Category Archives: oklahoma home mortgage

08.13.13
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Mortgage Rates RISE Dramatically after today’s retail sales data report!

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According to & article today on mortgage news daily:
Mortgage rates were abruptly higher today, moving back toward the highs of the month and erasing most of the improvements seen since the Employment Report on August 2nd.  After an excessively calm week last week, market participants had eagerly anticipated today’s Retail Sales report as the first major dose of information since that Employment Report.  Rates were already on the move higher ahead of the data owing to bond market weakness in overnight.  While the headline numbers on the Retail Sales report weren’t as high as expected, not only was the previous reading revised higher, but the other components of the report–such as those that strip out the more volatile auto sales–were stronger than expected.  By the end of the day, the most prevalent 30yr Fixed quote (best-execution) is edging up from 4.5 to 4.625% for some lenders.

In order to understand why rates moved as much as they did today, we first need to frame Retail Sales in the context of the prospects for a reduction in the Fed’s asset purchases–aka “tapering.”  Markets and even the Fed itself are undecided as to whether tapering will start in September or later in the year.  Because the asset purchases are seen as a mathematically quantifiable reason for lower rates, the sooner the reduction in purchases occurs, the higher rates will go, all other things being equal.  This morning’s Retail Sales numbers stood as the first major piece of data to inform that debate since the Employment Report at the beginning of the month.

Quite simply, the data “wasn’t bad enough” to push out the expectations for a tapering time frame.  Combining this with the upward momentum in rates coming out of the European market hours and it was enough for a significant move higher.  Unfortunately, it wouldn’t be until Thursday that we even have a chance to get data that counteracts this “vote.”  Even then, this would require several different pieces of data having the same economically bearish suggestion.  In other words, rates aren’t likely to stampede back toward better levels unless that happens.  If the data happens to confirm today’s message from Retail Sales, rates could go even higher.

Today’s Best-Execution Rates based on the larges 40 lenders in the US!

  • 30YR FIXED – 4.5% “ZFG Mortgage 4.375%”
  • FHA/VA – 4.25% “ZFG Mortgage 4.125%”
  • 15 YEAR FIXED –  3.625%-3.75% “ZFG Mortgage 3.375%”

To check today’s mortgage rates in Oklahoma

Click Here

To Apply for a mortgage or obtain Free No cost or obligation Rate quote

Click Here

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07.05.13
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Among The Worst Days in Mortgage Rate History

 

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According to article on Mortgage News Daily from 07-05-2013:

Historical data has its limitations when it comes to mortgage rates.  For instance, the longest-running series are only updated once a week, making it hard to determine exactly where an individual day falls in the record books.  Even then, today’s rise in mortgage rates is among the largest ever, and certainly the largest in the past 10 years.  Today alone, rates rose more than most entire weeks.   Conventional 30yr Fixed best-execution rates moved forcefully into 4.75% territory, with some lenders at 4.875%.  That means that any rate quoted on Wednesday would be roughly 0.375% higher today–brutally ironic considering the most mainstream weekly rate survey from Freddie Mac noted that rates “reversed course and ticked down” on Wednesday.

 

Today’s catastrophic surge higher was a direct effect of a stronger-than-expected Employment Situation Report, which not only showed June job creation to be better than expected, but revised the last two months into stronger territory as well.  The more profound indirect consideration is the report’s role as the key barometer for Fed policy.  This is the reason the rise in rates of the last two months has been as sharp as it is.

 

(Read More: Why Did Mortgage Rates Skyrocket Past 2013 Highs on May 22nd?)

 

 

 

(Read More: Mortgage Rates Annihilated; Brief History of All-Time Lows)

 

Fed policy is also the reason rates have been as low as they have been as it has allowed for an unprecedented stream of direct investment into the secondary mortgage market.  The Fed’s third round of quantitative easing in late 2012 reinvigorated a tired rate rally and for the rest of the year, markets were more interested in how much more the buying spree might be extended as opposed to how soon the Fed might stop buying. In early 2013, some talk of slowing those asset purchases was heard from various Fed members, with Bernanke himself discussing tapering prospects in a press conference on March 20th.

