Ingrid B. Quinn

NMLS ID #211652 Arizona, Loan Consultant


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Demand for VA Loans Has Increased

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VA loans:

The VA loan program is available to military borrowers nationwide. Guaranteed by the U.S. Department of Veteran Affairs, VA loans work in a similar fashion as FHA loans — the VA is a guarantor of loans not a maker of them.

In general, active duty and honorably discharged service personnel are eligible for the VA program. Public Health Servants are also eligible. In addition, home buyers who have spent at least 6 years in the Reserves or National Guard are eligible, as are spouses of service members killed in the line of duty.

Bankruptcy and other derogatory credit do not immediately disqualify a buyer. If you have had a foreclosure or short sale, the waiting period to obtain a new mortgage is generally 2 years.

Funding fees are collected at closing, but no monthly premiums are required. If you have been discharged with a disability, you may be exempt from the VA funding fee.

There is no down payment required and a VA buyer can use his/her entitlement more than once and possibly even get a 100% loan if a home is currently owned and has a VA loan on it. Check with your lender about the circumstances pertaining to your situation.

The first time use charge of the VA funding fee is 2.15% of the loan amount. Subsequent use fee is 3.3% of loan amount. The lender will finance the fee into your loan. It is the only closing cost than can be directly financed into the mortgage. A seller can also pay all closing costs for a VA buyer.

And, similar to FHA loans, VA loans allow for loan sizes of up to $729,750 in high-cost areas. This can be helpful in areas such as San Diego, California; and Honolulu, Hawaii which are home to U.S. military bases.

Additionally, in the Phoenix area veterans and active duty servicemen and women may qualify for the Home In 5 program which is a grant for up to 6% of their loan amount to put towards a down payment and closing costs.

For more information or to make comments, please feel free to contact Ingrid Quinn by email Ingrid.quinn@cobaltmortgage.com or visit my websites http://www.scottsdalemortgageexpert.com or http://www.cobaltmortgage.com/ingridquinn.


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Mortgage Loan Term: Which One Is Best?

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You will need to make some decisions when applying for a home mortgage. The mortgage, whether it is to purchase a home or to refinance your existing loan, will be for a certain period of time. Your loan term is just another way of saying the length of the repayment period, expressed in years. A 30 year fixed mortgage has a 30 year term, so it will be paid off in 30 years if you make the regular scheduled monthly payments.

If you choose a longer loan term, but make payments for a shorter term, the loan will behave exactly as if you had chosen the shorter term in the first place. You can choose your loan as a 30 year fixed mortgage and make 15 year payments and it will pay off in 15 years. One reason someone may do this is because the shorter term payments are higher and if they run into a financial challenge for a month or more, may choose to pay the lower scheduled amount until they are back on their feet.

The pros and cons will remain the same no matter which term you choose. The benefits of a shorter term loan are:

• Shorter term loans typically have more favorable rates/fees than longer term options
• Shorter term loans force people to put more money towards principal
• Shorter term loans typically have more favorable mortgage insurance premiums in the case of a loan exceeding an 80% loan to value
• The interest paid benefit is huge over a longer term loan

The benefits of a longer term loan are:

• Lower payments than shorter term loans
• There is more flexibility than shorter term loans as far as payment options
• Easier to qualify for as far as the income debt to income requirements for a loan
For most borrowers, the decision comes down to getting more favorable terms for a shorter term mortgage versus lower payments for longer term loans.

Other than the typical 30 or 15 year options, there are also 10, 20 and 25 year options to explore. Contact your mortgage professional to discuss all the options. You may also use my mortgage calculator app from your mobile device to determine your monthly payments.
See
http://ingridquinn.mortgagemapp.com/mobile
For questions or comments please email Ingrid.quinn@cobaltmortgage.com or visit http://www.scottsdalemortgageexpert.com or http://www.cobaltmortgage.com/ingridquinn.