Your Phoenix Realtor - Experienced Buckeye Short Sale and Foreclosure Realtors » Foreclosures Phoenix http://www.westvalleypros.com West Valley Pros serves the Phoenix, Arizona's West Valley. Specializing in the Buckeye Short Sale and Foreclosure Markets. Wed, 23 Jun 2010 20:28:58 +0000 en hourly 1 http://wordpress.org/?v=3.0.1 What is the differences between all these different mortgage terms? http://www.westvalleypros.com/2009/08/what-is-the-differences-between-all-these-different-mortgage-terms-3/ http://www.westvalleypros.com/2009/08/what-is-the-differences-between-all-these-different-mortgage-terms-3/#comments Sun, 09 Aug 2009 16:42:56 +0000 admin http://www.westvalleypros.com/2010/01/what-is-the-differences-between-all-these-different-mortgage-terms-3/ I am looking into different mortgage.
Get very confused by so many different kinds of them.
What are the differences?

If we are planning to get a 300K mortgage, and planning to stay in the house for at least 5 years.
What mortgage might be good for us?

30yr fix
5/1
7/1
why there is 5/1 ARM?? What is the different between all these?

thank u

30 yr fixed is usually safest for the long term because your interest rate and payments remain the same (you can always pay down principal early to reduce total interest and number of payments, as long as you avoid a prepayment penalty).

The 5 or 7 year ARM resets after that number or years which could end up at higher cost and higher payments varying each year after that, depending upon interest rates at that time. The reason for the current mortgage mess is that people who could barely afford the initial rates did not realized how much a 3-4% interest rise would affect payments they could no longer afford. They expected to sell or refi by then, but rising interest rates and dropping property values made that impossible.

]]> http://www.westvalleypros.com/2009/08/what-is-the-differences-between-all-these-different-mortgage-terms-3/feed/ 4 How does a mortgage holder get out of PMI payments on their mortgage loan? http://www.westvalleypros.com/2009/08/how-does-a-mortgage-holder-get-out-of-pmi-payments-on-their-mortgage-loan/ http://www.westvalleypros.com/2009/08/how-does-a-mortgage-holder-get-out-of-pmi-payments-on-their-mortgage-loan/#comments Sat, 08 Aug 2009 16:42:57 +0000 admin http://www.westvalleypros.com/2010/01/how-does-a-mortgage-holder-get-out-of-pmi-payments-on-their-mortgage-loan/ Seems to me that PMI is very costly for the home owner, especially me with a perfect credit rating and new funding source to maintain a mortgage if I lose my job (my job is very secure). Please any suggestions on how to get the PMI waived by the mortgage company.

PMI protects the lender in case your loan goes into default. The only way to have it removed is when you owe less than 80% of your home’s value.

]]> http://www.westvalleypros.com/2009/08/how-does-a-mortgage-holder-get-out-of-pmi-payments-on-their-mortgage-loan/feed/ 7 How do you find various characteristics of a mortgage? http://www.westvalleypros.com/2009/08/how-do-you-find-various-characteristics-of-a-mortgage/ http://www.westvalleypros.com/2009/08/how-do-you-find-various-characteristics-of-a-mortgage/#comments Fri, 07 Aug 2009 16:42:58 +0000 admin http://www.westvalleypros.com/2010/01/how-do-you-find-various-characteristics-of-a-mortgage/ I need to know how to calculate the value of a mortgage from the asking price when you pay a 15% down payment. I also need to know, given a 3.5%/year interest rate over 15 years, how to calculate the equivalent interest rate per month and the monthly mortgage payment

Hey Brynn,

Try a real estate site. Or ask a mortgage person or realtor.

No way to calculate payments w/o a purchase price.

Good luck.

