Aug
30
Mortgage?
Filed Under Credit | 5 Comments
YEEH!
I recently got a letter from my bank saying I owed them $199 from “late payments” on my mortgage. (you know how your mortgage is due and if you pay it late they tack on a charge) Well, everytime my husband went to pay our mortgage even if it was late, the bank teller never tacked on the charge. Anyways, they are saying their going to take us to collections for the amount due, does this mean their going to try and take our house? We have never missed a month on our mortgage, just a few times they didnt tack on the late charge…can anyone answer?
It’s was late a few times because our son was sick and we spent a ton of money going back and forth to st judes. But that wasn’t my question, will they try and take our house?
I recently got a letter from my bank saying I owed them $199 from “late payments” on my mortgage. (you know how your mortgage is due and if you pay it late they tack on a charge) Well, everytime my husband went to pay our mortgage even if it was late, the bank teller never tacked on the charge. Anyways, they are saying their going to take us to collections for the amount due, does this mean their going to try and take our house? We have never missed a month on our mortgage, just a few times they didnt tack on the late charge…can anyone answer?
It’s was late a few times because our son was sick and we spent a ton of money going back and forth to st judes. But that wasn’t my question, will they try and take our house?
and we are making them on time now.
Aug
30
The Power of 2.1% – The Clear Choice of Jumbo Reverse Mortgages
Filed Under Real Estate | Leave a Comment
Michael Branson
Many borrowers look at a few of the important aspects of their proposed jumbo reverse mortgage. How much money will they get, How much are the fees, what is the starting interest rate but so often these are about the only items they concern themselves with.
Some borrowers also insist on getting fixed rate reverse mortgages, but the fixed rates typically insure the borrower of paying an interest rate way above the current adjustable rates available and based on the averages of the indexes upon which the jumbo rates are ultimately determined, borrowers would have to go back over 17 years to find a historical average that would even approach making the higher fixed rates worthwhile. In other words, borrowers choosing today’s jumbo fixed rates would have lost money to their adjustable counterparts as an average for more than the last 17 years. No one can predict the future, but the last 17 years include some very volatile markets and the borrowers would still be worse off at today’s low rates with a fixed rate than going through those volatile markets with an adjustable rate.
So for the borrower who is really trying to determine the lowest cost reverse mortgage for proprietary or jumbo reverse mortgage programs, they need to also review the missing element the margin. The margin is the amount that is added to the index to determine at what rate the loan will accrue interest over the life of the loan.
In other words, two loans with the same index will accrue interest differently if one has a lower margin. Many reverse mortgages such as the Financial Freedom Cash Advantage program have a margin of 3.5%. The Independence Plan available through All Reverse Mortgage Company offers a 2.1% margin as an option for borrowers who are concerned with interest rates and how they will affect the future equity.
The margin is the hidden factor. The origination fee for many of the jumbo proprietary programs is around 2% of the principal lending limit, while the fee on the Independence Plan is .5% of the appraised value, which usually works out to the borrowers paying about half for the Independence Plan.
If you are considering a reverse mortgage on a jumbo or proprietary program, take a good look at the amortization schedules. Borrowers can save thousands of dollars over the years by choosing a program that accrues interest at a lower rate and this area of the decision is so often over-looked.
If your main motivation is to get the most money available and you aren’t worried about the interest rates or the effects on your equity, then you should let your reverse mortgage specialist know this up front. Fixed rates also sound great, but if you have to pay 8 or 9 percent or more to get one, and based on historical averages the rates never pay off by having it fixed, you have to ask yourself if the higher fixed rates are worth it. But if you want a program that will give you an excellent initial draw while still accruing interest at the lowest rate possible, then the Independence Plan with the 2.1% margin may be just what you were looking for.
Any way you choose to go, a qualified reverse mortgage specialist is there to be sure your needs are met and should be willing to show you all options.
Many borrowers look at a few of the important aspects of their proposed jumbo reverse mortgage. How much money will they get, How much are the fees, what is the starting interest rate but so often these are about the only items they concern themselves with.
Some borrowers also insist on getting fixed rate reverse mortgages, but the fixed rates typically insure the borrower of paying an interest rate way above the current adjustable rates available and based on the averages of the indexes upon which the jumbo rates are ultimately determined, borrowers would have to go back over 17 years to find a historical average that would even approach making the higher fixed rates worthwhile. In other words, borrowers choosing today’s jumbo fixed rates would have lost money to their adjustable counterparts as an average for more than the last 17 years. No one can predict the future, but the last 17 years include some very volatile markets and the borrowers would still be worse off at today’s low rates with a fixed rate than going through those volatile markets with an adjustable rate.
So for the borrower who is really trying to determine the lowest cost reverse mortgage for proprietary or jumbo reverse mortgage programs, they need to also review the missing element the margin. The margin is the amount that is added to the index to determine at what rate the loan will accrue interest over the life of the loan.
In other words, two loans with the same index will accrue interest differently if one has a lower margin. Many reverse mortgages such as the Financial Freedom Cash Advantage program have a margin of 3.5%. The Independence Plan available through All Reverse Mortgage Company offers a 2.1% margin as an option for borrowers who are concerned with interest rates and how they will affect the future equity.
The margin is the hidden factor. The origination fee for many of the jumbo proprietary programs is around 2% of the principal lending limit, while the fee on the Independence Plan is .5% of the appraised value, which usually works out to the borrowers paying about half for the Independence Plan.
If you are considering a reverse mortgage on a jumbo or proprietary program, take a good look at the amortization schedules. Borrowers can save thousands of dollars over the years by choosing a program that accrues interest at a lower rate and this area of the decision is so often over-looked.
If your main motivation is to get the most money available and you aren’t worried about the interest rates or the effects on your equity, then you should let your reverse mortgage specialist know this up front. Fixed rates also sound great, but if you have to pay 8 or 9 percent or more to get one, and based on historical averages the rates never pay off by having it fixed, you have to ask yourself if the higher fixed rates are worth it. But if you want a program that will give you an excellent initial draw while still accruing interest at the lowest rate possible, then the Independence Plan with the 2.1% margin may be just what you were looking for.
