What are mortgage “points” and how to determine if you should pay themf

vince@vincekingston.com — Mon, 05 Jul 2010 14:32:05 +0100

A loan point is equal to 1% of the loan amount and is a typical reference point used when quoting an interest rate. The points paid (or lack thereof) can be thought of as the cost of obtaining a particular rate. There are other costs associated with getting a mortgage (such as title, escrow, appraisal, pre-paid property taxes, recording fees, etc.) but these costs are independent of the point/rate combination. There is alwayRead More...

Benefits of FHA Financing for 2-4 unit multiplexes

vince@vincekingston.com — Tue, 15 Jun 2010 17:40:44 +0100

Buying a 2-4 unit multiplex can be a great way to establish an investment portfolio. Particularly so for the First Time Homebuyer who is willing to occupy one of the units for at least a year in order to categorize it as a primary residence. You get a cash flow asset that historically appreciates in value and provides tax advantages while your renters simultaneously pay-down the mortgage liability and grow your equity. Read More...

100% Financing. How it works and who qualifies.

vince@vincekingston.com — Wed, 09 Jun 2010 14:50:46 +0100

For the most part 100% or Zero down payment financing is a relic of the past however, there are options for 100% financing in the Portland area (in addition to USDA rural loans and VA loans). The two different 100% financing programs are called the MAP 80 and MAP 100 (map stands for mortgage assistance program). These loans are actually two loans: one loan at 80% loan to value, and another 2nd mortgage at 20% loan to value. The interest rate oRead More...

Extension of Homebuyers credit for Military personal stationed outside of the country and VA ...

vince@vincekingston.com — Wed, 02 Jun 2010 14:42:56 +0100

Congress has acknowledged the unique position of Military personal by extending the $8000 homebuyer tax credit until April 1, 2011 for those stationed abroad. The extension is applicable to Members of the Military, the Foreign Service
and the Intelligence Community provided they are First Time Homebuyers or have not owned a home in the last three years (or have owned their primary residence for at least 5 years and are purchasing a new primary residence, Read More...

95% Conforming Financing with only a 680 Fico score! and other conspicuous signs of the ...

vince@vincekingston.com — Wed, 19 May 2010 16:53:40 +0100

In the not too distant dark days of the mortgage crisis, Mortgage Insurance companies all but shuttered their doors and withdrew all of their products. This meant that even though technically Fannie & Freddie were still providing low down payment options, without the requisite mortgage insurance from the MI companies, these programs were useless and only existed on paper.

In a sign of positiveRead More...

Fannie Mae HomePath AKA how to get a Conforming loan with only 3% down and no mortgage insurance.

vince@vincekingston.com — Wed, 12 May 2010 13:53:37 +0100

Mortgage Insurance. For most homebuyers it’s unavoidable, particularly on the west coast where the 20% down payment required to avoid mortgage insurance is out of reach for all but a lucky few. I’m big on positivity so instead of looking at mortgage insurance as a necessary evil, I view it as a small premium that allows borrowers not to give up their life savings to purchase a home. See, feels better doesn’t it?

Qualifying for a Mortgage: Self-employed vs. W2 Employee

vince@vincekingston.com — Wed, 14 Apr 2010 14:57:26 +0100

Here is the truth from an industry insider: lenders do not treat self-employed income as equitably as W2 income. Lenders apply a heavy hand of skepticism and increased requirements if your income happens to be from self-employed or 1099 endeavors. To be fair, its not really the lenders fault. We have Fannie Mae, Freddie Mac, and FHA guidelines to blame.

Why 80% (or more) of online and advertised mortgage rate quotes are misleading.

vince@vincekingston.com — Wed, 31 Mar 2010 14:55:07 +0100

Ever noticed how gorgeous and perfect those hamburgers look on a McDonalds commercial? Have you ever actually gotten such an outrageously handsome looking burger from McDonalds? Probably not. The same is true with internet and advertised mortgage interest rates. See, when you’re a marketer trying to cast a wide net and lure total strangers into doing business with you, you are naturally going to put your best foot forward. And thatRead More...

FHA Loans are ASSUMABLE; a potentially very good investment

vince@vincekingston.com — Wed, 24 Mar 2010 14:04:32 +0100

FHA loans are fantastic for many borrowers. Why you ask? Primarily because FHA requires the lowest down payment of any loan option (currently just 3.5%) and has no punishing credit score interest rate hits. For many people without perfect credit and a large down payment, its simply the only option. However FHA does have one big disadvantage to be aware of: all FHA loans carry an up front insurance premium charge Read More...

Important Dates for Homebuyers-FHA premium increase, Expiration of the homebuyer credit, and ...

vince@vincekingston.com — Mon, 08 Mar 2010 16:36:58 +0100

Everything in Real Estate is based on dead lines, and just like Real Estate, all homebuyer benefits have their own finite time line as well. Today’s blog is a quick reminder of three important timelines you’ll want to be aware of if you are currently in the housing market.

