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FHA Streamline: How to Qualify

Posted On: June 4th, 2011 by James Posted In: FHA Mortgage • Financial Health • Government Actions • Mortgages • Refinancing

FHA streamline: more difficult to qualify for than it seemsI should have subtitled this post: “Why you might NOT Qualify”

The FHA mortgage continues to be one of the most popular mortgages in Portland.  The reason for this is undoubtedly its FLEXIBILITY.  The FHA loan is the easiest to qualify for, requires the least amount of cash, has the lowest credit requirements, allows for gift funds on the down payment, allows for non-occupying co-borrowers to fully count towards the DTI, the list goes on.  But once you’ve GOT the FHA loan in place, the flexibility continues!

For one, the FHA loan is always “Assumable”.  This means that when you want to sell your home, you can also offer your mortgage to be assumed by the buyer (provided they qualify with the lender, etc).  Imagine how much value that might have in 5 or 10 years when rates are at 7%… or maybe the 30 year fixed mortgage won’t even EXIST in a decade?!   Continue Reading – FHA Streamline: How to Qualify

Low Rates and the Return of Private Mortgage Insurance (PMI)

Posted On: May 17th, 2011 by James Posted In: Financial Health • Mortgage Insurance • Mortgage Programs • Mortgage Rates • Mortgages • Portland Real Estate • Refinancing

Its happening again.  Rates are tumbling and tumbling more.  I read recently that avoiding closing costs in a declining rate environment is a wise approach and I completely agree.  By avoiding closing costs two things happen:

1. The net benefit of the improved cash flow is immediately realized, and

2. You are in a position to refinance AGAIN as rates continue to slide.  Because you haven’t paid any of your equity there is not much downside.

I’ve been making loans since 2003, and rates have pretty much always been really attractive with a few exceptions (sorry purchasers of the summer of 2006!  I hope you’ve refinanced out of your 6.625% fixed). Continue Reading – Low Rates and the Return of Private Mortgage Insurance (PMI)

Free Resources for Divorcing Couples in Portland, Oregon

Posted On: April 24th, 2011 by James Posted In: Financial Health • Refinancing

If someone you know is contemplating a divorce, do them a favor and send them a link to this blog post.  Helping families in a divorce is one of my core services as a mortgage professional.  I can help families get their finances and debts clarified and organized, as well as help them make clear decisions about what their options are with any real estate holdings.  Not only have I been specially trained in analyzing real estate, liabilities and credit and how they apply to a divorcing family, but I also offer a FREE online resource for divorcing couples in Portland called “Divorce Shield”.

The divorce shield service is a completely free, anonymous website where you can download a customized plan for yourself that will highlight the specific decisions you will have to make.

Visit my site to DOWNLOAD YOUR DIVORCE SHIELD PLAN today.

Continue Reading – Free Resources for Divorcing Couples in Portland, Oregon

What is the best way to pay your mortgage?

Posted On: March 10th, 2011 by James Posted In: Financial Health • Mortgage Programs • Mortgages

So now you’ve got a mortgage.  What is the best way to pay it?  Should you make extra payments? What about bi-weekly payment programs?  Should you sign up for auto pay directly with your mortgage lender? There are lots of choices to make, and you’ve got to make the one that you can live with.  One thing that I recommend to all of my clients is to be sure that they stay consistent with their payment plan.  New homeowners can sometimes get into the trap of waiting until the 15th of the month to pay because “that’s when they want it.”  Its just a dangerous habit to get into, in my opinion. My advice is to make the full mortgage payment no later than the 5th of the month.  I also think that signing up for direct auto pay with the mortgage lender may not be the best approach, either.  The way I suggest my clients set their payments up is with a scheduled bill pay “push” from their checking accounts.  This is different than the auto pay ACH “pull” from the mortgage lender, and I think it gives you more control over your cash flow. Continue Reading – What is the best way to pay your mortgage?

Potential Jumbo Refinancing Candidates

Posted On: January 28th, 2011 by James Posted In: Financial Health • Mortgage Programs • Mortgage Rates • Mortgages • Portland Real Estate • Refinancing

So, if you pay attention to this blog, you know that interest rates have popped up from their mind-boggling lows in early November.  Mortgage Refinances still make a ton of sense for many, but some are waiting for a return to the glory of those heady days… and I believe they will continue to wait for a long long time.  However, there are two types of borrowers that I believe will still benefit GREATLY  from a refinance:

 

  1. Those who tried to refinance and couldn’t qualify due to an appraisal issue.
  2. Those who currently have a Jumbo mortgage and think that Jumbo rates haven’t improved enough to warrant starting the process. Continue Reading – Potential Jumbo Refinancing Candidates