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4/26/2017

Update Your Mortgage to Lower Payment

#sunflowers smile at you from my garden

A post Caroline Gerardo (@carolinegerardo) on

In the 1970's my sister Nori and I shared a pink and green bedroom
I don't have photographs of the wallpaper but below is close.
Do you feel stuck in a mortgage of the past?
Interest rates took a little dip back in time this week.
Call for a tune up. Perhaps we can erase your mortgage insurance
and lower your monthly payment. Discover the savings, for free
Refinance that flower power paper into jet fuel of today

Caroline Gerardo
NMLS 324982


(949)   784-- 9699

carolinergerardo @ eaglehm .com
Avocado green maybe not coming back?

New Fannie Mortgage Rules on Student Loans

 Student loan payment calculation – Fannie  simplified guidelines on student loans. If a payment amount is provided on the credit report, that amount can be used for qualifying. If the credit report does not identify a payment amount or reflects $0 the lender can use either 1% of the outstanding  balance or a calculated payment that will fully amortize the loan based upon documentation of loan repayment terms.

Revised Guide for Student Loan Obligations:. 
                                                                                                Student Loan Obligations mortgage rules
Student Loans in normal repayment status
Fannie Mae
Freddie Mac
FHA TOTAL SCORECARD/MANUAL
VA

 payment amount provided on the credit report

 If the credit report does not identify a payment amount or reflects $0 use either
  1% of the outstanding  balance or
 Calculated payment that  fully amortizes the loan based upon documentation of loan repayment terms.

Use the payment indicated on the credit report
    IF no monthly payment is reported on the credit report or no documentation in the credit file verifying the monthly payment, 1% of the outstanding loan balance is monthly amount for qualifying purposes.
Payment used is: 
 the greater of
·         1% x the outstanding balance, or
·         The monthly payment on the credit report

OR actual documented payment, provided the payment fully amortizes the loan over term. Obtain written documentation of actual monthly payment, the payment status, and outstanding balance and terms from the creditor.
Greater of credit
report payment or
5% x balance/12,
unless you can
prove the credit
report payment is the actual loan terms (fully amort. pmt).
Proof must come
from student loan servicer and be no more than 60 days old.



Student Loans in Deferred or Forbearance Status
Fannie Mae
Freddie Mac
FHA TOTAL SCORECARD/MANUAL
VA
Same as above
          Same as above

Same as above
No payment required if deferment period is
at least 12 months beyond date of closing.

If less than 12 months left of deferment calculate using greater of credit report payment or
5% x balance/12, unless you can prove the credit report payment is the actual loan terms (fully amort. pmt).
Proof must come from student loan servicer and be no more than 60 days old.




Student Loans under Income Based Repayment Plans

Fannie Mae
Freddie Mac
FHA TOTAL SCORECARD/MANUAL
VA
         Same as above
        Same as above

Same as above
Greater of credit report payment
or
5% x   balance/12, unless you can prove the credit
report payment is the actual loan terms (fully amort. pmt).
Proof must come from student loan servicer and be no more than 60 days old.




Excluding Debts Paid by Others – Other party isn't obligated on the debt. Non-mortgage debt if paid by another party for 12 months can be excluded from the borrower’s debt to income ratios Need: most recent 12 months’ cancelled checks (or bank statements) from the other party documenting a 12–month satisfactory payment history. No delinquent payments for that debt in order to exclude it from the borrower’s debt-to-income ratio.  Other party cannot be a party to the transaction. Non-mortgage debts include installment, revolving, lease payments, alimony, and child support.


Cash out refinance paying off off student loan(s) loan level price adjustment for out refinance transactions waived when all requirements have been met. At least 1 student loan must be paid off.  Loan proceeds must be paid directly to student loan servicer.   Lesser of 2% of $2000 cash back over and above the student loan payoff.  

Properties Listed for Sale – Fannie Mae eliminating the eligibility restriction for cash out refinances when the subject property was listed in the past 6 months. Property must be taken off the market on or before the disbursement date of the new mortgage.


Expiration of PERS – Final Project Approvals for streamline PERS submissions will be issued up to 24 months at Fannie’s discretion. Currently the term is 18 months.