Any way you choose to go, a qualified reverse mortgage specialist is there to be sure your needs are met and should be willing to show you all options.
Aug
29
What caused the home mortgage rates to sky rocket, causing people being unable to pay their monthly mortgages?
Filed Under Politics | 11 Comments
Christopher
The recession was caused by people being unable to pay back their home mortgages because the mortgage rates were too high?
The recession was caused by people being unable to pay back their home mortgages because the mortgage rates were too high?
Banks were not getting their money back from home owners, causing a credit crunch, thus they were unable to lend money to big businesses.
Big businesses then had to cut back on expenses and began to lay people off the the thousands.
So what caused the mortgage rates to go up so high that started this financial mess in the first place?
Aug
28
How can unmarried people report home mortgage interest paid jointly?
Filed Under United States | 3 Comments
Thesmo
I own a home in common with another person. We’re not married. We’re both named on the mortgage and we pay the mortgage out of a joint checking account, to which we both contribute and use for other various purposes. Can we split the mortgage interest deduction between us however we wish as long as we total up on our two returns to the total amount we jointly paid to the bank? Or must we use some kind of formula? How will the bank report this interest paid to the IRS?
I own a home in common with another person. We’re not married. We’re both named on the mortgage and we pay the mortgage out of a joint checking account, to which we both contribute and use for other various purposes. Can we split the mortgage interest deduction between us however we wish as long as we total up on our two returns to the total amount we jointly paid to the bank? Or must we use some kind of formula? How will the bank report this interest paid to the IRS?
Aug
28
How does mortgage fraud affects the subprime mortgage crisis?
Filed Under Renting & Real Estate | 4 Comments
Iñigo
In the actual Subprime mortgage crisis in the US huge amounts of mortgage frauds were discovered. What’s the part that these frauds played in the actual mortgage crisis ? Thanks.
In the actual Subprime mortgage crisis in the US huge amounts of mortgage frauds were discovered. What’s the part that these frauds played in the actual mortgage crisis ? Thanks.
Aug
27
Jumbo Refinance
Filed Under Real Estate | Leave a Comment
Ian Parks
What exactly is considered a jumbo refinance?
Welcome to the big leaves of home mortgage refinancing. This kind of refinance is when a mortgage exceeds the conforming limit set by Fannie Mae or Freddie Mac. These federally chartered institutions provide funding to retail mortgage lenders. The limit is adjusted annually based on average home prices.
For 2007 the limit for of these refinances was $420,000 for one single family home in the CONUS. If the increase has caused your loan to now qualify as conforming then you may have a possibility of benefit from refinancing.
This is mostly due to mortgages over the conforming limit will carry a slightly higher rate than conforming loans involved in a jumbo refinance. For a 30 year fixed rate mortgage you would most likely be paying about one eights to one quarter of a percent more although in some circumstances rate can be dramatically higher. The reasons for these higher rates are that jumbo mortgages carry an extreme amount more of risk to the lender and usually invovle extra underwriting which costs are in the end and as usual passed on to the home owner seeking the jumbo refinance.
The conforming limit for 08 is the exact same as it was in 06 however in 06 the limit saw a 15% increase over 2005 the largest ever jump in a single year in reference to jumbo refinances.
Their is an easy example for you in consideration of a jumbo refinance: If you took out a 400k fixed rate mortgage at 6% when a loan for that amount was considered a jumbo, If you refinance today your mortgage would no be well under the conforming limit and you would be able to take advantage of the lower for a 30 year fixed rate mortgage lowering your rate to 5.75% works works out to almost 64 every month reducing it by half a percent would save over 125 a month.
Remember that refinancing involves costs of its own and incurring these costs for a very small reduction in the interest rate may not be worth it, for some borrowers however refinancing from a jumbo to a conforming mortgage can save thousands of dollars over the long term.
What exactly is considered a jumbo refinance?
Welcome to the big leaves of home mortgage refinancing. This kind of refinance is when a mortgage exceeds the conforming limit set by Fannie Mae or Freddie Mac. These federally chartered institutions provide funding to retail mortgage lenders. The limit is adjusted annually based on average home prices.
For 2007 the limit for of these refinances was $420,000 for one single family home in the CONUS. If the increase has caused your loan to now qualify as conforming then you may have a possibility of benefit from refinancing.
This is mostly due to mortgages over the conforming limit will carry a slightly higher rate than conforming loans involved in a jumbo refinance. For a 30 year fixed rate mortgage you would most likely be paying about one eights to one quarter of a percent more although in some circumstances rate can be dramatically higher. The reasons for these higher rates are that jumbo mortgages carry an extreme amount more of risk to the lender and usually invovle extra underwriting which costs are in the end and as usual passed on to the home owner seeking the jumbo refinance.
The conforming limit for 08 is the exact same as it was in 06 however in 06 the limit saw a 15% increase over 2005 the largest ever jump in a single year in reference to jumbo refinances.
Their is an easy example for you in consideration of a jumbo refinance: If you took out a 400k fixed rate mortgage at 6% when a loan for that amount was considered a jumbo, If you refinance today your mortgage would no be well under the conforming limit and you would be able to take advantage of the lower for a 30 year fixed rate mortgage lowering your rate to 5.75% works works out to almost 64 every month reducing it by half a percent would save over 125 a month.
Remember that refinancing involves costs of its own and incurring these costs for a very small reduction in the interest rate may not be worth it, for some borrowers however refinancing from a jumbo to a conforming mortgage can save thousands of dollars over the long term.
Aug
26
Jumbo Mortgage Rates
Filed Under Real Estate | Leave a Comment
Martin Lukac
Mortgage rates such as Jumbo rates vary quite a bit. Jumbo loans often provide you with options such as fixed-rates. Still, the fixed rate options vary. Sometimes these rates change. Usually the rates established are based on the changes in the Treasure Bill Rates, Truth in Lending Laws, and lastly the common market rates.
