Below is a breakdown of seller’s concession based on loan type.  Maple Tree Funding and our wide variety of lenders offer numerous loan programs and below shows a breakdown for seller’s concession:

• FHA Purchase – Maximum of 6% of the Sales Prices
• USDA Purchase – The seller’s concession can cover 100% of the financing based on appraisal value
• VA Purchase – Closing costs can be included in the concession, regardless of the percentage to cover 100% of the financing.
• Conventional Purchase – Seller’s concession limitations vary based on Loan To Value (how much money down the buyer is going to pay for the home).  Below is a breakdown that shows the LTV percentage and allowable Seller’s Concession:
• 75% LTV and lower = 9% allowable Seller’s Concession
• 75.01 – 90% LTV = 6% allowable Seller’s Concession
• 90.01 LTV and higher = 3% allowable Seller’s Concession
• Investment Properties Max is 2% if LTV is below 90%

For more information regarding how Seller’s Concession works please contact Maple Tree Funding at 518-655-LOAN or email us at Blog@mapletreefunding.com.

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Maple Tree Funding

FHA Mortgage Insurance, also known as MIP or Mortgage Insurance Premium is insurance on an FHA home mortgage.  The borrower pays for this insurance (generally added on to the loan amount) incase the loan is defaulted on.  There is an upfront MIP and a monthly add-on Mortgage Insurance that gets paid along with the Principle & Interest payments.

Below is a chart that represents the new FHA factors that have recently changed as of this month (April 2012).  Based on Loan to Value (LTV) and the loan term (30 year mortgage or 15 year mortgage) the Annual MIP (which gets paid each month) varies:

Maple Tree Funding specializes in FHA Mortgages.  The benefit of this type of mortgage and why the MIP exists is to allow the borrower to place a very small down payment on the home (currently 3.5% of the sales price of the home).  The borrower usually finances the Upfront MIP into the loan amount.

For more information on FHA Mortgages or Mortgage Insurance please contact Maple Tree Funding at 518-782-1202 or send us an email at Blog@mapletreefunding.com.

 Thank you,

Maple Tree Funding

Although there are many documents that need to be signed during the Mortgage Process, there are certain documents or paperwork that a client can have handy ahead of time.  Below is a list of documentation that we ask our clients to gather to help speed along the home purchase process:

1. Copy of Driver’s License
2. Copy of Social Security Card
3. Most recent 2 years W2’s (For all jobs)
4. Full month of paystubs (keep all future paystubs going forward)
5. Tax Returns 2 Years (if Self Employed or have Rental Income)
6. Last two months Bank Statements (All Pages of Statement)
7. Most recent Retirement Statements (for reserve purposes)
8. Contact name/number of your Human Resources Department
9. Contact name/number of your Home Owners Insurance Agent
10. Your Attorney name/number if you already have one
11. Any current mortgage statements (if you own any property)

Although this is only the start of the mortgage process, these documents will help us put together a nice package to get your approved.  Based on your goals and your credit history, more documentation may be needed.  This is a good list to keep handy if you are starting to look for a home.  Have these documents/information handy and keep saving those paystubs as they have to be current throughout the process.

For more information, please call us at 518-655-LOAN or email us at Blog@mapletreefunding.com.

Thank you,

Maple Tree Funding

As a Mortgage Broker, we read many articles about when a homeowner should refinance.  The problem is, each homeowner is different, each loan is different, and each goal is different!  Just because it’s fun to review and crunch numbers, let’s take a look at this example:

Client A has a mortgage rate of 5.25%.  Client B has a mortgage rate of 5.50%.  If both refinance into 30 year fixed rates of 4.25%, who saves more?  That’s the problem with some of these articles!  Without knowing the loan size for this example, we can’t really tell how much a person will save per month.  In this example, if Client A has a $200,000 mortgage and refinances from 5.25% to 4.25% they save roughly $120 a month.  If Client B has a $100,000 mortgage and refinances from a 5.50% to 4.25% they will save roughly $75 per month.  Both great reasons to refinance, obviously, the higher the mortgage the higher dollar value in savings.