 

At that time, Bernanke said that the Fed was looking for something stable from labor markets, hinting that recent improvements were sufficient to consider dialing back on stimulus but that the Fed would need to be sure the Strength wasn’t temporary.  The jobs report that came out 2 weeks later was horribly weak, suggesting that markets didn’t have the stability the Fed was looking for, and the tapering fears subsided.  As it happens, that set markets up for a massive sucker punch when May’s numbers not only came in strong, but revised the horrible April numbers into territory consistent with the stability the Fed sought. 

 

A week later, panic mode began to set in as markets realized they’d run too far in the wrong direction (lower in rate) and had to hurry higher in case this was more than another fire drill.  Minutes from the Fed meeting released on May 22nd fanned the flames and jobs numbers on June 7th confirmed the trend in labor market data remained intact.  June 19th gave the Fed an official opportunity to reiterate their stance, which they did.  This left today’s Jobs numbers as yet another potential nail in the coffin for Fed asset purchases. 

 

The strength of today’s data–while debatable in a historical context–marks progress in the recent economic context, and it goes a long way toward solidifying markets’ expectations that the Fed will start backing off asset purchases at their September meeting.  Some economists think the Fed could taper asset purchases as early as the July meeting, and while today’s data increases those odds, it’s not a majority viewpoint and isn’t likely to become one.

 

Even so, the reiteration of September tapering likelihood is an austere moment for bond markets.  When it finally happens, it marks the end of an era for the Mortgage-Backed-Securities that most directly affect mortgage rates (MBS).  The Fed has maintained that it would increase buying again if it becomes economically necessary, but rates markets are less interested in considering that upside risk as they are in  fearing that 2012 may have marked a generational interest rate low–30 years in the making. 

 

Even if that’s not what ultimately happens here, the fact that it’s even on the table makes the cost of protecting against volatility astronomically high for interest rates.  So not only do we have the price of debt falling due to Fed tapering fears, but extremely high volatility puts additional pressure on prices–especially prices of MBS.  When those prices fall, rates go up.  The downward spiral for mortgage rates doesn’t end there as the individual lenders must also build in a cushion against rampant volatility, further magnifying an already awful situation for anyone hoping to secure a mortgage.

 

Is it awful in and of itself–as a frozen moment in time?  Not at all.  Rates in the mid-to-high 4’s are some of the best ever before mid-2011.  But since then, not only are those rates on the highest end of the spectrum, but we were fairly close to all-time lows at the end of April.  That makes the past two months incredibly abrupt, and it’s that rate of change that’s most painful for mortgage rate shoppers who may have seen a rate quote a few days/weeks/months ago only to shake their heads in disbelief over today’s rates.

 

At this point, it is not safe to assume anything about the upcoming week.  So many times in the past 2 months, there’s been an urge to think “surely, that must be as high as rates go for a while,” but we have yet to see any meaningful reversal.

 

 

 

Loan Originator Perspectives

 

 

 

 

 

 

 

” If you are choosing to float your mortgage lock in this market you definitely taking a gamble as today’s market reaction has proven. Weigh your risks vs potential gains carefully. You can’t lose with locking in and securing your loan terms. ” –Kenneth Crute Branch Manager Prime Mortgage Lending Inc 

 

“If there was any doubt over the future direction of rates, today’s MBS reaction to June’s jobs report obliterated it. We’ve lost the most ground in one day EVER, and best execution rates may be in the 5’s soon. It’s impossible to overstate the magnitude of MBS losses in the past 2 months, and anyone who was floating a loan is in for a rude awakening when they look at current pricing.” –Ted Rood, Senior Originator, Wintrust Mortgage

 

 

 

 

 

Today’s Best-Execution Rates

 

  • 30YR FIXED – 4.75-4.875%
  • FHA/VA – 4.25%  -4.75% (depending on lender buy-down structure)
  • 15 YEAR FIXED –  3.875%
  • 5 YEAR ARMS –  3.0-3.5% depending on the lender

 

