Posts Tagged ‘Refinancing’

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Success Stories #3

January 21st, 2011

Client #1

Terry is a very successful business professional.  She makes good money but does not have a lot of free time.  Because of her hectic schedule, Terry has accumulated a lot of revolving debt and the payment on that debt was getting out of hand.  The Kunselman Team was able to help Terry out by refinancing her existing mortgage with a new FHA Mortgage and giving her cash out.  Terry was able to use this money to restructure her debt in a way that saved her over $1000/month.  With her monthly payment savings, Terry’s time to recover her costs of doing the refinance is less than 5 months.

Client #2

Phil has been living is a townhome (that he owns) for quite a few years now.  He had been saving his money recently decided that he would like to buy a bigger home.  He was not sure about whether or not he wanted to sell his current home either.  The Kunselman Team was able to help Doug buy a beautiful home at a great price.  He did not have to sell his townhome to qualify either.  That way he can choose to rent it out or if he feels he can get the price he wants, he can also sell it.

Client #3
Chuck and Sally had had their mortgage for about 5 years.  Like many of us, Chuck and Sally are self-employed.  They make great money, the just don’t show a lot on their tax returns.  Chuck and Sally had thought that because of their income situation they would not be able to qualify for a refinance.  The Kunselman Team was able to find them a new mortgage that did not require them to document their income and they also did not have to have an appraisal.  I will point out that the reason they did not have to document their income was because of who their current loan servicer was (and it’s one of the big ones).  If you would like to see if you qualify for this amazing program, give The Kunselman Team a call and we will check for you.

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Posted in Mortgage Industry, News, Real Estate Industry, Success Stories

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Top 10 Reasons for Getting a New Mortgage in 2011

January 21st, 2011
  1. Rates are still really low.
  2. FNMA DU Refi+ and the Freddie Mac Open Access HARP programs are still around through May.
  3. You might not have to pay for an appraisal
  4. Self-employed people can still get a loan.
  5. 100% Financing is available in rural areas (Frederick/Firestone count as rural)
  6. FHA has lowered its up-front mortgage insurance premium from 3.5% to 1.0%.
  7. 100% VA Loans are still available. (Have you ever checked your eligibility?)
  8. VA interest rate reduction loans are cheap and easy.
  9. FHA Streamlines don’t require income documentation. (Great if you have kept up on your payments even with a drop in income.)
  10. Mortgage interest and Mortgage Insurance are still tax deductible!

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Posted in Mortgage Industry, News, Real Estate Industry, Uncommon Useful Knowledge, Understanding Your Mortgage

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Get the Process Started Now

December 8th, 2010

The loan process is not what it used to be.  In the not so distant past, we used to be able to start a new refinance and get it closed within 3 weeks.  Lenders were a lot more streamlined and were staffed to handle the amount of loans they were getting.

But because of new regulations and a large influx of business (due to such low interest rates), loans are just taking longer to get done.  So what should you, the consumer do?

Get started now.  If you are thinking that you would like to refinance but are going to wait until after the holidays, you could be missing out.  Rates are still good but all indicators point to rising rates in the near future.  If you wait until after the holidays to start the loan process you could end up paying a higher rate.

The reality is that because of longer timelines to get a new mortgage, a refinance started now most likely won’t be closing until after the New Year.

We all make New Years Resolutions to get our finances in better shape but why wait to start those resolutions until after the 1st of the year.  Getting started now will give you a head start and ensure that procrastination doesn’t cost you more money.

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Posted in Know Your Mortgage, Mortgage Industry, News, Uncommon Useful Knowledge, Understanding Your Mortgage

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What could I really Save?

December 8th, 2010

In the last couple of weeks, the mortgage industry has seen interest rates bottom out and start to move back up.  Most analysts believe that we have tested the lows and now the Fed wants to get inflation back to its target of 2% and to do so, it will start raising interest rates.

Even so, you can still get great interest rates.  It is still possible to get your rate in the 4% but if you don’t act soon, you may miss that window.

Let’s look at some examples of what the principle and interest payment on a $200K mortgage would be over a range of interest rates:

Interest Rate                   Monthly Payment

4.50%                                  $1013.37

4.75%                                  $1043.29

5.00%                                  $1073.64

5.25%                                  $1104.41

5.50%                                  $1135.58

5.75%                                  $1167.15

6.00%                                  $1199.10

Now someone could look at this and think, “The difference between 6.00% and 5.00% is only ~$126/month; That is not worth the cost of refinance.”  But you have to remember that this is just comparing different rates for the same loan amount.  If a borrower had an original loan amount of $215K at 6.00% and has had this mortgage for 5 years, their payment savings would like more like this:

Original Payment at 6.00% = $1289.03

New Loan Amount $205K

Interest Rate      New Payment       Monthly Savings

4.50%                  $1038.70                 $250.33

4.75%                  $1069.38                 $219.65

5.00%                  $1100.48                 $188.55

Now I know that the odds of this being your example situation are pretty slim but this example is designed to show you that even though we have seen the bottom of interest rates, rates are still good and can save you thousands of dollars in interest.  But you do not want to wait long.

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Posted in Know Your Mortgage, Mortgage Industry, News, Real Estate Industry

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Success Stories #2

August 25th, 2010

Over the last few months, The Kunselman Team has had the opportunity to work with some wonderful clients with unique situations, and was able to get them the perfect mortgage solution to fit their needs.  We would like to highlight a few of these situations here.  The names have been changed but the scenarios are real.

Client #1 John
John is a single dad with two kids heading off to college over the next 3 years.  John owns two properties (his home and a rental condo).  The condo currently has a 15 year first mortgage and a HELOC.  The rent he receives for the condo is less than what his two mortgage payments are so every month, he has a negative cash flow.  He has been making the payments just fine but realizes that with the upcoming expense of college, he needs to better his monthly cash flow.  The solution that The Kunselman Team found for John was another 15 year mortgage that lowered his payment enough so that he now has a positive cash flow on his rental property.  The refinance of this investment property did not require an appraisal.  John also refinanced his home at the same time.  The combined monthly savings of both properties was $415/month.  This will help John substantially in the next few years.

Client(s) #2 Jim and Sarah
Jim and Sarah have been in their home for about seven years.  They have looked into refinancing in the past but because of flat or declining home prices in their neighborhood, it just never made sense.  The Kunselman Team found a new loan program that would not only reduce their monthly payments but shorten the term of their loan by three years.  In eight years from now (when they may be moving) they will have an additional $22K in equity as a result of going with a 20 year mortgage, instead of another 30 year.  In addition, this refinance require no new appraisal for Jim and Sarah.

Client(s) #3 Fred and Mary
Fred and Mary bought their home just over two years ago.  They had good credit and because of their unique situation, they had to do a stated income loan to purchase the home at a rate of 6.375%.  They were concerned that they would not qualify for a refinance since the last time they applied for a mortgage, they were stated income borrowers.  The Kunselman Team reviewed their tax returns thoroughly and were able to show enough income so that Fred and Mary were able to lower their interest rate to 4.50%.  This lowered their monthly mortgage payment $200.

These are just a few examples of the unique situation that The Kunselman Team has come across in the last few months.  The only thing that is certain anymore is that EVERY LOAN IS UNIQUE! Give The Kunselman Team a call to see if we can help with yours.

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Posted in Know Your Mortgage, Mortgage Industry, News, Uncommon Useful Knowledge

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