There are a lot of mortgage companies out there.  While using a mortgage company to help you find the best rate makes sense, it’s important to select the right company.  Here are a few tips for selecting a good mortgage company for your needs:

  1. Be careful of special promotions that have hidden fees. Many of the deals you may see on television or in the papers may try to win your business with an extremely low rate, but once you factor in all the hidden costs, you’re not saving at all!
  2. Be sure you know each fee up front and what it is for. As touched on in point #1, some companies may tack on additional costs that are not disclosed right away. A good company will make all of this information readily available to you.
  3. Be aware of application and appraisal fees. Some mortgage companies charge huge amounts for these but don’t really offer anything to justify the cost. Track down the best service at the lowest cost.
  4. Service is the most important factor when considering a Navarre Mortgage Company. Unfortunately there are some companies that are committed more to their bottom line than they are to their customers.  You should choose a mortgage company that will take the time to get to know you and your needs, and formulate a plan that works for you!

We will do whatever it takes to become your Navarre Mortgage Company. Let us answer your questions and win your trust by calling us at 850-936-0422 today!


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Should you use a broker?

Obviously, the goal is to find the most competitive interest rate available.  Unfortunately, not everyone knows how to go about this. More than 50% of homebuyers tend to accept the first rate their bank offers!

Not only does that mean most of them are settling for the first rate given, but that the majority of them are not using a broker.

A Navarre Mortgage Broker is a certified professional who seeks the best mortgage terms for you through their access to a network of lenders including banks, trust companies, credit unions and finance companies. These resources provide the broker with rates on almost a daily basis. They will then sift through to find the best rate available to you.  Most importantly, they will save you the laborious and sometimes undignified task of approaching the various lending institutions yourself.

If we can be of any assistance in finding the best rate for your Navarre Mortgage please give us a call at 850-936-0422 so we can explore your options today!


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When should you decide to refinance your mortgage?  That depends on a number of factors.  Right now may, or may not be the best time in history to make this decision, but predicting this move perfect would require a bit of psychic ability on your part.  Many experts recommend that if you find a good deal that saves you a significant amount of money, it’s probably worth taking the deal rather than waiting to beat it.

The three major factors are simple:

  • How much will you reduce your interest rate?
  • How much will you pay in closing costs?
  • How long do you plan on keeping the house?

The old rule was that you should refinance if you could get a rate two points lower than your current rate. Now, mortgage experts say to look into it if you can reduce your rate by even half a point. Many people decide that one full point is reason enough to look into your Navarre mortgage refinance options.  The longer you plan to keep the house, the smaller the reduction that will benefit you because you’ll have enough time to regain your closing costs.

If you are considering refinancing, we’d be happy to provide any assistance or advice you might need.  Just give us a call at 850-936-0422 today so we can explore your options.


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Navarre Mortgage Firm reports how credit scores can impact your mortgage or refinance rates, and what you can do to fix it.

FOR IMMEDIATE RELEASE

Navarre, FL – The refinance boom has lasted 7 months thus far, and rates have been falling since early April of this year. Recent news from sources like myFICO.com and NBC’s The Today Show point out how your credit score may impact your refinance rates and what you can do about it. The FICO scoring system is used by credit companies to determine a potential client’s creditworthiness. Whether you’re looking for a Navarre Refinance or are planning on buying a home and need a Navarre mortgage, you need to know if you will qualify for the low rates available today.

To put the low rates within reach, Navarre mortgage lenders look for strong credit, good income and equity.  The three work in conjunction to judge which refinance rate you qualify for.  Although you may not have immediate control over salary and equity, you can do something about your credit score.
On NBC’s The Today Show segment titled “Is your credit score hurting refinancing?” we are given a few points on credit score basics:

•   There is no “quick fix” for credit. Time plus good credit equals better FICOs.
•   Don’t close old credit cards.
•   Pay every bill before it is due. A single late payment can damage your credit score.

The segment also advises to stop worrying about whether rates have bottomed out. Refinance your Navarre mortgage today if it makes good financial sense. If rates fall in the future, you are still able to refinance again in the future.
MyFICO.com has recently published some common financial issues and how certain actions can impact your score.