Ongoing Lock/Float Considerations

 

  • After rising consistently from all-time lows in September and October 2012, rates challenged the long term trend higher, but failed to sustain a breakout
  • Uncertainty over the Fed’s bond-buying plans is causing immense volatility in rates markets and generally leading rates quickly higher 
  • Fears about the Fed’s bond-buying intentions were proven well-founded on May 22nd when rates rose to 1yr highs after the Fed indicated their intention to taper bond buying programs sooner vs later
  • The June 19th FOMC Statement and Press Conference confirmed the suspicions.  Although tapering wasn’t announced, the Fed made no move to counter the notion that they will decrease bond buying soon if the economic trajectory continues
  • Rates Markets “broke down” following that, as traders realized just how much buy-in there was to the ongoing presence of QE.  These convulsions led to one of the fastest moves higher in the history of mortgage rates and market participants have not been eager to be the among the first explorers to head back into lower rate territory until they’re sure they’ll have some company.
  • (As always, please keep in mind that our Best-Execution rate always pertains to a completely ideal scenario.  There are many reasons a quoted rate may differ from our average rates, and in those cases, assuming you’re following along on a day to day basis, simply use the Best-Ex levels we quote as a baseline to track potential movement in your quoted rate).

To Lock In Today with ZFG Mortgage Oklahoma’s Lowest Fixed Rate Lender:

Click Here

 

06.20.13
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Worst 2-Days Increase in Mortgage Rates in the Last 4 Years

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Mortgage rates are revisiting the past trauma, now matching the scope of the late 2010 sell-off, with the past two days matching the scope of Black Wednesday’s sell-off.  “Selling” in this case, refers to the Mortgage-Backed-Securities (MBS) that most directly affect rates.  As MBS prices fall, rates rise.  The faster this happens, the worse it is for mortgage lenders rate sheets, and despite the month and a half of selling, the past two days have been surprisingly abrupt for lenders.  Rate sheets have taken the most profound hits we’ve seen on back to back days (past examples were more concentrated on one of the two days).  Conventional 30yr Fixed best-execution is quickly up to a staggering 4.375%-4.5%, though we’d note that there’s even more variation between lenders as volatility magnifies the effects of different pricing strategies.  

Today’s economic data had precious little effect on trading levels, adding to the sense that it’s going to take official employment data on July 5th, a change in tone from the Fed, or an unexpected tape-bomb style headline to convince markets that the Fed won’t begin curtailing asset purchases in September.  While that continues to be the case, interest rate movements continue to be a risk.  We’d like to say “we’ve moved high enough, fast enough that we’ll probably be able to dig in and hold some ground here,” but that’s not safe yet.  Market participants themselves, let alone mortgage lenders, are still feeling out the post-Fed-Announcement environment.  There’s no reason rates can’t go even higher just because they’ve moved so high, so fast.

Mortgage Loan Originator Perspectives 

“The recent events leave me speechless. In my 10 years in the industry I have never seen a meltdown this quickly and dramatically. We cannot control the market, but we can control our emotions. Closing within 30 days should be locked up. 30-60 days should consider locking as well. Any technical or fundamental basis for floating has been diminished. Is there a saving grace? Perhaps if we continue to see liquidations in commodities & stocks (domestic & foreign) we may benefit from a quick trade, but again, the table has been st for higher rates. Soup, salad, & appetizers are served, main course on it’s way….question is how is your digestive system?” 

“Our jumbos didn’t rise as quickly since the agency MBS selloff yesterday, so there have been some locking opportunities for loans above $417,000, but loans up to $417,000 are up definitively.” 

