Loan modifications are failing fast

Recent reports have shown that low percentages of people that have entered into loan modifications under HAMP have successfully managed to get past the probationary period, and that up to 75% of those that have obtained permanent loan modifications under the program have dropped out.

There are many factors at play here, but the primary one is that people will not continue to make payments on a house that is worth significantly less than they owe. We can all agree that loose underwriting standards, and exotic loans that are now frowned upon, have contributed heavily to the price accelerations that we witnessed during the period from 2002 through 2006. By making cheap and easy money available to almost everyone, without considering whether borrowers had the capacity to repay their debts created a huge demand for housing, which caused prices skyrocket, even in markets that have been relatively consistent over the years.

Unfortunately, it appears that there will be downward pressure on housing prices for the next few years, as additional homes enter the market through short sales and lender REO portfolios.

Thankfully, rates have remained low, and for qualified borrowers that have good equity, and for those who are looking to buy who can bring sufficent cash to purchase transactions to establish equity, it is a good time to consider their financing options. Trusted mortgage professionals can answer your questions, and can give you guidance regarding the financing options that are available to you.

I have access to FHA and conventional financing and can lend in 17 states. Please feel free to contact me to discuss your options and to get your loan in process. My contact information is below.

Kristi Kertin
888/627-2002

Where will housing values go?

With all that has gone on over the last couple of years, it is becoming a great time to purchase a property, or refinance your existing mortgage.

In the real estate market, I would expect that we will see an increase in supply with the expiration the tax credits for homebuyers (which caused a short-term spike in demand), and in increase in the numbers of homes that are being released into the market by lenders that have foreclosed properties on their books. With declining numbers of showings, and increased competiton/supply, some of which will be from "distressed" properties, sellers will be inclined to consider lower offers to get their properties sold.

This is occurring at a time when mortgage rates are low. While qualifying for a mortgage has become more difficult, stable rates are available for qualified borrowers with reliable incomes, good credit scores, and the ability to bring cash into the equation.

Refinances are also an attractive option now, with fixed and adjustable products available at very attractive rates.

Protect Your Financial Information

As we all know, protecting our personal financial information is important, and identity thieves are always on the lookout for names, social security numbers, bank account numbers and the like. Because of the increasing complexity of firewalls and other data protection software at banks, insurance companies, and other traditional repositories of financial information, identity thieves are increasingly turning the hacking efforts to other less-secure spots, like restaurants, retail outlets and social networking sites.

You just can't be too cautious in your handling of your financial information, and we should all be vigilant about not divulging that information to others over the phone, through emails, or in other communications. One way to ensure that your information is safe is to place a credit freeze on your account through the three credit repositories, and/or to obtain and review your credit report on a regular basis. The website www.annualcreditreport.com will allow you to obtain a free credit report from each Equifax, TransUnion and Experian every twelve months. If you stagger your requests so that you request a report from one of the bureaus every four months, you will have up-to-date information all year long. If there are any discrepancies on your report, address them immediately.

Maintaining a strong credit profile will enable you to obtain the best rates for mortgages, car loans, and other financial products.

If you need help refinancing your mortgage, please feel free to contact me at 888/627-2002 at any time.

Important mortgage considerations

When seeking a mortgage, there are many factors to consider, and having a trusted loan originator can help you to choose a loan program that is suited to your needs. Let's take a look at some of the primary considerations.

1. The type of loan. It is my opinion that fixed rate loans are best loan choice for most borrowers. With today's historically low interest rates, you can obtain a loan now, and be confident that the monthly principal and interest payments will never change. While adjustable rate mortgages are currently available at attractive start rates, it is likely that the rates will adjust upward in the coming years and you may be facing increased payments. I would only recommend adjustable rate loan programs to borrowers that do not intend to live in their current residence beyond the initial fixed-rate period of the adjustable rate loan.

2. The term of the loan. The most common loans have repayment terms ranging from 15- to 30-years. Certain loan programs do offer longer terms, but I would steer clear of those because the monthly savings versus a shorter term loan are offset by the increased interest expense that you will incur over the life of the loan. In a refinance situation, it is advisable to limit the term of the new loan to the remaining term of the loan being refinanced, again to reduce the overall interest expense incurred during the life of the loan.

3. The costs associated with the loan. Borrowers are responsible for paying certain closing costs when they obtain a new loan; these include underwriting and lender fees, title insurance and closing fees, appraisal fees, and loan originator fees. A good measure of whether a new loan would make sense in your own situation is to evaluate the monthly savings, and project how long it would take you to recover your out of packet expenses through the reduced payments. If the closing costs on your loan ar $2,500 and you save $250 per month, your loan will have paid for itself after only 10 months.

It is always my recommendation to try to structure your loan so that you can obtain the lowest rates with minimal out-of-pocket costs at a term that you are comfortable with. Loan originators are compensated by lenders based upon the loan amount, and you can often negotiate reduced fee loans, and no fee loans with your broker. In today's competitive marketplace, it pays to shop around and compare loan options offered by two or three reputable lending resources.

I am passionate about customer service and obtaining the best loan for my clients, and I have many clients that have been referred to me by others because of the fair and comptent services that I provide.

Through my affiliation with Open Mortgage, LLC, I have access to dozens of lenders in multiple states, and I can help you through the maze of obtaining a loan. Please feel free to contact me with any comments or questions. I can be reached at 888/627-2002 or at kristikertin@gmail.com

Fishers is a great place to live

Fishers has again been named to the best 100 places to live in the country by www.relocateamerica.com. It is a great place to live and raise a family, and the schools are excellent. A link to the Fishers information page is below.
http://www.relocateamerica.com/indiana/cities/fishers

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