What are your options and strategies in times where values are rising?
Brent Wood
702 629 9555
bwood@allwestern.com
Tuesday, June 25, 2013
3 Options when values are rising...
What are your options and strategies in times where values are rising?
Brent Wood
702 629 9555
bwood@allwestern.com
I was just wondering... conversations...
Here is a video message from Karl Holt, Vice President of my company, All Western Mortgage. In addition to his Corporate duties, we also originate loans together. He is a great source of information and we work very well together.
Brent Wood
All Western Mortgage
702-629-9555
bwood@allwestern.com
Friday, May 17, 2013
Monday, April 29, 2013
Non-institutional Lending (aka Hard Money)
One of the options that homebuyers and investors have for financing a home is a non-institutional loan, also known as hard money. Here is an comparison between a typical loan vs. a non-institutional loan.
Example: $150,000 Home Purchase
Conventional Loan Non-Institutional Loan
Down Payment % 5% -20% 30%-35%
Down Payment $ $7,500 - $30,000 $45,000 - %52,500
Closing Costs/Impounds % 4% 5%
Closing Costs/Impounds $ $6,000 $7,500
Principal / Interest YES Interest Only
Rate 3.75% - 4.5% 10%
Payment Example
Down Payment + Closing costs $36,000 $57,500
Payment $555.75/month $833.33/month
Plus Taxes & Insurance estimated $170.00 $170.00
Total $725.75 $1,003.33
Interest rates and fees are for illustrative purposes and are subject to change and are on approved credit. Clients that wish to invest using non-isntitutional loans must read and understand the terms of the loan, especially the renewability of the loan and the term. Non-institutional loans should be used for a short term and paid off or replaced with a traditional loan as soon as the borrower qualifies.
Non-institutional loans must comply with Local, State and Federal laws. These loans vary greatly in terms, rates and fees. These are given as illustrative examples only. For specific information about non-institutional loans, feel free to contact Brent Wood at 702-629-9555 or bwood@allwestern.com
Example: $150,000 Home Purchase
Conventional Loan Non-Institutional Loan
Down Payment % 5% -20% 30%-35%
Down Payment $ $7,500 - $30,000 $45,000 - %52,500
Closing Costs/Impounds % 4% 5%
Closing Costs/Impounds $ $6,000 $7,500
Principal / Interest YES Interest Only
Rate 3.75% - 4.5% 10%
Payment Example
Down Payment + Closing costs $36,000 $57,500
Payment $555.75/month $833.33/month
Plus Taxes & Insurance estimated $170.00 $170.00
Total $725.75 $1,003.33
Interest rates and fees are for illustrative purposes and are subject to change and are on approved credit. Clients that wish to invest using non-isntitutional loans must read and understand the terms of the loan, especially the renewability of the loan and the term. Non-institutional loans should be used for a short term and paid off or replaced with a traditional loan as soon as the borrower qualifies.
Non-institutional loans must comply with Local, State and Federal laws. These loans vary greatly in terms, rates and fees. These are given as illustrative examples only. For specific information about non-institutional loans, feel free to contact Brent Wood at 702-629-9555 or bwood@allwestern.com
Brent A. Wood
All Western Mortgage
Cel. 702-629-9555
Branch Office
770 Coronado Center Drive #160 Henderson, NV 89052
Corporate Office
8345 W Sunset Road 2nd Floor Las Vegas, NV 89113
Fax 702-948-5196
Please visit my blog: www.mortgagefinancenews.blogspot.com
Nationally Registered Mortgage Agent, B.S.B.M. NMLS ID 327581
Tuesday, April 9, 2013
Refinance FHA Loans TODAY !!!!
There is big news in the Mortgage world for FHA clients.
The Federal Housing Authority has changed Mortgage Insurance Guidelines and they go into effect on June 1st, 2013. This change makes Mortgage Insurance PERMANENT. No longer can you eliminate Mortgage Insurance by paying down you mortgage or having appreciation enough to bring your loan below 80% of value.
