How Should You Make Biweekly Payments?

One tactic that we highly recommend for your mortgage is making biweekly payments. That’s what we are going to discuss today, and hopefully we will provide you with some insight as to why it’s such a good idea.
 
As soon as you put your mortgage in place, whether it’s for a new home or a refinance, you are going to get solicitation immediately from 3rd party companies asking you to set up a bi-weekly mortgage payment program. It is a great idea to do this, but there are some things I don’t like about some of the requests out there. 

If you only take one thing away from this post, it should be this: Do not pay any type of fee to set up biweekly payments. Whether it’s an up-front fee or a per-payment fee, paying $3 or $4 for each transaction is not a good deal.

If a lender contacts you and says they will collect your payment every  2 weeks and apply it towards your principle, that is a good program (as long as there are no fees involved).
 
Another way to accomplish this is by taking your monthly payment, dividing it by 12, and adding 1/12 of that monthly payment to each regular monthly payment, and you will substantially reduce your mortgage. You will be able to pay it off 6 years sooner by utilizing this technique.

These aren’t the only ways to achieve mortgage acceleration. If you want to know some more about how you can pay off your mortgage quicker, check out these links 

If you have any other questions for us, feel free to give us a call or send us an email. We look forward to hearing from you!

How the New TRID Guidance Will Affect You

TRID Frequently Asked Questions

TRID - The Closing Disclosure (CD)

TRID - The Loan Estimate (LE)

Today we'll talk about some new guidelines that will impact the mortgage and real estate industries: TRID and KBYO. TRID stands for Tila-Respa Integrated Disclosure. KBYO stands for Know Before You Owe. These new guidelines were put in place by the Consumer Financial Protection Bureau to help the consumer be more informed when you're doing a mortgage and real estate transaction.

TRID will be effective for applications beginning after October 3, 2015. The first big change will be with the paperwork. The good faith estimate and the truth in lending document will be combined in one document called the loan estimate. Not only does combining the documents keep the buyer more informed, but it also simplifies the process by creating less paperwork for the buyer to keep track of.

The next big piece of TRID is that you, the buyer, have to receive the final figures three full days before closing. If the figures are mailed to you, you have six days; three days for the mail, and three days for review. Right now, a lot of transactions come right down to the last minute. With TRID, there's no more last minute. You have three days to look over everything.
 
Lastly, when you get to the closing table, you will no longer get a HUD statement. Instead, you will receive a closing disclosure. The HUD settlement statement documents all the transaction figures: what the seller receives, what the buyer's costs are, and so on. The closing disclosure still informs the buyer, but it's easier to understand.

There's a lot of changes up ahead, and I'm sure you have some questions. Please feel free to give me a call or send me an email. I'd be happy to help you.

TRID Frequently Asked Questions

TRID - The Closing Disclosure (CD)

TRID - The Loan Estimate (LE)

The Next Big Digital Revolution

I've talked about it in past videos, but I can't stress it enough: the digital mortgage revolution is here!

Over at GuaranteedRate.com, my lender is now doing a 100% digital mortgage. The only part that is not digital is the closing of the loan. You'll receive $250 to apply online, a transfer-safe folder to upload all your documents, and regular status updates on your loan. Additionally, you can maintain communication with title companies and Realtors!

The entire mortgage process is now digital, making it more convenient than ever to get a loan! If you have any questions about it, or about mortgages in general, give me a call or shoot me an email. I would love to hear from you!

What Are Mortgage Rates Doing?

Welcome back everyone, for another visit with The Mortgage Doctor. Today let's talk about a big topic in the news: interest rates. They are rising, and today we're going to let you know what you can expect from them in the near future.

We have seen an increase in rates over the last 30-60 days that is likely to continue. The Federal Reserve has said they are going to increase the prime rate, which can have an effect on interest rates. 


However, this effect is purely emotional. Mortgage rates are actually driven by mortgage bonds, which are based on complicated factors in the stock and equity markets. It's too complicated to get into now, but just remember that the Federal Reserve isn't responsible for a rise in interest rates, and they won't go up immediately.

If you have any questions for me about interest rates and where they are going, give me a call or send me an email. Set an appointment with The Mortgage Doctor today!

Can You Use a Mortgage to Consolidate Debt?

  

Today I'd like to speak about consolidating debt. Some of my clients have asked whether or not they could use the equity in their homes to give themselves some breathing room in regards to their debts. There are a lot of different circumstances under which someone would want to do this, and owning a home is a great way to manipulate your cash flow. This is especially true in the low interest rate environment.

You really need to look at your home in the same way as a business owner. If you can increase your cash flow and reduce your expenses, you can restructure your life. If you're interested in doing something like this, then please give me a call and I'd be glad to give you a thorough analysis and consultation, all at no cost to you.