Today’s Best-Execution ZFG Mortgage Rates

  • 30YR FIXED – 4.0%
  • FHA/VA – 3.75% 
  • 15 YEAR FIXED –  3.25%
  • 5 YEAR ARMS –  2.25-3.25% depending on the lender

Ongoing Lock/Float Considerations

  • After rising consistently from all-time lows in September and October 2012, rates challenged the long term trend higher, but failed to sustain a breakout
  • Uncertainty over the Fed’s bond-buying plans is causing immense volatility in rates markets and generally leading rates quickly higher 
  • Fears about the Fed’s bond-buying intentions were proven well-founded on May 22nd when rates rose to 1yr highs after the Fed indicated their intention to taper bond buying programs sooner vs later
  • The June 19th FOMC Statement and Press Conference confirmed the suspicions.  Although tapering wasn’t announced, the Fed made no move to counter the notion that they will decrease bond buying soon if the economic trajectory continues
  • (As always, please keep in mind that our Best-Execution rate always pertains to a completely ideal scenario.  There are many reasons a quoted rate may differ from our average rates, and in those cases, assuming you’re following along on a day to day basis, simply use the Best-Ex levels we quote as a baseline to track potential movement in your quoted rate).

We Offer A Free Pre-Approval & Consultation!

Call:1-877-205-7266 or http://www.zfgmortgage.com

Click Here To Go Directly To Our Secure Online Application

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05.14.13
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Why you’re probably not getting the best mortgage rate quote?

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A home loan is basically a product and like all products, its sales pitches can be exaggerated. The end result is that you end up with a loan that may not suit your needs at all. When shopping around for the best mortgage rate that is most suitable for you, one needs to be highly discerning with exactly what is being offered.

Short-Term Adjustable Rate

Many consumers make the common mistake of choosing a one-year adjustable rate mortgage due to the deceptively low rate being advertised. Deceptive, because, in the very next year, the rate shoots up.

It is most important that you keep in mind that it is not in the best interests of lenders to offer you a loan with the lowest possible interest rate. Typically they would prefer you to opt for the highest rate you could possibly afford. Doing so will ensure that in addition to their regular commission, mostly one percent of the loan amount, an overage of an extra one or two percent is earned for selling you a loan priced higher than the most favorable deal for you. To avoid this situation, insist on the daily rate card from your loan officer that lists the lowest rates of all his products.

Regulation Offers Some Protection

The Real Estate Settlement Procedures Act (RESPA) lays down that lenders must give an accurate estimate of closing costs at the time of submitting your application. Extra charges are in violation of the law. Nevertheless many banks often try to slip them in. Insist on a detailed list of closing costs. If you find any suspicious or unnecessary charges, you have the right to ask your loan officer for an explanation.

While it may be advisable to seek recommendations for mortgage lenders, you need to be careful if the advice comes from a real estate agent. With estate agents, it is more likely that instead of referring you to the best deal possible, they send you to the lenders who pay them a commission for doing so.

Some mortgage brokers will often mislead you with pre approvals. They lead you to believe that a pre approval practically guarantees you the mortgage. However, at the actual time of getting approved for a mortgage, these pre-approvals are of no value and may as well be wastebasket approvals.

The Government has made efforts to ensure protection for the consumers with government mandated disclosure forms. However the miniscule type combined with complex financial figures can be difficult to read or comprehend easily. Even worse, it can be use to conceal the truth just as it can reveal it. Overall, make sure that when you are selecting your quotes, you keep in mind that opting for what appears to be the cheapest quote initially, or depending completely on the recommendations of the lender are not good strategies with seeking out the right mortgage for you.

For current rates on mortgage loans in Oklahoma, Log on to the #1 rated lender in the state for the last 4 years website www.zfgmortgage.com or call

1-877-205-7266 

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04.17.13
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Will Your Bank Give You The Best Mortgage at The Lowest Mortgage Rate

 

ImageMany of us tend to form a relationship with our bank even in these times of big banks. This does not mean, however, you should look to your personal bank for a mortgage.

Will Your Bank Give You The Best Mortgage?

 

It is a common misconception for people to assume that their bank will give them the best mortgage. It is a natural thing to assume, especially since people have often been banking with the same institution for many years and they feel comfortable with them. However, the fact is that if you limit yourself to going directly to your bank and getting a mortgage from them without looking elsewhere you are most likely shooting yourself in the foot. You are restricting the possibility of other options that might be better for you and this is never a good thing.

