Should I Refinance My Home?

October 26, 2009
Louisville, KY


This is the very same question several people have asked me this week. For some, it just wasn't the right time. For others though, it made perfect sense and once they saw the monthly savings, they wandered why they didn't act sooner!

Interest rates are obviously at historic lows right now. It is a great time for those who are purchasing, as well as for those who wish to refinance their homes here in Louisville, KY. Refinancing can save you a lot of money. Read below and find out if it is right for you and exactly how much you can save each month.



What Is Refinancing?



Refinancing gives you the chance to replace your current mortgage with a new loan having a more favorable rate and term that you can afford to manage. The new loan is offered against the same property as the collateral and may or may not exceed the current loan balance. The new loan funds are used to pay down the current mortgage while any remaining cash can be used to your best advantage.



How a Mortgage Refinance Works

This process will vary slightly from one homeowner to the next and from state to state, based on many factors. But generally speaking, this is how refinancing works for most of us here in Louisville, KY.

Step 1 - Determine Your Home’s Value
Step 2 - Determine Your Home's Equity
Step 3 - Check Your Credit Report and Score
Step 4 - Find Out if Refinancing Makes Sense
Step 5 - Get Refinancing Quote from Lender



6 Reasons Why You Should Refinance



First of all, I should point out that I’m not telling you to refinance your mortgage loan. That’s your decision. The point is that, by the time you finish reading this article, you may find that refinancing is a bad idea for you right now. Or you might find that it makes perfect sense. Either way, you’ll come to this realization on your own.


If you're thinking "Should I refinance my house?", check out the 6 reasons as to why you may make such a decision.


You want to save more:
Your monthly payments will be reduced if you get a low rate or when your loan term is extended. Keep in mind with an extended term, your monthly savings will increase but you'll be paying more in total interest for the life of the loan.

You want to pay down your mortgage quickly:
You can shorten the length of your mortgage by reducing the loan term. Monthly payments will no doubt go up, but you will be able to save more in the overall interest payment. Moreover, you'll be debt free in a shorter time.

You need extra cash to pay off credit cards:
If you have enough home equity, you can borrow more than the current loan balance. With the extra cash, you can pay off high interest debts such as credit card balances or installment loans. You gain out of it as the interest on such debt is not deductible unlike mortgage interest.

You wish to consolidate 2 loans into one:
If there's enough equity, you can consolidate first and second mortgages and refinance into a single first mortgage. The monthly payment on the new loan is likely to be lower than the combined payments on the first loan and the second mortgage.

You want to convert an Adjustable Rate Mortgage (ARM) into a Fixed Rate Mortgage (FRM):
This allows you to lock in at a low rate. You can thus repay the loan with stable monthly payments rather than variable payments over the loan term.

You want to get rid off PMI:
If your current loan balance is below 80% of the new appraised home value, you can go for a home refinance and stop paying the PMI (Private Mortgage Insurance).




How Much Can I Save By Refinancing My Loan?

The exact type of assistance and monthly savings obviously depends on the individual and many factors.

Is refinancing right for you?

Within 24 hours I can notify you by telephone or email if refinancing is right for you. I will present the best options available. No hassle. No obligation.

If you've been hesitant because you felt uncertain about the process of refinancing, there is no need to wait any longer. I will assist you and help make this as easy as possible.

Just click here and fill out a
Free No-Obligation Mortgage Refinance Quote.

I look forward to helping you soon!



Sincerely,

Jason Thompson
Mortgage Professional
Louisville Mortgage Leader
(502) 774-0117
LouMortgageLeadr@aol.com

FHA Condo Approval Process- Effective 10-1-09

Newsletter October 22, 2009

Re: Mortgagee Letter 2009-19

FHA issued the above Mortgagee letter and it's a doosie....(technical mortgage term for 'you know what' hitting a fan.)

Here it is in a nutshell:

This new guidance for the condo project approval is effective for all case numbers assigned on or after Oct 1 2009. So if a case number was ordered on a property before Oct 1 2009 it can use the old condo approval and guidance, including doing a spot approval.

