Archive for February, 2008

Charlotte FHA Mortgage Rates
as low as 5.875%!!! (6.178% APR)

Great news for the Charlotte area! FHA Mortgage Rates in Charlotte have dropped for the 2nd day and are awesome!

If you have been waiting for the best time to buy or refinance your Charlotte mortgage, your time has arrived! Hurry. These rates will not last forever!

Call 877-411-9327 to Qualify today!

Apply online Now

Consider Mortgage Options Carefully

Most Charlotte home buyers will need mortgage financing to buy a home. When considering a mortgage lender be careful that you don’t fall in to the “big name” syndrome. In other words, don’t make a decision on your mortgage based on the name of the bank or lender. Just because a bank has branches or ATM’s on every corner does not mean they have the best mortgage option for you.

After all, McDonald’s sells the most hamburgers in the world…. but that doesn’t mean they make the best hamburgers, now does it?

When you are searching for a lender, I recommend that you make a decision based on how you are treated and cared for, not on the rate quoted. I am not saying you don’t need to care about the rate. But honestly, gone are the days of any lender being able to sell a rate that is not competitive.

With the internet, the vast array of lenders and products and the general media itself, the average consumer is much more informed than ever before. Its sad to say, but many consumers know more about the mortgage business than some new loan officers or even real estate agents know.

What you want to seek is someone that will take the time to discover your needs, desires, goals, fears… all the things that make you… well, you! The instant rate quoter doesn’t care about what is best for you. That type of lender is looking out for one thing… their pocket. They believe that by throwing out some rate that stops you in your tracks, they can slam you into a loan regardless of its fit for your life!

Here is an example…

Joe wanted to buy a home and planed to keep the home for at least 10 years. Over those 10 years or so he expected to start a family and grow his business. In about 10 years though, the contract for his business allows him to sell the franchise and with the expected growth he can really make a move in life. But until then, money and his budget would be tight.

Joe called Tommy at Instant Quote Lenderand Tommy right away starts talking about this great loan with a super low rate of 5.00%. Joe thinks that rate is amazing, but called one more lender before making a decision.

Next he called Ed Nailor at Residential Mortgage Center and together they began to discuss his goals. After listening to Joe’s plans and goals, Ed advised Joe that a longer term mortgage at 6.00% with an interest only payment option may be the best mortgage solution for Joe’s needs. This gave him the lowest payment possible, with the option of making principal payments as Joe’s budget allows.

This made perfect sense… but what did Tommy offer Joe?

Without taking the time to get to know Joe, Tommy automatically assumed that the best rate he could quote would be what was important to Joe. So he quoted the rate of a 10 year mortgage loan. Although the rate was a full point lower, the payment would have strapped Joe and wrecked his budget.

Another example:

Sally wanted to buy a home for her and her daughter Tina. Sally started by calling one of those big national banks. The bank was offering this “no fee, no mortgage insurance” program. As a matter of fact, the bank was spending millions of dollars to advertise the program! (RED FLAG FOLKS!) Loan officer Stanley informed Sally of how great the loan was and how no one else could offer a better loan for her!

Sally also called Ed Nailor at Residential Mortgage Center. After getting to know Sally, Ed discovered that Sally was buying a home for the long haul, but the home was in a great area that was getting great appreciation, even in a down market! Sally planned on paying a bit more towards the monthly payment each month to pay it off early, but wanted a longer term mortgage so her budget had flexibility. The program Ed offered had some closing cost and even required PMI. Which did Sally choose?

She went with Ed! The reason? Even though the big bank offered a “no fee, no PMI” mortgage loan, the rate was higher that the mortgage loan Ed offered.

You see, a no closing cost mortgage does not mean there are no charges. Attorneys don’t work for free, neither do appraisers. However, if you raise the interest rate on a loan, the long term yield is better and a lender can use that yield to pay for the closing costs. And I have never ever seen free insurance! So again, the mortgage insurance needs to be paid in a higher rate. Ok, so the rate was higher… so what?

Well, with PMI, if you reach a point in which your loan balance is less than 80% of the value of your home, you can request the PMI be cancelled. For Sally, the appreciation and accelerated payments she planned to make could have allowed the elimination of PMI in as little as 4 years! Afterwards, she would still have a much lower rate and save thousands of dollars in mortgage interest! The additional monthly savings could also be applied to her mortgage payments allowing the mortgage to be paid off 10 years early!

This is the difference you will find when you work with a lender that takes the time to listen. Again, McDonald’s may sell the most hamburgers, but that doesn’t mean they are the best. After all, this is about more than just a mortgage… its you home!