Jumbo mortgage rates often rise above a definite limit. Fannie Mae and Freddie Mac programs often set these limits.
The mortgage rates or else the limits stream from annual charts, which can range from $334,000 more or less. The rate limits of course are relevant to specific states. For example, Alaska may have a limit roughly speaking at $560,000.
Jumbo mortgage rates are also known as “Non-Conforming” mortgage loans. These loans accrue interest, in addition to “originator premium fees.”
The Jumbo rates or limits calculate in units also. For example, if a single-family takes out the Jumbo mortgage, they may only qualify for $300, 000 based on the set limits. The units are calculated based on the large amount the borrower is allotted from the lender.
Jumbo loans often attach high rates of interest. This is for the reason that Freddie Mac and/or Fannie Mae is not legally qualified to fund these loans over ‘the market limits.” Moreover, if FNMS, i.e. the Federal National Mortgage Association, and FHLMC or the Federal Home Loan Mortgage Corporation, does not have the power to fund the jumbo loans over set limits. Consequently, these mortgage rates on jumbo loans may increase.
For this reason, borrowers are wise to consider setting limits on the amount borrowed to stay away from expensive mortgage rates.
While you have a couple of options available with the Jumbo loans, it is wise to look around and check the mortgage rates on other loans. One of your options is the common ARM loan, or else the Adjustable Rate Mortgage. (ARM)
ARM mortgage rates are set agreements connecting lenders and borrowers, i.e. the lender(s) may consent to lending mortgage rates lower than the market rates. These rates may apply at the beginning of the borrowed amount, yet the borrower may have to agree with adjusted mortgage rates rooted from the market rates, in addition to the loans term.
Most people prefer fixed-rate loans. The mortgage rates often remain constant whether the market rises or falls. In other words, you may agree upon 5.76% mortgage rates and continue to pay this rate throughout the course of the loan despite whether the market rates change or not.
When searching for mortgage rates, your best bet is to shop around so that you find the best deals that suit your budget.
Mortgage rates such as Jumbo rates vary quite a bit. Jumbo loans often provide you with options such as fixed-rates. Still, the fixed rate options vary. Sometimes these rates change. Usually the rates established are based on the changes in the Treasure Bill Rates, Truth in Lending Laws, and lastly the common market rates.
Jumbo mortgage rates often rise above a definite limit. Fannie Mae and Freddie Mac programs often set these limits.
The mortgage rates or else the limits stream from annual charts, which can range from $334,000 more or less. The rate limits of course are relevant to specific states. For example, Alaska may have a limit roughly speaking at $560,000.
Jumbo mortgage rates are also known as “Non-Conforming” mortgage loans. These loans accrue interest, in addition to “originator premium fees.”
The Jumbo rates or limits calculate in units also. For example, if a single-family takes out the Jumbo mortgage, they may only qualify for $300, 000 based on the set limits. The units are calculated based on the large amount the borrower is allotted from the lender.
Jumbo loans often attach high rates of interest. This is for the reason that Freddie Mac and/or Fannie Mae is not legally qualified to fund these loans over ‘the market limits.” Moreover, if FNMS, i.e. the Federal National Mortgage Association, and FHLMC or the Federal Home Loan Mortgage Corporation, does not have the power to fund the jumbo loans over set limits. Consequently, these mortgage rates on jumbo loans may increase.
For this reason, borrowers are wise to consider setting limits on the amount borrowed to stay away from expensive mortgage rates.
While you have a couple of options available with the Jumbo loans, it is wise to look around and check the mortgage rates on other loans. One of your options is the common ARM loan, or else the Adjustable Rate Mortgage. (ARM)
ARM mortgage rates are set agreements connecting lenders and borrowers, i.e. the lender(s) may consent to lending mortgage rates lower than the market rates. These rates may apply at the beginning of the borrowed amount, yet the borrower may have to agree with adjusted mortgage rates rooted from the market rates, in addition to the loans term.
Most people prefer fixed-rate loans. The mortgage rates often remain constant whether the market rises or falls. In other words, you may agree upon 5.76% mortgage rates and continue to pay this rate throughout the course of the loan despite whether the market rates change or not.
When searching for mortgage rates, your best bet is to shop around so that you find the best deals that suit your budget.
Aug
24
Mortgage Finance Experts: How will the market affect homeowners who will be refinancing next year?
Filed Under Renting & Real Estate | 5 Comments
Kate373
My parents bought their home 4 years ago at a 4% rate, which is due to change next year when their loan rate. With the market crunch and the new strict lending that’s bound to occur as a result of this, they are worried about what refinancing has in store for them. The good news is that they have flawless credit (they successfully removed their PMI, and they are early every month on their mortgage payments —and they pay an extra couple of hundred dollars than they should. Not to mention their credit card debt is very low (only a couple of thousand dollars). They’ve both been at their great paying jobs for over a decade; but they are still worried about whether they will be able to secure a decent fixed rate when their mandatory refinance is up. Any hope?
My parents bought their home 4 years ago at a 4% rate, which is due to change next year when their loan rate. With the market crunch and the new strict lending that’s bound to occur as a result of this, they are worried about what refinancing has in store for them. The good news is that they have flawless credit (they successfully removed their PMI, and they are early every month on their mortgage payments —and they pay an extra couple of hundred dollars than they should. Not to mention their credit card debt is very low (only a couple of thousand dollars). They’ve both been at their great paying jobs for over a decade; but they are still worried about whether they will be able to secure a decent fixed rate when their mandatory refinance is up. Any hope?
Aug
23
Va Jumbo Loans Home Loan Limits for 2008
Filed Under Mortgage Modficiation Tips Revealed! | Leave a Comment
Josh Klenda
VA Loan Limits for 2009
The update VA loan limits have been updated a distributed by the VA. The chart below represents the maximum 100% VA loan limit by county for 2009. All other counties not listed below will remain at the conforming limit of $417,000.
