March 5th, 2012
• We would like to refinance, but we think we are upside down. We owe about 700,000 on our mortgage and most of what is selling in our neighborhood is in the mid 600's. We have cash to right our equity position, but we are hoping to put as little money in as possible. What are our options? When you start talking about jumbo money, your options become limited. We can offer you two options. First, if you have VA eligibility, this will get you the highest loan-to-value (what you can borrow compared to value). We also have the Professionals Program which will allow you to borrow 89.9% of the appraised value with no monthly mortgage insurance.
• We get so much mail about low mortgages rates, they seem to good to be true. Whether we buy or refinance, how do we know whether the information we receive is worth checking out? Lots of small type with advertisements, disclosure is required by federal law. One way in particular to minimally be able to determine is by the APR (annualized percentage rate). If the APR is substantially higher than the rate, there is fee to be paid in buying the rate (discount or origination). The APR formula, governed by the federal Truth-in-Lending Act takes into consideration the cost of credit. Items you pay at closing that you would not incur if you paid cash for the property. A higher APR indicates higher fees. You also need to consider who you are choosing with which to do business. When you call their number, do you speak to the same person every time? Is the person responsive and available to you after hours and on weekends? You can find the combination of service and competitive rates right here.
• We are looking at purchasing a home and have VA eligibility. The purchase price will be around 615,000, how much will we have to put down? If you have full VA eligibility, your base loan amount would be 565,500. Next you would add in your VA funding fee to compute your total loan amount. If you are 10% or more considered disabled by VA, your funding fee is waived.
- Jennifer Keenan, Senior Mortgage Consultant, NMLS# 101837, Tidewater Home Funding 757-366-8690