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Mortgage Advice

Spring is right around the corner, and more people will be looking for a new place to call home. Fortunately, mortgage interest rates are dipping just in time for the spring rush, leading to improved affordability for most home buyers.

Current Interest Rates

According to the Freddie Mac’s Primary Mortgage Market Survey (PMMS), rates have fallen again after a two-week period of increases. At the end of the week, borrowers with good credit could secure a fixed rate 30-year mortgage with an interest rate of only 4.34%. These are down from 4.53% in early January. The rate for a 15-year mortgage also fell from 3.55% to 3.38%.

Building Equity

Not only do lower interest rates lead to lower payments, but they also speed up equity accumulation. Every mortgage payment is divided into interest and principal. During the earliest years of your mortgage, a greater amount of each payment goes toward interest. In fact, according to the Mortgage Reports, early mortgage payments during 2009 were composed of 85% interest and only 15% principal. However, early mortgage payments under today’s rates are composed of 78% principal and 22% principal. This means that equity accumulates much faster, allowing you to refinance sooner, make a bigger profit when you sell or simply build wealth more quickly.


Posted by Dave Miller on April 17th, 2014 10:17 AMPost a Comment (0)

As a result of the recent great recession many people experienced unemployment
or other severe reductions in income that caused them to lose their homes to a pre-foreclosure sale, deed-in-lieu, or foreclosure. Some folks were forced to file for bankruptcy to discharge or restructure their debts. Because of these recent recession-related periods of financial difficulty, their credit has been negatively affected.

 
Help is here! As of August 15th, 2013, FHA is allowing borrowers who have experienced an Economic Event and can provide the proper documentation to verify that event, to
be eligible to buy again in one year after the event.

 

What Are Documented Events:

  • Certain credit impairments were the result of a Loss of Employment or a significant
  • loss of Household Income beyond the borrower's control;
  • The borrower has demonstrated full recovery from the event; and, 
  • The borrower has completed housing counseling.  

 

Borrowers will have to show that they experienced an "economic event" and their household income fell by 20% or more for a period of at least six months. They must
also demonstrate that they have fully recovered from the event, and have previously attended Homebuyer Counseling at least 30 days prior to the application, but no more than 6 months.

It seems like a lot of hoops, but we are doing these loans.

 

Call me for more details at 614.388.8757  or email at davemillerloans@gmail.com
www.OhioMortgageDude.com


Posted by Dave Miller on February 27th, 2014 9:29 AMPost a Comment (0)

February 8th, 2014 11:24 AM
Underwater On Your Mortgage Loan in Ohio?

 

If you are a Ohio home owner that is underwater on your existing conforming or conventional mortgage, you may be eligible for a refinance without paying down ANY principle, without paying mortgage insurance, and in many cases, without spending any money out-of-pocket.


HARP, the acronym for Home AffordableRefinance Program, is a financial aid program announced by the US federal government in 2009 to help millions of homeowners who are either near-underwater or underwater (means you have zero - or even negative - equity in your home) to refinance into a fixed loan with lower monthly payments.

HARP 2.0 - Help For Ohio Home Owners

The modified HARP program - HARP 2.0, also referred to as The Making Home Affordable Program, the DU Refi Plus Program, and/or the Obama Refi Program - is specifically targeted towards Ohio homeowners having a loan-to-value ratio less than 125 percent.

However, an additional guideline change to HARP 2.0 actually lifted the loan-to-value restrictions. So, Ohio borrowers with a loan-to-value ratio even greater than 125 percent can now apply to this program.

HARP 2.0 gives Ohio homeowners the ability to refinance at today's low mortgage rates without private mortgage insurance, exorbitant closing costs and fees, and in most cases without an appraisal. If you have been turned down before for this program, you will certainly want to re-apply for HARP 2.0.

In order to qualify for HARP assistance, the basic eligibility requirements are:

1. Your loan must be backed by Freddie Mac or Fannie Mae

2. Freddie or Fannie should have bought your mortgage prior to June 1st, 2009.

Unfortunately, Ohio homeowners rarely know who "owns" their mortgage loan. Normally, homeowners receive their monthly statements, and make their monthly payments, to their mortgage servicer. This is usually not the company that provided the funds originally to make the loan.

You can check "lookup" forms on the Fannie Mae and Freddie Mac web sites. However, keep in mind that these web forms are not always accurate as the address would have to be exactly the same as was recorded with Fannie or Freddie.

USDA, FHA or Jumbo mortgages are NOT HARP-eligible.


The most noticeable and major changes in the HARP 2.0 program are:

  • Elimination of underwater limits which implies that Ohio borrowers now have the opportunity to refinance regardless of the fallen values of their homes, whereas loan-to-value limits were previously prefixed at 125 percent.
  • Underwriting and appraisals have been eliminated and homeowners need neither appraisals nor their loans underwritten. This makes the refinancing process much faster and smoother.
  • Fees have been modified for shorter-term loans or abolished and the deadline for getting a HARP refinance has now been stretched to Dec. 31st, 2013.


