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Many homeowners look for ways to reduce their expenses when they are facing financial hardship. Maybe you are thinking about a bank statement loan in California.
Most people’s largest monthly expense is their mortgage payment. Monthly mortgage loan payments can vary in price depending on where a borrower lives.
This is an area that people are most likely to want to save money by using aplusmortgagerates.com
There are two options to reduce monthly payments for homeowners and borrowers of mortgage loans. They have two options: they can refinance or modify their mortgage. A third option you can think about a self employment loan.
Refinance a home replaces the homeowner’s existing mortgage by a new one with new terms and a lower interest rate. This is usually done to benefit the homeowner and often save them money by offering a lower rate of interest than they have before. The homeowner is usually offered a refinance loan by a new lender, which replaces the previous lender. To get a free refinance quote, click here.
Modifying a mortgage does not replace an original loan but it will change the monthly payment amount and terms. This could include changing from an adjustable-rate to a fixed rate mortgage or even a asset back mortgage loan. The mortgage servicer will not be affected by this process.
Modifications and mortgage refinance will both reduce monthly payments but they don’t have to be the same. Refinancing is a good option when you need to get a new loan. However, there are times when it’s best to stay with your current lender and modify your original mortgage loan.
The key is to determine which one is best for you. We spoke with mortgage experts to get their opinion.
Appraisals to Modify and Refinance
Gloria Shulman, founder of the Centek Capital Group told loans.org that loan modification has one advantage over refinancing. You don’t need to appraise.
She said that Fannie Mae’s and Freddie Mac’s 2009 oppressive regulations have caused low-ball appraisals to explode refinance applications, or forced borrowers into paying thousands of dollars at closing. Even some closing cost can be modified when you explore a bank statement loans.
A home that is valued at less than its actual value will technically be considered less valuable. This can be a problem for homeowners who want to sell their house or make use of the equity to get some cash. Homes are often the most expensive things people own throughout their lives and can be used as investments. A home that is undervalued could mean that a person pays lower monthly payments but loses in the long-term.
Unfortunately, there is still room for error after the Housing Crisis and government’s push to be less cautious about appraisals moving forward and be aware of stated income loans.
Shulman stated that “new regulations adopted by Fannie Mae & Freddie Mac 2009 have led inexperienced appraisers estimating homes values in areas they have no experience.” Shulman stated that they often use short sales and foreclosures as primary comparable. It is important for borrowers to be proactive and provide appraisers with positive comparable. This information is often available at the local county offices.
Homeowners will find that loan modifications are not as long-term as refinances. Borrowers must agree to the terms offered by their lenders. Shulman also warns that less-reputable companies may charge outrageous fees.
She urges people to use today’s historically low interest rate to refinance their mortgages, provided they meet strict income requirements.
She said that the key to deciding whether you should pursue a refinance loan or not is how long you plan to stay in your home. Refinance is an excellent option if you plan to remain in your home for more than 10 years with a 6-percent 30-year note. This is also a good idea if your promotion at work has been reflected in your household income.
Refinance and modification of mortgage loans allows borrowers to choose where they want to save their money. They usually put the money towards college savings or major purchases such as a car. You can also use it for student loan debt repayments.
Shulman compared refinancing and modifying, all things being equal. He concluded that a mortgage refinance loan is better than a modification, provided the homeowner has sufficient funds.
Modifications, on the other side, are often a last resort for homeowners who have difficulty paying their monthly payments. Lenders who depend on monthly payments to make a profit would prefer to receive something from homeowners every month.
If homeowners are experiencing financial hardship, they are at the right time to seek a modification. But, this doesn’t necessarily mean that they will be eligible.
Modification Qualifications Refinance Requirements
Jamie Cogburn is an attorney at Cogburn Law. He stated that most home loan modifications require applicants to be current on their mortgage payments.
He said that you also need to be upside down in order for modification to be possible. Most refinance programs only allow for equity owners. “HARP is available, which allows you refinance if your equity is at risk. However, you will need Fannie Mae and Freddie Mac to be your investor. You can’t refinance if you don’t have one of these.
HARP stands for Home Affordable Refinance Program. This program allows homeowners who are underwater to refinance their mortgages at the lowest interest rate possible.
HARP is not required for homeowners who are in financial distress. However, they must have had a mortgage owned or guaranteed by Fannie Mae. You must also not have missed any payments in the past six months, and your debt-to-income ratio should not exceed 80 percent.
