DaveMully.com Mortgage Blog

If you are underwater or close to it,  you should get a free evaluation of your mortgage situation. A good Loan officer can evaulate your specific situation in less than 10 minutes to see if you qualify for the Fannie & Freddie Refi programs allowing up to 125% Loan to Value.  Call me if you would like a free evaluation 248.767.1950 or email info@davemully.com.

Thank you,

Dave Mully

Rates are holding steady these days. Not too far off from low point earlier this year. Good time to purchase or refinance. Contact me anytime for a free quote or pre-approval, 248.767.1950 or visit my personal website @  www.davemully.com

Thank you,

Dave Mully

Senior Loan Officer

Midtown Financial Services

Let me be the first to tell you (If you have not heard already), new Fannie & Freddie changes effective immediately. 

The mortgage process will be extended approx. 2 weeks (in most cases), due to the below 2 new changes designed to protect consumers: 

One:  We now cannot order an appraisal until 5 to 7 days after mortgage application. This alone adds a week to processing a mortgage. 

Two:  When a mortgage is ready to close, if there were any changes in rate, loan amount, fee’s etc. the TIL has to be re-disclosed to the borrower. This process adds another week before a mortgage can close. 

Without getting to technical, the above are the basics & will in most cases add 2 weeks to the process. Of course the changes are meant to help consumers from unethical lenders which we all applaud, but in reality it also will cost the consumer more money. 

We will have to lock rates for longer periods which cost the borrower (longer rate locks cost more). Also, in many cases longer mortgage process means added cost & may even cause purchase transactions problems with timing issues etc.. 

This impacts Purchases as well as Refinances. 

If you care for more specific details please do not hesitate to contact me. EDUCATE YOUR CLIENTS ON THIS SO THEY KNOW UPFRONT. 

Thanks--Dave 

David C. Mully

Senior Loan Officer

Midtown Financial Services

120 W. Main Street, Suite #206

Northville, MI 48167

Office: 248.465.6000 ext. 24

Cell: 248.767.1950 

eFax: 815.550.1656 

Email: dave@midtownfinancial.com

Website: www.davemully.com  

Serving Homeowners since 1988

Processing time these days for a mortgage application can vary greatly. Much of the time it takes is dependant on the circumstances surrounding your mortgage application. Is your property a second home? Is your property located in a rural area? Have you given all the required info. upfront at application to your loan officer?

The longest part of the process these days is getting an appraisal completed. This is now mandated to go thru the Bank's national vendors for the appraisal. This changed May 1st & has taken the loan officer away from controlling the speed in which this used to happen. Before, typically it would take less than a week to get an appraisal completed on your home. Now it can take up to a month depending on if your home is in a rural area where it can be difficult to obtain comparables by the appraiser.

Feel free to send me any questions on this topic or any topic @ dave@midtownfinancial.com or call me @ 248.767.1950.

Dave Mully

If your rate is 5.5% or higher now please read on.

In case you haven't heard the new Fannie Mae refinance program is out. Here are the basics to see if you fall into the guidelines for this program:

- 1st your current loan must be a Fannie Mae serviced loan. Call me & I can check it for you.

- On your last refinance or when you purchased the home you must have had 20% equity or a 80% LTV (no pmi insurance currently).

- Your new appraisal (we order) can be up to 105% of your current mortgage balance.

If this is the case please call me & I can see if this program will work for you.

FHA Max Loan Update from HUD as of Feb 25, 2009:

In Metro Detroit area the Max FHA loan amount has adjusted to $297,500 up from $271,050

Contact me for the most current rates available for FHA & VA rates

Going with an FHA mortgage has many benefits. It is the only mortgage program besides VA that allows a down payment of only 3 1/2%. Coneventional mortgages now require a minimum of 10% down payment. The interest rates are low for FHA & VA (contact me for latest rates). FHA also allows for you to qualify for a higher mortgage amount & have a lower FICO score (620) than conventional mortgages. One other benefit is you can negotiate up to 6% seller concessions which could lower your total cost to get into a home.

Dave Mully

Senior Loan Officer

Cell: 248.767.1950

info@davemully.com

www.davemully.com

Below is the latest info. on the new refinance program. If your home value is not where you need it to be contact me right away & I can walk you through this to find out if you qualify at no cost to you:

Dave Mully

Senior Loan Officer

Cell: 248.767.1950

info@davemully.com

www.davemully.com

If you are a homeowner who is current on your mortgage payments but unable to refinance to a lower interest rate because your home value has decreased, you may be able to refinance.

Do I qualify for a Making Home Affordable refinance? Answer these questions:

1. Is your home your primary residence?
2. Do you have a Fannie Mae or Freddie Mac loan? If you don’t know contact:
   • Fannie Mae,
     • 1-800-7FANNIE (8am to 8pm EST).
     • www.fanniemae.com/homeaffordable
   • Freddie Mac 
     • 1-800-FREDDIE (8am to 8pm EST)
     • www.freddiemac.com/avoidforeclosure/
3. Are you current on your mortgage payments?
   
   • “Current” means that you haven’t been more than 30-days late on your mortgage payment in the last 12 months.
4. Do you believe that the amount you owe on your first mortgage is about the same or less than the current value of your house?

This is the Government site on the new Refinance & Loan Modification programs: www.financialstability.gov