Charlotte Mortgage Rates Drop!!!

“Treasury prices rallied Thursday after new reports showed the economy barely moved forward at the end of last year and that jobless claims rose last week,” this according to CNN Money. The report shows that Treasury bonds reacted in a favorable way for Charlotte mortgage rates early this morning.

By the end of the day, rates had increased slightly, but very minimally! So by the end of the day, the same rate as yesterday would cost a lot less, or even allow for a lower mortgage rate!

If you have been on the fence about your mortgage rate options, now is the time to make your move. Rates are not as low as they were just a few weeks ago, but they are very close. I personally believe they will begin to rise again, so now is the time to fix your adjustable mortgage rate, refinance your Charlotte mortgage with a lower rate, or buy that dream home in Charlotte with lower payments!

Special Contribution Article by Sara D’Amico

I read an article in Saturday’s Charlotte Observer that should be a mandatory read for all buyers, at least first-time home buyers.  It was titled Spending Spree Before Closing Could Bag Deal.

Ilyce Glink explained the importance of buyers not going on a spending spree prior to closing.  Yes, it sounds self explanatory enough, but we know that it can be tempting to go out and buy “just a few things” for that new home.  For buyers that are skating on thin ice, those purchases can cost them their house. 

If you are under contract to purchase a home, STOP, and read this article, before you make any considerable purchases.

If you are a Realtor, I suggest sharing this article with your buyers.  It could save a lot of heartache.

Sara D’Amico

A Lender’s Mistake Can Cost You!

Compliance is a big word with big implications. Basically, compliance is a measure of how a lender complies with the laws and regualtions imposed upon them. Working with a lender that does everything within the confines of the law is the best way to go.

If a lender does not comply, they can be fined, lose their license and could end up closed up! But something scarrier than that is the impact it can have on you, the borrower! If certain areas are not properly taken care of, your personal information can be exposed, your payments can be mishandled and in the rarest and worst cases, your home can be taken from you!

Compliance is a big deal and one worth understanding. Popular opinion and the latest news would lead the average person to figure that banks have the advantage and that mortgage brokers should be watched closely. However, this is not necessarily the truth.

For example, it was not long ago that Countrywide (the country’s largest mortgage lender) was in hot water for compliance issues. And while there are examples of mortgage brokers across the country that have had compliance issues, mortgage brokers are some of the most regualted professionals in the industry! The bottom line is that all lenders, banks and mortgage brokers have a repsonsibility to be compliant with regualtions and laws, and none of these are exempt from potential issues.

At Residential Mortgage Center, a Charlotte mortgage lender, we have taken a very proactive approach to compliance. We have put safeguards in to maintain compliance with all Federal, state and local laws. But beyond that, we have a team of professionals working here that are very involved in the legislative process. This puts us right in the cross hairs and requires us to keep our noses clean and our paths straight. As a matter of fact, we have past presidents of the North Carolina Association of Mortgage Professionals on staff. We also have the very rare priveldge of having one of the most influential writers of continuing education programs on staff. This brings us the knowledge and experience and top expertise to ensure that everything we do is above board and compliant!

Save Money by Refinancing Your Mortgage

Charlotte mortgage rates are low. Charlotte real estate values are stable. Right now may be the best time to refinance your Charlotte mortgage!

There are several ways refinancing your mortgage could benfit you.

The first and the most obvious benefit of refinancing your Charlotte mortgage is the ability to obtain a lower mortgage rate. With mortgage rates in the Charlotte market being so low, you could easily drop 1, 2 or even 3% or more! And as everyone knows, a lower mortgage rate can mean a lower mortgage payment.

The second benefit of a Charlotte refinance is the ability to shorten your mortgage payment term. In other words, you could use the refinance of your mortgage to get a shorter termed loan and cut years off your mortgage! In many cases you can get a much lower mortgage rate with shorter term mortgages. A 15 year mortgage is normally cheaper than a 30 year mortgage. Some people can actually cut the number of years on their mortgage in half without increasing their mortgage payment!

The third benefit of refinancing your mortgage in Charlotte is the ability to consolidate debt and make a major impact on your monthly finances. If you have equity in your home, you can put it to good use by paying off higher interest debts. By rolling other debts in to a debt consolidation mortgage, you can lower your monthly payments. And by using the equity in your home to do this, you get a better tax break come tax time!

A last benefit of a mortgage refinance is the ability to take cash out to make improvements to your home. Not only will you get cash to fix, rennovate or even improve your home, but you also have an easy way to pay it back! With your lower mortgage payment you won’t have to worry about an extra payment to fit in your budget!

