Bellingham Mortgage

Zillow Home Values (Zestimate) Explained

admin — Mon, 23 May 2011 23:21:06 +0000

I use Zillow often to get an idea of property values (mostly residential) and have never considered the ‘Zestimate” to be a very accurate tool for determining value. So, I was pleasantly surprised to get an e-mail from Zillow today announcing two videos to help better explain how a “Zestimate” is determined:

For the “General Public”:

For “Real Estate Professionals”:

What is DU Refi Plus?

admin — Sat, 09 Oct 2010 23:13:55 +0000

Du Refi Plus is a refinance program created under the “Making Home Affordable Program” to help borrower’s whose property has lost value. With this program you can refinance to lower your monthly payments, take advantage of lower interest rates or to move from an adjustable rate to a fixed rate mortgage. This program can be applied to: 1 to 4 unit owner occupied residences, 1 to 4 unit investment properties or a second home with mortgages currently owned or guaranteed by Fannie Mae.

DU Refi Plus allows first mortgages to be refinanced with a loan amount up to 125% of the current property value. The other major benefit to borrowers is that the repayment term can be extended to 40 years. In addition to the higher loan to value and longer terms, there will not be any restrictions on how much is owed on a second mortgage or a home equity line of credit. You cannot however pay off any second mortgage with the funds from the DU Refi Plus transaction.

The eligibility requirements have been relaxed and there is no minimum credit score to be approved (although interest rate will be based on credit score). Mortgage Insurance policies are more flexible and does not require more coverage than you already have.

Borrowers must have an acceptable payment history (at least 1 year of making timely payments) and must be current in payments. Your current mortgage must have obtained prior to March 1, 2009. Second mortgages & reverse mortgages are ineligible for the DU Refi Plus.

Homeowners that currently have adjustable rate mortgages are encouraged to apply for this program as they can replace their risky ARM loan with a fixed rate mortgage.

Hometown Lending is determined to find the best possible loan for your needs. Contact us today to take advantage of the wonderful DU Refi Plus program!

Online Tools for Selling Real Estate

admin — Sun, 23 May 2010 23:17:34 +0000

With over 85% of real estate buyers searching online, we have found a few great tools to professionally present your real estate for sale online. Each of the services below has their own unique features, and all are very well designed. So, whether you selling your real estate FSBO (for sale by owner) or you are a realtor looking to get more online exposure for your clients properties, one or all of these online tools may be a great resource:

vFlyer

www.vflyer.com

Postlets

www.postlets.com

Real Estate Shows

www.realestateshows.com

If you are using any other online tools to market your real estate for sale, please post them in the comments section.

Reverse Mortgage Overview

admin — Tue, 06 Apr 2010 23:18:34 +0000

Here at Hometown Lending in Bellingham, we keep very busy with conventional mortgages, FHA Loans, USDA mortgages, and plenty of commercial mortgages. One product that has gained a lot of popularity in the last decade is the reverse mortgage. I am excited that Hometown Lending has a dedicated reverse mortgage expert at our disposal. Mark O’Brien has been involved with reverse mortgages for over 15 years, so I’ve asked him to write a quick ‘primer’ to explain the basics of a reverse mortgage:

The FHA Reverse Mortgage Program is a great program that allows senior homeowners (over age 62), to access their home equity and convert it into cash, providing themselves with a better quality of life. Quite simply it works like this:

1. Using the age of the youngest borrower and the value of the home, an available loan amount to the homeowner is determined.

2. Once determined the homeowner can choose their best option of how to receive the available funds. Options include receiving a lump sum payment, ordinarily used to pay off an existing mortgage. If there is no mortgage on the property, the homeowner could choose to receive a monthly stipend that would be available for as long as the homeowner lives in the home. A third option would be to leave it in a line of credit, which grows very much like a savings account, and allows the homeowner to draw from whenever the need arises. The line of credit option only accrues interest on the outstanding balance of what has been borrowed. The Reverse Mortgage is a loan that doesn’t ever have to be repaid as long as the homeowner remains in the property. It will accrue interest over the life of the loan, and will be repaid with the sale of the home.

3. The loan is insured by FHA which guarantees that the end investor will receive full repayment of the loan even if there is no remaining equity in the property. In that instance FHA would sell the property for what it can get and makes up the difference from its mortgage insurance fund. There is no deficiency judgement against the homeowner or the estate. Most closing costs are wrapped into the loan but with the ordered use of AMC’s, the appraisal and counseling fees must now be paid upfront.

It has been a pleasure for me to be able to help hundreds of really nice folks through the loan process. It has enabled them to greatly enhance their living experience, as well as allowing me to share in some wonderful moments and friendships. If ever I can be of service, I would be honored to do so.

So, if you are a family member are looking for more information about Reverse Mortgages, or just need to decide if this is the right program for you, please contact Hometown Lending in Bellingham.