Federal programs aside, experts agree that refinances are a luxury.
Francine A. Gargano is a real estate lawyer who has been practicing for over 30 years.
After being in the industry for so many years, she discovered that refinance was a low-cost option that very few people get to experience. Modifications are a different story.
She said that home modifications require borrowers to have sufficient income and not be in default on their mortgage. “Loan modifications have been expensive for my clients in many ways,” I said.
Gargano recalled how many of her clients had stopped paying their mortgage payments for several months in order to be eligible for a modification. The missed payments ruined their credit scores. It is easy to see how quickly the cost of a modification can rise when you add in interest, late fees, and legal fees.
The large amount of paperwork required for the process also contributes to part of the cost. Attorneys are almost a requirement for modifications. Scams that claim to speed up the process are even more alarming.
Gargano stated that many people fall for the scams of companies that claim they can assist with modifications.
Modification applicants may fall for scammers even if they try to avoid them.
She warned that modifications can sometimes make little or no difference to borrowers’ financial situations. Modifications that can be adjusted may increase in the future making it almost pointless.
Greg Cook, a specialist with the First Time Home Buyers Network said that modifications are only for those who have difficulty making their monthly mortgage payments.
To modify their mortgage loan, homeowners must prove that they are in financial hardship. Lenders are reporting modifications to credit bureaus as a negative attribute, which is worse because homeowners aren’t paying what they agreed to.
He explained that a refinance is for homeowners who have made their monthly payments on time and are eligible based on income and credit. While refinancing is the best option, if a homeowner cannot qualify for a loan modification, it may still be an option to avoid foreclosure.
“Milking a Unicorn”
Nirav Desai is the Managing Principal of Qubera wealth Management. He said that homeowners should always choose to refinance their home over a modification because the process for getting a modification can be like “milking a unicorn.”
He said that “First, you won’t find any unicorns” and “Secondly, they don’t have milk teats.”
His colorful explanation continued by explaining that most homeowners don’t have the knowledge or patience to modify their loan. Refinances are handled by lenders who walk applicants through the process. Usually, they decide whether to approve or deny a request within 30 minutes.
Desai claims that no one is fully informed about the rules for mortgage loan modification. Desai has found that banks are more likely to ask homeowners for the same information repeatedly over many months. This can lead to frustration for the homeowner.
He said that the only people he knows who received loan modifications were people who have jobs and would’ve been eligible for a refinance anyways. “I don’t know of anyone who was in a difficult situation and got approved for a loan that decreased their principal balances or interest rate.”
Modifications are not as easy to find as the Holy Grail. However, there are trends that show they are more sought-after than ever.
Trends to Modify and Refinance
Anna Cuevas, founder of Ask a Loan Mod Guru said most people who are trying to refinance or modify a home loan live in one of these five areas.
- Los Angeles
- Riverside-San Bernardino
- New York
These are essentially large urban centers with high populations.
She believes that refinances are on the decline since interest rates have risen. Modifications have been declining since the peak of The Housing Crisis.
Although refinancing and modification demand has slowed, it is possible that people would have been able to get the latter more easily if they had known about its more specialized form.
Lori Beardslee is the Branch Manager at Silverton Mortgage Specialists. She said homeowners should accept a modification as long as their lender will allow it.
She explained that while they’modify’ interest rates and monthly payments, other terms of the loan are not affected.
She illustrated her logic using an example.
When to replace the electric wiring in your home
by SHERYL MESHACH posted on FEBRUARY 12, 2022
Older homes present a number of risks not present in more modern buildings. One of these risks is faulty electric wiring, which combined with lighting equipment failures was responsible for an average of 22,410 fires per year between 2007 and 2011 according to The National Fire Protection Association. Homes built in the early 20th century near San Francisco may contain “knob and tube” style wiring, while those built in the 1960s and 1970s may contain aluminum wiring instead of copper. Both are safe when in good condition, but present an added risk of electrical fire as they degrade over time.
If you are moving into or own an older home, it is important to understand your risk of electrical fire and possibly take steps to update your wiring.
What to look for
There are a number of warning signs to look for when considering the possibility of faulty wiring, according to House Logic.
- Constantly tripped breakers or fuses can mean that your wiring is degrading. It could also just mean that part of your house is drawing an inordinate amount of energy. If a fuse for one specific part of your house is constantly tripping and there are a number of energy drawing appliances getting used simultaneously, this may be the problem.