I look forward to speaking with you!

How to Stand Out in Omaha's Crowded Market

We're currently seeing a hot seller's market in Omaha. People are bidding on homes with multiple offers, and it's important for you to realize that if you're buying a home, the competition will be fierce.

One way to separate yourself from other buyers in Omaha is to become pre-approved for a mortgage loan. Most sellers won't even give your offer a second thought if they see you're not pre-approved.

Secondly, mortgage rates are set to increase this year, so your buying power will take a hit if you wait to buy a home. Rates are set to increase by at least 1% by the end of the year. Every day that you wait, it could be costing you thousands of dollars in mortgage payments. Now is the time to lock in a low interest rate!

If you need help getting approved for a mortgage, please don't hesitate to contact me. I would be glad to provide you with some advice on how to lock in a low rate.

What's Ease of Use When It Comes to Mortgages?

Today, we want to discuss a term that, surprisingly, many people aren't familiar with: ease of use. What does this term mean when applied to mortgages? 

Ease of use is just what it sounds like: it's a way to make communicating with The Mortgage Doctor, and managing your documents, much easier! You can now receive and sign documents electronically. Rather than stop by the office or risk sending sensitive documents through the mail, you can upload them online via Dropbox! I realize we're all very busy, and that ease of use will make the mortgage process smoother for you!

The goal is for ease of use to save you time, stress, and money! If that's how you like to do business, give The Mortgage Doctor a call or shoot me a quick email. I would love to hear from you!

How Can You Win a Multiple Offer Situation?

It's finally spring here in Omaha and the home buying market is heating up! If you're a homeowner, now is a great time to list your home if you want to get top dollar and sell quickly! Give The Mortgage Doctor a call if you're thinking about selling! I can get you introduced to a top Realtor in the area.

If you're a buyer in this busy market, getting pre-approved is a must. If you want your offer to stand out in a crowded market, a pre-approval is the first step! Many home sellers won't look twice at an offer that doesn't have a letter of pre-approval.

If you have any questions about these topics, or if you have any questions about the loan process, give The Mortgage Doctor a call! I would love to hear from you!

What's Better: FHA or Conventional Loans?

Are you looking to apply for a mortgage? Apply now 

With the spring real estate market warming up, I'm receiving a lot of questions about what type of home loan is right for you. There are a lot of different options out there, and I'll be explaining a few to you today.

The FHA loan is a good option because they have flexible guidelines and allows for a wider range of buyers to purchase homes. They're lenient with credit scores and will accept borrowers with debt-to-income ratios that are a little higher. This works for some people, but it's simply not for everyone.

Other conventional loans are good options, too. Fannie Mae and Freddie Mac have new products that only require 3%-5% down on a home loan. However, if you don't have the best credit score, this will be reflected in your interest rate. These loans focus more heavily on your credit score, so if you're building better credit, these may not be the right fit for you.

There really is no magic formula when it comes to finding the right loan program. Everyone's situation is unique, and will probably require a different loan program.

If you're looking to find a program to fit your needs, please don't hesitate to contact me. I can do a credit health check-up and find a loan program that will work for you!

Have You Heard of the USDA Home Loan?

Are you looking to apply for a mortgage? Apply now

Today I am going to be discussing the USDA Rural Home Loan program, which is a fantastic loan product that hardly anyone seems to be talking about.

This type of loan offers 100% financing, and requires a minimum credit score of 640. You can also include your closing costs in your final loan amount, and that is huge! 

Some of the catches to this loan are that it has more restrictive debt-to-income ratios and not every property is eligible for this loan type. This type of loan is only given to properties who fit certain population density requirements, and is aimed towards low to moderate income households.

However, the income requirements will differ by area, so be sure to speak with me if this type of loan product interests you. I am able to help with USDA Loans nationwide!

View this article for any additional information regarding USDA home loans.

Please don't hesitate to call and speak with me about this unique loan program. If you fit the criteria, it's really a great deal. Even if you don't fit the criteria, I'd still like to speak with you and figure out what type of home loan would be best for you.
 

Loan Advice for Self-Employed Workers

Are you looking to apply for a mortgage? Apply now 

 

For a more in-depth analysis to help you get a loan if you're self-employed view this great article. 

I recently received a very good question from a client, so today I am going to be speaking about how you can qualify for a loan if you're self employed. There are several reasons why it's harder for self-employed individuals to get mortgage loans.

