Wednesday, June 05, 2013
Thursday, October 15, 2009
Important Changes to Mortgage Underwriting Are Around The Corner!
Fannie Mae recently announced changes which will impact anyone who is looking to buy or refinance a home. The most significant change will reduce the borrowing power for many people who have debt other than their home—which is most people!
Part of the underwriting process for every mortgage is evaluating the debt to income ratio for the borrower. This is a fancy way of saying that the underwriter is required to look at how much of a borrowers income is being spent on fixed monthly expenses such as paying the mortgage, car loans, student loans, and credit cards. In the past, so long as a borrower had excellent credit, underwriters were allowed to approve mortgage applications for borrowers who were spending more than half of their income every month. On December 12, 2009, the allowable debt to income ratio will be reduced significantly and no exceptions will be allowed regardless of how good a borrower’s credit is.
This change in how Fannie Mae views a borrower’s ability to pay will impact many people who have not had any issues obtaining a mortgage in the past. As a mortgage expert I am following these changes closely as consumer lending on the whole continues to evolve in response to the economic fallout we have been going through recently. If you are considering buying or refinancing a home, there is no better time than now to talk to a true mortgage professional about your options. Peter Kazaks is a Mortgage Consultant at USA Funding Corp. He can be reached at 414.807.7277 or peterkazaks@gmail.com.
Part of the underwriting process for every mortgage is evaluating the debt to income ratio for the borrower. This is a fancy way of saying that the underwriter is required to look at how much of a borrowers income is being spent on fixed monthly expenses such as paying the mortgage, car loans, student loans, and credit cards. In the past, so long as a borrower had excellent credit, underwriters were allowed to approve mortgage applications for borrowers who were spending more than half of their income every month. On December 12, 2009, the allowable debt to income ratio will be reduced significantly and no exceptions will be allowed regardless of how good a borrower’s credit is.
This change in how Fannie Mae views a borrower’s ability to pay will impact many people who have not had any issues obtaining a mortgage in the past. As a mortgage expert I am following these changes closely as consumer lending on the whole continues to evolve in response to the economic fallout we have been going through recently. If you are considering buying or refinancing a home, there is no better time than now to talk to a true mortgage professional about your options. Peter Kazaks is a Mortgage Consultant at USA Funding Corp. He can be reached at 414.807.7277 or peterkazaks@gmail.com.
Wednesday, October 14, 2009
Still Time to Get $8,000 FREE!
I keep seeing signs in the yard of homes that are for sale saying something to the effect of "This home qualifies for the $8,000 first time homebuyer tax credit!" Well, every home could qualify for the credit... What matters is that you, the home buyer, qualify.
And right now, what really matters, is that you take action!
Here's what you need to know, right from the IRS!
“For first-time homebuyers this year, this special feature can put money in their pockets right now rather than waiting another year to claim the tax credit," said IRS Commissioner Doug Shulman. “This important change gives qualifying homebuyers cash they do not have to pay back.”
If you buy your home BEFORE DECEMBER 1, 2009, you may qualify for this credit. With just over six weeks left in this IRS program, you still have time to find and buy your new home before the credit expires! But, you don't have much time to wait around.
Call me today to explore your options for buying your first home and claiming your $8,000. Learn more about me at: www.MortgageMKE.com
And right now, what really matters, is that you take action!
Here's what you need to know, right from the IRS!
“For first-time homebuyers this year, this special feature can put money in their pockets right now rather than waiting another year to claim the tax credit," said IRS Commissioner Doug Shulman. “This important change gives qualifying homebuyers cash they do not have to pay back.”
If you buy your home BEFORE DECEMBER 1, 2009, you may qualify for this credit. With just over six weeks left in this IRS program, you still have time to find and buy your new home before the credit expires! But, you don't have much time to wait around.
Call me today to explore your options for buying your first home and claiming your $8,000. Learn more about me at: www.MortgageMKE.com
Friday, July 17, 2009
First Time Homebuyer Tax Credit
A new client contacted me this week and asked--"Are you an approved lender for the $8,000 first time home buyer tax credit?" Interesting question. The fact of the matter is, the mortgage professional you work with does not make a difference in qualifying for the credit! But, working with a true mortgage professional (rather than a "mortgage guy") will make a difference in how the whole process goes for you!
The next few posts here will help you choose the right mortgage professional. Today's tip:
Ask the following question: What are mortgage interest rates based on?
The only correct answer is Mortgage Backed Securities or Mortgage Bonds, NOT the 10-year Treasury Note. While the 10-year Treasury Note sometimes trends in the same direction as Mortgage Bonds, it is not unusual to see them move in completely opposite directions. DO NOT work with a lender who has their eyes on the wrong indicators!
The next few posts here will help you choose the right mortgage professional. Today's tip:
Ask the following question: What are mortgage interest rates based on?
The only correct answer is Mortgage Backed Securities or Mortgage Bonds, NOT the 10-year Treasury Note. While the 10-year Treasury Note sometimes trends in the same direction as Mortgage Bonds, it is not unusual to see them move in completely opposite directions. DO NOT work with a lender who has their eyes on the wrong indicators!
Thursday, July 09, 2009
I Love These!
Here's an e-mail I just received from a client of mine. I helped them buy their home and have since refinanced them as rates dropped, effectively cutting more than FIVE YEARS off of the the payoff schedule for their loan!
