Karl's Mortgage and Related Info Site

 

When you refinance your existing mortgage, you are essentially paying off the existing mortgage debt and replacing it with a new loan. Many of the same costs are involved in refinancing a loan as are in first-time financing.

To start with, the lender will need personal information to verify employment for you and your co-borrower (if there is one). They will also need information regarding all of your debts and assets, including your existing mortgage.

In order to expedite the paperwork process, start gathering the following items:

• W2's from the last two years (For borrower and co-borrower, if you filed separately)
• If you are self-employed, bring signed copies of your last two year's tax returns, including all schedules that were filed, and a profit/loss statement or balance sheet for the current year
• Homeowner's insurance company name and number
• The original lender's contact information
• Most recent bank statements
• Most recent statements from 401ks, IRAs, mutual funds and securities accounts
• A copy of your current payment coupon for your existing loan, along with the outstanding mortgage balance

What costs are involved?

This is a brief rundown on fees that could be associated with a refinance loan:

• Application Fee - A fee charged by the lender to process the loan application.
• Appraisal Fee - This determines the current value of your home.
• Credit Report - The fee the lender charges to pull your credit report.
• Title Search and Title Insurance - You may be able to get your current title company to reissue a new policy and save money in this area.
• Survey - The lender may order a property survey to document the current status of the land your property is on.
• Loan Origination Fee - A fee the borrower pays the lender to underwrite the loan. Usually expressed in the form of points.
• Discount Points - One point is equal to one percent of the loan amount. You may want to pay discount points to secure a lower interest rate.
• Miscellaneous Fees - VA and FHA loans may have fees associated with them. Private mortgage Insurance (PMI), document preparation fees, notary fees and tax service fees may also fall under this category.
• Prepayment Penalty - If your existing loan carries a prepayment penalty clause, you will have to pay a percentage of the outstanding loan amount for paying the loan off early.

Just as you encountered in your original loan, your lender will be required to provide you with a Truth-in-Lending Statement that outlines the fees associated with your new mortgage loan. Let us help you evaluate your personal situation and assist you in finding the loan program that works best to meet your long-term goals.

Call me directly for a free consultation.

Karl Peidl
Superior Mortgage Corp
Augusta Professional Center 854 S White Horse Pike
Hammonton, NJ 08037

800-706-6671 ext 4349

kpeidl@supmort.com

www.karlpeidlsmc.com

http://www.facebook.com/newjerseymortgages

 

Freedom is essential to the American way of life. Today we celebrate those who dared to declare our independence and ensure our right to pursue happiness and the American dream. We wish you a happy and safe Independence Day, and we're truly honored that you've chosen us for all of your mortgage needs. Feel free to call us any time.

Superior Home Mortgage Corp. licensed in DE, FL, GA: Georgia Residential Mortgage Licensee #14511, MD, MI, NY: Licensed Mortgage Banker - NY State Banking Department, NC, PA, SC, VA: Virginia State Corporation Commission License # MLB-566, & DC. Superior Mortgage Corp. licensed in CT, MA: Mortgage Lender License # MC3208, NJ: Licensed Mortgage Banker - NJ Department of Banking, RI: Rhode Island Licensed Lender & Broker, & TN. SHM Mortgage Licensed by the New Hampshire Banking Department

Sure-Fire Technique to Create Safe, Memorable Passwords

Passwords are crucial to accessing your personal accounts and information. But they're only really useful if they're easy for you to remember...and tough for others to break. The following steps can help you achieve both!

1. Think up a phrase. Instead of a common word or family member name, think up a unique phrase that only you know. For example, you may think up something off the wall such as "I Like Short Hair Too."

2. Make it an acronym. In our example, "I Like Short Hair Too" would become ILSHT.

3. Add Complexity. Substitute symbols and numbers to add complexity to your acronym. For example, "I Like Short Hair Too" can become "1 Like $hort Hair 2" which makes: 1L$H2. You can also use uppercase and lowercase letters to make it 1L$h2.

4. Make it unique! A password is only really unique if you use it for one account and one account only! So mix in additional letters and numbers that are unique to each account. For example, if you're logging into a "gmail account" you can use the "gm" and "@cct" (for acct) to make: 1L$h2gM@cct. Then, for a Netflix account, you may use: 1L$h2Nf@cct.

Of course, these are just examples. You'll want to think up your own acronym along with different characters you can add to make each account unique. And then keep that secret to yourself, so no one will be able to guess your account passwords.