Effective for case numbers assigned on or after Oct 1 2009:

• The spot approval process for condo projects is eliminated.
• All current condo project approvals will be invalid (w/exception of projects approved on or after Oct 1 2008) and projects must be re-approved under the new options available. Going forward, ALL projects will require recertification every two (2) years.

Yes… it's as ugly as it sounds. As of October 1 the slate was wiped clean and the only projects left on the FHA approved list will be the ones approved on or after Oct 1 2008, which won’t be many. (by the way...this is an IMPORTANT detail that is not disclosed in the Mortgagee Letter but was explained by HUD personnel in a conference call.) Once a project gets on the approved list, it will require recertification every two years after that. There will be no more continuous approvals.

HUD will accept approval packages for review from

• Lenders (or)
• Builders/Developers

Getting projects back on the approved list will be a long and slow process. AND until a project is approved, FHA financing is not an option.

The approval processing options apply to projects that are

• Proposed/Under Construction
• Existing Construction
• Conversions

Projects of four or more units will have no more than 30% of total units insured by FHA

• This is where you will need to do your homework- If your project is currently already over the allowed FHA loan concentration (> 30%), an approval request is futile.

Condo Conversions

• Projects undergoing remodeling or rehab must be 100% complete, including common areas, before FHA will endorse. Escrow provisions will be permitted for weather related delays on common areas only.

New Construction

• New Construction condos will no longer require an Early Start Letter or a 10 year warranty plan where a building permit and certificate of occupancy are issued by a local jurisdiction that performs a minimum of three inspections (typically footing, framing and final).

Going Forward

• Going forward, approvals will expire two years from the date it was placed on the approved list
• Project will require recertification by a lender

Lender Will Recertify and Research

• Compliance with owner-occupancy requirements
• New unacceptable risk conditions
• Pending special assessments
• Pending legal action
• Hazard and liability insurance and flood insurance if applicable

I know our world has been turned upside down because of all of this. It seems like all we do is talk about and deliver bad news. A lot of this is clear as mud right now and it will take a little bit of time before we can do FHA loans on condos, but at some point we will start doing them again once we can help you get your projects approved.

Contact us for the new Project Eligibility Requirements and if you have questions about your particular condo project.

We would love to be of service to you and help expedite the approval process.

Jason Thompson & Chris DeMuth
Mortgage Professionals
Louisville Mortgage Leader
(502) 774-0117 or (502) 777-6267
NMLS#:196475 & NMLS#:148312

LouMortgageLeadr@aol.com

Louisville Metro Down Payment Assistance

Newsletter Oct 13, 2009

DOWN PAYMENT ASSISTANCE

I am sure by now you know about the Down Payment Assistance Program offered by the
Louisville Metro Department of Housing and Family Services, right?

If you haven’t or don’t know enough about it, YOU SHOULD!

The $8,000 Federal Tax Credit is set to expire in 42 days and we
need something to take its place. Here are some of the program highlights:

->The program offers Metro Wide assistance, and homebuyers may qualify for a forgivable mortgage over a five (5) year period of 10% of the purchase price of the home to a maximum of
$10,000!

->In the “Target Area” neighborhoods homebuyers may qualify for a forgivable mortgage over a ten (10) year period of 20% of the purchase price of the home to a maximum of $20,000!

->The Department has also allocated closing cost assistance in the amount of up to $2,000!

->Potential homebuyers must be a 1st time homebuyer and have not owned a home within the last 3 years.

->Applicants can purchase an existing or a newly constructed home in the Louisville Metro area.

->The program is based on a first come first serve basis.

->Applications will be accepted year round based on available funds.

->As of today, there are plenty of funds available and there is currently NO waiting list.

Think about what will happen when the $8,000 federal tax credit expires on November 30th.


We have all of the information and guidelines, as well as the application packets, ready for your Buyer to begin the process with Louisville Metro Department of Housing and Family Services!

We specialize in Down Payment Assistance Programs like this one as well as others offered with KHC (Kentucky Housing Corporation).

We can find the right program for you and your Buyer.

Email for info now!