Please keep in mind that it is still possible through VA to get a home loan above and beyond these current limits. However, a 25% down payment is required on the difference. For example, if a qualified veteran borrower purchases a house for $600,000 the minimum required down payment would be calculated as such:
1. $600,000 (Purchase Price) minus the $417,000 (maximum 100% limit for a normal cost area) = $183,000
2. 25% of $183,000 is $45,750, or just 7.6% of the purchase price
3. The applicable VA funding fee over the $417,000 limit would need to either be paid by the veteran borrower or seller.
VA Loan Limits for 2009 – for 100% financing
STATE
COUNTY
2009 VA LIMIT
Alaska
ALEUTIANS EAST
$ 625,500.00
Alaska
ALEUTIANS WEST
$ 625,500.00
Alaska
ANCHORAGE
$ 625,500.00
Alaska
BETHEL
$ 625,500.00
Alaska
BRISTOL BAY
$ 625,500.00
Alaska
DENALI
$ 625,500.00
Alaska
DILLINGHAM
$ 625,500.00
Alaska
FAIRBANKS NORTH
$ 625,500.00
Alaska
HAINES
$ 625,500.00
Alaska
JUNEAU
$ 625,500.00
Alaska
KENAI PENINSULA
$ 625,500.00
Alaska
KETCHIKAN GATEWAY
$ 625,500.00
Alaska
KODIAK ISLAND
$ 625,500.00
Alaska
LAKE AND PENINSULA
$ 625,500.00
Alaska
MATANUSKA-SUSITNA
$ 625,500.00
Alaska
NOME
$ 625,500.00
Alaska
NORTH SLOPE
$ 625,500.00
Alaska
NORTHWEST ARCTIC
$ 625,500.00
Alaska
PRINCE OF WALES
$ 625,500.00
Alaska
SITKA
$ 625,500.00
Alaska
SKAGWAY-HOONAH-ANGOO
$ 625,500.00
Alaska
SOUTHEAST FAIRBANKS
$ 625,500.00
Alaska
VALDEZ-CORDOVA
$ 625,500.00
Alaska
WADE HAMPTON
$ 625,500.00
Alaska
WRANGELL-PETERS
$ 625,500.00
Alaska
YAKUTAT CITY
$ 625,500.00
Alaska
YUKON-KOYUKUK
$ 625,500.00
California
ALAMEDA
$1,094,625.00
California
ALPINE
$ 503,750.00
California
CONTRA COSTA
$1,094,625.00
California
EL DORADO
$ 516,250.00
California
LOS ANGELES
$ 737,500.00
California
MARIN
$1,094,625.00
California
MONO
$ 575,000.00
California
MONTEREY
$ 525,000.00
California
NAPA
$ 643,750.00
California
NEVADA
$ 518,750.00
California
ORANGE
$ 737,500.00
California
PLACER
$ 516,250.00
California
SACRAMENTO
$ 516,250.00
California
SAN BENITO
$ 937,500.00
California
SAN DIEGO
$ 593,750.00
California
SAN FRANCISCO
$1,094,625.00
California
SAN LUIS OBISPO
$ 610,000.00
California
SAN MATEO
$1,094,625.00
California
SANTA BARBARA
$ 656,250.00
California
SANTA CLARA
$ 937,500.00
California
SANTA CRUZ
$ 805,000.00
California
SOLANO
$ 435,000.00
California
SONOMA
$ 566,250.00
California
VENTURA
$ 650,000.00
California
YOLO
$ 516,250.00
Colorado
BOULDER
$ 437,500.00
Colorado
EAGLE
$ 887,500.00
Colorado
GARFIELD
$ 450,000.00
Colorado
HINSDALE
$ 460,000.00
Colorado
LAKE
$ 887,500.00
Colorado
OURAY
$ 456,250.00
Colorado
PITKIN
$1,094,625.00
Colorado
ROUTT
$ 690,000.00
Colorado
SAN MIGUEL
$ 962,500.00
Colorado
SUMMIT
$ 785,000.00
Connecticut
FAIRFIELD
$ 556,250.00
District of Columbia
DISTRICT OF COLUMBIA
$ 812,500.00
Florida
COLLIER
$ 487,500.00
Florida
MONROE
$ 575,000.00
Georgia
GREENE
$ 560,000.00
Guam
GUAM
$ 625,500.00
Hawaii
HAWAII
$ 625,500.00
Hawaii
HONOLULU
$ 783,750.00
Hawaii
KALAWAO
$ 656,250.00
Hawaii
KAUAI
$ 775,000.00
Hawaii
MAUI
$ 681,250.00
Idaho
BLAINE
$ 497,500.00
Idaho
TETON
$1,000,000.00
Massachusetts
BARNSTABLE
$ 441,250.00
Massachusetts
BRISTOL
$ 463,750.00
Massachusetts
DUKES
$ 736,250.00
Massachusetts
ESSEX
$ 506,250.00
Massachusetts
MIDDLESEX
$ 506,250.00
Massachusetts
NANTUCKET
$1,094,625.00
Massachusetts
NORFOLK
$ 506,250.00
Massachusetts
PLYMOUTH
$ 506,250.00
Massachusetts
SUFFOLK
$ 506,250.00
Maryland
ANNE ARUNDEL
$ 537,500.00
Maryland
BALTIMORE
$ 537,500.00
Maryland
BALTIMORE CITY
$ 537,500.00
Maryland
CALVERT
$ 812,500.00
Maryland
CARROLL
$ 537,500.00
Maryland
CHARLES
$ 812,500.00
Maryland
FREDERICK
$ 812,500.00
Maryland
HARFORD
$ 537,500.00
Maryland
HOWARD
$ 537,500.00
Maryland
MONTGOMERY
$ 812,500.00
Maryland
PRINCE GEORGE’S
$ 812,500.00
Maryland
QUEEN ANNE’S
$ 537,500.00
MP
NORTHERN ISLAND
$ 570,000.00
MP
ROTA
$ 446,250.00
MP
SAIPAN
$ 575,000.00
MP
TINIAN
$ 578,750.00