]]> http://www.westvalleypros.com/2009/08/how-do-you-find-various-characteristics-of-a-mortgage/feed/ 4 How exactly do ‘interest only’ mortgage loans work? When do I pay on the principle of such a loan? http://www.westvalleypros.com/2009/08/how-exactly-do-interest-only-mortgage-loans-work-when-do-i-pay-on-the-principle-of-such-a-loan/ http://www.westvalleypros.com/2009/08/how-exactly-do-interest-only-mortgage-loans-work-when-do-i-pay-on-the-principle-of-such-a-loan/#comments Thu, 06 Aug 2009 16:42:58 +0000 admin http://www.westvalleypros.com/2010/01/how-exactly-do-interest-only-mortgage-loans-work-when-do-i-pay-on-the-principle-of-such-a-loan/ I know APR loans are a bad idea, but how would an interest-only loan work? Would it still be a 30 year note, or do they extend the loan? Would I be able to get a fixed rate with an interest-only mortgage loan?

In an interest-only loan or mortgage the borrower only pays interest each month. This makes it cheaper than a conventional mortgage, in which part of each month’s payment goes towards the principal and part goes towards interest. These loans have become popular because the monthly payments are lower, allowing borrowers to afford a larger home.
However, these loans can be dangerous, especially in a down housing market. The interest rates are generally fixed for the first 1, 3 or 5 years. After that, they convert to a conventional loan, with a higher monthly payment. Most borrowers take on these loans because they assume they will sell the home before the interest rate increases. In a down market, they may not be able to sell. If they cannot afford the increased payment, they may have to default on the loan, and foreclose on the home. So, when the rate starts to adjust, you would need to refinance again. And, either get a fixed or another interest only adjustable. And, yes, I do believe you mean ARM. Although, if you have extra money every so often, you can pay down the principal in extra payments.

]]> http://www.westvalleypros.com/2009/08/how-exactly-do-interest-only-mortgage-loans-work-when-do-i-pay-on-the-principle-of-such-a-loan/feed/ 5 How do I choose who to get my mortgage through? Major banks or smaller mortgage companies? http://www.westvalleypros.com/2009/08/how-do-i-choose-who-to-get-my-mortgage-through-major-banks-or-smaller-mortgage-companies/ http://www.westvalleypros.com/2009/08/how-do-i-choose-who-to-get-my-mortgage-through-major-banks-or-smaller-mortgage-companies/#comments Wed, 05 Aug 2009 16:42:59 +0000 admin http://www.westvalleypros.com/2010/01/how-do-i-choose-who-to-get-my-mortgage-through-major-banks-or-smaller-mortgage-companies/ I have an established relationship with Bank of America however there are several other smaller banks and lenders out there with better rates. What happens if you get a mortgage through a smaller bank or lender and they go bankrupt or get bought out by another company? Does it affect your mortgage rate? Is that the chance you take or is the rate locked in no matter what?

Understand that smaller banks write loans just as do mortgage brokers. Shortly after you take the mortgage, it will be sold off to another mortgage company. If you want to keep that loan ‘in house’ expect to pay higher interest rates.

In any event, once you take a fixed rate mortgage, the contract is guaranteed at the rate and terms specified in the mortgage contract, no matter in whose hands it ends up.

The idea is to shop for the best rate and terms you can find. It makes no difference with whom the contract ends up. Be very careful, however, of suspicious low rates. You may well find that such rates require you to pay ‘points’ upfront to get a lower rate. Check all the fine print, including all origination fees.

]]> http://www.westvalleypros.com/2009/08/how-do-i-choose-who-to-get-my-mortgage-through-major-banks-or-smaller-mortgage-companies/feed/ 3 How does mortgage interest work when dealing with tax returns? http://www.westvalleypros.com/2009/08/how-does-mortgage-interest-work-when-dealing-with-tax-returns/ http://www.westvalleypros.com/2009/08/how-does-mortgage-interest-work-when-dealing-with-tax-returns/#comments Tue, 04 Aug 2009 16:42:59 +0000 admin http://www.westvalleypros.com/2010/01/how-does-mortgage-interest-work-when-dealing-with-tax-returns/ How does a mortgage work when dealing with tax returns?

Do we get back all the interest that we pay off or a certain percentage?