FHA Up Front Mortgage Insurance to Increase April 5-FHA is now responsible for over 30% of the loans done iRead More...

How to reduce or eliminate mortgage insurance even with only a 5% down payment

vince@vincekingston.com — Tue, 19 Jan 2010 17:55:25 +0100

Typically regardless of whether a borrower is looking at FHA financing or Conforming financing, they will be required to pay mortgage insurance (MI) if the down payment is less than 20% (with FHA financing, this will be the case with even more than 20% down). The amount of monthly mortgage insurance payments varies between FHA and Conforming and can also be determined by loan to value. For example, on FHA the monthly MI is .55% of the loan amount diRead More...

New Good Faith Estimate form required as of January 1st 2010

vince@vincekingston.com — Mon, 04 Jan 2010 15:03:50 +0100

Anyone purchasing or refinancing a home as of January 1st 2010 will be subjected to a much different good faith estimate experience. In a classic bureaucratic attempt to regulate an industry they have no personal experience with, the new good faith is a breathtaking mess, being more opaque, inaccurate, and inscrutable to the average borrower than the prior standard good faith estimate. For example, the new form is a three page maze of boxes, sub-categorieRead More...

Tax advantages of Homeownership; how to realize your tax savings immediately to offset your ...

vince@vincekingston.com — Wed, 11 Nov 2009 18:32:00 +0100

Many of you may already know that homeownership provides the largest single tax deduction most will ever qualify for. 100% of your mortgage interest payments are tax deductible in addition to your property tax and mortgage insurance payments (note the deduction for mortgage insurance is phased out for taxpayers with adjusted gross incomes of over $100,000). For example on a $300K home purchase with 3.5% down payment usRead More...

Homebuyer tax credit extended/expanded and mortgage interest rate strategy

vince@vincekingston.com — Fri, 06 Nov 2009 17:11:36 +0100

President Barack Obama is expected to sign a measure today to continue to provide tax credits to homebuyers as well as expand the credit to those who have owned a home for at least five years.
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How to use a co-signer to help qualify for Home Financing

vince@vincekingston.com — Wed, 04 Nov 2009 16:27:26 +0100

Co-signers can be an effective way to qualify for a home mortgage when a borrower otherwise would not qualify on their own. This can be a great option for First Time Homebuyers. There could several situations where a co-signer could provide that extra qualifying momentum to help you purchase your home. For example, FHA and Conforming both require that the self-employed document their income with two full years of tax rRead More...

How to increase your credit score in 24 hours

vince@vincekingston.com — Tue, 13 Oct 2009 14:44:15 +0100

Below are some of the best guerilla tactics for improving your credit score quickly. Remember Conforming financing requires a 740 fico or better to secure the best interest rate, FHA is less demanding, only requiring a 620 credit score to receive the same low FHA rate. Note that while all of these strategies can be implemented immediately, it can take 30-60 days to reflect on your credit report, depending on how often your creditors report to the crRead More...

Insight into the Pre-Approval process conclusion part 4 of 4. ...

vince@vincekingston.com — Mon, 28 Sep 2009 15:44:48 +0100

Most Home Loan options require a down payment these days. The two notable exceptions to this rule are Veterans Administration loans (VA) and USDA Rural loans. Both of these mortgage types allow 100% financing. However, even with 100% financing, all lenders will fully document your existing assets (particularly checking and savings accounts) and any funds required for closing costs. And this is where it can get coRead More...

Insight into the Pre-Approval process continued. ...

vince@vincekingston.com — Tue, 15 Sep 2009 15:29:31 +0100

One of the primary determinants of mortgage qualifying is the borrower’s ability to repay. This is actually a paradigm shift from just a few years ago. In times past, more weight was put on the collateral (the property itself and how much equity was available) as well as borrower assets. This paradigm is what gave rise to the now infamous N.I.N.J.A loans (no income verified, no job verified, only assets) and StatRead More...

Insight into the Pre-Approval process continued. Pre-approval pinnacle number two: Credit Scores

vince@vincekingston.com — Tue, 08 Sep 2009 20:14:41 +0100

In the old days (three years ago) there was a loan available for just about any credit score (and even those with no credit scores). 450 fico? No problem. Four consecutive bankruptcies in the last three years? No problem. Alas times they are a changing! Now a prospective borrower must actually have a decent credit score to be considered for a mortgage. First some credit score basics: Credit scores can also be callRead More...

How Lenders Determine If You Qualify For A Mortgage And How Much Mortgage You Qualify For- ...

vince@vincekingston.com — Tue, 01 Sep 2009 17:13:00 +0100

Much like physics, Chinese, or Facebook for those over 50, the mortgage pre-approval process can seem inscrutable and intimidating to the uninitiated. However with a clear understanding of what lenders are looking for, you will be able to confidently determine where you stand and take the mystery out of your home financing options.

This blog and the next three blogs will Read More...

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