North Carolina
CAMDEN
$ 812,500.00
North Carolina
CURRITUCK
$ 498,750.00
North Carolina
DARE
$ 425,000.00
North Carolina
HYDE
$ 525,000.00
North Carolina
PASQUOTANK
$ 812,500.00
North Carolina
PERQUIMANS
$ 812,500.00
New Hampshire
ROCKINGHAM
$ 506,250.00
New Hampshire
STRAFFORD
$ 506,250.00
New Jersey
BERGEN
$ 747,500.00
New Jersey
CAPE MAY
$ 450,000.00
New Jersey
ESSEX
$ 747,500.00
New Jersey
HUDSON
$ 747,500.00
New Jersey
HUNTERDON
$ 747,500.00
New Jersey
MIDDLESEX
$ 747,500.00
New Jersey
MONMOUTH
$ 747,500.00
New Jersey
MORRIS
$ 747,500.00
New Jersey
OCEAN
$ 747,500.00
New Jersey
PASSAIC
$ 747,500.00
New Jersey
SOMERSET
$ 747,500.00
New Jersey
SUSSEX
$ 747,500.00
New Jersey
UNION
$ 747,500.00
New York
BRONX
$ 747,500.00
New York
KINGS
$ 747,500.00
New York
NASSAU
$ 747,500.00
New York
NEW YORK
$ 747,500.00
New York
PUTNAM
$ 747,500.00
New York
QUEENS
$ 747,500.00
New York
RICHMOND
$ 747,500.00
New York
ROCKLAND
$ 747,500.00
New York
SUFFOLK
$ 747,500.00
New York
WESTCHESTER
$ 747,500.00
Pennsylvania
PIKE
$ 747,500.00
Rhode Island
BRISTOL
$ 463,750.00
Rhode Island
KENT
$ 463,750.00
Rhode Island
NEWPORT
$ 463,750.00
Rhode Island
PROVIDENCE
$ 463,750.00
Rhode Island
WASHINGTON
$ 463,750.00
Tennessee
CANNON
$ 427,500.00
Tennessee
CHEATHAM
$ 427,500.00
Tennessee
DAVIDSON
$ 427,500.00
Tennessee
DICKSON
$ 427,500.00
Tennessee
HICKMAN
$ 427,500.00
Tennessee
MACON
$ 427,500.00
Tennessee
ROBERTSON
$ 427,500.00
Tennessee
RUTHERFORD
$ 427,500.00
Tennessee
SMITH
$ 427,500.00
Tennessee
SUMNER
$ 427,500.00
Tennessee
TROUSDALE
$ 427,500.00
Tennessee
WILLIAMSON
$ 427,500.00
Tennessee
WILSON
$ 427,500.00
Utah
DAVIS
$ 423,750.00
Utah
MORGAN
$ 423,750.00
Utah
SALT LAKE
$ 652,500.00
Utah
SUMMIT
$ 652,500.00
Utah
TOOELE
$ 652,500.00
Utah
WEBER
$ 423,750.00
Virginia
ALBEMARLE
$ 475,000.00
Virginia
ALEXANDRIA
$ 812,500.00
Virginia
AMELIA
$ 582,500.00
Virginia
ARLINGTON
$ 812,500.00
Virginia
CAROLINE
$ 582,500.00
Virginia
CHARLES CITY
$ 582,500.00
Virginia
CHARLOTTESVILLE
$ 475,000.00
Virginia
CHESAPEAKE
$ 498,750.00
Virginia
CHESTERFIELD
$ 582,500.00
Virginia
CLARKE
$ 812,500.00
Virginia
COLONIAL HEIGHT
$ 582,500.00
Virginia
CUMBERLAND
$ 582,500.00
Virginia
DINWIDDIE
$ 582,500.00
Virginia
FAIRFAX
$ 812,500.00
Virginia
FAIRFAX IND
$ 812,500.00
Virginia
FALLS CHURCH
$ 812,500.00
Virginia
FAUQUIER
$ 812,500.00
Virginia
FLUVANNA
$ 475,000.00
Virginia
FREDERICKSBURG
$ 812,500.00
Virginia
GLOUCESTER
$ 498,750.00
Virginia
GOOCHLAND
$ 582,500.00
Virginia
GREENE
$ 475,000.00
Virginia
HAMPTON
$ 498,750.00
Virginia
HANOVER
$ 582,500.00
Virginia
HENRICO
$ 582,500.00
Virginia
HOPEWELL
$ 582,500.00
Virginia
ISLE OF WIGHT
$ 498,750.00
Virginia
JAMES CITY
$ 498,750.00
Virginia
KING AND QUEEN
$ 582,500.00
Virginia
KING WILLIAM
$ 582,500.00
Virginia
LANCASTER
$ 481,250.00
Virginia
LOUDOUN
$ 812,500.00
Virginia
LOUISA
$ 582,500.00
Virginia
MANASSAS
$ 812,500.00
Virginia
MANASSAS PARK
$ 812,500.00
Virginia
MATHEWS
$ 498,750.00
Virginia
NELSON
$ 475,000.00
Virginia
NEW KENT
$ 582,500.00
Virginia
NEWPORT NEWS
$ 498,750.00
Virginia
NORFOLK
$ 498,750.00
Virginia
PETERSBURG
$ 582,500.00
Virginia
POQUOSON
$ 498,750.00
Virginia
PORTSMOUTH
$ 498,750.00
Virginia
POWHATAN
$ 582,500.00
Virginia
PRINCE GEORGE
$ 582,500.00
Virginia
PRINCE WILLIAM
$ 812,500.00
Virginia
RICHMOND IND
$ 582,500.00
Virginia
SPOTSYLVANIA
$ 812,500.00
Virginia
STAFFORD
$ 812,500.00
Virginia
SUFFOLK
$ 498,750.00
Virginia
SURRY
$ 498,750.00
Virginia
SUSSEX
$ 582,500.00
Virginia
VIRGINIA BEACH
$ 498,750.00
Virginia
WARREN
$ 812,500.00
Virginia
WILLIAMSBURG
$ 498,750.00
Virginia
YORK
$ 498,750.00
VI
ST. CROIX
$ 625,500.00
VI
ST. JOHN
$ 677,500.00
VI
ST. THOMAS
$ 625,500.00
Washington
KING
$ 550,000.00
Washington
PIERCE
$ 550,000.00
Washington
SAN JUAN
$ 525,000.00
Washington
SNOHOMISH
$ 550,000.00
West Virginia
JEFFERSON
$ 812,500.00
Wyoming
TETON
$1,000,000.00
What are the benefits of a VA Jumbo loan?
