First Rate Financial Group, Author at First Rate Financial Group

13

Mar

Mortgage

6 Ways to Fight Foreclosure

6 Ways to Fight Foreclosure Sometimes, things don’t go as planned. Despite the best intentions, there are times when it’s impossible for homeowners to fulfill their mortgage obligations. When your misfortune turns into a foreclosure notice, these tips will help you control the situation and realize the best outcome.

Work With Your Lender

Open the lines of communication with your lender to stall the foreclosure process.

Call your lender and explain your predicament. Give them specific details about the nature and estimated length of your circumstances. Many lenders are willing to temporarily modify payment terms to temporarily accommodate certain hardships.

Apply for a loan modification. If your credit rating has improved or market values have shifted in your area, it’s possible to negotiate friendlier terms that lower your monthly payments.

A forbearance allows you to pause or drastically reduce your mortgage payments for a short period. However, you’ll have to pay everything owed in a lump sum or via larger monthly installments.

It is in your lender’s best interest to keep you in your home. Contact them early to avoid unnecessary issues.

Take Legal Action

Keep the law on your side to ensure you have the best chance at keeping your home.

If you believe your foreclosure is unlawful or in error, you will have the chance to present your case in court. Respond in writing to the official foreclosure complaint as soon you receive it. This eliminates quick default judgments.

Talk to a lawyer about your case. Even if you can’t afford to retain one for the trial, invest in a short sit-down session with a knowledgeable legal representative to get the facts straight and ensure you’re ready to present your defense.

Personal bankruptcy is a final strategy for saving your home. Most chapter 7 and 13 filings allow you to keep your primary residence while reorganizing your debt.

Foreclosure is less of a threat when you understand the laws and procedures that govern the process. Educate yourself on your legal options.

A temporary setback doesn’t have to ruin your entire life. With these tips, you won’t have to lose your dream to foreclosure.

Contact your trusted home mortgage professional to discuss current financing options.

12

Mar

By First Rate Financial Group

Mortgage

Is Now a Good Time to Cash Out Your Home Equity?

Is Now a Good Time to Cash Out Your Home Equity For many Americans, their home is their primary investment. The equity stored in your residence can be a source of available cash for home repairs, upgrades, or for financing the purchase of investment properties. However, few homeowners really understand the process that results in home equity.

What Is Home Equity?

Your monthly mortgage payment goes towards two different amounts. The first is the interest that you pay for the loan. The other is your principal payment or the amount that counts against the initial amount that you borrowed for the purchase. Depending on the details of your loan contract, each payment is generally split between these two types of charges.

Over time the amount that you’ve paid towards the loan’s principal grows your equity position. With each payment, your equity grows as well. Once enough equity is accrued, many lenders allow homeowners to access those funds via an equity line of credit, home equity loan or a cash-out refinance.

You’ll have to pay interest on any monies you withdraw from the second mortgage or higher loan amount upon your refinance. With home equity lines, however, these loans only charge interest on the money that you actually use. You can secure a home equity line of credit for a certain amount and not be liable for a penny in interest until your first withdrawal.

How Can You Calculate Potential Equity?

There are 4 main factors to consider when calculating your home’s equity.

Home value.
Monthly mortgage payments.
Down payment.
Any liens or additional mortgages on the property.

Imagine your home is currently valued at $300,000. With cash down payment of 20%, your home’s starting equity is equal to your initial $60,000 payment. Each payment slowly increases your equity until you have full financial ownership of your home.

Talk to your lender to understand how interest in applied to each payment. For fixed rate loans, you can easily figure out how much of your mortgage payments are immediately applied to the loan’s principal. An easy way to see this equity build up on a monthly basis is to reference an amortization schedule. Your lender should be able to provide this for you at no charge.

For property owners with liens and additional mortgages, add the value of those items to what’s still due on your primary mortgage loan before completing the calculations.

Home equity is a flexible financial tool that you can use to improve your property, expand your business, or treat yourself to something special. Plan carefully to get the most out of your home equity line of credit.

If you are interested in a refinance or a home equity loan, be sure to contact your trusted home mortgage professional.

11

Mar

By First Rate Financial Group

Financial Reports

What’s Ahead For Mortgage Rates This Week – March 11h, 2019

What’s Ahead For Mortgage Rates This Week – March 11h, 2019 Last week’s economic news included readings on new home sales, construction spending, and housing starts. Data on building permits was released along with Labor Department reports on public and private-sector jobs and the national unemployment rate. Weekly readings on mortgage rates and new jobless claims were also released.

Construction Spending Slows as New Home Sales Rise in December

Commerce Department data for December indicated less construction spending than for November. Construction spending dipped by -o.60 percent as compared to analyst expectations of a negative reading of -0.30 percent. Construction spending grew by 0.90 percent in November.

Lower cash outlays for winter months are typical; severe winter weather likely slowed construction activity more than usual. Any downturn in building activity pressures housing markets that continue to struggle with short supplies of available homes and high buyer demand.

Sales of new homes rose in December; the Commerce Department reported 621,000 sales of new homes. Analysts estimated 600,000 sales based on November’s reading of 599,000 sales of newly-built homes. December’s reading was 3.70 percent higher than In November and was 7.00 percent lower year-over-year.

Housing Starts, Building Permits Issued Rise in January

Housing starts increased in January with 1.230 million starts annually, which was an 18.60 percent increase from December’s downwardly revised reading of 1.037million starts. 1.215million starts were expected. The revision of December’s reading contributed to the jump in January housing starts. Single-family housing starts rose 25 percent at a pace of 926,000 starts reported.

Building permits rose by 1.40 percent in January to 1,345 million permits issued as compared to December’s reading of 1.326 million permits issued.

Mortgage Rates, New Jobless Claims

Freddie Mac reported higher average mortgage rates last week with rates for fixed-rate mortgages rising six basis points and the average rate for 5/1 adjustable rate mortgages rose three basis points. 30-year fixed mortgage rates averaged 4.41 percent; 15-year fixed mortgage rates averaged 3.83 percent and mortgage rates for 5/1 adjustable rate mortgages averaged 3.87 percent.

Discount points averaged 0.50 percent for 30-year fixed rate mortgages, 0.40 percent for 15-year fixed rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.

Initial jobless claims were lower last week with 223,000 claims filed; analysts expected 225,000 new claims based on the prior week’s reading of 226,000 first-time claims filed.

Labor Reports Show Slower Jobs Growth

ADP reported the lowest increase in private-sector jobs since November; February’s reading of 183,000 private sector jobs added reflected declines in jobs within the travel and retail sectors. The Commerce Department reported only 20,000 public and private-sector jobs added for February; this was the lowest reading in 17 months. Analysts cited severe winter weather and seasonal anomalies. Construction and shipping sectors were hardest hit in February.

National unemployment dropped from 4.00 percent in January to 3.80 percent in February.

What‘s Ahead

This week’s scheduled economic news includes readings on retail sales, inflation and the latest reading on construction spending. Lingering effects of the government shutdown continues to impact data released from the Federal government. Weekly readings on mortgage rates and new jobless claims will also be released.