 

There is no doubt that your own bank might give you the plan you want. There is a chance that they will give you a good offer that would be tough to beat by any considerable margin elsewhere. However, this is just a chance. You will only know if it’s anything more than a chance by actually looking elsewhere. Sure, the comfortable and trust factors weigh in, and these can be major factors since you want to trust the institution that is giving you such a large amount of money for such an important thing, but there are many other trustworthy lenders out there that may have a better offer for you. Keep in mind that your bank will probably sell your mortgage to another lender within the first year.

 

The first place to go is to other major banks and lending companies which you know of. By going to these first, you are going to major companies which are trustworthy. Most major banks offer fairly similar rates, but it is still worth it to check around. In fact, you would be crazy not to check around. You may get yourself a quarter or half a percentage point off, which might seem small but can actually turn out to saving you thousands of dollars in interest payments. These other banks might also have other incentives or better options that you will want to consider. If you own a business, they may even offer you a better deal in an attempt to pick up that business.

 

There are plenty of other lending companies you can check with, both major and minor, online and offline. It is to your benefit to check as many as possible and not settle with your own bank just because they are the first place you check. Getting a mortgage is a huge thing and it is important to get the right mortgage plan for you, and this will only be done properly if you evaluate your options.

 

 ZFG Mortgage is Oklahoma Top Rated mortgage company. We have relationships with 125 of the largest banks in the country, But we work with them on the wholesale channel.  What this means is we are able to offer our borrowers the same fixed rate mortgage they would get from there bank at the same cost but with a rate that’s .250% – .375% lower rate!

If you would like to find out your options for a Purchase or Refinance mortgage in Oklahoma, click the link below to go directly to our website. Or Call 1-877-205-7266 approved for a mortgage

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04.05.13
by

Are You Thinking About Refinancing Your Home?

ImageWhen you refinance your home, you get a new loan to replace the one you already have. You might do that to: 

  • Get a lower interest rate
  • Combine or pay off bills 
  • Get money for home improvements or repairs 
  • Pull Cash-out for other reasons

Things to consider before you refinance

Refinancing to get a lower interest rate will probably save you money if:

 

  • The new interest rate is 2% or more below the rate you pay now & you’re planning to stay in your home for three or more years. 
  • If you refinance to consolidate bills and pay off debts, your total monthly payments may be less than what you pay now. However, your monthly mortgage payment will be higher. Be aware that if you get behind on your monthly mortgage payment, you can lose your home.
  • If you just need money for home repairs, you may qualify for a low interest government loan.

How do I find a lender?

Banks, mortgage companies and credit unions are the most common lenders. Here are some tips for finding a lender:

Contact three or more lenders. Look for a loan with the lowest interest rate, points and Origination fees. 

Be sure the lender is licensed and in good standing with the BBB. Also check out their rating/reviews on sites like Google Maps, Yelp & others on the internet.

How much will it cost to refinance?

Loan charges will vary from lender to lender. Loan charges include points and fees. Each point is equal to 1% of the loan and is paid to the lender or your loan broker. Be sure to shop around and negotiate for the lowest interest rate, points and fees.

What do loan fees include?

Loan costs may include the following fees:

  • Loan Origination
  • Credit Report Fee
  • Points “Or Buy-Downs for a rate”
  • Underwriting
  • Appraisal
  • Title Report-“Includes Closing, Abstracting, Title Review, Title Insurance any other fee’s a particular title company charges 

Optional Charges

  • Surveys- “Required on Purchase Transactions”
  • Property Inspections- “Are an optional but suggest service on purchase transactions. Can Include Termite, Structural, well & septic, pluming & others
  • Escrow Set-Up “If Applicable” Includes Pre Paid Taxes & Home Owners Insurance. Are not considered closing costs, but are required on most loans if you want the lender to pay your property taxes & insurance.

Do I have a right to cancel?

Yes. From the time you sign the loan papers, you have 3 business days to cancel. If you cancel, your credit report and appraisal fees are non-refundable. If you are refinancing a rental property, there is no right to cancel.

Before you sign 

Review all loan documents. 