1. Lending standards have simply gotten tougher. Ever since the market crashed a few years ago, it has been tougher to get approved for a loan.
2. There's a fine line to what you as a business owner report to the IRS for taxation purposes, and what you as an individual report as income so a mortgage lender can help qualify you for a loan. Self-employed individuals have a lot of expenses, and that reduces your income, which the IRS uses to calculate your taxes. 
3. You may not bring in revenue during your first year of business. This will cause issues when mortgage lenders require a 24-month average to calculate your income. This could create problems in reaching the standard income requirement if you have negative income one year. The most important thing here is to ensure that your income increases year-over-year.

The best advice I can offer to self-employed business owners trying to qualify for a loan is to speak with a mortgage lending professional such as myself, The Mortgage Doctor. We can discuss how you’re specific situation affects your ability to qualify for a mortgage. 

Please contact me with any questions you might have. I'm always willing to speak with you!

Information and/or data is subject to change without notice. This is not a commitment to lend or extend credit. All loans are subject to credit approval including credit worthiness, insurability, and ability to provide acceptable collateral. Not all loans or products are available in all states or counties.  ENG Lending and Bank of England are not affiliated with any government agency. ENG Lending is a division of Bank of England. NMLS 418481. Member FDIC.

How Can You Lower Your Tax Bill?

Are you looking to apply for a mortgage? You can simply apply by clicking this link to take you to the application. If you have any friends, family, or co-workers who are purchasing a new home or refinancing their existing home, please forward this email to them or reply back to this email with their contact information. I very much appreciate your referrals. I'll take excellent care of them!

 
It's just about the time of year everyone dreads: tax time! Are you prepared? If not, I've put together a list of things to think about before March 1 rolls around.

1. Plan for retirement. Did you contribute to an IRA? If you're eligible, make sure you get that taken care of before April 15.
2. Organize your taxes. Get your records, expenses, and last year's tax return in together and give them to your accountant.
3. Keep an eye on Washington. Congress can implement different laws that can greatly affect you when filing your taxes.
4. Itemize your expenses. You can take the standard deduction, but if you own a home or have un-reimbursed employment expenses, you have multiple items you can deduct to lower your tax bill.

If you have any questions, seek out a qualified tax accountant. I can help you pay the lowest amount possible on your taxes, and help take some of the stress out of the process.

 

Thanks, and I look forward to hearing from you soon!

Source: https://turbotax.intuit.com/tax-tools/tax-tips/Tax-Planning-and-Checklists/Tax-Tips-After-January-1--2015/INF12070.html

Information and/or data is subject to change without notice. This is not a commitment to lend or extend credit. All loans are subject to credit approval including credit worthiness, insurability, and ability to provide acceptable collateral. Not all loans or products are available in all states or counties.  ENG Lending and Bank of England are not affiliated with any government agency. ENG Lending is a division of Bank of England. NMLS 418481. Member FDIC.

Where Are Rates Heading in Omaha This Year?

Are you looking to apply for a mortgage? You can simply apply by clicking this link to take you to the application. If you have any friends, family, or co-workers who are purchasing a new home or refinancing their existing home, please forward this email to them or reply back to this email with their contact information. I very much appreciate your referrals. I'll take excellent care of them!

Hello, and welcome back to the best place to get local updates on the lending world! Today, The Mortgage Doctor will share his mortgage predictions for 2015! 

In 2014, the housing industry was on fire! Will the great trends continue? I think they will - in fact, I predict home values will continue to rise in the coming months! According to the National Association of Realtors, home prices increased an average of 11% in 2014! Since they increased significantly throughout the last year, I expect values to continue to rise throughout 2015!

What does all of this mean for you? 

For one, it's a pretty great time to buy or sell. Housing inventory may fall because of great market conditions in the Omaha area. If you want to find the right home while conditions are great, you need to work with a quality Realtor! They have an awareness of the market and will keep you informed so you can make the right decisions when buying or selling.

We're also predicting that home refinancing will slow down. A lot of people have taken advantage of these low rates already. Additionally, baby boomers won't be buying new houses this year - they'll be staying in their current ones, and have likely already locked in a low rate. If you haven't yet, give The Mortgage Doctor a call and he'll make it worth your time! 

Credit standards are loosening right now, which means many more people are eligible to purchase a home. However, this doesn't mean it's easy to do so. Lenders will still look at your debt-to-income ratio and credit score. Also, non-mortgage-related debt, such as student loans, are still a huge issue for many potential buyers out there.

Since we only briefly covered an array of topics, we encourage you to give us a call or shoot us an email if you have any questions. We would love to be your go-to mortgage resource in the Omaha area!

Source: http://www.housingwire.com/blogs/1-rewired/post/32554-guardian-mortgage-4-bold-predictions-for-housing By Marcus McCue

Information and/or data is subject to change without notice. This is not a commitment to lend or extend credit. All loans are subject to credit approval including credit worthiness, insurability, and ability to provide acceptable collateral. Not all loans or products are available in all states or counties.  ENG Lending and Bank of England are not affiliated with any government agency. ENG Lending is a division of Bank of England. NMLS 418481. Member FDIC.