Peter,
It is has been a pleasure working with you on our three transactions. You are thorough and easy to work with. We have no problem recommending your services to friends and family.
Take care,
Peter and Karina
Peter,
It is has been a pleasure working with you on our three transactions. You are thorough and easy to work with. We have no problem recommending your services to friends and family.
Take care,
Peter and Karina
Wednesday, February 18, 2009
Tax Credit for Homebuyers
Just signed and sealed… a $787 Billion Stimulus Plan made up of tax cuts and spending programs aims at reviving the US economy. Although the package was scaled down from nearly $1 Trillion, it still stands as the largest anti-recession effort since World War II.
Home owners and potential homebuyers stand to gain from key provisions in this stimulus plan. Here is what we know as of today...
First-time homebuyers who purchase homes from the start of the year until the end of November 2009 may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit. Remember a tax credit is very different than a tax deduction – a tax credit is equivalent to money in your hand, as opposed to a tax deduction which only reduces your taxable income.
The tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000. Buyers will have to repay the credit if they sell their homes within three years.
Tax Incentives to Spur Energy Savings and Green Jobs — This provision is designed to help promote energy-efficient investments in homes by extending and expanding tax credits through 2010 for purchases such as new furnaces, energy-efficient windows and doors, or insulation.
Landmark Energy Savings — This provision provides $5 Billion for energy efficient improvements for more than one million modest-income homes through weatherization. According to some estimates, this can help modest-income families save an average of $350 a year on heating and air conditioning bills.
More Help for Homeowners in the Future
Another thing to keep an eye on in the coming weeks is President Obama’s plan to help struggling borrowers before they are faced with a default on their mortgage.
According to reports, the Obama administration is discussing plans to help borrowers who are struggling to stay afloat, but who have not yet fallen behind on their payments. At this point, details are scarce; however, reports indicate that President Obama is looking to spend approximately $50 Billion to directly help homeowners before they face foreclosure and financial disaster.
Home owners and potential homebuyers stand to gain from key provisions in this stimulus plan. Here is what we know as of today...
First-time homebuyers who purchase homes from the start of the year until the end of November 2009 may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit. Remember a tax credit is very different than a tax deduction – a tax credit is equivalent to money in your hand, as opposed to a tax deduction which only reduces your taxable income.
The tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000. Buyers will have to repay the credit if they sell their homes within three years.
Tax Incentives to Spur Energy Savings and Green Jobs — This provision is designed to help promote energy-efficient investments in homes by extending and expanding tax credits through 2010 for purchases such as new furnaces, energy-efficient windows and doors, or insulation.
Landmark Energy Savings — This provision provides $5 Billion for energy efficient improvements for more than one million modest-income homes through weatherization. According to some estimates, this can help modest-income families save an average of $350 a year on heating and air conditioning bills.
More Help for Homeowners in the Future
Another thing to keep an eye on in the coming weeks is President Obama’s plan to help struggling borrowers before they are faced with a default on their mortgage.
According to reports, the Obama administration is discussing plans to help borrowers who are struggling to stay afloat, but who have not yet fallen behind on their payments. At this point, details are scarce; however, reports indicate that President Obama is looking to spend approximately $50 Billion to directly help homeowners before they face foreclosure and financial disaster.
Thursday, February 05, 2009
Exciting News
Dear KLM Family:
I'm sorry I've been slow with blogging the last few months. I have been very busy with lots of transactions! Some clients have benefitted from lower monthly payments thanks to a lower 30 year fixed rate mortgage, a few have refinanced into even lower rate 15 year fixed mortgages, and I continue to work with quite a few clients who are going through divorces. And in spite of the slowing real estate market, I have even been financing new home purchases!
Anyway, on to the exciting news.
As you read this blog, I am proud to announce that KLM Mortgage Group has merged with USA Funding Corp! Most of our clients are already familiar with USA Funding as the vast majority of the mortgages KLM has placed over the last few years were funded by USA Funding.
Hopefully you recognize that we have always worked tirelessly to stay ahead of the curve in our ever changing industry. The merger is strategic and vital as it will allow us to continue to provide you with the best possible service, rates, and mortgage products.
I look forward to continueing to be your preferred mortgage professional. Thanks to the long standing relationship between KLM and USA Funding the transition will be seamless for you, our valued clients.
Watch for more exciting updates to be posted!
Peter
414.807.7277
I'm sorry I've been slow with blogging the last few months. I have been very busy with lots of transactions! Some clients have benefitted from lower monthly payments thanks to a lower 30 year fixed rate mortgage, a few have refinanced into even lower rate 15 year fixed mortgages, and I continue to work with quite a few clients who are going through divorces. And in spite of the slowing real estate market, I have even been financing new home purchases!
Anyway, on to the exciting news.
As you read this blog, I am proud to announce that KLM Mortgage Group has merged with USA Funding Corp! Most of our clients are already familiar with USA Funding as the vast majority of the mortgages KLM has placed over the last few years were funded by USA Funding.
Hopefully you recognize that we have always worked tirelessly to stay ahead of the curve in our ever changing industry. The merger is strategic and vital as it will allow us to continue to provide you with the best possible service, rates, and mortgage products.
I look forward to continueing to be your preferred mortgage professional. Thanks to the long standing relationship between KLM and USA Funding the transition will be seamless for you, our valued clients.
Watch for more exciting updates to be posted!
Peter
414.807.7277
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