Mortgage Interest Rates*

Rates as of Thursday, 2nd July, 2009:

*Rates are subject to change due to market fluctuations and borrower's eligibility.

Karl Peidl
Superior Mortgage Corp
Augusta Professional Center 854 S White Horse Pike
Hammonton, NJ 08037

800-706-6671 ext 4349

kpeidl@supmort.com

www.karlpeidlsmc.com

 

There is an old adage in the mortgage business that states that if you can improve your interest rate by at least two percentage points, then it is a good time to refinance. While that may work as a general rule of thumb, the truth is that there are many reasons to refinance. Here are a few:

Lower your interest rate.
Securing a lower interest rate is one of the top reasons for refinancing. This can make a big difference in your monthly out-of-pocket costs for housing and save money on financing fees.

Build equity faster.
If you are in a position to make higher monthly payments due to an increase in salary or other good fortune, you may want to switch from a 30-year loan program into a 15- or 20-year loan structure. This enables you to build equity faster and save a tremendous amount of money on financing fees.

Change your loan program.
Some homeowners who start out in an Adjustable Rate Mortgage (ARM) find that they would like to switch to the stability of a Fixed Rate mortgage at some point. An ARM may have been the most attractive rate and loan package when you first financed your home, but we can provide you with loan comparison charts to find out if you can save money with another type of loan program that might work better for you right now.

Credit score has improved.
If your credit score has improved as a result of making your mortgage payments on time and in full, you may be in a position to take advantage of your improved credit standing. We can review your current credit score, the terms of your existing mortgage, and review options for other loan programs that could not only reduce your monthly payment, but also save you money on interest fees paid over the life of the loan.

Use the equity you have established.
A cash-out refinance allows you to tap into the equity you have built up in your home. You may want to pay off revolving credit card accounts, send a child to college, or use the money for home improvements or personal expenses.

Regardless of your reasons for wanting to refinance your existing mortgage, my team and I are interested in helping you make a decision that works best for you. We present our clients with spreadsheets outlining the various programs available. We continually monitor rates and alert our clients of interest rate changes in order to inform them of the best time to refinance.

We will also review the terms of your existing mortgage program. It is important to consider whether or not you have a pre-payment penalty written into your existing loan, and what the purpose of the refinance is. It is also important for us to know how long you plan to stay in the home. This helps us to determine whether or not it is beneficial for you to pay points up front to secure a lower interest rate on your new financing. The lender will want to know what the current property value is, how much equity you have built up, and what your current credit score is.

 

If you drive a car, truck or van for work, you'll want to make sure you know the standard mileage rates that the Internal Revenue Service (IRS) has set for 2009.

These mileage rates are used to calculate deductible costs for driving an automobile for business, charitable, medical and moving purposes. As of January 1, 2009, the standard mileage rates for 2009 are as follows:

· Businesses = 55 cents per mile driven
· Medical or moving = 24 cents per mile driven
· Charitable organizations = 14 cents per mile driven

But before you calculate your deduction, make sure you qualify. The IRS reminds taxpayers that they cannot use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for any vehicle used for hire or for more than four vehicles used simultaneously.

Remember, you don't have to use the standard rate! Although the IRS provides the standard mileage rate for ease and convenience, you're not required to use it. If you choose, you have the option of calculating the actual costs of using your vehicle instead of using the standard mileage rates.

Streamline Your Workspace

As the saying goes, "A cluttered desk is the sign of a cluttered mind." How can prospects or clients have any faith in your ability to work on their behalf, if they see a desk overflowing with paper? Or, in this computer age, if they visit your office and watch you spend valuable time sifting through emails and folders, trying to locate pertinent information regarding their account?

To the client, a lack of organization projects a negative image. It symbolically waves a distress flag, which could cause them to run in the opposite direction. Take some basic steps to alter the appearance of an overcrowded, unorganized work environment and help fend off clutter.

If you have an assistant, delegate some of your responsibilities to free up some of your time. Remember, "No man (or woman) is an island." For your purpose, that means mail can be opened and prioritized by an administrative assistant, while you tend to other business. Some bosses even arrange for their office assistant to have access to their email inbox.

If you work alone, then you must handle every facet of your business. Schedule a consistent time each day for opening both mail delivered by the post office and email, and respond immediately whenever possible to get it off your plate. File correspondence systematically so you know exactly where to find it in the blink of an eye. Record notes on a hand-held recorder to follow up on loose ends.

Author and efficiency expert Maria Gracia offers simple organizing solutions.* She says regardless of your business stature, whether management, sales staff or administrative assistant, better organization saves time and increases productivity.