Please provide backup in your answer.

http://www.irs.gov/publications/p936/ar02.html

]]> http://www.westvalleypros.com/2009/08/how-does-mortgage-interest-work-when-dealing-with-tax-returns/feed/ 2 How do you get the best mortgage deal? http://www.westvalleypros.com/2009/08/how-do-you-get-the-best-mortgage-deal/ http://www.westvalleypros.com/2009/08/how-do-you-get-the-best-mortgage-deal/#comments Mon, 03 Aug 2009 16:42:59 +0000 admin http://www.westvalleypros.com/2010/01/how-do-you-get-the-best-mortgage-deal/ We have been pre-approved by a mortgage company. The mortgage company has recommended a real estate agent. I am a little leary of going with this real estate agent, however, because, being a first time home buyer, I need a lot of guidance. I am afraid that, being tied to the mortgage broker, the real estate agent might not fight to get us the best mortgage deal (if it happens to be with a company other than the original mortgage broker’s).

How do you go about getting a good mortgage deal?

first of all, the real estate agent is not there to get you a deal on a mortgage – that is either your responsibility or the mortgage broker’s responsibility. The agent is there to put you in a house (show you houses, explain the offer/acceptance routine, be there at closing and walk you through the purchase process).

If you do not trust you mortgage broker to get you a fair deal, then you can start calling around to banks in your area and inquire about their rates. This means, however, getting a new pre-approval and starting from scratch on the mortgage. Being a first-time buyer, if you go this route, you are going to have to educate yourself regarding rates and points and buy-downs.

]]> http://www.westvalleypros.com/2009/08/how-do-you-get-the-best-mortgage-deal/feed/ 3 How to mortgage a home with no credit history? http://www.westvalleypros.com/2009/08/how-to-mortgage-a-home-with-no-credit-history/ http://www.westvalleypros.com/2009/08/how-to-mortgage-a-home-with-no-credit-history/#comments Sun, 02 Aug 2009 16:42:59 +0000 admin http://www.westvalleypros.com/2010/01/how-to-mortgage-a-home-with-no-credit-history/ How can one mortgage a home without any credit history? We don’t own any credit cards and credit is harder now to obtain than before. What kind of a down payment would we need?

Thanks!

creditreport.imess.net – try this service to boost you credit score before getting loan. After credit repair you can get the loan with minimal interest rate.

]]> http://www.westvalleypros.com/2009/08/how-to-mortgage-a-home-with-no-credit-history/feed/ 5 What is used to calculate the 31% for mortgage restructuring? http://www.westvalleypros.com/2009/08/what-is-used-to-calculate-the-31-for-mortgage-restructuring/ http://www.westvalleypros.com/2009/08/what-is-used-to-calculate-the-31-for-mortgage-restructuring/#comments Sat, 01 Aug 2009 16:43:00 +0000 admin http://www.westvalleypros.com/2010/01/what-is-used-to-calculate-the-31-for-mortgage-restructuring/ What is used to calculate the 31% for mortgage restructuring?
My actual mortgage payment is less than 31% of my monthly income, however, my mortgage plus escrow is greater than 31%. Which counts?

It’s mortgage plus escrow.

All a restructure would do for you is reduce it to 31%. What percentage are you at right now? If it’s something like 34-35% you aren’t going to save much money in a restructure. Is it really unaffordable or are you just going to try to save a few bucks at the expense of your fellow Americans?

good luck!

]]> http://www.westvalleypros.com/2009/08/what-is-used-to-calculate-the-31-for-mortgage-restructuring/feed/ 3 How much mortgage debt is there in the USA? http://www.westvalleypros.com/2009/04/how-much-mortgage-debt-is-there-in-the-usa/ http://www.westvalleypros.com/2009/04/how-much-mortgage-debt-is-there-in-the-usa/#comments Tue, 14 Apr 2009 16:53:12 +0000 admin http://www.westvalleypros.com/2009/04/how-much-mortgage-debt-is-there-in-the-usa/ Given all the worries about credit in this country, and subprime mortgages, I was curious as to what the entire amount of home mortgage debt is. There are about 110 million households in the country, with 70% of them owned residences. Let's say there are 75 million owned homes. Not all have mortgages, but if 70 million do, and the average mortgage amount on such homes is $200,000, that comes out to a scary $14 TRILLION of mortgage debt in the USA. If just 2% default, the amount of bad home loans is $280 billion. It could obviously be much higher.

Does anyone know what total mortgage debt is per household and in total? This is a real problem that could damage the economy.

I don't know the numbers, but it is an astronomical amount.

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