Yearly Archives: 2019

If you have an FHA loan, you may be getting tired of paying mortgage insurance every month in addition to your house payment and property taxes. There are so many advantages to FHA loans, but they do require you to pay mortgage insurance, sometimes called MIP (Mortgage Insurance Payments). On a conventional mortgage, mortgage insurance can also be called PMI (Private Mortgage Insurance). Unlike your life insurance policy, MIP doesn’t protect your family if you should become ill or die. It protects your lender and the amount of money they have loaned for your home.

Can you remove mortgage insurance from an FHA loan?

If you paid less than 10% down payment on an FHA loan, you will pay mortgage insurance for the life of your loan. Part of the insurance is a one-time mortgage insurance premium, which is paid when you took out the loan. Usually, the lender will finance this one-time insurance payment as part of your loan. You’ll also continue to pay an annual mortgage premium based on the length of your mortgage.

FHA rules for mortgage insurance payments are complicated. If you got your FHA loan after June 3, 2013, and you made a down payment of more than 10% on a 15, 20, 25 or 30-year FHA loan, you are eligible to apply for cancellation of your mortgage insurance payment (MIP) after 11 years. For older FHA loans taken out before June 3, 2013, you will pay MIP up to 78% LTV based on your original purchase price. Older FHA loans with borrowers who paid more than 22% down never had a MIP requirement. You may be able to refinance your FHA loan with a lower MIP depending on your equity in the home. If you’ve missed a mortgage payment during your loan, you won’t be able to drop the MIP until or unless you refinance into a conventional loan. HUD and FHA can change these rules at any time at their sole discretion.  So it’s best to reach out to an independent mortgage broker and home loan professional at California Platinum Loans for the most current guidelines as they relate to your specific FHA loan.

Can you refinance your FHA mortgage to eliminate MIP?

Another option for getting rid of mortgage insurance is refinancing the mortgage completely. You have many options for different home loan products which could not only eliminate your mortgage insurance requirement but could also provide you with lower monthly payments.

If you’re tired of paying mortgage insurance every month and you want to put the money to better use, contact a home loan professional today to learn your options for eliminating mortgage insurance on an FHA mortgage by refinancing your current FHA loan into a new conventional mortgage loan.

Source

https://themortgagereports.com/55984/get-rid-of-pmi-or-mip-mortgage-insurance-with-a-refinance

Did you know there are California home loans that will help you not just to buy a home, but also pay for renovations? If you’re considering buying a house that needs some work, sometimes called a “fixer-upper,” or a “handy-mans special”, or a property that needs “TLC” aka “Tender Loving Care”, you do have options to pay for the work that it will need.

What Type of Home Renovation Loans Are There?

The best-known type of home renovation loan is the FHA 203(k) loan. This loan comes in two versions: limited and standard. The limited FHA 203(k) loan will pay for up to $35,000 in renovations, as long as they’re not considered to be luxuries by the Federal Housing Administration (FHA). A new bathroom isn’t a luxury, but a new swimming pool would be, according to FHA guidelines.

The standard FHA 203(k) loan will pay for renovations over $35,000. In order to qualify for this loan, you will need to work with a HUD-certified consultant who will get bids and oversee inspections of the work. Both of the FHA 203(k) loans will pay for renovations on your primary residence. They aren’t available for second homes or investment properties.

Other home renovation loans include FannieMae’s HomeStyle loan and Freddie Mac’s CHOICE Renovation loan. These loans require higher credit scores than an FHA 203(k) loan. You could potentially qualify for an FHA 203(k) loan with a credit score as low as 500 to 520, but you will need to make a down payment of at least 10%.

Don’t Let a “Fixer-Upper” Stop You From Buying the Home You Want​

If you find a home that you can afford in the neighborhood you want, but it needs upgrading or repairs, don’t pass it by until you’ve considered a home renovation loan like an FHA 203(k) loan. There are many California home mortgages that can pay for the purchase and renovations that can help you to move into the neighborhood you want to live in and have a modernized liveable and enjoyable home with the upgrades/renovations and repairs, you want and need. These loans allow you to finance 100% of the renovation rehab costs.  All those costs are rolled into the loan.  You just pay your normal down payment on the purchase, the rest of the costs including renovation, permits, and holding costs during the renovation period are often times covered by the loan. So you start making payments when your home is move-in ready. Contact Us here at California Platinum Loans to see how we can make your dreams of buying a fixer-upper with a low down payment a reality today!

Source

https://themortgagereports.com/38797/home-improvement-loans-which-is-best-for-you

Before you compare mortgage lenders for your high-value property, whether it be purchase or refinance, keep in mind that much of the financial advice you’ll see online is geared toward typical 30-year fixed rate home loans. That advice is geared toward loan sizes a fraction of the value compared to super jumbo mortgages of up to $15 million or more. Super jumbo home loans, along with regular jumbo loans that exceed county FHFA loan limits, have underwriting criteria that differ from conventional mortgages. Practically none of the advice you’ll see for getting a conventional loan that conforms to Fannie Mae or Freddie Mac guidelines will be useful for you to get a mortgage up to $15 million.

Flexible Underwriting Standards

You’ll find flexible underwriting standards with super jumbo home loans. You don’t even need to be a citizen or a resident. Likewise, you can also qualify with alternative income documentation or assets. Furthermore, you can use business income statements and profit-and-loss statements.

Differing Down Payment Requirements

You can find super jumbo home mortgages that require differing levels of down payment. You may be able to find jumbo mortgage loans with a down payment of 5% or 10%. Other programs may require higher down payments, but loan terms in the super jumbo environment can also be flexible. You may be able to structure a loan up to $15 million that perfectly fits your financial goals, whether you’ll be selling another property or financing your purchase through other funds and assets, including but not limited to businesses. A qualified Independent Mortgage Broker may have the specialized niche loan product or be able to design one around your unique situation, which could in turn enable you to make that mega million dollar property purchase you previously thought not possible.

Fixed Rate vs. Adjustable Rate Super Jumbo Mortgages

You can find interest-only mortgages, or 15-year fixed or 30-year fixed super jumbo mortgages up to $15 million. Adjustable rate mortgages with varying terms are also available in super jumbo mortgages. You may find the 5/1 ARMS, 7/1 ARMS, and 10/1 ARMS more competitive and in line with your overall financial needs. Or the interest-only options a better overall fit for your global debt service cash flow objectives.

You don’t need to fit into the standard conventional mortgage “box” if you want to buy a property worth $15 million or more. Working with a knowledgeable independent mortgage broker such as California Platinum Loans, you can evaluate a variety of pathways to getting the super jumbo mortgage you want and need. Think of California Platinum Loans like a jumbo mortgage concierge, who can make your path toward the property and home loan you desire as smooth as possible.  Get in touch with us to learn more about how we can make that happen for you today!

Source

https://www.investopedia.com/mortgage/mortgage-rates/fixed-versus-adjustable-rate/