What Exactly Are Your Loan Options?

Are you looking to apply for a mortgage? You can simply apply by clicking this link to take you to the application. If you have any friends, family, or co-workers who are purchasing a new home or refinancing their existing home, please forward this email to them or reply back to this email with their contact information. I very much appreciate your referrals. I'll take excellent care of them!

Today, the Mortgage Doctor is going to talk about a few questions we get on a regular basis regarding interest rates.

What are mortgage rates going to do?

Right now, mortgage rates are fantastic. If you're thinking about buying or refinancing a home, give me a call. We can give you a thorough analysis of where the market is at, so you can make an informed decision.

What type of loan programs are out there?

If you're looking for a loan, you have a lot of options. I do FHA, VA, USDA, conforming and jumbo loans, and lines of credit, among other loan programs. If you're thinking about buying or selling a house, give The Mortgage Doctor a call. I can explain the finer points of each loan program, so you can make the right decision for you and your family.

What states do you operate in?

Whether you have a sister in Florida, or a brother in California, it doesn't matter. I have a lot of flexibility and would love to give your loved ones, wherever they are, a competitive market analysis or anything else they may need help with.

If you have questions about your options, or if you have any general questions about the lending world, I would love to hear from you. Give me a call or shoot me an email and I'll take care of you. I look forward to hearing from you soon!

Information and/or data is subject to change without notice. This is not a commitment to lend or extend credit. All loans are subject to credit approval including credit worthiness, insurability, and ability to provide acceptable collateral. Not all loans or products are available in all states or counties.  ENG Lending and Bank of England are not affiliated with any government agency. ENG Lending is a division of Bank of England. NMLS 418481. Member FDIC.

3% Down Payment: New Program from Fannie and Freddie is Great News for Home Buyers

Are you looking to apply for a mortgage? You can simply apply by clicking this link to take you to the application. If you have any friends, family, or co-workers who are purchasing a new home or refinancing their existing home, please forward this email to them or reply back to this email with their contact information. I very much appreciate your referrals. I'll take excellent care of them!

Happy New Year everyone, and welcome back to the 2015 edition of our blog!

Fannie Mae and Freddie Mac have recently released some great news. They are stepping up to the plate to help first-time home buyers with a 3% down, 97% financing, program. Additionally, they are willing to be more flexible with credit scores and debt-to-income ratios. They are also now allowing down payments to be gifted by relatives to first-time home buyers applying for a loan.

This fantastic new program will allow first-time homeowners to get into the market now, while conditions are great. With home prices slated to rise in 2015, now may be the time to lock in a low rate. Renting is costing you more than it costs to own a home right now, so what's stopping you from exploring your buying options?

The Federal Housing Finance Agency (FHFA) has officially launched new lending guidelines that will enable the government-sponsored enterprises (GSEs) to offer 3% down-payments on mortgages. In a press statement released today by the FHFA, it was announced that these changes are now in effect.

“The new lending guidelines released today by Fannie Mae and Freddie Mac will enable creditworthy borrowers who can afford a mortgage, but lack the resources to pay a substantial down payment plus closing costs, to get a mortgage with three percent down,” said Matt Watt, Director of FHFA. “These underwriting guidelines provide a responsible approach to improving access to credit while ensuring safe and sound lending practices.“

Freddie Mac announced its new three percent down-payment change under the banner of “Home Possible Advantage.” Dave Lowman, executive vice president of single-family business at Freddie Mac, called the program a “responsible path to homeownership and lenders a new tool for reaching eligible working families ready to own a home of their own.”

Fannie Mae also announced the change, albeit without a special banner, though the GSE stressed that this should not be seen as a be-all/end-all solution.


“This option alone will not solve all the challenges around access to credit,” said Andrew Bon Salle, Fannie Mae’s executive vice president for single family underwriting, pricing and capital markets. “Our new 97 percent LTV offering is simply one way we are working to remove barriers for creditworthy borrowers to get a mortgage. We are confident that these loans can be good business for lenders, safe and sound for Fannie Mae and an affordable, responsible option for qualified borrowers.”

If you're interested in learning more about our market and the great programs out there for first-time home buyers, give The Mortgage Doctor a call. We would certainly love to hear from you!

Information and/or data is subject to change without notice. This is not a commitment to lend or extend credit. All loans are subject to credit approval including credit worthiness, insurability, and ability to provide acceptable collateral. Not all loans or products are available in all states or counties.  ENG Lending and Bank of England are not affiliated with any government agency. ENG Lending is a division of Bank of England. NMLS 418481. Member FDIC.