Your Next Step...

Applying For The HARP Program – Making Home Affordable Refinance

Getting approved for a HARP 2.0 refinance involves the following steps:

Step 1: Find out if your mortgage is owned by Fannie or Freddie & Eligible For The HARP Program

Step 2: Print the HARP 2.0 Checklist

Step 3: Submit your HARP Online Application

Step 4: Meet with Dave Miller to go over the final numbers, closing date, etc.

If you have any questions or concerns, please don't hesitate to call my office at 614-610-4245 or email me at davemillerloans@gmail.com . I am here for you!



Posted by Dave Miller on February 8th, 2014 11:24 AMPost a Comment (0)

January 21st, 2014 7:12 AM

Not Jumbo the Elephant!
Jumbo Mortgages Are Back. 

What is a Jumbo Loan?
A jumbo loan is a mortgage above $417000. They are used to buy expensive homes. Typically, the interest rates are higher than regular loans.

Purchase Jumbos at 10% Down With No PMI.
Most lenders require 20% down payment on Jumbo mortgages. At Affinity Group Mortgage, we offer 10% down on Jumbo purchase mortgages and that is with no mortgage insurance. Any purchase you are considering above $463,333, please call me at 614.975.5894. Rates are still great!

Refinance loans above $417000 with only 10% equity.
If you are still at a high rate on your current mortgage and the value of your home has recently increased so you have 10% equity, call me at 614.975.5894. We offer refinances with 10% equity and no mortgage insurance.

During the housing industry's recent dark days, the market for jumbo loans dried up. Only the best bank customers were able to secure financing on high priced homes. Today, with the recent economic upturn, demand for big loans is on the rise. Jumbo loan originations totaled $203 billion last year. If the first quarter volume of $54 billion continues, we will hit $216 billion this year.

So if you are considering moving up to a more expensive home or are at a high rate on your current mortgage, we may have an answer for you. Jumbo loans are back! Visit us or apply for a mortgage at
www.OhioMortgageDude.com


Posted by Dave Miller on January 21st, 2014 7:12 AMPost a Comment (0)

December 19th, 2013 10:13 AM
After yesterday's Fed "tapering of the stimulus" announcement, I have had many people, who are thinking about refinancing, ask me what is going on with rates? Friends, they are going up!  It doesn't mean  rates are going into double digits, but the pressure is definitely up. The problem for someone considering refinancing is that every increase in rate means you will pay more interest over the life of your loan. The purpose of this email is to get clients to stop procrastinating and get motivated to take advantage of today's rates, not next years! 

There are multiple factors influencing mortgage rates over the next few months and each may drive rates up, but together they could have a significant impact.  The uncertainty alone is justification to lock in now.

 

I have listed below several reasons why now is the time to move forward.

 

1.The Federal Reserve announced the first “taper” in their Bond Buying, aka QE3. The mere fact they feel now is the time to adjust their course is a significant statement regarding the future of the economy and thus the rates. The Federal Reserve has been propping up bonds, which has kept rates low. If they have decided to back off, what do you think will happen to rates?
 

2. Fannie Mae/Freddie Mac, the largest buyers of mortgages, announced an increase in their LLPAs (loan level price adjustments).  These are costs added to the mortgage rate based on certain factors such as credit score, ARMs or fixed, Condo, cash out, etc. The Mortgage Bankers Assoc. "estimated net impact on a borrower could be a half point increase in the interest rate, costing borrowers thousands over the life of the loan". These increases go into effect April 1st.

 

3. Home prices are increasing. Demand for mortgages usually has an upward effect on rates. "Core Logic said 791,000 more residential properties returned to positive equity in the third quarter. (This could increase refinance opportunities for those that did not qualify before, which would put upward pressure on mortgage rates)".

4.Political progress on the Budget.  With the House and Senate passing the two-year budget framework this could provide more certainty for the economy as it tries to gain strength.  This could be good for jobs, wages, housing, and expansion yet could have a negative effect on interest rates.

 

5. CFPB Rules take effect in January.  Ratios will be more restrictive and eliminate many borrowers from qualifying. As we have seen with other major Regulatory Reforms, such as RESPA/TILA, it can have a destabilizing effect on the mortgage market and drive up the cost of compliance for lenders which will be passed on to the consumer in higher interest rates.

 

While this could all cause Holiday Dinner Heartburn now, it is a reason to consider moving forward with refinancing before all of the changes come into effect. No one has a crystal ball that predicts where interest rates will go in the future, but the above mentioned 5 points have historically lead to higher interest rates. Take heed.

