Vista Mortgage Group Blog

Vista Mortgage and Vista Financial Planning Groups have partnered to bring the experts and answers to you!!!

We have developed a series of seminars related to all aspects of finance (i.e., mortgages, investments, insurance, pensions, 401ks, asset protection, long-term care, etc.) and have brought together the experts who are the "best of the best" in each area.  Our guest speakers range from Attorneys to Certified Financial Planners ™ to a Vice President of one of the most successful institutional money management firms in the country! 

Our philosophy is simple, our success is dependent upon your success!  We want you to have access to all of the information that you need, to make educated decisions about what is best for you and we want everyone to have access to the same level of expertise and quality of service that multi-millionaires have.  The process of "financial planning" and building wealth are the same....it just may be a different path or timeframe that gets you where you need and want to be.

Check out the "Seminars" link from our Home page and the Fall Seminar Calendar.  The schedule is almost full for the balance of the year and offers seminars in our Vancouver, WA office OR via Microsoft Live Meeting (requires a free software download) online; from the comfort of your own home, office, favorite wi-fi lounge or coffee shop! 

We're really excited about this, because it allows us to reach people all over the country (Vista Mortgage Group is a mortgage broker licensed in WA & OR.  Vista Financial Planning Group has team members who are licensed in over 20 states) and provide you with high-quality and high-impact information that you can use.....(with NO high-pressure sales pitches!).

As always, call or click for more information!  We hope to hear from you soon!

I'm sorry to say that knowing when to lock the absolute lowest mortgage rate, is something like knowing the precise location where the next meteor will hit Earth!

With mortgage rates as low as they have been over the past year and especially over the past few weeks, many homeowners are able to take advantage of the savings through a refinance (and yes, we still have potential loan options that will finance a property that is under water). 

 Deciding when to lock your rate, is a combination of comfort level (are you willing to take the risk of "waiting to see" if rates improve....or not), value (are you happy with the savings and the new proposed payment) and educated guess.

Locking your rate is a committment on your part, to the lender, that you intend to close your loan.  In return, the lender is securing those funds, at the locked rate, on your behalf.

Once locked, market rates may go down and some lenders allow for a "float down" option on a locked rate; which means that if the market improves dramatically (usually by a minimum of .750%), they will allow your rate to drop (possibly by .250%).  A "float down" option sounds great, but typically only happens when there is a significant improvement in rates and the lender is taking the greatest benefit from that improvement.

Unfortunately, the greatest change in mortgage rates (in terms of any dramatic/rapid change) only comes from devastating economic news or acts of war; which we hope does not occur. 

Just know, that a typical cycle for mortgage rates is a rapid and sustained rise followed by painfully slow declines.  In my opinion, if you are happy with a rate and your savings, it is better to lock (and then forget about it) than to endure the possible stress of the roller coaster ride called "wait and see."

Due to the unease in the financial markets, investors are selling off stocks and moving to US Treasury Bonds for safety; which is putting pressure on mortgage-backed securities to compete for those investment dollars.

The great news here, is that means LOWER MORTGAGE RATES!

If you are preparing to purchase a new home or are considering buying an investment property, you are about to hit the "trifecta"! 

1.  Right now, there is a great supply of inventory on the market to choose from.  People are more actively selling during the Summer months than during the Winter months, when families want to enjoy their holidays and hibernate.

2.  Home prices are still low and while there is a higher volume of inventory on the market, there is also more competition for buyers!

3.  Mortgage rates are the lowest that they have been in over 50 years!

With all of these factors combined, it offers buyers more "buying power" than ever before!  When you are able to take advantage of lower rates, it allows you to increase your purchase price.....without increasing your payments!

For anyone who hasn't looked into their options for refinancing within the past few months, you may be missing out on some incredible savings!  There are still several programs to help people who owe more than their home is worth.  Beyond that, the rates are so low, that even if you have refinance any time in the last year or more, you can probably still save money through a new refinance.

As always, we are here to help you navigate the various options to find the best fit for you and your unique situation.....and our Broker Fee is completely paid by the Lender!

Call us today for an estimate of what you can save!