The Truth in Lending Disclosure & Good Faith Estimate has the basic terms and conditions of the loan. 
The Settlement or Closing Statement also called the HUD-1 shows the fees you are being charged and what accounts are being paid off. 

Everything you were promised should be in the loan documents. If you do not understand something, do not sign. Ask for an explanation.

If you are interested in a home refinance in Oklahoma, Contact the number #1 rated lender in the state ZFG Mortgage.

http://www.zfgmortgage.com 

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04.03.13
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3 Words Every Mortgage Holder Should Know

Image Getting a mortgage can be a very confusing process. There is a lot of paperwork to sign, documents to read and procedures to be followed. You’d think you were applying to go to Harvard or Yale, except they don’t require that much paperwork for you to be admitted! Although getting a mortgage can be a confusing process, there are three terms that every mortgage holder should know to better understand what he is she is getting into.

Going into a mortgage knowing just a few facts will help you immensely in understanding what type of commitment you are getting into.

The first term you should understand is, amazingly, the word “term”. Term refers to the length of the mortgage you are taking out – or the amount of time you are making payments.

Many mortgages run the gauntlet of between ten and thirty years. The longer the mortgage, typically the lower your monthly payment will be (and the more interest the mortgage company makes). Generally speaking, you should go for the shortest term you can comfortable afford – you’ll save potentially tens of thousands (and in some cases potentially over a hundred thousand) dollars in interest by keeping the length of the mortgage as short as you can.

Next, understand the interest rate on your mortgage and how it is calculated. The interest rate refers to the amount of interest charges you will pay for the money you are borrowing, expressed as a decimal – such as 3.2 for 3.2%. Is it fixed or adjustable? In other words, is it the same through the life of the loan or does it change at specified periods in time? Most home buyers should try and steer clear of adjustable rate mortgages even though they can look better up front. They can often reset to higher interest rates and come back to bite you if you aren’t ready for a jump in your monthly payments!

Finally, understand what closing costs are and how they are going to affect your purchase price. Often times, you are going to be responsible for coming up with these closing costs out of your own pocket. Closing costs consists of things such as appraisals done on the house, attorney fees, notary fee, deed fee – if there is a fee they can think of it usually falls under the term closing costs! Be a smart and savvy consumer, if you see a fee that you don’t understand or doesn’t seem right – speak up! Some mortgage lenders try to sneak in any fee they can think of to make a few extra dollars profit.

Understanding these three terms can help make you a more informed home buyer and help you find the mortgage that is right for you. As with any product, it is important to shop around for a mortgage when you are considering buying a house. Even a small change in the interest rate between two lenders can often to amount to thousands of dollars in savings. Don’t be afraid to comparison shop – it’s your money after all!

 For more info regarding a mortgage contact ZFG Mortgage The #1 rated mortgage lender in the Midwest. 

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Apply Online for a Free Rate Quote or Call 1-877-205-7266

WWW.ZFGMORTGAGE.COM

03.28.13
by

An Overview of the Mortgage Process

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House hunting can be an exhilarating process as you try to pick that perfect property. Applying for a mortgage isn’t nearly as much fun.  

The Following is an overview of how the mortgage industry works.

An Overview of the Mortgage Process

You have a nice chunk of money saved away for a down payment. You have started shopping for a home or have found the perfect property. It is time to enter the world of financing, better known as getting a mortgage. Before entering the labyrinth, it might help to get an overview of how the mortgage process works.

A mortgage simply is a debt instrument that acts to secure a cash loan to you on a home. In exchange for giving you the money, the lender puts a first lien on the prospective home for loan amount. If you default, the lender can foreclose and sell the home to recover the debt amount.

In mortgage industry terms, applying for a mortgage is known as originating a loan. To originate the loan, you will first have to find a lender you are comfortable with. You may have a close relationship with a bank that will suffice. Many will find it advisable to use a mortgage broker to shop for the loan that best meets their needs. Different lenders offer different loans and terms.