 

www.OhioMortgageDude.com


Posted by Dave Miller on December 19th, 2013 10:13 AMPost a Comment (0)

Did you know the government backed HARP 2.0 mortgage refinance program is available for investment properties? Even if you have up to 10 mortgages, you may still be able to refinance to lower HARP rates. If you have PMI currently, we are able to transfer PMI from the current loan to the new loan in most cases.

Most HARP 2.0 loans do not require an appraisal which saves money on closing costs. Rates are still very good. If you were turned down before, you should call us, because there have been changes to the program. There are still thousands of people eligible that don't think they are. Could that be you?

What is the HARP 2.0 Program? The original modified HARP program - HARP 2.0, also referred to as The Making Home Affordable Program, the DU Refi Plus Program, and/or the Obama Refi Program - is specifically targeted towards Ohio homeowners having a loan-to-value ratio less than 125 percent. However, an additional guideline change to HARP 2.0 actually lifted the loan-to-value restrictions. So, Ohio borrowers, even real estate investors, can now refinance under this program.

HARP 2.0 gives Ohio homeowners the ability to refinance at today's low mortgage rates without private mortgage insurance, exorbitant closing costs and fees, and in most cases without an appraisal. Wouldn't it be nice to increase your cash flow on your rentals with a lower payment? Because we have done so many harp loans, we have ironed the bugs out and the process is smooth. Am I Eligible?

Call me at 614.388.8757


Posted by Dave Miller on December 10th, 2013 12:16 PMPost a Comment (0)

FHA Announces: "Back to Work – Extenuating

Circumstances" Program 

 

As a result of the recent great recession many borrowers experienced unemployment or other severe reductions in income that caused them to lose their homes to a pre-foreclosure sale, deed-in-lieu, or foreclosure. Some borrowers were forced to file for bankruptcy to discharge or restructure their debts. Because of these recent recession-related periods of financial difficulty, borrowers' credit have been negatively affected.

 Help is here! As of August 15th, 2013, FHA is allowing borrowers who have experienced an Economic Event and can provide the proper documentation to verify that event, to be eligible to buy again in one year after the event.

What Are Documented Events:

  • certain credit impairments were the result of a Loss of Employment or a significant loss of Household Income beyond the borrower's control;
  • the borrower has demonstrated full recovery from the event; and,    the borrower has completed housing counseling.  

Borrowers will have to show that they experienced an "economic event" and their household income fell by 20% or more for a period of at least six months. They must also demonstrate that they have fully recovered from the event, and have previously attended Homebuyer Counseling at least 30 days prior to the application, but no more than 6 months.

 

More qualified buyers is great news for the real estate community. Call me for more details at 614.388.8757. 

 

To Apply Go To: www.OhioMortgageDude.com


Posted by Dave Miller on August 27th, 2013 9:13 AMPost a Comment (0)

 

Refinancing Your Columbus FHA Loan 
Just Got a Lot Easier & Cheaper!

Changes to the FHA streamline program for Columbus homeowners have made it far more attractive and simple to reduce interest rates and lower payments, even if you owe more than your home is worth…

What is the FHA Streamline Program?

FHA LoanFHA Streamline refinances enable Columbus homeowners to refinance their current FHA home loans with reduced paperwork and underwriting to take advantage of lower interest rates so that borrowers can save more moneylower their monthly housing payments and in some cases change from an adjustable rate mortgage to a fixed rate mortgage loan or even shorten the term of their loans.

This means less hassle, less paper, faster processing and potentially huge savings over the life of your loan.

There are many advantages for Columbus property owners, including the availability of ‘no-cost’ refinances and even those who didn’t qualify before might qualify now.

What Are the New Changes That Make FHA Streamline Loans Even Better?

These home loans have been available for years. Unfortunately, recent increases to mortgage insurance (MI) premiums often wiped out the savings for those refinancing.

At least until now…

FHA RefinanceNew changes to the FHA Streamline program apply to those whose FHA-insured home loans were endorsed on or before May 31st, 2009.

In an effort to assist more Columbus homeowners with FHA mortgages to refinance at today’s incredibly interest rates FHA mortgage insurance rates were reduced, effective June 11th, 2012.

This new change alone means thousands of dollars in savings for most borrowers.

According to the FHA, based upon a $200,000 30 year mortgage with a loan-to-value higher than 95%, those who took out loans on or before May 31st, 2009, will now realize the following savings:

Before June 11th, 2012 After June 11th, 2012
Mortgage Premium at Closing $3,500 $20
Monthly MI Premium $208.33 $91.67
Upfront MI Premium Percentage 1.75% 0.01%
Annual MI Premium Percentage 1.25% 0.55%

*Guidelines may change so please check with us to determine the exact savings for your specific situation. 