Mortgage Insurance on FHA loans is typically $100-$300 per month. Before this change, clients could expect to pay that for 5 years or so. The total cost would typically be $6,000 -$20,000. Now, with it becoming permanent, the lifetime of mortgage insurance could cost $20,000 -$100,000. Of course, a client can always refinance out of an FHA loan, but there is no guarantee what their rate will be in five years or more.
Solutions:
1) Refinance your FHA loan now at historically low rates before June. Value / Equity are not an issue with FHA streamline refinances.
2) If you have a little equity (3-5%) you can refinance into a conventional product without monthly mortgage insurance.
If you have questions about your options, contact me by phone or email.
Brent Wood
702-629-9555
bwood@allwestern.com
The Federal Housing Authority has changed Mortgage Insurance Guidelines and they go into effect on June 1st, 2013. This change makes Mortgage Insurance PERMANENT. No longer can you eliminate Mortgage Insurance by paying down you mortgage or having appreciation enough to bring your loan below 80% of value.
Mortgage Insurance on FHA loans is typically $100-$300 per month. Before this change, clients could expect to pay that for 5 years or so. The total cost would typically be $6,000 -$20,000. Now, with it becoming permanent, the lifetime of mortgage insurance could cost $20,000 -$100,000. Of course, a client can always refinance out of an FHA loan, but there is no guarantee what their rate will be in five years or more.
Solutions:
1) Refinance your FHA loan now at historically low rates before June. Value / Equity are not an issue with FHA streamline refinances.
2) If you have a little equity (3-5%) you can refinance into a conventional product without monthly mortgage insurance.
If you have questions about your options, contact me by phone or email.
Brent Wood
702-629-9555
bwood@allwestern.com
Thursday, February 14, 2013
Reverse Mortgage Strategies
REVERSE MORTGAGES
Reverse Mortgages are a great way for Seniors to do one or two things.
1) Eliminate their monthly mortgage payment
2) Access Equity from their home without a payment
But what would the reasons behind this decision be. There are a few:
Need - some seniors need to do a reverse morgage to access cash for one-time or monthly expenses or to eliminate the expense of a monthly mortgage payment.
Desire - some seniors use equity in their home via a reverse mortgage without a payment to purchase a second home or R.V., join a country club, etc.
Legacy - some seniors help children/grandchildren, churches, alma maters or other beneficiaries immediately, instead of waiting until their death.
Whatever the motivation, Reverse Mortgages are Government-backed, well-defined and available to Seniors regardless of their age, income level, credit or debt. This is because payments are not required. And getting one now is a great time while rates are so low. Reverse mortgages are for owner occupied properties only and there must be equity of approximately 40% or more, depending on age.
Call me if you have questions or concerns for yourself or your parents. Inquiries form Financial Planners, Attorneys, CPAs and other advisors are welcomed.
Brent Wood
702-629-9555
bwood@allwestern.com
Reverse Mortgages are a great way for Seniors to do one or two things.
1) Eliminate their monthly mortgage payment
2) Access Equity from their home without a payment
But what would the reasons behind this decision be. There are a few:
Need - some seniors need to do a reverse morgage to access cash for one-time or monthly expenses or to eliminate the expense of a monthly mortgage payment.
Desire - some seniors use equity in their home via a reverse mortgage without a payment to purchase a second home or R.V., join a country club, etc.
Legacy - some seniors help children/grandchildren, churches, alma maters or other beneficiaries immediately, instead of waiting until their death.
Whatever the motivation, Reverse Mortgages are Government-backed, well-defined and available to Seniors regardless of their age, income level, credit or debt. This is because payments are not required. And getting one now is a great time while rates are so low. Reverse mortgages are for owner occupied properties only and there must be equity of approximately 40% or more, depending on age.