- A tingling feeling when you touch a switch or appliance may mean that your wiring is being grounded by the object you are touching. This should not be happening, as it means a current is flowing through you every time you touch the object.
- Flickering lights can also be a sign of faulty wiring, or it may be that the light bulb you have installed is simply nearing the end of its life. Carefully replace the light bulb, preferably with a new CFL bulb that is correctly rated for the appliance. If the flickering continues, the wiring is likely to blame.
- A burning smell is never a good sign in any part of your home. If you smell burning every time you use an appliance, your wiring may be to blame.
- Browning outlets can also mean that there is a problem with your wiring, particularly if they are warm to the touch. The more significant the browning, the faster you should act, as this presents a real risk of electrical fire.
Even if you aren’t seeing any of these warning signs, you should still consider getting a home inspector to take a look at your house if it is 40 years old or more, HouseLogic suggested. This service should cost between $150 to $300 a which can be deducted from your FHA Mortgage or a Jumbo Loan and will give you important peace of mind.
Other signs of dated wiring are standard outlets in your bathroom – which were replaced by ground fault circuit interrupters for potentially damp environments in modern homes. In addition, ungrounded – or two pronged – outlets throughout your house can be a sign of dated wiring. Even if there is nothing wrong with your home, if you have only ungrounded outlets you should get them updated. Chances are you are using an adaptor for your appliances that require all three prongs, which is not a safe practice.
A TotalProtect® Home Warranty may be able to protect you from the unexpected cost of replacing failed electrical components. A home warranty is a great way to increase your homeowner confidence and reduce your liability into a low monthly cost.
Our #1 Home Foreclosure Help
If you are late on your monthly mortgage payments and need home foreclosure help, these guys are good! They have stopped foreclosure sales up until the day before the sale date, but DO NOT wait that long! Most of their clients end up with a favorable loan modification as well.
Foreclosure sale dates can be postponed for less than the cost of filing for bankruptcy and you don’t pay unless your sale date is postponed.
The main goal at BestMortgageLoanModification.com is to save your home and at the same time make your monthly payments more affordable. We examine your financial and personal circumstances and negotiate with your lender to modify your loan to help you keep your home. If need be, we use our attorneys to stop the foreclosure sale date. This can usually be avoided if the clients contact us before the sale date is right around the corner!
We have negotiated loan modifications with all lenders and the ultimate goal is to stop the foreclosure sale date and modify the loan. This creates an affordable payment, get you current on the loan and lets you keep your home.
We’ll work for you regardless of your credit situation. A private consultation with our foreclosure prevention specialist can help you stop foreclosure action and give you a piece of mind to improve your financial situation.
So don’t let your home be at risk another day longer! Simply fill out their easy online application form and get your free consultation today with an experienced stop foreclosure specialists. There is no application fee and no obligations. Save your home before it’s too late!
#2 Stop Foreclosure Help
These guys are great. They can stop foreclosure and negotiate to qualify you for a loan modification program. They are EXPERTS at getting you to fit into the modification guidelines, which is essential for approval.
Once accepted into certain loan modification programs (just fitting your lenders guidelines), your mortgage is protected from foreclosure, giving time for the modification to be completed. This is a home saver if you are facing a foreclosure sale.
Not only can a loan modification stop foreclosure, but it can also reduce your interest rate as low as 2%, waive late fees and even get you a principal reduction in some cases.
Every situation is different, so you must fill out the form to see if you qualify online. You can find help near you.
Click Here To Visit Website
Our #3 Foreclosure Help Site
HowToGetALoanModification.org is a must visit if you are serious about getting a loan modification.
They will give you a free loan modification analysis after you have pre-qualified on their website. The short form includes some standard requirements that pertain to a loan modification. Once you are qualified for a loan modification, they have several options available to get you approved.
They also have some very cutting edge programs when it comes to stopping foreclosure via attorneys/lawsuits. You need to call them for more details on this.
With years of experience in the real estate/foreclosure business, HowToGetALoanModification.org will give you straightforward answers that will help you and your situation.
The information in this article is intended to provide guidance on the proper maintenance and care of systems and appliances in the home. Not all of the topics mentioned are covered by our home warranty or maintenance plans. Please review your home warranty contract carefully to understand your coverage.