1. No punitive interest rate increase under VA Jumbo loans. Unlike conventional and FHA jumbo loans that can carry up to a full 1% increase or more; this can save you thousands of dollars.
2. No monthly mortgage insurance premiums (PMI) which are required on most mortgages without a 20% down payment which will save you hundreds of dollars per year.
3. Little to no down payment required, so you can keep more money in the bank.
4. VA Jumbo loans do not require perfect credit.
VA Loan Limits for 2009
The update VA loan limits have been updated a distributed by the VA. The chart below represents the maximum 100% VA loan limit by county for 2009. All other counties not listed below will remain at the conforming limit of $417,000.
Please keep in mind that it is still possible through VA to get a home loan above and beyond these current limits. However, a 25% down payment is required on the difference. For example, if a qualified veteran borrower purchases a house for $600,000 the minimum required down payment would be calculated as such:
1. $600,000 (Purchase Price) minus the $417,000 (maximum 100% limit for a normal cost area) = $183,000
2. 25% of $183,000 is $45,750, or just 7.6% of the purchase price
3. The applicable VA funding fee over the $417,000 limit would need to either be paid by the veteran borrower or seller.
VA Loan Limits for 2009 – for 100% financing
STATE
COUNTY
2009 VA LIMIT
Alaska
ALEUTIANS EAST
$ 625,500.00
Alaska
ALEUTIANS WEST
$ 625,500.00
Alaska
ANCHORAGE
$ 625,500.00
Alaska
BETHEL
$ 625,500.00
Alaska
BRISTOL BAY
$ 625,500.00
Alaska
DENALI
$ 625,500.00
Alaska
DILLINGHAM
$ 625,500.00
Alaska
FAIRBANKS NORTH
$ 625,500.00
Alaska
HAINES
$ 625,500.00
Alaska
JUNEAU
$ 625,500.00
Alaska
KENAI PENINSULA
$ 625,500.00
Alaska
KETCHIKAN GATEWAY
$ 625,500.00
Alaska
KODIAK ISLAND
$ 625,500.00
Alaska
LAKE AND PENINSULA
$ 625,500.00
Alaska
MATANUSKA-SUSITNA
$ 625,500.00
Alaska
NOME
$ 625,500.00
Alaska
NORTH SLOPE
$ 625,500.00
Alaska
NORTHWEST ARCTIC
$ 625,500.00
Alaska
PRINCE OF WALES
$ 625,500.00
Alaska
SITKA
$ 625,500.00
Alaska
SKAGWAY-HOONAH-ANGOO
$ 625,500.00
Alaska
SOUTHEAST FAIRBANKS
$ 625,500.00
Alaska
VALDEZ-CORDOVA
$ 625,500.00
Alaska
WADE HAMPTON
$ 625,500.00
Alaska
WRANGELL-PETERS
$ 625,500.00
Alaska
YAKUTAT CITY
$ 625,500.00
Alaska
YUKON-KOYUKUK
$ 625,500.00
California
ALAMEDA
$1,094,625.00
California
ALPINE
$ 503,750.00
California
CONTRA COSTA
$1,094,625.00
California
EL DORADO
$ 516,250.00
California
LOS ANGELES
$ 737,500.00
California
MARIN
$1,094,625.00
California
MONO
$ 575,000.00
California
MONTEREY
$ 525,000.00
California
NAPA
$ 643,750.00
California
NEVADA
$ 518,750.00
California
ORANGE
$ 737,500.00
California
PLACER
$ 516,250.00
California
SACRAMENTO
$ 516,250.00
California
SAN BENITO
$ 937,500.00
California
SAN DIEGO
$ 593,750.00
California
SAN FRANCISCO
$1,094,625.00
California
SAN LUIS OBISPO
$ 610,000.00
California
SAN MATEO
$1,094,625.00
California
SANTA BARBARA
$ 656,250.00
California
SANTA CLARA
$ 937,500.00
California
SANTA CRUZ
$ 805,000.00
California
SOLANO
$ 435,000.00
California
SONOMA
$ 566,250.00
California
VENTURA
$ 650,000.00
California
YOLO
$ 516,250.00
Colorado
BOULDER
$ 437,500.00
Colorado
EAGLE
$ 887,500.00
Colorado
GARFIELD
$ 450,000.00
Colorado
HINSDALE
$ 460,000.00
Colorado
LAKE
$ 887,500.00
Colorado
OURAY
$ 456,250.00
Colorado
PITKIN
$1,094,625.00
Colorado
ROUTT
$ 690,000.00
Colorado
SAN MIGUEL
$ 962,500.00
Colorado
SUMMIT
$ 785,000.00
Connecticut
FAIRFIELD
$ 556,250.00
District of Columbia
DISTRICT OF COLUMBIA
$ 812,500.00
Florida
COLLIER
$ 487,500.00
Florida
MONROE
$ 575,000.00
Georgia
GREENE
$ 560,000.00
Guam
GUAM
$ 625,500.00
Hawaii
HAWAII
$ 625,500.00
Hawaii
HONOLULU
$ 783,750.00
Hawaii
KALAWAO
$ 656,250.00
Hawaii
KAUAI
$ 775,000.00
Hawaii
MAUI
$ 681,250.00
Idaho
BLAINE
$ 497,500.00
Idaho
TETON
$1,000,000.00
Massachusetts
BARNSTABLE
$ 441,250.00
Massachusetts
BRISTOL
$ 463,750.00
Massachusetts
DUKES
$ 736,250.00
Massachusetts
ESSEX
$ 506,250.00
Massachusetts
MIDDLESEX
$ 506,250.00
Massachusetts
NANTUCKET
$1,094,625.00
Massachusetts
NORFOLK
$ 506,250.00
Massachusetts
PLYMOUTH
$ 506,250.00
Massachusetts
SUFFOLK
$ 506,250.00
Maryland
ANNE ARUNDEL
$ 537,500.00
Maryland
BALTIMORE
$ 537,500.00
Maryland
BALTIMORE CITY
$ 537,500.00
Maryland
CALVERT
$ 812,500.00
Maryland
CARROLL
$ 537,500.00
Maryland
CHARLES
$ 812,500.00
Maryland
FREDERICK
$ 812,500.00
Maryland
HARFORD
$ 537,500.00
Maryland
HOWARD
$ 537,500.00
Maryland
MONTGOMERY
$ 812,500.00
Maryland
PRINCE GEORGE’S
$ 812,500.00
Maryland
QUEEN ANNE’S
$ 537,500.00
MP
NORTHERN ISLAND
$ 570,000.00
MP
ROTA
$ 446,250.00
MP
SAIPAN
$ 575,000.00
MP
TINIAN
$ 578,750.00
North Carolina
CAMDEN
$ 812,500.00
North Carolina
CURRITUCK