Call me if you have questions or concerns for yourself or your parents. Inquiries form Financial Planners, Attorneys, CPAs and other advisors are welcomed.
Brent Wood
702-629-9555
bwood@allwestern.com
Wednesday, January 30, 2013
Mortgage Insurance - why or why not?
Mortgage Insurance - why or why not?
Let's start by defining what Mortgage Insurance is all about. Mortgage Insurance is charged to a borrower, so if the loan must be foreclosed, the lender will be compensated for their loss. Only loans with a downpayment of less than 20% are required to have Mortgage Insurance.
Mortgage Insurance can vary from about 1.0% to 1.25%. Some types of policies (i.e. FHA) have upfront mortgage insurance of about 1.75%. Here is an example:
FHA Example
$250,000 Home Purchase
$ 8,750 3.5% Down Payment
$ 4,250 1.75 Up Front Mortgage Insurance
$ 4,000 Closing Costs and Prepaid Finance Charges
------------
$240,000 Loan Amount
$1,044.50 30 year fixed Principal & Interest Payment @ 3.25%
$ 70.00 Homeowners Insurance
$ 150.00 Property Taxes
$ 250.00 Morgage Insurance
------------
$1,514.50 Total
But now there are programs that build the Mortgage Insurance into the rate.
Conventional Example
$250,000 Home Purchase
$ 12,500 5% Down Payment
$ 4,000 Closing Costs and Prepaid Finance Charges
------------
$237,500 Loan Amount
$1,168.36 30 year fixed Principal & Interest Payment @ 4.25%
$ 70.00 Homeowners Insurance
$ 150.00 Property Taxes
------------
$1,388.36 Total
So, even with a higher rate, the payment is lower for Conventional Loans with built in Mortgage Insurance. But, with Mortgage Insurance NOT built-in, the Mortgage Insurance can be eliminted with enough equity built from appreciation (20-25%) after five years.
There are a lot of factors to consider when choosing Mortgage Insurance products or built-in alternatives. Please contact me anytime to discuss your particular circumstance.
Brent A. Wood
All Western Mortgage
702 629 9555
bwood@allwestern.com
Let's start by defining what Mortgage Insurance is all about. Mortgage Insurance is charged to a borrower, so if the loan must be foreclosed, the lender will be compensated for their loss. Only loans with a downpayment of less than 20% are required to have Mortgage Insurance.
Mortgage Insurance can vary from about 1.0% to 1.25%. Some types of policies (i.e. FHA) have upfront mortgage insurance of about 1.75%. Here is an example:
FHA Example
$250,000 Home Purchase
$ 8,750 3.5% Down Payment
$ 4,250 1.75 Up Front Mortgage Insurance
$ 4,000 Closing Costs and Prepaid Finance Charges
------------
$240,000 Loan Amount
$1,044.50 30 year fixed Principal & Interest Payment @ 3.25%
$ 70.00 Homeowners Insurance
$ 150.00 Property Taxes
$ 250.00 Morgage Insurance
------------
$1,514.50 Total
But now there are programs that build the Mortgage Insurance into the rate.
Conventional Example
$250,000 Home Purchase
$ 12,500 5% Down Payment
$ 4,000 Closing Costs and Prepaid Finance Charges
------------
$237,500 Loan Amount
$1,168.36 30 year fixed Principal & Interest Payment @ 4.25%
$ 70.00 Homeowners Insurance
$ 150.00 Property Taxes
------------
$1,388.36 Total
So, even with a higher rate, the payment is lower for Conventional Loans with built in Mortgage Insurance. But, with Mortgage Insurance NOT built-in, the Mortgage Insurance can be eliminted with enough equity built from appreciation (20-25%) after five years.
There are a lot of factors to consider when choosing Mortgage Insurance products or built-in alternatives. Please contact me anytime to discuss your particular circumstance.
Brent A. Wood
All Western Mortgage
702 629 9555
bwood@allwestern.com
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