Hybrid Adjustable Rate Mortgages (ARMs): Mortgages that have fixed payments for a few years, and then turn into adjustable loans. Some are called 2/28 or 3/27 hybrid ARMs: the first number refers to the years the loan has a fixed rate and the second number refers to the years the loan has an adjustable rate. Others are 5/1 or 3/1 hybrid ARMs: the first number refers to the years the loan has a fixed rate, and the second number refers to how often the rate changes. In a 3/1 hybrid ARM, for example, the interest rate is fixed for three years, then adjusts every year thereafter.


With this in mind, it’s important to do research before choosing a mortgage lender. You not only want to compare the rates but also the level of service each lender provides. When comparing rates, be sure to get the estimates on the same day as rates can change daily. When reviewing level of service, ask how quickly they can process your loan. Is the lender available to personally help you choose the right product and rate, or are you waiting on hold for “the next available representative”?  Do they make you jump through hoops just to get a rate quote?
Home equity lines of credit work differently than home equity loans. Rather than offering a fixed sum of money upfront that immediately acrues interest, lines of credit act more like a credit card which you can draw on as needed & pay back over time. This means that the bank will approve to borrow up to a certain amount of your home, but your equity in the home stands as collateral for the loan. The interest rates are lower than they would be with a credit card. Often home equity loans have a variable interest rate that will change according to market conditions.
Know your credit score. As soon as you decide to start looking for a home, check your credit report and credit score with any of the 3 major credit reporting agencies: Experian, TransUnion and Equifax. If you find any mistakes that need to be corrected, addressing these issues early will put you in a better position when it’s time to buy a house. (Bank of America credit card clients can get a free FICO® score in Online and Mobile Banking.)

In addition to higher credit score requirements, several missed payments, frequent lateness, and other derogatory credit information can stop mortgage approvals. Pay your bills on time, lower your debts, and stay on top of your credit report. Cleaning up your credit history beforehand and fixing errors on your credit report are key to keeping up a good credit score.


DO THIS: GET IN CONTACT WITH YOUR LENDER TO DISCUSS THE REMAINING BALANCE ON YOUR MORTGAGE — AND WHEN YOUR PMI, IF YOU HAVE IT, CAN BE DROPPED. IF YOU’RE BUYING, CHAT WITH YOUR LOAN OFFICER ABOUT FINANCING YOUR UPFRONT MORTGAGE INSURANCE INTO A LOW-DOWN-PAYMENT LOAN, LIKE AN FHA, OR SEE IF YOU’RE ELIGIBLE FOR LOANS WITHOUT MORTGAGE INSURANCE, LIKE A VA LOAN.
Keep Your Home California uses the Note date as the start date for the Keep Your Home California lien. The Note date is the date of final Keep Your Home California approval. This will always pre-date the servicer’s application of Keep Your Home California funds to your loan. If you wish to know your Note date, you may contact Keep Your Home California at (888) 953-3722, Monday-Friday from 8 a.m. to 5 p.m.
A lender offers you a mortgage interest rate based upon a number of factors, but by far the most important is the secondary market for mortgages. Banks typically sell their mortgages to aggregators like Fannie Mae and Freddie Mac, which are government-sponsored enterprises that buy and repackage mortgages. Aggregators issue mortgage-backed bonds to investors in the secondary market. The daily fluctuations of supply and demand affect the interest rates investors require to buy these bonds. As the economy strengthens, investors require a higher interest rate on bonds because of growing competition for their investment dollars. Banks peg their mortgage interest rates to the daily interest rate on mortgage-backed bonds in the secondary market.
Find information on the Home Affordable Foreclosure Alternatives (HAFA) program, which is the new federal government short sale program. This is a plan created by the Obama administration that provides financial incentives to both homeowners and lenders. It both encourages the parties to use short sale process by providing financial aid to banks and homeowners, and it also simplifies the process. Find more on the short sale program from HAFA.
Grants are awarded through a rather competitive application process. The applications themselves are quite complex and failing to answer any question could result in a denial. The good news is that there is literally millions of dollars in grant money made available each year. Many grants are offered only to minorities or to applicants meeting certain qualifications, such as earning a low income. These restrictions reduce the number of applications, meaning that there is less competition for the award. There is also no limit to the number of times an applicant can apply for a grant, which even further increases the odds of receiving the offered funds.
Short Sale: Your servicers may allow you to sell the home yourself before it forecloses on the property, agreeing to forgive any shortfall between the sale price and the mortgage balance. This approach avoids a damaging foreclosure entry on your credit report. Under the Mortgage Forgiveness Debt Relief Act of 2007, the forgiven debt on your primary residence may be excluded from income when calculating the federal taxes you owe, but it still must be reported on your federal tax return. For more information, contact the IRS, and consider consulting a financial advisor, accountant, or attorney.
In some cases, you may not be required to provide all of that information. Some loans are referred to as low doc or no doc because they don't require you to prove any of the statements that you make to your underwriter. These loans are normally more expensive, but can be easier to obtain. Additionally, you can obtain a preauthorization before you submit an offer on a home you would like to buy. That can speed up the process, and also shows the seller that you are serious about the purchase.