$ 498,750.00
North Carolina
DARE
$ 425,000.00
North Carolina
HYDE
$ 525,000.00
North Carolina
PASQUOTANK
$ 812,500.00
North Carolina
PERQUIMANS
$ 812,500.00
New Hampshire
ROCKINGHAM
$ 506,250.00
New Hampshire
STRAFFORD
$ 506,250.00
New Jersey
BERGEN
$ 747,500.00
New Jersey
CAPE MAY
$ 450,000.00
New Jersey
ESSEX
$ 747,500.00
New Jersey
HUDSON
$ 747,500.00
New Jersey
HUNTERDON
$ 747,500.00
New Jersey
MIDDLESEX
$ 747,500.00
New Jersey
MONMOUTH
$ 747,500.00
New Jersey
MORRIS
$ 747,500.00
New Jersey
OCEAN
$ 747,500.00
New Jersey
PASSAIC
$ 747,500.00
New Jersey
SOMERSET
$ 747,500.00
New Jersey
SUSSEX
$ 747,500.00
New Jersey
UNION
$ 747,500.00
New York
BRONX
$ 747,500.00
New York
KINGS
$ 747,500.00
New York
NASSAU
$ 747,500.00
New York
NEW YORK
$ 747,500.00
New York
PUTNAM
$ 747,500.00
New York
QUEENS
$ 747,500.00
New York
RICHMOND
$ 747,500.00
New York
ROCKLAND
$ 747,500.00
New York
SUFFOLK
$ 747,500.00
New York
WESTCHESTER
$ 747,500.00
Pennsylvania
PIKE
$ 747,500.00
Rhode Island
BRISTOL
$ 463,750.00
Rhode Island
KENT
$ 463,750.00
Rhode Island
NEWPORT
$ 463,750.00
Rhode Island
PROVIDENCE
$ 463,750.00
Rhode Island
WASHINGTON
$ 463,750.00
Tennessee
CANNON
$ 427,500.00
Tennessee
CHEATHAM
$ 427,500.00
Tennessee
DAVIDSON
$ 427,500.00
Tennessee
DICKSON
$ 427,500.00
Tennessee
HICKMAN
$ 427,500.00
Tennessee
MACON
$ 427,500.00
Tennessee
ROBERTSON
$ 427,500.00
Tennessee
RUTHERFORD
$ 427,500.00
Tennessee
SMITH
$ 427,500.00
Tennessee
SUMNER
$ 427,500.00
Tennessee
TROUSDALE
$ 427,500.00
Tennessee
WILLIAMSON
$ 427,500.00
Tennessee
WILSON
$ 427,500.00
Utah
DAVIS
$ 423,750.00
Utah
MORGAN
$ 423,750.00
Utah
SALT LAKE
$ 652,500.00
Utah
SUMMIT
$ 652,500.00
Utah
TOOELE
$ 652,500.00
Utah
WEBER
$ 423,750.00
Virginia
ALBEMARLE
$ 475,000.00
Virginia
ALEXANDRIA
$ 812,500.00
Virginia
AMELIA
$ 582,500.00
Virginia
ARLINGTON
$ 812,500.00
Virginia
CAROLINE
$ 582,500.00
Virginia
CHARLES CITY
$ 582,500.00
Virginia
CHARLOTTESVILLE
$ 475,000.00
Virginia
CHESAPEAKE
$ 498,750.00
Virginia
CHESTERFIELD
$ 582,500.00
Virginia
CLARKE
$ 812,500.00
Virginia
COLONIAL HEIGHT
$ 582,500.00
Virginia
CUMBERLAND
$ 582,500.00
Virginia
DINWIDDIE
$ 582,500.00
Virginia
FAIRFAX
$ 812,500.00
Virginia
FAIRFAX IND
$ 812,500.00
Virginia
FALLS CHURCH
$ 812,500.00
Virginia
FAUQUIER
$ 812,500.00
Virginia
FLUVANNA
$ 475,000.00
Virginia
FREDERICKSBURG
$ 812,500.00
Virginia
GLOUCESTER
$ 498,750.00
Virginia
GOOCHLAND
$ 582,500.00
Virginia
GREENE
$ 475,000.00
Virginia
HAMPTON
$ 498,750.00
Virginia
HANOVER
$ 582,500.00
Virginia
HENRICO
$ 582,500.00
Virginia
HOPEWELL
$ 582,500.00
Virginia
ISLE OF WIGHT
$ 498,750.00
Virginia
JAMES CITY
$ 498,750.00
Virginia
KING AND QUEEN
$ 582,500.00
Virginia
KING WILLIAM
$ 582,500.00
Virginia
LANCASTER
$ 481,250.00
Virginia
LOUDOUN
$ 812,500.00
Virginia
LOUISA
$ 582,500.00
Virginia
MANASSAS
$ 812,500.00
Virginia
MANASSAS PARK
$ 812,500.00
Virginia
MATHEWS
$ 498,750.00
Virginia
NELSON
$ 475,000.00
Virginia
NEW KENT
$ 582,500.00
Virginia
NEWPORT NEWS
$ 498,750.00
Virginia
NORFOLK
$ 498,750.00
Virginia
PETERSBURG
$ 582,500.00
Virginia
POQUOSON
$ 498,750.00
Virginia
PORTSMOUTH
$ 498,750.00
Virginia
POWHATAN
$ 582,500.00
Virginia
PRINCE GEORGE
$ 582,500.00
Virginia
PRINCE WILLIAM
$ 812,500.00
Virginia
RICHMOND IND
$ 582,500.00
Virginia
SPOTSYLVANIA
$ 812,500.00
Virginia
STAFFORD
$ 812,500.00
Virginia
SUFFOLK
$ 498,750.00
Virginia
SURRY
$ 498,750.00
Virginia
SUSSEX
$ 582,500.00
Virginia
VIRGINIA BEACH
$ 498,750.00
Virginia
WARREN
$ 812,500.00
Virginia
WILLIAMSBURG
$ 498,750.00
Virginia
YORK
$ 498,750.00
VI
ST. CROIX
$ 625,500.00
VI
ST. JOHN
$ 677,500.00
VI
ST. THOMAS
$ 625,500.00
Washington
KING
$ 550,000.00
Washington
PIERCE
$ 550,000.00
Washington
SAN JUAN
$ 525,000.00
Washington
SNOHOMISH
$ 550,000.00
West Virginia
JEFFERSON
$ 812,500.00
Wyoming
TETON
$1,000,000.00
What are the benefits of a VA Jumbo loan?
1. No punitive interest rate increase under VA Jumbo loans. Unlike conventional and FHA jumbo loans that can carry up to a full 1% increase or more; this can save you thousands of dollars.
2. No monthly mortgage insurance premiums (PMI) which are required on most mortgages without a 20% down payment which will save you hundreds of dollars per year.
3. Little to no down payment required, so you can keep more money in the bank.
4. VA Jumbo loans do not require perfect credit.
Aug
23
How Much Does A Mortgage Broker Usually Make Off Of A Mortgage Loan?
Filed Under Mortgage Loan Modification Brokers They Can Create Profitable Professional Transition | Leave a Comment
CL Haehl