Refinancing your Charlotte home mortgage can make a major impact on your life. Call us now to see how much time and money you can save!

Apply to refinance your Charlotte mortgage online or call 877-411-9327 to get started.

Refinance and Save… While you Can!

Today I overheard a phone conversation that simply amazed me.  A fellow loan officer and co-worker was talking to a potential client about refinancing his Charlotte home mortgage. During this conversation, the loan officer found that the gentleman had a 9% interest rate on his current mortgage. The man was convinced that because of a prior bankruptcy 5 years ago, he could not qualify for a better mortgage.

My associate continued to talk to the guy about looking into refinancing his home loan here in Charlotte to reduce his monthly payments. He explained to the man that the bankruptcy would no longer stop him from qualifying for a better mortgage rate and that with the low Charlotte FHA mortgage rates, he could cut his mortgage rate by as much as 3 points!

The gentleman asked him to call him again NEXT MONTH!

Folks, if you have a mortgage rate on your Charlotte home that is above 7%, you need to look into a Charlotte home mortgage refinance. If you refinance your mortgage today, you could easily drop your mortgage rate, save on your monthly payments, and maybe even pay off some other debts! With help in your monthly budget, you could quickly put yourself into a debt free way of life!

Let the Charlotte refinance experts of the Carolina Mortgage Connection show you how much money you can save today! With our safe and secure online mortgage application, you can get approved for a better Charlotte mortgage rate today and save hundreds on your mortgage payments tomorrow!

Apply online or call 877-411-9327.

Bank Freezing Your HELOC?

Word is that some banks in so-called “Declining markets” are putting the ice on homeowner’s home equity lines! And here is a chilling example…

Let’s consider a home owner that has a $100,000 equity line, but is only using $20,000 of the line. If the line is frozen,  this would eliminate the opportunity to use the other $80,000! And worse, their credit score or repayment history has nothing to do with it!

Some banks are running scared! They are afraid that if you live in a “declining market” that you will max out the equity line and skip town! In some cases that has actually happened! So what should you do if you have an equity line? Read the rest of this entry »

PMI Companies: “680 or Better Please”

If you are seeking 100% mortgage financing with conventional lending, you better get ready to come to the table with solid credit. While Fannie Mae is still offering 100% mortgage loans for Charlotte home purchases, private mortgage insurance companies are making it tougher. Private mortgage insurance companies insure mortgage loans over 80% loan to value against borrower default. So if a borrower fails to pay and the lender must foreclose, the private mortgage insurance company would protect the lender from excessive loss. With the rise in foreclosures around the nation, beginning in March, these private mortgage insurance companies will refuse coverage to any borrower seeking a 100% mortgage loan with credit scores under 680. And since they are the foundation of risk management for Fannie Mae loans, it will handicap Fannie Mae’s ability to provide no money down mortgage loans without great credit.

The good news is that Charlotte FHA mortgage loans are still a viable option for home buyers with credit scores below 680. As a matter of fact, many Charlotte FHA lenders will still accept FHA mortgage loan applications with credit scores down to a 580. There are still a few that ignore credit scores, but those are getting fewer and fewer everyday.

The bottom line is this… Everyone involved in the mortgage process is looking for a return to traditional mortgage programs and guidelines. Lenders, investors and now the PMI companies want good credit and good equity in the mortgages they offer and insure.

If you have less than perfect credit, don’t dispair. While things aren’t as easy as they were a year ago, there are still programs to make your dream of owning a home come true. It may take a little more work and time now, but with the right advice you can make it happen.

Call us today and let us help you get qualified for the home of your dreams in Charlotte (or anywhere in the Carolinas!) Or apply online and get things going quicker!

877-411-9327 Phone or Apply Now.

Charlotte Homes for Sale

Charlotte has such a diverse housing market. Take for example the homes featured right here at EdNailor.com. These Charlotte homes for sale range from 89,000 to over $1 million! That’s right… there is a home for everyone in Charlotte!

Charlotte has such a diversity about it, from cultures to employment opportunities. And what is so cool about the area is that everything tends to get mixed together! While there are some areas in Charlotte that are more exclusive than others, most of the Charlotte area supports the diversity.

If you are looking to move to Charlotte, you really should look at the homes for sale in Charlotte, NC as featured here. Not only can you find the right home, you can find the right mortgage and the right Realtor to assist.

Let the Carolina Mortgage Connection help you find and finance your Charlotte dream home.

Apply online or call 877-411-9327 for more info.