While you’re standing in line this Black Friday, why not apply for a refinance or a new home loan? It’s the perfect time. You’re out looking for bargains, why not save on your mortgage on Black Friday?
Standing in line in the cold tonight, imagine what you could do with thousands of dollars in savings over the course of your mortgage! With a refinance from The Home Loan Expert, Ryan Kelley, you don’t have to imagine – we make it happen. Saving money on your mortgage is easy.
Today’s low interest rates and rising home values are creating a perfect storm, allowing for homes to be refinanced at higher values, but with lower interest rates. What does this mean for you? It means that any of our loan programs can save you money.
See a HARP refinance, for example. The Home Affordable Refinance Program, or HARP, has been a HUGE source of refinancing loans for our clients. It has allowed us to refinance homes for thousands of clients, helping them achieve their goals, whether they want to lower their payments, lower their commitment in term of years, or simply lock into a fixed rate. HARP loans are a federal program that allows home owners that have their loans through Freddie Mac and Fannie Mae to obtain a newer, more affordable home loan through HARP, helping them to keep their family in their home. Refinancing with a HARP loan is easy, with the systems that we have in place it is simply most streamlined process in the industry.
The HARP Loan program was originated in March, 2009 by the Federal Housing Finance Agency to help home owners that may be underwater or behind on their loans, families that were in danger of being foreclosed upon and unable to get out from under the loans because of the dropping home values caused by the massive market correction. However, this seemed unfair to those who had been current on their loans, and were making payments on their homes, despite the high rates.
HARP 2.0 then followed, allowing those borrowers who weren’t underwater on their loans to refinance at these more favorable rates, in December, 2011. The requirements also loosened, allowing those who owed more than 125% to refinance without getting Private Mortgage Insurance. The mortgage lender was now guaranteed to not be held for fraud on the original loan, which led to more lenders signing up for the program. More often than not, we close HARP loans without even needing an appraisal at all.
You can also use FHA for your refinance. We do a TON of FHA loans. In fact, nobody in the country closes more FHA loans than we do, but what exactly does that mean? An FHA loan is actually a mortgage loan backed by the Federal Housing Administration’s mortgage insurance. They are a federally assisted program that allows families to move into a home with minimal down payment. Currently, all that’s required to purchase a home is a 3.5% down payment.
The program goes back to the Great Depression and was initially intended to both provide banks with insurance and help homeowners and new buyers when the rates of foreclosures and loan defaults were steadily increasing. FHA now works primarily for those that can’t afford a down payment, or won’t qualify for private mortgage insurance (PMI). Essentially it’s an insurance policy that guarantees the loan. We also use FHA for refinancing as well. Half of the refinancing done now is through FHA. It allows you to borrow up to 97.5 percent of the value of the house as opposed to a maximum of 90-95% for a conventional loan.
FHA rates are also lower than traditional loans. It’s the same rate depending on credit score or amount or percent. A conventional loan has “adjusters” on the loan, changing the rates and percentages. We actually underwrite FHA in house, as we are a Direct Endorsed FHA Lender. Most companies, particularly those that gave up their FHA endorsement status during the early 2000’s when they weren’t being used extensively, have issues becoming an approved FHA lender again, while we maintained our FHA status so that we could continue to underwrite and close FHA loans.
Our process for home loan approval allows us to quickly process and approve FHA loans for families, giving them a way to move into their dream home and establish their lives.
While you’re fighting through the crowds to save money on your Christmas presents, think about saving thousands of dollars. You can also skip a couple of payments after a refinance with The Home Loan Expert, Ryan Kelley.
Call The Home Loan Expert Team in St. Louis at (314) 781-9700, Chicago at (773) 770-4727, Indianapolis at (317) 550-1515, Nashville at (615) 810-8555 or Birmingham, AL at (205)721-7656. You can always apply online at hero.loan for your VA Loan, and www.thehomeloanexpert.com for your other mortgage needs, and we’re also open on Saturdays and will come to you to help close your loan. We work hard to make it easy on you. Nobody gets lower rates on better loans than The Home Loan Expert, Ryan Kelley, why go anywhere else?