As part of the origination process, you will fill out a lengthy loan application. Depending on the nature of the loan, you probably will also be required to submit documentation supporting your claims of income and so on. There are no document or partial document loan applications, but most people don’t qualify for them. Once your application is submitted, a lender inevitably will ask for more information or documentation. Depending on how the review, known as underwriting, goes, the lender may decline or accept your application. Often, the lender will add a stipulation to the loan that cover issues it is concerned about.

Once you are granted the loan, you will close on the residence you are after. Most people are then very surprised by what happens. Inevitably, your mortgage lender will sell the loan to another entity. To raise cash to issue more home loans, lenders sell their current stock of mortgages on a secondary market. Your lender may continue to handle the administration of the loan, but will often just hand the entire thing off.

Your mortgage will be terminated at some point in time. Positive reasons can be the sale of the home, refinancing or simply paying off the balance. Negative reasons can include default or bankruptcy. Regardless, the above represents the basic structure of the mortgage industry and how your loan moves through it.

If your looking for a mortgage in Oklahoma, Contact the #1 rated lender by consumers for 2012 Today.

 

ZFG Mortgage

918-459-6530

http://www.zfgmortgage.com

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03.04.13
by

Are You Thinking About Refinancing Your Home?

when-to-refinance

When you refinance your home, you get a new loan to replace the one you already have. You might do that to:

  • Get a lower Interest Rate, Combining a 1st & 2nd mortgage or eliminating mortgage insurance “PMI”
  • Combine or pay off bills or Pulling Cash-out using the equity in your property
  • Get money for home improvements or repairs

 

Things to consider before you refinance

Refinancing to get a lower interest rate will probably save you money if:

The new interest rate is 2% or more below the rate you pay now; and
You plan to stay in your home for three or more years.
If you refinance to consolidate bills and pay off debts, your total monthly payments may be less than what you pay now. However, your monthly mortgage payment will be higher. Be aware that if you get behind on your monthly mortgage payment, you can lose your home.

If you just need money for home repairs, you may qualify for a low interest government loan.

How do I find a lender?
Banks, mortgage companies and credit unions are the most common lenders. Here are some tips for finding a lender:

Contact three or more lenders. Look for a loan with the lowest interest rate, points and fees.

Be sure the lender is licensed by NMLS and in good standing with the BBB. And most importantly check there reviews consumers reviews sites like: Google Maps/Google Plus, Merchant Circle,Kudzu,Yelp,Yahoo,Insider pages

How much will it cost to refinance?
Loan charges will vary from lender to lender. Loan charges include points and fees. Each point is equal to 1% of the loan and is paid to the lender or your loan broker. Be sure to shop around and negotiate for the lowest interest rate, points and fees.

What do loan fees include?
Loan costs may include the following fees:

Appraisal
Recording
Title Report

Escrow
Credit Report
Document Notary

Wire Service
Messenger Services
Document Preparation

Loan Origination

Do I have a right to cancel?
Yes. From the time you sign the loan papers, you have 3 business days to cancel. If you cancel, your credit report and appraisal fees are non-refundable. If you are refinancing a rental property, there is no right to cancel.

Before you sign
Review all loan documents.
The Truth in Lending Disclosure has the basic terms and conditions of the loan.
The Settlement or Closing Statement shows the fees you are being charged and what accounts are being paid off.
Everything you were promised should be in the loan documents. If you do not understand something, do not sign. Ask for an explanation.

If you would like more information regarding refinancing your mortgage in Oklahoma. Contact ZFG Mortgage the #1 rated mortgage lender in Oklahoma for more info.

1-877-205-7266 or 918-459-6530

http://www.zfgmortgage.com

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11.28.12
by

Three Steps to Getting in the Right Financial Shape to Buy or Refinance a House

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As a loan officer, I talk to people day in and day out and no matter how diverse my clients are I always end up asking the same question: What’s your credit like? The more savvy clients i.e. the ones who have bought or refinanced a home before, know exactly how good their credit is and know that every loan officer they talk to is salivating over the chance to do a loan for someone with a 720+ credit score. For everybody else, that question prompts me to deliver my mini-speech on credit. I don’t mind—I enjoy educating people and hope that I am the one loan officer they talk to who is willing to take the time to explain the complicated nuances of credit. With that in mind, I set out to create an article setting out those basic lessons for people who are buying their first home or those who are doing a refinance for the first time. In my opinion, there are three important things a consumer can do before applying for a loan, in order to get their finances up to speed. It can take up to six months for your credit report to be updated by the credit reporting companies, so start now and you’ll be ready for the future.

