF?
Debt relief is a way to actually get out of debt rather than simply keeping it at bay.  We renegotiate your debt with your creditors in order to minimize what you owe.  Generally, your overall debt can be reduced from 40-55%.  You can lower your payments from what you pay now AND be completely out of debt in 4 years or fewer.
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How does DEBT RELIEF work?
In this market, many people have overwhelming credit card debt. Creditors who lend you this money are exposed to billions and billions of dollars and they are counting on collecting.  When you are unable to pay your bills, it gets the attention of the creditors.  They start to worry, “Am I going to get paid?” What are the creditors options, going to a collection agency?  Collection agencies only get ten cents on the dollar.  Working with debt relief they get much more than that.  We simply pool many people with similar debt and package it together.  We then offer to settle the debt for much less than what is actually owed.   When the debt of thousands is pooled together, they are much more apt to make a concession.  After all, they want to get as much money as possible of what is owed to them.
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What are the RISKS OF DEBT RELIEF?
You might be thinking that this seems too easy.  Why shouldn’t I just call up my credit card company and tell them I want to renegotiate what I owe!  Well, if you’re currently paying your bills on time, the creditors have no reason to renegotiate with you.  The only way they start to listen is if you have NOT been making your payments…and even then, they want to offer you near the discount that a larger relief company can offer.   **I am not encouraging you to stop making payments. In fact, i recommend you do everything possible to pay your bills on time and avoid a Debt settlement/relief program.  Once you have exhausted your options, only then am I suggesting you consider this debt program.  Being late on or missing payments is frowned upon.  Creditors will report this to the credit bureaus and it will show up on your credit report.  Your scores will definitely go down for a while.   
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What are the BENEFITS OF DEBT RELIEF?
While your scores may go down for a while, it’s much better AND CHEAPER than declaring bankruptcy.  Bankruptcy will stick with you for SEVEN+ years and tarnish your ability to buy a home for THREE YEARS.  If you are having great difficulty with your bills currently, what would it gain you to keep your current credit scores intact?  The answer: Not much.  Good credit allows you the opportunity to gain more credit for things you’ve already proven you can’t afford.  What’s the point of that? Have you ever noticed that when you make the minimum payments that your balance barely declines?  Debt relief will eliminate your debt.  It will also be done by paying less than what you pay now.  So not only do you get instant relief on your current monthly outlay, but your debt is eliminated.
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I’m available to talk with you. 
Contact me today to learn more about whether this makes sense for you.
888-475-0700 x139, bobkearns@choicefinance.net
     Bob Kearns of Choice Finance

What is Debt Relief?
Current buzz words gaining popularity right now are the terms for the debt settlement programs out there.

“You Didn’t Get Into this Problem Overnight and We Can’t Fix the problem Overnight but…”
If you don’t take that first step what are you going to do?  Most likely, you are making minimum payments on your credit card debt and you don’t have the equity to consolidate your credit card debt into your mortgage.. or you currently rent.   
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Will your credit score go down initially by doing credit card relief…YES.   Should this tool be used as a last option…In my opinion yes.  But my guess is that many of you who read this are at that point.  Don’t put off the recognition that you need help.  The quicker you take this step, the quicker your credit can get better.  Your credit will reflect that this debt has been charged off, but it is not a bankruptcy or consumer credit counseling and is not viewed nearly as harshly by potential credit sources in the future.  Bankruptcy usually costs around $2,500…there is no upfront fee for credit card relief.  It is included in your monthly payment. 
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If you stick to the program and work with the counselors, your debt will be repaid in less than 4 years and your credit will be on the mend in months not years.   You can exit the program at any time and have total access to your funds.  This is definitely not for everyone, but if you think you are a candidate, you probably are.  Lets take a look and talk about it.  That is the first step. 

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Learn more about this Debt Relief program here:
MD VA DC Debt Relief, settlement
Post to this blog, email us,
or call 888-475-0700
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Qualifying with rental income
If you are qualifying a borrower with rental income from their investment properties, you must use what is declared on their tax returns as opposed to what their lease states.  The only time you can use the income from a lease is if the property was acquired subsequent to filing and would therefore not appear on their tax returns.  If this is the case, be prepared to show bank statements with regular rent deposits. 
If qualifying using a tax return, use this method only.
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Take the net profit (or loss) and add back in the following deductions: 
·         Depreciation
·         Mortgage interest
·         Property taxes
·         Insurance
·         HOA payments
·         One-time large repairs (be careful with this one… it has to be sizably larger than the previous year to count) 
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** Most of the time, you will have to average the last two years’ tax returns for the allowable monthly rent, but occasionally one year.

** Also, if you take rental income directly off the tax return, you do not have to use a 25% vacancy factor.  Show 0% as the vacancy factor.

     Alex Echeandia, Choice Finance

4. Buying an older home and updating.
With the rising cost of gas, many are rethinking the viability of the long commute.  Instead they are looking at older, closer in housing that may lack both the size and the amenities that distant, new communities offer.  With one loan, it is possible for purchasers to buy and create the home of their dreams.  Once you have decided to undertake a renovation, a key step will be figuring out what sort of financing is needed.

If the straight cash-out is not an option due to LTV considerations, you could consider a Fannie Mae HomeStyle Renovation mortgage.  The difference is that the appraisal will be based on the “best-value” of the property once the renovation work has been completed.   However, the work has to be done by a licensed contractor and the renovations have to be completed within a six month time period.  Another option is the FHA 203k rehab loan. If the work needed is basically cosmetic (no structural work is allowed) and the total cost is under $35,000, it is considered a “streamlined” renovation and the process is greatly simplified.  If the job is more extensive or it requires structural work, the traditional FHA 203k is available.  There are few restrictions and the cost of the rehab work is only limited by the FHA limits for your area.  There are cases, especially in urban areas, where a “shell” is purchased for a nominal fee (let’s say under $1,000) and $250,000 is used for completely restoring the house, all with one loan.

Rehab Purchases
What if you want to purchase a home that is in need of work, whether it be a few cosmetic improvements and upgrades or a more substantial rehab?  The previously described Fannie Mae and FHA financing is available for this situation.  Be aware, though, most lenders will require you to determine in advance the value added.