Since compensation methods for mortgage brokers are not regulated by any government entity, it is important to note that brokers can charge whatever they want to for their services. Of course, since the number of brokers in the residential real estate market has steadily increased to the point where it is impossible to count how many there are, a number of industry standards have formed and become unofficial guidelines for how and what brokers will charge.
Who Pays The Brokers? Mortgage brokers get paid from multiple sources, and the most notable and substantial are the borrower and the lender. Since the broker’s responsibility is to act as liaison and intermediary between the lender and the borrower, he is entitled to payment for such services. The borrower will pay the broker for assisting with completion and submission of the loan application paperwork, negotiating the best possible rates and contract provisions with the lenders, and acting as an independent resource for any and all questions or concerns. The lender will also pay the broker for assisting the borrower with paperwork, fielding all questions and concerns, and for negotiating with the borrower.
The borrower will pay the broker with cash for the loan application paperwork, and then points for other services rendered, an amount which will be satisfied at settlement and added to closing costs. The lender will pay the broker in the form of a flat commission for bringing new clients to that organization, plus something called a Yield Spread Premium, which is the difference between the lender’s required interest rate and the one the broker convinced the borrower to accept.
Points Paid to Broker A point is equal to 1% of the total loan amount, and different brokers will charge different amounts of points, usually based on the complexity of your loan. It is very important to note that these points charged by brokers for their services are different from points paid directly to the lender in exchange for a lower interest rate (called Discount Points).
It is not difficult to see how working with mortgage brokers can present some significant expenses and additional concerns about the cost and quality of a loan. Brokers currently account for the largest majority of residential mortgage applications, and present buyers with an option that is very attractive, provided of course that the broker and his agency are reputable and experienced.
Since compensation methods for mortgage brokers are not regulated by any government entity, it is important to note that brokers can charge whatever they want to for their services. Of course, since the number of brokers in the residential real estate market has steadily increased to the point where it is impossible to count how many there are, a number of industry standards have formed and become unofficial guidelines for how and what brokers will charge.
Who Pays The Brokers? Mortgage brokers get paid from multiple sources, and the most notable and substantial are the borrower and the lender. Since the broker’s responsibility is to act as liaison and intermediary between the lender and the borrower, he is entitled to payment for such services. The borrower will pay the broker for assisting with completion and submission of the loan application paperwork, negotiating the best possible rates and contract provisions with the lenders, and acting as an independent resource for any and all questions or concerns. The lender will also pay the broker for assisting the borrower with paperwork, fielding all questions and concerns, and for negotiating with the borrower.
The borrower will pay the broker with cash for the loan application paperwork, and then points for other services rendered, an amount which will be satisfied at settlement and added to closing costs. The lender will pay the broker in the form of a flat commission for bringing new clients to that organization, plus something called a Yield Spread Premium, which is the difference between the lender’s required interest rate and the one the broker convinced the borrower to accept.
Points Paid to Broker A point is equal to 1% of the total loan amount, and different brokers will charge different amounts of points, usually based on the complexity of your loan. It is very important to note that these points charged by brokers for their services are different from points paid directly to the lender in exchange for a lower interest rate (called Discount Points).
It is not difficult to see how working with mortgage brokers can present some significant expenses and additional concerns about the cost and quality of a loan. Brokers currently account for the largest majority of residential mortgage applications, and present buyers with an option that is very attractive, provided of course that the broker and his agency are reputable and experienced.