To Rent or To Buy?
We are currently assisting a borrower who is purchasing a duplex in northern Indiana that will see significant advantages once the transaction closes. The borrower, who is a single woman, had some credit issues, and had been on the fence about whether to purchase a property, or continue to rent. The borrower had good income and had money in the bank, but had been a bit sloppy in the handling of her debt over the years. We worked with her to get some collections and account disputes resolved, ....
The old reasons to buy a home in Indiana still apply today
Despite the turmoil that has affected the housing market over the last few years, there are a few enduring reasons that buying a new home now will continue to be a good investment. Here are a few: Mortgages are still cheap. Current interest rates for well qualified borrowers in Indiana for a 30-year fixed rate conventional mortgages are about 4.00%. These rates had been declining since December 2014, but are currently facing pressure, especially if inflation starts to increase. Owning a ....
Adjustable Rate Mortgages are Making a Comeback.
With interest rates rising on fixed rate conventional mortgages, 2017 may be a year to consider whether an Adjustable Rate Mortgage (ARM) is a suitable loan alternative. Fixed rate mortgages are currently at their highest averages in over two years, and the sharp run up in rates since the election has priced many potential home buyers out of the market. Adjustable Rate Mortgages, when compared to a fixed rate mortgage, offer lower rates and terms that certain homeowners may benefit from. Toda....
How To Finance A Fixer-Upper
In many home purchase transactions where the subject property is in need moderate repairs, borrowers, and their Realtors, find themselves in a Catch-22 situation - banks won't lend money to buy the house without the repairs being made, and the repairs can't be made until the home has been purchased. Enter HUD's 203 (k) Streamline Program. This loan will enable the borrower, with a down payment as low as 3.5%, to obtain financing that will cover the acquisition cost, plus the costs of making n....
National Fair Housing Alliance accuses Fannie Mae of Housing Discrimination
The National Fair Housing Alliance has filed a lawsuit, representing 20 fair housing organizations nationwide, accusing Fannie Mae of housing discrimination. Included in this petition is the Fair Housing Center of Central Indiana, alleging Fannie Mae has failed to maintain foreclosed homes in predominately black and Latino neighborhoods to the same standard as white neighborhoods in Indianapolis. Problem homes include issues of graffiti, missing gutters, water damage and trash. “We are ho....
Mortgage Industry Regulations Are Exerting Pressure On Home Prices
During the last several years, regulations imposed on the mortgage industry have restricted the availability of credit to many borrowers. I am not saying that the industry should not be regulated, but rather, that the types of regulation that are put into place need to be sensible, and they need to be fair to the various players in the mortgage business. The Federal Housing Finance Agency recently announced its plans to make more loans available for as little as a 3% down payment. This pledge....
Advantages of Using a Mortgage Broker Over a Direct Lender
Many times, potential borrowers wonder whether a broker or direct lender is the best choice while shopping for a mortgage. Here are some advantages of using Kertin Mortgage Group:
- Because we have low overhead, we can offer lower rates that direct lenders.
- We receive a fixed compensation amount for each transaction, based upon a percentage of the loan amount, regardless of the rates that borrowers choose.
- We are required to undergo strict licensing and testin....
My Community Mortgage Program
The My Community Mortgage Program is a great low down payment alternative to FHA loans. The my Community Program, which is offered by Fannie Mae, is a conventional loan program that offers flexible underwriting standards, and lower monthly mortgage insurance rates to qualified borrowers, when compared to FHA financing. Kertin Mortgage Group offers the program, with as little as 5% down payment (or 95% LTV on refinances). Using the 5% down/5% equity scenario, based upon a $200,000 loan, FICO....
Ever wonder how mortgage loan originators get paid?
The Dodd-Frank Bill, implemented after the real estate crisis in 2008, sets the framework for how mortgage brokers are paid. Understanding the process may help borrowers to assess how there can be a variance in the rates offered for identical home loan products. To provide a background, under these new regulations, borrowers receive a credit from lenders, expressed as a percentage of the loan amount, based upon the rate and program that they choose. For illustration purposes, let's suppose ....
The time is right to lock your mortgage rate
The Fed recently confirmed that it would conclude its Mortgage Backed Securities purchases in October, 2014. While the Fed has been tapering its purchases recently, its exit from the MBS market will reduce demand, and drive the price of Mortgage Backed Securities down. As we know, interest rates and bond prices have an inverse relationship, so when bond prices go down, interest rates go up. With that in mind, if you are in the real estate purchase market, or have an adjustable rate mortgage t....