Show me the MORTGAGE money!

Banks Push Home Buyers to Put Down More Cash ...WSJ

By S. MITRA KALITA

The down payments demanded by banks to buy homes have ballooned since the housing bust, forcing many people to rethink what they can afford and potentially shrinking the pool of eligible buyers.

 

Read ON:

First time buyers........ The Glass is half full!

Fact: Undisputable.... lower real estate prices are here now. Opportunity is knocking!

Get out there and look.

Hey First Time Buyers...Many homes are selling for less than assessed value....

Many NJ townships, such as Montclair, and Bloomfield were reassessed within the past few years and recent sales are quite often at or below the assessed value.

This also means current homeowners may be inline for lower taxes through a tax appeal.

Want to know which way rates are going.....

Watch the 10 year US Treasury Bond....

US Treasury Bond

Lender paid MI....we have it!....and it.........

makes great sense for a buyer with less than 20% down.

Lender Paid Mortgage Insurance is a program that provides an alternative to combo/piggyback loans —and makes sense for both lenders and borrowers:

• One loan, one monthly payment, easier to qualify 
• Lender pays the MI premium by incorporating it into the rate
• No MI premium for the borrower to pay
• Easy to understand, safer alternative to combo loans
• Greater potential tax benefit *
• OR Seller could choose to pay the MI premium in the form of seller paid closing costs
• Monthly and Single Premiums are also available
• Call for more info....

* Borrowers should consult with a tax advisor for specific tax advice.

 

Home value estimator uses 2 indicators....

Check on home value here: HOME VALUE ESTIMATOR

Putting less than 20% down? Think Single Premium MI....

Single Premium MI

With Single Premium MI, homebuyers enjoy monthly payments that are lower than they would be with traditional mortgage insurance, FHA loans or combination loans. A single premium is either paid in full at closing or financed into the loan, and provides coverage until the loan amortizes to 78% of the original value. With Refundable Single Premium MI, any unused portion of the premium can be refunded if the MI cancels within five years.

Mortgage Insurance Simple Answers

What are the Benefits of MI?

Mortgage insurance can help a homebuyer qualify for a home with a lower down payment, buy the home sooner, stop paying rent faster, and claim more. Of course, buying a home sooner accelerates building equity and longer-term benefits of homeownership. Even if the homebuyer can make a 20% or more down payment, using mortgage insurance to put less money down potentially makes money available for investments, home improvements or education.

Is it Smarter to Choose a Loan with MI over Other Alternatives?

In today’s market, a safer loan is a smarter loan, and borrowers are finding the safety and security of an MI loan much more appealing than other loan types. Mortgage insurance not only helps people get into a home sooner, it offers payment predictability throughout the life of the loan and several programs to help families maintain homeownership should a financial hardship occur. Plus, mortgage insurance keeps the window of opportunity open for a second mortgage, if desired, in the future.

Mortgage Insurance Simple Answers

Mortgage Insurance Simple Answers

What is Mortgage Insurance?

Mortgage Insurance helps borrowers realize the dream of homeownership sooner by enabling them to purchase a home with less than a 20% down payment. Mortgage insurance provides financial protection for lenders and investors if a homebuyer defaults on a mortgage loan. With this protection, lenders can offer more low-down-payment mortgages to homebuyers.

PMI Companies get back in the game.....

RMIC, a private mortgage insurance company, has just announced new classifications for much of NJ making 95% financing on purchases possible again for most of the state.

This would also apply to rate and term refinances.