Maxing Out a Credit Card:
•   Initial Score of 780: 25-45 point drop
•   Initial Score of 680: 10-30 point drop

A 30-day Delinquency:
•   Initial Score of 780: 90-110 point drop
•   Initial Score of 680: 60-80 point drop

Foreclosure:
•   Initial Score of 780: 140-160 point drop
•   Initial Score of 680: 85-105 point drop

Since credit scores are meant to predict a loan default, the higher your score, the more a financial problem can drop your FICO. Financial advisors point out that you should be using 10-30% of your available credit, and if you’re considering a mortgage or refinance you should avoid opening new credit accounts.

Since improving your credit score is something that you can begin today, you should make the decision to talk to your Navarre Mortgage broker not only to start the process, but to seek out advice on how to obtain the target credit score you need in order to secure the best rates available in today’s market.

Each client’s Navarre Mortgage situation is unique and we will work together to develop plan that is best for you. Understanding how credit scores work is the first step. Visit //navarremortgage.com to find out more today!

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Recent news reports are bringing a great deal of interest in a new FHA program designed to help homeowners who are “underwater” on their mortgages. The new program modifies the Making Home Affordable program and the FHA’s own refinancing programs, allowing FHA lenders to offer FHA refinancing loans that forgive at least 10% of a qualifying borrower’s original mortgage principal.

These loans are for home owners making payments on a conventional or sub prime mortgage for a property not worth as much as the borrower owes on the original loan (also known as a “negative equity position”.) To qualify, applicants must owe at least 15% more on the property than it’s actually worth.

According to a press release by the FHA, the program is “designed to maintain home ownership by providing borrowers, who owe more on their mortgage than the value of their home, opportunities to refinance into an affordable FHA loan.”

The new program offers important help for those who qualify—ten percent a respectable amount of money to have taken off any amount owed on a mortgage—but the Department of Housing and Urban Development reminds potential borrowers that this particular refinancing program is only for those who are current on their mortgage payments.

There are other FHA requirements for this refinancing loan, including residency—the borrower must be living in the home being refinanced as their primary residence. The borrower must qualify with a credit score of at least 500.

It’s also important to know this FHA program is designed for homeowners with conventional or sub-prime loans. It is not intended for borrowers with FHA mortgages. There is also a time limit on this program; qualified borrowers may apply for refinancing for loans with case numbers issued on or after September 7th 2010 and closed on or before the end of 2012.

This refinancing program can help homeowners avoid default and foreclosure on an existing conventional or sub-prime mortgage, but FHA requirements for lenders include a warning that borrowers should be aware of: the FHA requires lenders to inform applicants that this loan forgiveness program may, “be reflected as a negative feature on a borrower’s credit score.” The FHA also advises borrowers to check with a tax professional to learn what tax implications might come with having 10% or more of the original home loan amount forgiven.


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The best time to refinance a mortgage is determined by a confluence of a two key factors: bettering your mortgage terms, and lowering the cost to borrow. It’s that simple. If you are not bettering your mortgage terms for you and you are not lowering the cost of borrowing when you look at the whole picture, you should not refinance.

Bettering Your Mortgage Terms

There are several ways to get better mortgage terms for you. So part of the decision to refinance a mortgage depends on what it is that you want to refinance to accomplish. Here are some typical ways people better the terms of their mortgage:

  • Eliminating PMI. Private mortgage insurance goes away once you owe less than 80% of the value on your home. If you can show that the value of your home is greater than what you owe putting you under the 80% mark when you refinance you save the PMI which is a monthly cost that can be significant. Typically when all costs are considered home owners pay about 12% to have private mortgage insurance rather than pay off that amount of the loan.
  • Shortening the payoff period. The payoff period is usually part of the label you were quoted for your mortgage. The most common are the 30 year and the 15 year mortgage. The fewer years you have your mortgage the cheaper it is for you in interest. The reason is a 15 year mortgage is usually a lower interest rate, and more importantly, you pay the interest for a shorter time. Even if your payment goes up, you are saving money over the long haul.
  • Lowering your monthly payment. This does not always mean the mortgage is a better deal for you. You could lengthen the term of your mortgage and get a lower payment, but it will cost you more in the long run. However, if you can keep the term of your mortgage the same, and still lower payments then the terms are better for you. Or, if you simply can no longer afford to make the payments then even if it costs you more in the long haul on the mortgage, it will save you big time on your credit score and eliminate loss of equity through foreclosure.

