2009 2010 update for first time home buyer tax break!

http://www.mortgagesnw.com

How a VA or FHA Streamline Refinance can Lower your Interest Rate in WA State!

IRRRL Facts for Veterans

IRRRL stands for Interest Rate Reduction Refinancing Loan. You may see it referred to as a "Streamline" or a "VA to VA." Except when refinancing an existing VA guaranteed adjustable rate mortgage (ARM) to a fixed rate, it must result in a lower interest rate. When refinancing from an existing VA ARM loan to a fixed rate, the interest rate may increase.

No appraisal or credit underwriting package is required by VA. You should be aware, however, that lenders may require an appraisal and credit report anyway.

A certificate of eligibility is not required. Your lender may use our e-mail confirmation procedure for interest rate reduction refinance in lieu of a certificate of eligibility.

An IRRRL may be done with "no money out of pocket" by including all costs in the new loan or by making the new loan at an interest rate high enough to enable the lender to pay the costs. (Remember: The interest rate on the new loan must be lower than the rate on the old loan unless you refinance an ARM to a fixed rate mortgage).

No lender is required to make you an IRRRL, however, any lender of your choice may process your application for an IRRRL. While it might be the best place to start shopping for an IRRRL, you do not have to go to the lender you make your payments to now or to the lender from whom you originally obtained your VA Loan.

Veterans are strongly urged to contact several lenders. There may be big differences in the terms offered by the various lenders you contact.

Some lenders may contact you suggesting that they are the only lender with authority to make IRRRLs. Remember - Any lender may make you an IRRRL.

Some lenders may say that VA requires certain closing costs to be charged and included in the loan. Remember - The only cost required by VA is a funding fee of one-half of one percent of the loan amount which may be paid in cash or included in the loan.

You must NOT receive any cash from the loan proceeds.

An IRRRL can be done only if you have already used your eligibility for a VA loan on the property you intend to refinance. It must be a VA to VA refinance, and it will reuse the entitlement you originally used. You may have used your entitlement by obtaining a VA loan when you bought your house, or by substituting your eligibility for that of the seller, if you assumed the loan. If you have your Certificate of Eligibility, take it to the lender to show the prior use of your entitlement.

The occupancy requirement for an IRRRL is different from other VA loans. When you originally got your VA loan, you certified that you occupied or intended to occupy the home. For an IRRRL you need only certify that you previously occupied it.

The loan may not exceed the sum of the outstanding balance on the existing VA loan, plus allowable fees and closing costs, including funding fee and up to 2 discount points. You may also add up to $6,000 of energy efficiency improvements into the loan.

NOTE: Adding all of these items into your loan may result in a situation in which you owe more than the fair market value of the house, and will reduce the benefit of refinancing since your payment will not be lowered as much as it could be. Also, you could have difficulty selling the house for enough to pay off your loan balance.

Some lenders offer IRRRLs as an opportunity to reduce the term of your loan from 30 years to 15 years. While this can save you a lot of money in interest over the life of the loan, if the reduction in the interest rate is not at least one percent (two percent is better) and lots of new loan costs are rolled into the new loan, you may see a very large increase in your monthly payment.

Beware: It could be a bigger increase than you can afford

No loan other than the existing VA loan may be paid from the proceeds of an IRRRL. If you have a second mortgage, the holder must agree to subordinate that lien so that your new VA loan will be a first mortgage.

Benefits

Skip 2 mortgage payments

Your existing impound account will be refunded to you

Appraisal may be required.

No out of pocket or upfront money

No income verification

No job verification

Credit report may br required

No debt ratios

No termite report

Property does not have to be owner occupied

All closing costs will be included in your new loan

We will come to you for the closing

No prepayment penalty

Requirements

Your mortgage must be current

The mortgage to be refinanced must be a VA loan

You can have only one (30) day late on your mortgage in the past 12 months

When going from a fixed 30 year to a new fixed 30 year loan your interest rate and payment must go down.

You can go from a 30 year fixed to a 5 year ARM and vice versa

Maximum proceeds to the borrower: $500

If you are receiving VA Disability Benefits you will not pay the VA Funding Fee

You can choose from a 30 or 15 year fixed rate or 5 year ARM

Benefits

You can combine your first and 2nd mortgage

You can pay off credit cards

Up to 90% Loan to value ratio with NO monthly mortgage insurance

If you are receiving VA disability benefits you will not be required to pay the VA funding fee

You can go from a conventional loan to a VA loan

No prepayment penalty

Requirements

Loan amounts up to $417,000 or up to 90% of the appraised value

Credit report required

Income must be verified

You can choose from a 30 or 15 year fixed rate or 5 year ARM

Please visit: http://www.mortgagesNW.com for a free, No Hassel Quote.
MLO#120146

Mortgage Rates in Washington

What are rates doing today throughout Washington State.?

