Streamline Refinancing Fannie Mae and Freddie Mac

For homeowners looking to refinance their mortgage, this spring the government is introducing two exciting new programs created with the recent economic stimulus program that make refinancing easier. Through Fannie Mae's DU Refi Plus program and Freddy Mac's Relief Refinance Mortgage program, banks will have the ability to be more flexible with homeowners seeking lower monthly payments. Specifically, this program will offer the following incredible parameters and leniencies:

1) In most cases a new appraisal is not required.

2) Credit scores as low as 620 will be allowed

3) Stated income/stated asset (meaning no income verification) might be allowable, although the bank still reserves the right to check with the IRS for filed returns).

4) Debt to income ratios can go up to 50% in most cases (whereas the current limit is far, far less).

5) Investment properties are allowed.

6) Second homes, co-ops, condos, and 1-4 family houses are all allowed.

Call Norman Calvo (718-210-1140) or his loan coordinator, Isaac Shalom (718-210-1147) right away to see if you will be eligible for the program.

Fed Plans Mean High Volume: Here’s How You Can Help Make it a Smooth Process

With the Feds' announcement the other day of their willingness to purchase over $750,000 billion dollars worth of mortgage securities, it is evident that interest rates will be heading lower over the next few weeks and months. All of our customers will benefit tremendously from the drop in rates.

A few things to keep in mind, though, during the upcoming several weeks and/or months:

1) Banks (and nearly everyone in the mortgage industry) will be overwhelmed with the volume of applications. This means that appraisers, credit agencies, title companies, pay off services, etc. will be completely inundated with work. Delays will be inevitable.

2) Rates never follow a straight line path. As a matter of fact, even intraday, rates can change any number of times. Over the upcoming weeks, expect rates to be a bit turbulent, but the general trend is likely to be down.

3) It is best, in this environment to NOT lock in a rate until just prior to closing. Banks are giving quite excellent rates for those who take the chance to lock in for a very short period of time. This means that loans MUST be cleared for closing in order to lock and get the best rates. Since it will take about 50 to 60 days to get to that stage, we are URGING all customers to apply right away.

4) Expect the process to be BRUTAL (!!!!) Sorry to say it this way, but it is no surprise to anyone that lenders are being ultra conservative. Although the vast majority of customers will ultimately be approved, the process will be slow, tedious and time intensive. While we will try to bear the brunt of this, expect challenges in the process and frustrations. Unfortunately, it is just the way it works in the mortgage banking world these days.

5) Not everyone qualifies for the very best of interest rates. Factors such as credit scores, appraised value verses loan amount, property type, etc. will all affect scores. Be very aware of this. We will always endeavor to place your loan with the lender that gives us the best rate.

The Elusive 4% Mortgage Rate

As many of you probably know, most of the recent news has focused on how hard it is to get a mortgage. In contrast, the following article from Bloomberg is one of the best that I've seen recently - mainly because it highlights how it is virtually impossible to get a 4% mortgage rate. While it is very true that some of our customers are closing at rates as low as 4.625%, for the most part, those rates simply don't exist.

Our major focus as mortgage brokers is consulting with our customers to find the very best bank, offering the very best rate and program that suits their needs. The factors that make up what rate a customer ultimately receives are many, and our consultation and ability to maneuver through the maze and details of the current situation is what makes us amongst the best brokers in NYC. We continue to close virtually all of the loans that apply with us at interest rates that are very favorable.

Enjoy the article: http://www.bloomberg.com/apps/news?pid=20601212&sid=aCJ._cUIv6dc&refer=h