Garcia notes the importance of learning to say "no." Some people extend themselves beyond reason, then fall short and appear inadequate. But time, like office space, can become cluttered or overburdened, especially for Real Estate professionals, lenders and others who rely on networking as a means of advancing their businesses.

She also advises her readers not to feel obligated to say "yes" to everyone who asks for a favor. In other words, don't over-commit. Be selective when it comes to volunteering time and energy. You can offer to assist with a small portion of a project, but don't agree to organize the entire event. And, if you're truly in a time crunch and can't possibly help, politely, but firmly, just say "no." That will earn you greater respect as someone who can organize time and space.

Look for more Business Boosters about efficient methods I use to manage my business and provide stellar customer service!

*Maria Gracia is the author of "Finally Organized, Finally Free." ©1999, Bluemoon Pub; Illustrated edition. ISBN: 096727950X

 

Consumers are often baffled by the home appraisal process. They may feel their home is worth a certain dollar amount, and therefore, the appraised value doesn't make sense to them. It is important to know that appraisal guidelines are dictated by the lenders. In many states, the lenders must disclose the purpose of the appraisal, as each situation carries its own set of rules.

In essence, lender guidelines force appraisers to put a fair market value on a home based upon comparable sales in the area where the home is located, as the home must be bracketed according to size and value. For example, there is no set amount associated with a great view, pool, spa, bathroom upgrades, etc. If a homeowner installs a custom pool that cost them $30,000, and the local marketplace supports the value of a pool at $15,000, that item will be bracketed as [$15,000] on the appraisal.

Upgrades can usually be expressed at full value in newer homes since they required investing additional money onto the cost of building the home. On the other hand, the amount invested in upgrading or remodeling an older home is rarely reflected in full in the final appraisal. The reason is the home had value in its original condition, and again, the value of the upgrades must be supported by comparable examples within the same marketplace.

These comparisons must be drawn from current market activity within the last six months. Some lenders may want to look at both closed and pending sales to see if there is any room for negotiation. This is a safeguard to prevent appraisers from over-valuing the home in question. It is further stated in the guidelines that appraisers can only place a value on homes that have closed escrow. However, when property values rapidly increase within a marketplace, appraisers are generally permitted to make concessions and put more weight on the evidence provided by comparisons to pending sales and listings. This allows for a "real time" appraisal.

Although there is no formal standard to speak of, most lenders give the appraiser a 5% margin of error. If the file is reviewed and the appraiser is off by 8%, there is a good chance the value will be cut by the full 8%. It is in the best interest of both the appraiser and the homeowner not to push the value up higher than the market will support, otherwise the property evaluation may be exposed to a strict appraisal review.

As a loan executive, I make it a point to follow lender guidelines at all times, and work within the systems they provide. This promotes a good relationship with the lender, and smooth closure for my borrowers. As always, you are welcome to contact me if you have any questions.

Call me directly for a free consultation.

Karl Peidl
Superior Mortgage Corp
Augusta Professional Center 854 S White Horse Pike
Hammonton, NJ 08037

800-706-6671 ext 4349

kpeidl@supmort.com

www.karlpeidlsmc.com

 

ARM Indexes: A 10-Year Comparison

Making Home Affordable. The Saga Continues!

In an effort to fill in some of the gaps exposed in the initial Making Home Affordable (MHA) program, Washington has stepped up its efforts to assist more distressed homeowners. In a press release in April 2009, the U.S. Treasury announced an update to the program designed to assist nearly 50% of those homeowners seeking relief from the MHA program.

What's New?
By some estimates, nearly 50% of all struggling homeowners actually have two mortgages. This is because many borrowers chose to split their mortgage in two to avoid an additional Private Mortgage Insurance monthly payment. The problem is, having two mortgages complicates attempts to refinance or modify home loans.

To minimize these complications, the new legislation is intended to assist mortgage servicers with new guidelines that give incentives for participation and help decrease payments for homeowners.

What Does This Mean for You?
Despite these additional guidelines, the Making Home Affordable program is still only suited for helping a specific group of struggling homeowners.

If you're interested in refinancing or looking into a modification, I'd be happy to help you examine your options. Even if a modification isn't right for you, there may be an opportunity to refinance your mortgage and take advantage of today's historic lows.

Mortgage Interest Rates*

Rates as of Friday, 19th June, 2009:

*Rates are subject to change due to market fluctuations and borrower's eligibility.