Caroline Gerardo
NMLS 324982
https://carolinegerardo.eaglehm.com/ 

949  784-  9699   cell

I have a box full of Nancy Ann Story book dolls if anyone wants them contact me.
Most in boxes never opened

4/15/2017

How To Cancel Mortgage Insurance MI

How to cancel Mortgage Insurance
also known as MI and PMI


There are a number of misconceptions. Don't assume that MI payment falls off. Although some are tax deductible (don't forget when you file you taxes!!) no one likes to pay for insurance that doesn't give them anything.
Contact your loan servicer: ask for copy of promissory note if you don't have it
You must request the cancellation of MI in WRITING, 
a phone call doesn't legally start the process and some servicers may not give 
you correct information this is why you need the note.
A trusted mortgage banker can read the ins and outs of the note for you for free.
You don't need an attorney, but make sure you know your rights.

Must have 75% ltv (loan to value) seventy five percent or less first 2-5 years.
Almost all require 2 years to use current appraised value.


Mortgage lenders/investors will typically permit the cancellation of private mortgage insurance (private MI), when you have equity in the home. the Mi was placed to protect the lender in event of default (if
you went into foreclosure the insurance pays the lender somewhere between 18 and 25 percent of loan, depending on what you set up at the start.

Because MI insures a lender, the MI company- Names of some not all: MGIC   Genworth Mortgage Insurance Corporation MGIC Mortgage Guaranty Insurance Corporation PMI PMI Mortgage Insurance Co PMI Insurance Co  and PMI Mortgage Assurance Co  UGI  United Guaranty Residential Insurance Company and United Guaranty Mortgage Indemnity Company  RMIC  Republic Mortgage Insurance Company   Republic Mortgage Insurance Company of North Carolina    Triad Triad Guaranty Insurance Corporation  Essent Essent Guaranty

MI company cannot cancel MI coverage. Contact your lender and servicer and have them request cancellation.
If mortgage payments are made on time and you have enough equity in your home, cancelling your MI shouldn't be difficult at all. 
You may be able to get a cash refund.

Cancellation based on original value According to the Homeowners Protection Act of 1998 (HPA), ask your lender to cancel mortgage insurance when the mortgage balance reaches 80% of your home’s original value, either because: – You’ve made all of your scheduled payments or – You’ve made extra payments to reduce the principal balance ahead of schedule In addition to your good payment history: – 

Your property value must be at least the same as its original value and – There are no subordinate liens on your property If you meet these requirements, your lender must cancel the mortgage insurance on your loan. Cancellation based on current value 

You can also ask your lender to cancel mortgage insurance based on your equity due to your home’s value appreciating. (This scenario is not covered under the HPA, and lender/investor requirements may vary.) In addition to your good payment history: – If your mortgage is at least 2 years old but less than 5, you generally need at least 25% equity in your home – If your mortgage is more than 5 years old, you typically need at least 20% equity – Your lender will typically require an appraisal to verify your home’s value Your lender may have additional requirements. 
Automatic cancellation: According to HPA, your lender cancels mortgage insurance when: – You reach 22% equity in your home based on the original property value and – Your mortgage payments are current. Note there are lawsuits with homeowners against servicers who did not do this in a timely manner. I don't endorse the trust them scenario.

Homeowners Protection Act of 1998 –  effective in 1999 – establishes rules for automatic termination and borrower cancellation of private mortgage insurance (PMI) Law applies to loans closed after July 29, 1999 for the purchase, initial construction, or refinance of a single-family home. These protections do not apply to government-insured FHA or VA loans or to loans with lender-paid PMI.

For home mortgages signed on or after July 29, 1999, your PMI must – with certain exceptions – be terminated automatically when you reach 22 percent equity in your home based on the original property value, if your mortgage payments are current.
Your PMI also can be canceled, upon your request – with certain exceptions – when you reach 20 percent equity in your home based on the original property value, if your mortgage payments are current. One exception is if you have not been current on your payments within the year prior to the time for termination or cancellation. Another is if you have other liens on your property. A third is the property cannot have declined in value from the original value. For these loans, your PMI may continue. .
If your home loan opened before July 29, 1999, (frankly few are that old, most were sold or paid)  ask to have the P M I  or MI canceled once you exceed 20 percent equity in your home. No federal law requires your lender or mortgage servicer to cancel the insurance, but write the letter anyways. The savings could be great

Caroline Gerardo 
NMLS 324982

949- 784- 9699