Best Mortgage Moves in a Slowing Housing Market

(ARA) - Given the recent changes in the mortgage and housing markets, many current and potential homeowners are asking themselves the question of what to do next in regards to their home financing situation. Whether you are looking to purchase your first home or are already a homeowner and want to maximize your investment, there are a number of home financing options to consider. GMAC Mortgage (www.gmacmortgage.com) offers the following tips to help you make your next mortgage move. First-Time Homebuyers The biggest concerns for first-time homebuyers right now are fluctuating interest rates and home values. However, buying a home with a fixed-rate loan now will ensure that future rises in interest rates will not impact your monthly payment. In addition, because of current market conditions, many first-time homebuyers have a large inventory of homes from which to choose. Prices in many markets have stabilized or moved off their highs over the past year as demand has softened, so your dollars could go much farther than they have in the past. If you decide to move forward with the search for your first home, consider getting pre-approved for a mortgage. Becoming pre-approved will give you a much better idea of your buying power as well as reassure home sellers that you are a serious buyer. Existing Homeowners If you are a homeowner with an adjustable rate mortgage (ARM), hybrid ARM, or interest-only mortgage, now is a good time to consider refinancing into a fixed-rate loan. Even if the overall interest rate rises, there is a good chance that a fixed-rate mortgage payment will be lower than what you may pay if your adjustable rate loan adjusts soon. Homeowners currently repaying variable-rate home equity lines of credit also should review their options. Refinancing to a fixed-rate home equity loan could be advantageous, but you should first check with your lender. Buydowns Another option, whether you are considering refinancing your current mortgage or exploring your first mortgage, is to elect to buy down the interest rate. With a “buydown,” a borrower or seller pays part of the interest upfront, lowering the borrower’s monthly rate for a set period of time. With the proper research and the assistance of a qualified mortgage professional, securing the right mortgage product can put you in a more advantageous situation to help you meet your homeownership goals. For more information on mortgage strategies, call (800) 888-GMAC (4622) to find the GMAC Mortgage office near you. Courtesy of ARAcontent

Not Enough Equity To Refinance Your ARM?? Read This!

FHA Loans Open the Door to Homeowners Having Difficulty Refinancing or Buying a Home

(ARA) - Millions of homeowners are, or soon will be, facing significantly higher mortgage payments as more than $140 billion in adjustable rate mortgages reset throughout the remainder of 2007. Another $380 billion are scheduled to reset higher in 2008. In times past, many of these consumers simply would have refinanced their mortgage. But many are now finding that current lending restrictions and declining home values have made refinancing difficult. Enter one stalwart that is making a welcome comeback: The Federal Housing Administration (FHA) loan. Dating back to the 1930s, the FHA loan has traditionally been used by first-time homebuyers because the program requires a down payment of as little as three percent, which can be gifted from a relative, and features relaxed credit guidelines. Today, many homeowners also are turning to the FHA loan to refinance a home. “Eroding home values have drained the equity out of homes in many markets. Many homeowners are unable to refinance an existing mortgage if they have less than 20 percent equity in their home,” says Bob Walters, chief economist for Quicken Loans, one of the nation's largest lenders. Walters recommends that homeowners who find themselves in this situation consider an FHA loan. "Many homeowners are finding the FHA program to be their best solution. It's ideal for those who need to refinance out of an ARM because it requires much less equity, with interest rates that are extremely competitive with conventional loans." "FHA programs also are an attractive option for people wishing to purchase a home, especially those who may have the income to support their monthly payment, but don't have the cash for a 20 percent down payment or a lengthy credit history," he adds. As one of America’s largest mortgage companies and an FHA-approved lender, Quicken Loans offers industry-leading technology that enables clients to review and sign documents securely on the Web, making the home loan process fast, safe and easy. To learn more about FHA loans, visit www.QuickenLoans.com/FHA. Courtesy of ARAcontent

To apply for an FHA Loan here in Rochester, Contact me and I will get you to the right person!!!