For current interest rates posted daily and or to find rate calculators, please visit my website.

If you would like help with your unique situation please call me at 425-773-3100, and I will be glad to help you.

It dosen't matter if you are thinking about purchasing a home, have questions aboutthe $8,000 tax credit, or may be considering refinancing, I will be glad to help.

Interest rate predictions and economic indicators:

http://www.mortgagenewsdaily.com/channels/consumer_rates/rss.aspx

Getting a FHA mortgage in Washington Stae.

FHA Loans in Washington State

What is the purpose of the HUD FHA 203b program?

To provide mortgage insurance for a person to purchase or refinance a principal residence. The mortgage loan is funded by a lending institution, such as a mortgage company, bank, savings and loan association and the mortgage is insured by HUD.

What are the eligibility requirements?

The borrower must meet standard FHA credit qualifications.

The borrower is eligible for approximately 96.5% financing. The borrower is able to finance the upfront mortgage insurance premium into the mortgage. The borrower will also be responsible for paying an annual premium.

Eligible properties are one-to-four unit structures.

Find out how much you can pre-qualify for and what your monthly payment will be by clicking here.

In many cases, when you purchase a home, you can ask for the seller to pay some or all of the closing costs. This way all you need is the app., 3.5% down payment.

To learn more about the mortgage limits in your area, go here.

If you live in some rural areas you may qualify for a USDA mortgage, which will allow you to purchase a home with zero down payment. To find out what areas are USDA approved click here.

Renting vs Buying in WA State

Buying versus Renting 

There are many advantages to buying a home versus renting one. View these advantages in the Buy vs. Rent Comparison Chart below, or view a financial comparison of buying versus renting in the Buy vs. Rent Calculator. 

Your income, savings, and monthly expenses play an important role in determining how large a mortgage you can afford.        

Savings: Buying 

In many cases, the amount of money a renter spends on rent can be about the same as or less than the amount a homeowner spends on a mortgage. With the tax benefit for homeowners, the savings can be significant.

 

Buy vs. Rent Comparison

The chart below shows a cost comparison for a renter and a homeowner over a seven year period.

The renter starts out paying $800 per month with annual increases of 5%

The homeowner purchases a home for $110,000 and pays a monthly mortgage of $1,000

After 6 years, the homeowner's payment is lower than the renter's monthly payment

With the tax savings of homeownership, the homeowner's payment is less than the rental payment after 3 years

Years

Rent Payment

Mortgage Payment

Monthly Difference

After Tax Savings

Yearly Difference

After Tax Savings

1          800      1000    -200     -50       -2400   -600

2          840      1000    -160     -10       -1920   -120

3          882      1000    -118     +32      -1416   +384

4          926      1000    -74       +76      -888     +912

5          972      1000    -28       +122    -336     +1464

6          1021    1000    +21      +171    +252    +2052

7          1072    1000    +72      +222    +864    +2664

8-30                            Savings increase every year

                       

                       

Monthly Expenses: Buying

Your rental company takes part of your rent payment to cover certain housing expenses. When you decide to purchase a home, you accept responsibility for paying for these expenses (listed below). They are additional costs to your monthly mortgage payment and should be included in your budget estimates:

Property Taxes and Special Assessments

Home/Hazard Insurance

Utilities

Maintenance

The easiest way for you to find out how much home you can afford is to call me at

 (425) 773-3100 or simply fill out a 3 minute "quick app" online at : http://www.mortgagesnw.com/form3.html

Cheers!

Rich

Mortgage Help for First Time Homebuyers

If you live in Washington State and are considering buying your first home, you could not be in a better time or place.

Besides the fact that the "numbers" may be right, I cannot emphasize the "pride of ownership" and sheer joy that comes with owning your very own home!

Right now, throughout the entire State of Washington, home prices are way affordable, add to this the (up to)  $8,000 (holy cow) first time home buyer tax credit and record low interest rates, and you hit the lotto.

It's not uncommon to have anxiety when one is about to make their probably largest investment of a lifetime, but don't let that stop you.

The first thing you will want to do is just get the facts. You do not need to make a decision until you see ow much down payment you will need, which can be zero in some cases. 

You will also want to see how much monthly payment you can afford. With this information, you can go to a real estate salesperson and see just what kind of "diggs", you can get.

So please, just get pre-qualified first and the rest is easy!