If you put less than 20% down on your mortgage, you'll probably have to pay private mortgage insurance, or PMI, so be sure to budget for this when shopping. Mortgage insurance rates can vary significantly, depending on your credit, the length of your mortgage, how much your down payment is, and other factors. However, it can add a significant amount to your payment, so be sure to take it into consideration.
According to John Lyons, a broker and real estate agent in Chicago, getting a typical mortgage takes an average of 30 to 60 days. So if you’re itching to buy right away, you’ll want to start the pre-approval process soon so you’re ready to go when you find the right house. Lyons recommends getting pre-approved by a reputable company and having all of your financial documentation ready in order to increase your chances of securing a mortgage in a timely fashion.

Most lenders today will want to know every detail of your financial life. If something looks odd, or doesn’t make sense they will want to have some sort of explanation. This means that you will have to write letter explaining everything. For instance they may want to know why a credit card issuers pulled your credit three months ago when you were trying to apply for store credit, or why you changed jobs a few months ago or why you have moved from job to job over the last couple years. It’s best to write them and explain everything in full detail and move on. They do this simply to verify your financial stability and it is usually something that is requested from time to time.

This is the distinguishing characteristic of a fixed mortgage. The interest rate you start off with stays with you for as long as you keep the loan, even if you keep it for the full 30-year term. The rate assigned to an adjustable mortgage, on the other hand, can change over time. These are very important differences, from a home buyer’s perspective.

Some people don’t know the first thing about getting a mortgage loan. They hear reports of dropping interest rates and lower home prices and hastily decide to jump into home ownership. But the process of getting a home loan differs from getting a car loan or renting an apartment, and applicants who don’t recognize these key differences are often disappointed when a lender denies their mortgage loan application.
If you remain in your home for 10 years, the loan will be forgiven, and you do not have to pay it back. After you have lived in your home for five years, the loan is reduced by 20 percent a year for years six through 10 until you owe nothing. You repay the total amount only if you sell or refinance the home in the first five years, and only if the sale proceeds are sufficient to repay it. Please note that if you refinance your property for better loan terms, we will subordinate our second mortgage; however, if you refinance to consolidate debt or take out cash, the second mortgage loan must be repaid.
In today’s competitive market, many buyers skip this important step when they start looking for a home. A pre-approval allows you to confirm how large of a loan you can qualify for based on several factors. It also positions you to make a serious offer when you find the home you want to buy. For a pre-approval, the lender verifies the buyer’s application information through income and asset documents provided by you or retrieved directly by the mortgage company. Many lenders can also provide a “prequalification” online, based on unverified information provided by the buyer. However, most sellers don’t give much value to a letter that doesn’t state the information has been validated. The most important thing is to take the time to provide what is needed for a thorough pre-approval process.
Know how much cash you'll need at closing. When you buy your home, you’ll need cash for a down payment (see how much you should put down) and closing costs (estimate your closing costs). The down payment typically varies from 5% to 20% or more. Putting less than 20% down will typically require you to pay for private mortgage insurance (keep reading for more on that). Closing costs could be about 3-7% of the total loan amount and will include charges such as loan origination fees, title insurance and appraisal fees.
Hybrid Adjustable Rate Mortgages (ARMs): Mortgages that have fixed payments for a few years, and then turn into adjustable loans. Some are called 2/28 or 3/27 hybrid ARMs: the first number refers to the years the loan has a fixed rate and the second number refers to the years the loan has an adjustable rate. Others are 5/1 or 3/1 hybrid ARMs: the first number refers to the years the loan has a fixed rate, and the second number refers to how often the rate changes. In a 3/1 hybrid ARM, for example, the interest rate is fixed for three years, then adjusts every year thereafter.
Union Plus provides mortgage assistance to union and organized labor members. Their immediate family members are also eligible. Short and long term assistance can be provided to people who are struggling with their mortgage and paying for other housing expenses. Some members may even receive cash or some form of grant for paying their mortgage. Continue with Union Plus foreclosure and mortgage assistance.
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