What if I told you that we could refinance your mortgage to a lower rate and you will still pay the same amount per month?  Doesn’t make sense does it?  How about we can refinance your mortgage (closing costs included), you keep the same payment, and we reduce 8 years off your mortgage?  With 15 year rates at record lows this is a popular option many of our clients are taking.  Needless to say the tens of thousands saved in interest payments over the life of the loan, many of our clients are paying less with lower terms (depending upon their initial interest rate).

Don’t feel like you have to fit the mold of “When to refinance” based on an article written that is not specific to you… call Maple Tree Funding and let us work out scenarios for you!  Also, as a great late Christmas gift, feel free to refer your friends or family to us for their annual mortgage checkup… helping them save hundreds a month and tens of thousands in interest is one heck of a gift!  We’ll even give you credit for it!  Start the process or the gift by clicking HERE or sharing this page!

Think Mortgage… Think Maple Tree!

Trying to “time the market” is tricky when it comes to buying and selling stocks…  Trying to figure out where mortgage rates will be can be just as tricky; however, there are certain aspects that can be viewed as positives towards a future outlook.

According to Freddie Mac, Mortgage rates will remain “very low”, at least through mid-2012.  The Government Sponsored Enterprise (GSE) says that rates (which are currently at historic lows) should continue to stay that way due to the Federal Reserve’s program for extending the maturity date for mortgage securities it holds.  The program is expected to continue through the middle of this year.

Freddie Mac also stated in its latest market outlook that this should keep fixed-rates for 15- through 30-year mortgages relatively low during the first half of the year, with rates possibly edging up during the second half.  The GSE also said that the Fed’s guidance (that it will likely keep the target range for its benchmark federal funds rate near zero through mid-2013) ensures that initial interest rates for adjustable-rate mortgages (ARM’s) will also remain extremely low throughout 2012.

Freddie Mac also said in its outlook forecast that housing activity will be better in 2012, but not robust.  “While the headwinds remain strong going into 2012, there are indications the economy and the housing market are gaining ground, albeit slowly,” commented Frank Nothaft, Freddie Mac’s chief economist.

Think Mortgage… Think Maple Tree!

Zillow, (www.zillow.com) the publically traded online real estate information marketplace (Ticker Symbol Z) that provides information about homes, real estate listings, and mortgages, as well as enables homeowners, buyers, sellers, and renters to connect with real estate and mortgage professionals has many tools that are helpful.  However, for those of us in the Real-Estate / Mortgage industry, we realize that “not all homes are equal”, especially when it comes to valuation.

I found an interesting article regarding the Connecticut Housing Market on Courant.com discussing valuation and issues that are caused as a result of using Zillow as a “Final Value” website.  Zillow does include many disclaimers regarding valuation and how its “Zestimates” are only the starting point for figuring out the true value of a house.

Zillow has become one of the dominant sites for preliminary research on home values…  We in the industry have to keep the facts in front of the buyers (and sellers) that Zillow is only to be used as a tool, and that valuation by a certified appraiser is not included in all Zestimates.  An example of this would be a recent sale we had… Zillow had a home valued at $235,000, the home sold in August for $290,000.  Zillow now has the home valued at $290,000 (because of the public sales record).  Nice $55,000 increase overnight!

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Maple Tree Funding

www.mapletreefunding.com

A simple question… an interesting formula by FICO.  What is FICO?  This is another question we hear often as Mortgage Brokers… FICO stands for Fair Isaac Corporation and they are behind the credit score model.

The three major players in the Credit Score Industry are TransUnion, Equifax, and Experian.  These three bureaus all match a credit score to a potential homebuyer.  The bank will use the middle of the three credit scores (if there is a co-borrower, the bank will use the lower middle score of the two borrowers applying for the loan).

Your credit score is made up of many factors such as payment history, amounts owed, length of credit history, new credit, and types of credit used.  Below is a nice pie chart taken from MyFico.com that can be used to help understand your credit score.

Maple Tree Funding works with clients with all credit scores.  Although not everyone will be credit-qualified at the start, we have programs that can help you increase your credit score.  Once your credit score meets the minimum of one of our numerous lenders, we can assist you in your home purchase or home refinance.  For more information on improving your score, facts and fallacies, how mistakes are made, and how to fix an error, please visit this helpful site at http://www.myfico.com./