Additional guidelines for FHA streamline refinances state that:

  • NO employment verification is required*
  • NO income verification is required*
  • NO credit score verification is required*

*IMPORTANT: These are FHA guidelines. Lenders may have their own guidelines called overlays, which may require all or some of these guidelines to be met.

Features & Benefits of Columbus FHA Streamline Mortgages

Why choose an FHA Streamline refinance?

In addition to incredibly low interest rates and massive savings over the life of your mortgage loan, streamlined refinances offer the following benefits:

  • Low MI
  • No appraisals required
  • ‘No-cost’ refinancing possible
  • Lower credit scores OK
  • No loan balance increase to cover loan costs
  • Can refinance even if ‘underwater’

Do You Qualify for an FHA Streamline Refinance?

Are you ready to start saving and lower your monthly housing payments so that you can get ahead and have more free cash in your hand each and every month from here on out?

Columbus FHA streamline refinances couldn’t be easier and less stress-free to qualify for, but in order to be eligible for the newest program updates you will need to have:

  • FHA-insured loan was endorsed on or before May 31st,2009
  • Must currently have a FHA loan
  • Not refinanced within the last 6 months
  • Not been more than 30 days late on your mortgage payments in the last 12 months

Note that while FHA itself requires no minimum credit scores or income or employment verification, most lenders do have their own additional criteria for these items.

More About FHA Streamline Eligibility Guidelines...

Find out how much you can save...


Posted by Dave Miller on August 22nd, 2013 5:57 AMPost a Comment (0)

August 9th, 2013 7:24 AM

Not Jumbo the Elephant!
Jumbo Mortgages Are Back. 

What is a Jumbo Loan?
A jumbo loan is a mortgage above $417000. They are used to buy expensive homes. Typically, the interest rates are higher than regular loans.


Purchase Jumbos at 10% Down With No PMI.
Most lenders require 20% down payment on Jumbo mortgages. At Affinity Group Mortgage, we offer 10% down on Jumbo purchase mortgages and that is with no mortgage insurance. Any purchase you are considering above $463,333, please call me at 614.975.5894. Rates are still great!

Refinance loans above $417000 with only 10% equity.
If you are still at a high rate on your current mortgage and the value of your home has recently increased so you have 10% equity, call me at 614.975.5894. We offer refinances with 10% equity and no mortgage insurance.

During the housing industry's recent dark days, the market for jumbo loans dried up. Only the best bank customers were able to secure financing on high priced homes. Today, with the recent economic upturn, demand for big loans is on the rise. Jumbo loan originations totaled $203 billion last year. If the first quarter volume of $54 billion continues, we will hit $216 billion this year.

So if you are considering moving up to a more expensive home or are at a high rate on your current mortgage, we may have an answer for you. Jumbo loans are back! Visit us or apply for a mortgage at
www.OhioMortgageDude.com

 

 

 


Posted by Dave Miller on August 9th, 2013 7:24 AMPost a Comment (0)

July 29th, 2013 12:42 PM

Good News for Real Estate Investors

Did you know the government backed HARP 2.0 refinance program is available for investment properties?  Even if you have up to 10 mortgages, you may still be able to refinance to the lower HARP rates. If you have PMI currently, we are able to transfer PMI from the current loan to the new loan in most cases. Most HARP 2.0 loans do not require an appraisal which saves money on closing costs.

What is the HARP 2.0 Program

The original modified HARP program - HARP 2.0, also referred to as The Making Home Affordable Program, the DU Refi Plus Program, and/or the Obama Refi Program - is specifically targeted towards Ohio homeowners having a loan-to-value ratio less than 125 percent. However, an additional guideline change to HARP 2.0 actually lifted the loan-to-value restrictions. So, Ohio borrowers with a loan-to-value ratio even greater than 125 percent can now apply to this program.

HARP 2.0 gives Ohio homeowners the ability to refinance at today's low mortgage rates without private mortgage insurance, exorbitant closing costs and fees, and in most cases without an appraisal. If you have been turned down before for this program, you will certainly want to re-apply for HARP 2.0. And it is available for investment properties.

Am I Eligible

Following are some of the eligibility guidelines. Call me at 614.388.8757 to determine your eligibility.

1. Your loan must be backed by Freddie Mac or Fannie Mae

2. Freddie or Fannie should have bought your mortgage prior to June 1st, 2009.

3. Borrowers must be current on their mortgage for the last six months, and have no more than one late payment over the past year.

4. The mortgage must not have already been refinanced through HARP in the past, unless it happens to be a Fannie Mae loan that underwent a HARP refinance between March and May 2009.

5. Must Not be a USDA, FHA, VA or Jumbo Mortgage

 

Investors, please call me at 614.388.8757 to check to see if you are eligible.
For more information, go to
www.HarpsLoansInOhio.com

 

 

 

 


Posted by Dave Miller on July 29th, 2013 12:42 PMPost a Comment (0)

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