Lowering the Cost of Borrowing

  • Lowering the percentage rate. The most basic reason to refinance is the market has lowered the rate you can get on your loan by at least a percentage point. If the APR (annual percentage rate) of your new loan is lower than the lending rate on the old, you should refinance. The APR takes into account the closing costs of the mortgage as part of the interest rate. Don’t compare APR to APR since you already paid the closing costs on the current mortgage, you can’t save any money on that.
  • Preventing foreclosure. The costs of foreclosure are difficult to quantify for each person. However, if there was any equity in the home you lose all of those years of payments into that equity. Further, your FICO score will plummet making it hard not only to buy a new home, but even to rent a good one in many locations. Many landlords now require a credit screening and will not rent to people who have recently defaulted on financial obligations. This doesn’t take into account the costs of personal dignity, respect, and reputation in a community.
  • Leveraging debt. In rare occasions, holding onto a mortgage saves the person more than paying it off. If there are investment vehicles that consistently pay a higher percentage than the APR on the mortgage then it is worth considering refinancing your home to get equity out and reinvesting in solid, low risk investment vehicles that leverage the debt in the home.

Dave Ward is a real estate investor, professor, and freelance writer. As the author of When to Refinance Rule of Thumb he believes consideration of a few key factors can help any homeowner make an informed decision on the best times to refinance their home.


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By Robbie T. James

Applying and qualifying for a home loan is something that you want to try to time as well as you can. Most mortgages are 30-year, fixed-interest loans. This means that the day you apply for the loan and receive an offer for a particular rate is a very important one; this rate will affect your pocketbook for a long time to come.

When looking to refinance a home mortgage or to move into a new home, it is understandable that you would want to make sure you are getting it right in terms of timing. It would be an unfortunate situation if either:

a. you waited an extra month, only to find that rates had started to climb back up, or, at the other extreme,

b. you signed the papers for a new mortgage loan today, only to learn that a month or two later the rates dropped even more

Every smart homeowner (or homeowner-to-be) understands that getting the lowest rate is desirable. But, timing the mortgage interest rate market accurately is no easy task.

If you are interested in a mortgage rates forecast, here 5 tips to help you get the best rate:

1. Fixed mortgage rates reflect ongoing changes in Treasury note yields:

It is helpful to learn how mortgage rates are determined. In the case of fixed interest rate mortgages, the daily change upward or downward in available interest rates is directly influenced by the yield on something called a Treasury note (or T-note). Reason: T-notes and mortgages are two of the safest-possible investments a person can make, with T-notes being slightly less risky.

2. Adjustable-rate mortgage rates reflect changes in the fed funds rate:

Similarly, adjustable rate-mortgage rates are directly influenced by the fed funds rate, which is the interest rates that banks use to give each other short-term loans.

3. Nobody can predict mortgage rates:

Clearly, both of these factors (T-notes and fed funds rate) are outside of the control of any single market player or investor, making it impossible to predict or influence future trends in interest rates.

4. A good indicator for where rates are going is to look at historical trends:

However, you do have the ability to remain informed about the significance of today’s interest rates by looking at how they trend over time. Have a look 1-month, 3-month and 1-year rate trends and see how today’s rate compares. You can at least get a sense of where the rates are today, which can help you make an informed decision about when to apply.

5. Remember an additional layer of influence you have:

All of the discussion thus far has addressed average interest rates. However, the rate for which you qualify is also a function of the individual lender with whom you apply, as well as your credit score. Be sure to apply to at least 5 lenders before deciding upon one, in order to get yourself the best rate.

As you look for a mortgage rates forecast, consider these 5 tips for qualifying for the best-possible rate.

Article Source: //EzineArticles.com/?expert=Robbie_T._James


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