It's interesting how some big corporations think that they are above the law.  Not when it comes to this determined couple!

Read full article here:

http://www.foxnews.com/us/2011/06/06/bank-america-pays-florida-couple-in-mistaken-foreclosure-case/ 

You've got to love it!

I still consistently get questions regarding refinance options for someone who thinks that their value is close to or below what they owe.....or concerns about being able to refinance IF their value comes in lower than expected (which everyone knows is likely to happen).

I can't stress enough, the importance of working with a Mortgage Broker who is knowledgable about the current loan programs that are available and how one might offer benefits over another, for a client's specific situation.

There are still programs available that will help someone refinance when they owe close to the value or owe more than the current value, but these programs will not be available for ever.  They are currently set to expire at the end of June 2011.

There is also a possibility to bypass having an appraisal altogether, if you are applying for the "right" refinance!

Talk to your Mortgage Broker about current Government-sponsored programs and if you don't have confidence in their response or you are told that they can't help you.....try another!  Granted, there are some people/situations that are "falling through the cracks" right now, but there are also continuous efforts to improve the options that will help more people, so your ability to refinance can change over time.

If you own a rental property (1-4 units) and the loan is held by Fannie Mae, you can potentially qualify for a Federal REFINANCE program (not a loan “modification”) even if you owe more than what the property is currently worth!

The program will allow a first mortgage up to 105% of current market value, COMBINED with a second mortgage up to 110% of current market value (IF, you already have a second mortgage…..NOT with a new second mortgage). This particular program also allows for you to own an unlimited number of financed properties!

Note:  Your current lender has no motivation to help you out of a payment that they are quite happy to continue receiving. Currently, most lenders will not even consider a “modification” unless you are 90+ days past due AND it is your primary home.

If you think that you might fall within the basic parameters that I mentioned, or you would like help in evaluating potential options, give me a call!

If someone is still current on their payments, there are several

Federal loan programs that are still available that may be able

to help someone refinance (even if they owe over 100% of the

current market value).

If they are not current and they can document financial hardship,

the best place to go is www.makinghomeaffordable.gov . This

is the official Federal Government site, set up to guide homeowners

who need to negotiate a loan modification. They even have counselors

who will act as an advocate on your behalf, if your lender is not

operating in good faith.

The Obama Administration just announced on 8/11, a new program

to help unemployed homeowners avoid foreclosure!

If someone is unsure about what to do, I am happy to help review

their options and give them direction.

Fortunately, we have continued to experience the benefits of historically low interest rates; which has allowed many people to refinance into more affordable payments and has allowed many to purchase new homes.

We still have the ability to help homeowners refinance into lower rates/payments, even if your mortgage is greater than the current value of your home! 

This is one of the best programs to have come from our new Administration.  Allowing homeowners to free up more money in their monthly budget (versus paying it to a bank), puts more money into stimulating our economy and "re-creating" more jobs (versus artificially creating temporary government jobs or printing money to boost the economy).

If you want to find out if you qualify for a refinance (up to 125% of your home's value - with no cash out allowed), call Vista for a no-cost analysis of your situation.

There are also many great new loan programs designed to help more people purchase a new home and Vista can help you analyze those options as well.

It has been a long time since my last post.  After my Mother passed away (2+ years ago), I felt like the air had been knocked out of me.  To make things worse, the continuing decline in our economy and housing markets left me very disheartened.  I kept hoping that our new administration would find the "key" to really turn things around quickly, but that is not what I found.

I continually received calls from homeowners who were searching for information about their "options"; which were limited and unfortunately, not well-publicized.  Programs for helping homeowners were spotty and apparently, left to the complete discretion of the lenders and loan servicers, who were not well-organized, nor overly willing to help people stay in their homes. 

I have heard many stories about the frustrations of trying to get a "loan modification" through a lender, only to finally give up and turn over the keys.  Or lenders who were unwilling to accept a reasonable "short sale"; which caused owners to be forced out through a foreclosure.  MANY of these homeowners jumped through the lenders' hoops repeatedly, only to have the story and requirements change with each new person that they had to talk to.  One homeowner told me that they were required to document their income, assets, liabilities, job situations and personal hardships (which is to be expected) EVERY MONTH FOR A YEAR, before their lender finally "allowed" them into a "3-month trial" modification and after the first month, the lender stopped accepting their payments and RAISED THEIR INTEREST RATE!