Jason Thompson
502-774-0117
NMLS #196475

Chris DeMuth
502-777-6267
NMLS# 148312

Identity Theft- Fastest Growing Crime in America

Newsletter Sep. 29, 2009

Jason Thompson
Mortgage Professional
NMLS#: 196475

IDENTITY THEFT – FASTEST GROWING CRIME IN AMERICA

Good Afternoon

In today’s newsletter we will discuss and hopefully arm you, your friends, family and neighbors against identity theft.

Identity theft is the fastest growing crime in America. It may have already happened to you personally or someone you know. It is estimated that it will affect almost 10 million people this year and cost consumers several billion dollars.

Identity theft occurs when someone uses your personal information, like your name, social security number, or credit card number, without your permission, to commit fraud or other crimes.

Let’s get educated…..

A) WHY THE INCREASE IN CRIME?
*Relatively low-risk crime
*Potentially high payoff
*Easy to pull off
*Enforcement of law is inconsistent
*70% of theft is from co-workers/employees
*Wasn’t declared crime by Congress until 1998
*Cases usually too small for federal prosecution

B) HOW DOES IT HAPPEN?
*Steal mail
*Steal wallet or purse
*Phishing- sending fake emails (ex. Paypal and Ebay fakes)
*Shoulder surfing- ATM, grocery store checkout spying
*Lying on the phone- asking you to update account info
*Laptops and Wi-Fi internet access
*Access cell phones w/stored personal account information
*Dumpster rummaging- go through trash for information
*Thieves looking for social security numbers, date of birth, etc.

C) THEY STOLE IT, NOW WHAT?
*They open new bank and credit accounts in your name
*They have statements sent to their address
*They don’t make payments
*Authorize electronic transfers- draining your accounts
*Write bad checks
*Take out a loan in your name
*Rent a house in your name
*Driver’s license- your information, their picture
*Give police your information in an arrest
*They don’t show for court- warrant for YOUR arrest!

D) YOU FIND OUT WHEN?
*Start receiving statements in the mail
*Unusual spending pattern- amounts and locations
*Calls from creditors- past due bills
*Apply for car loan/mortgage and issues arise
*Your checks bounce
*Debit and credit cards not accepted- over limit

E) ACT IMMEDIATELY!
*Contact local law enforcement
*File written report and retain a copy
*Contact all three credit bureaus:
-Equifax: (800) 525-6285
-Experian: (888) 397-3742
-Trans Union: (800) 680-7289
*Contact all known creditors
*Contact all banks with accounts
*Immediately stop payment on ALL checks
*Close all accounts tampered with
*File a complaint with the FTC: (877) ID-THEFT
*Keep good records and log all communications

F) HOW CAN I PREVENT IT?
*Adopt a “need to know” approach
*Pay attention to who’s watching or listening
*Secure information on personal computer
*Use obscure passwords for all accounts
*Clear “cookies” on computer
*Don’t raise “red flag” signaling outgoing mail
*Have mail held when you’re away
*Shred mail before discarding
*Don’t carry social security cards in wallet
*Don’t carry unneeded credit cards
*Password lock your cell phone
*Review financial statements regularly
*Get periodic copies of credit report

As you can see, identity theft is serious and can greatly affect a person’s life. While some victims can resolve their problems quickly, others spend hundreds or thousands of dollars and many days repairing damage to their good name and credit record.
Some consumers victimized by identity theft may lose out on job opportunities, or be denied loans for education, housing or cars because of negative information on their credit reports. In rare cases, they may even be arrested for crimes they did not commit.
Armed with the knowledge of how to protect yourself and take action, you can make identity thieves' jobs much more difficult. You can also help fight identity theft by educating your friends, family, and members of your community so feel free to pass this newsletter on to them.

Have a great week and start taking the necessary steps today to guard against identity theft. Don’t let someone else steal your life!


Additional Resources and Links:
Equifax
Experian
Trans Union
FTC- File Complaint
Free Credit Report
More on ID Theft
Apply for a Home Loan or Refinance


This newsletter is for informational and educational purposes only. Information, views or opinions expressed in the newsletter originate
from many different sources and contributors. To subscribe or unsubscribe to newsletter,mailto:LouMortgageLeadr@aol.com
All rights reserved. Copyright 2009 Jason Thompson.