Do You Have An FHA Home Loan? STOP Wasting Money: Refinance NOW And See How Quick it will Clear Away Your PMI/Mortgage Insurance

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.




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What Does Seasoning Mean When Applying For a Mortgage To Buy The Home You Want? Can You Get a Loan With No Seasoning After Financial Problems?

Seasoning on food makes it taste better. In the home loan area, seasoning can refer to the amount of time you’ve had a mortgage, and it may also be used to refer to adverse financial events. Can you still get a California home loan if you’ve had a bankruptcy, foreclosure, or short sale?

A waiting period after you’ve had an adverse financial event is commonly called “seasoning” by many home mortgage lenders. The longer the period of time after these events, the more “seasoning” you have. Different lenders require different periods of time before they’ll consider a loan application. For example, some lenders may offer products available for people who’ve filed for bankruptcy in the past one, two, or three years. You can find programs for:

  • No Seasoning on BK (Bankruptcy)

  • No Seasoning on Foreclosure

  • No Seasoning on Short Sale

Some mortgages that fit these criteria can be available, but they won’t provide you with the interest rates you’ll see advertised for 30-year fixed rate mortgages of 3% to 4%. Sometimes you can see mortgages offered for less-than-ideal financial histories referred to as subprime mortgages, but that term has gone out of favor in recent years. You could also see these financial tools called nonprime mortgages, or alternative financing.

You may be able to qualify for a new home loan even if you’ve had a bankruptcy, foreclosure, or short sale. But you should also be aware that the loan will come with a higher interest rate than loans offered to customers with no adverse financial history. You may also be asked to pay a higher down payment. 

California home loans are available if you’ve had a financial downturn and experienced a bankruptcy, foreclosure, or short sale. While your choices aren’t as varied as those available to people with good credit and no adverse financial events, don’t rule out home ownership for seven years, as some online guides suggest. You can work with an experienced mortgage loan professional who can inform you of loans you may qualify for. 


The loan products that had some availability to BK or foreclosure – plus basic terms from this article

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California Home Loans: Avoid These Five Grave Mistakes To Not Risk Losing Your Approval For The Mortgage You Need

Have you been pre-approved for a home mortgage? Perhaps you’ve even received pre-approval for a super jumbo home loan — even one with loan amounts up to $15 million. Whether you’ve been pre-approved for an FHA home mortgage, a 30-year VA mortgage, or a 30-year jumbo mortgage, don’t risk your home ownership dreams by making one or more of these five mistakes that could change your qualifications:

1) Don’t make any major purchases

Even if you have a strong cash flow and have qualified for a super jumbo home mortgage of $5 million or more, don’t run out and buy everything you need for your dream home before your mortgage closes. Your mortgage lender has pre-approved you based on your debt-to-income ratio (DTI), cash reserves, and assets. 

2) Don’t get any new credit cards or buy a major purchase on credit

Could buying a new cell phone on a payment plan influence your home mortgage? Yes: any kind of change to your credit profile and score could change your underwriting criteria. Don’t respond to store offers for discounts along with a credit card.

3) Don’t pay off collection accounts or other charged-off amounts

Believe it or not, paying off a collection account might actually lower your credit score. Pay off your bills as you normally do, but don’t make any extra payments. If you’re in any doubt, talk to your mortgage loan professional before paying off anything that was on your credit report during the pre-approval process.

4) Don’t switch banks

The time to move your account from one financial institution to another is not during your home buying process. You could be required to submit all new documentation if you change banks while you’re in the mortgage approval process.

5) Don’t deposit or withdraw large sums

Your bank accounts and assets are part of the mortgage approval process. If you do receive a gift toward your down payment, disclose this to your mortgage loan professional. Don’t withdraw large amounts of money during the mortgage process, either. Try to keep your bank accounts on an even, “normal” path during the mortgage approval period.

Buying a home is an exciting time, and you don’t want to risk any problems while your home is in escrow. Follow our California Home Loan tips and have a trouble-free mortgage loan approval after you’ve been pre-approved.



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