Where is the common sense!?!  Where is OUR bailout?!?

There are actually counselors and advocates available (who are not trying to "sell" you something) that will help you through the process.

If you are struggling and want a no-obligation assessment of your options, you can contact our office and we can do the preliminary analysis to determine whether or not you would be eligible for a TARP refinance.  If not, we can point you in the right direction to work toward a "modification"; which, by the way, you should NOT have to pay for!

Amazingly, for the first time in the recent months, we are beginning to hear the voice of common sense ....or the voice of a better-informed government and media!

The first indication that our government is beginning to understand our "subprime crisis", was when Bernanke announced that it would not be wise to bail out the Wall Street investors who purchased the mortgage-backed securities!  If they made poor decisions in their investment strategies, they should pay the price.

On August 31, 2007, President Bush, announced his plan to revamp the FHA loan guarantee program and introduce a new FHA program called "FHA Secure"; which will allow people who are currently delinquent to refinance into a fixed rate, providing they have 3% equity in the property and they can show that they made payments on time, until their rate adjusted.

I really believe the the FHA Secure option is a rational, reasonable and potentially effective solution for families who accepted Adjustable Rate loans and were unable to adequately prepare for the adjustment in the rate and a higher payment.

People enter into Adjustable Rate mortgages for many different reasons:         1)  They are offered a lower adjustable rate/payment that they can afford versus a fixed rate/payment that they can not afford    2)  They want a lower rate/payment, knowing that they only intend to stay in the property for a shorter period of time (2-5 years) and they plan to sell before the rate adjusts     3)  They have credit issues that put them into the subprime category of rates and the adjustable rate/payment offers a more affordable payment and a 2-3 year window (with the rate/payment fixed, typically for the first 2-3 years) that should be used to improve their credit history; which would allow them to potentially qualify for better rates in the future.      **** Adjustable Rate loans should always be carefully explained and reviewed with a borrower, so they understand that they will either need to prepare for a higher payment at the time that their rate adjusts OR that they will possibly want to evaluate a refinance before the rate adjusts (if they intend to stay in the property) OR that they will possibly want to sell before their rate adjusts (if that was their initial desire).

more to follow......

Amazingly, the current mortgage crisis has been primarily conveyed by the media as a "subprime" issue; which is ridiculous. 

Foreclosures are NOT EXCLUSIVE to Subprime mortgages (higher risk loans where borrowers have less than a 600 credit score). 

Foreclosures occur for a variety of reasons: 

loss of a job, divorce, excessive use of credit, medical emergencies, adjustable-rate payments, someone needing to sell and can't (lower market values or someone who owes more than what the home is worth), death of a spouse, fraudulently qualifying for a payment that someone can't afford, etc.

With the growing attention on the "Subprime" market and increasing home foreclosures; many lenders are completely dropping their higher risk loan programs (Zero Down, "Stated Income", Option Arms, etc.) and tightening their guidelines for qualifying on the programs that they are keeping (requiring higher credit scores and offering lower Loan-to-Value limits).

This is going to make it much more difficult to obtain financing; if you are not a "conventional" borrower, if you have credit challenges, if you don't have some Down Payment (or equity remaining in the home, if you are doing a refinance) or if you don't have a 2-year work history in the same type of work.  It will also become much more difficult for you to take "cash out" of your home's equity!

Since it will be more difficult to qualify for a home loan; it will become even more important for you to have strong credit scores (680+....700+ is best).  Start working on improving your credit before you need to apply for your next loan!  Your Loan Officer is a tremendous resource for helping you to create a plan for getting your credit in the best possible shape.

Contact one of our experienced professionals to get tips on improving your credit scores through responsible credit management and what factors have the greatest impact on your scores.

Heidi Hahn-Troxler, Broker / Owner