1. Check your credit report. Under the Fair and Accurate Credit Transactions Act, consumers can request and obtain a free credit report once every 12 months from each of the three nationwide consumer credit reporting companies (Equifax, Experian, and TransUnion). You can go to https://www.annualcreditreport.com/cra/index.jsp to request a free copy of your credit report. This is the only site authorized by the three major credit bureaus for the purpose of obtaining a free copy of your credit report. You can request the reports via e-mail, telephone, or mail. While the report you receive from the site will not provide you with a credit score, it will give you a complete copy of your credit history—that’s all you need for now. Take some time to review each entry. This is also a good time to make sure you are not a victim of identity theft. Do you have any late payments or delinquencies? Are there any errors? Is there any unfavorable public record information? Are there collections disputes? Decide whether to resolve or dispute every negative item on your credit report. Even small items such as a past due account with a utility company can show up and adversely affect your credit so take care of it now.

2. If you carry a balance on your credit cards, start paying them off. We all know that we’re supposed to do this but many Americans keep putting it off. Here’s the deal: when you apply for a home loan, the loan underwriter will look at your ability to repay your total debt and a large annual salary usually does look pretty good. However, the underwriter will also look at the current debt that you carry on revolving accounts and how much you pay for that each month. Oftentimes, they will even calculate it at 3% of the balance rather than your monthly minimum, which really makes a difference when calculating the ratio of your monthly obligations to your salary. For those of you who are paid well, don’t fall into the trap of thinking that a hefty salary is enough. I recently had a client who made over $70,000 per year. He resisted paying down the balances on his credit cards because he thought his salary was enough to qualify him for a good rate on his loan. He was wrong and we had to put him into an alternative documentation program with a less than favorable interest rate. In short, start making a serious effort to pay off your credit cards.

3. Start saving to pay for closing costs. Closing costs are the costs associated with the closing of the loan e.g. title costs, loan fees, discount fees, inspection fees, appraisals, etc. If you are refinancing your current home, you can finance the cost of closing into the loan amount. However, when you purchase a home, you will be expected to bring these fees, which can range from $3000 to $7000, into closing with you. There are loan programs that allow you to finance the closing costs of your loan, but be prepared to pay a premium for that convenience. If you’re relying on the seller to pay closing costs, keep in mind that what the seller pays in closing costs is considered to be a rebate on the price of the house. If the house doesn’t appraise within the range, the seller can’t pay your closing costs. For instance, say you find a $200,000 home and the seller is paying $5000 in closing costs. What the seller is actually getting for the house is $195,000 i.e. the $200,000 sales price less the $5000 the seller gave back to you in the way of closing costs. An appraisal is a written estimate of a property’s current market value based on recent sales information for similar properties, the condition of the property, and the neighborhood’s impact on future property value. A lender will lend a dollar amount based on the appraisal. Therefore, if this hypothetical house appraises at $200,000, all is good. BUT if the house appraises at only $195,000, then you can count on only getting a loan for up to $195,000 so you’ll have to bring the $5000 difference between the $200,000 asking price and the $195,000 appraisal price in with you anyway. In that case, why have the seller pay closing costs at all? In short, one way or another, you will pay for closing costs, so just start saving for it now.

While these steps are not exclusive, they will put you on the right track to qualifying for the best mortgage possible. The months before buying your first house are an important time to be frugal and avoid any negative impacts on your credit report.

About the Author: Bill Sheikh is a Sr. Mortgage Banker who specializes in mortgage planning at ZFG Mortgage in Tulsa, Oklahoma. He can be reached for more questions at billsheikh@zfgmortgage.com or by calling 1-877-205-7266.

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