FHA Streamline Refinance

The Federal Housing Administration (FHA) streamline refinance is a special mortgage

program for those individuals who have existing FHA loans. The program is the fastest

and easiest way for FHA-insured homeowners to take advantage of today’s affordable

interest rates. The requirements are:

• No property appraisal required

• No 30-day late payments in the last 12 months

• You must have made at least six payments, since 1st payment, on your current loan

• Minimum 210 days must have passed from the closing date of the mortgage being

refinanced

• The refinance must have a “net tangible benefit” (a reduced combined rate of at least

0.5%; or a reduced loan term; or a change from an adjustable rate mortgage to a fixed

mortgage)

Please contact me today. We can review your account details and determine if this is

the right time to refinance your FHA loan. As always, it would be a pleasure to help.


Call The Easterbrook Team if you would like to discuss your refinance needs.
916.850.6050
EasterbrookTeam@spmc.com
"We Make The Loan Process Easy!"

Need a Lifeline?

Are Your Clients Paying Too Much for Their Mortgage

There are 3 Lifelines that you can send them.

The typical American household lists housing as their biggest monthly expense.  It is not uncommon for households to spend more than 50% of their income toward housing – more than 12 million based on a recent survey by the MacArthur Foundation.  The survey went on to say that more than 50% of Americans had to make at least one major financial sacrifice to cover a housing payment.  Let’s throw them a lifeline (…& they’ll love you for it)!

Lifeline #1 – Getting Rid of Unnecessary Mortgage Insurance

If your clients bought a house with less than 20% down, chances are that they used mortgage insurance. This is sometimes called PMI, or private mortgage insurance.  The cost of this PMI is typically equal to .5% to 1% of the loan amount annually.  A $350,000 loan could be costing your borrowers $3,500 extra per year – or $291 per month.  Imagine if you told them that they could recapture the expense to remove it in only 2 months.  Although lenders are required to automatically cancel the PMI after the loan balance reaches 78% of it’s original balance through normal payments (this takes 11 years in many cases), most lending guidelines allow a borrower to remove the PMI after just 2 years if the loan to value ratio is 80% or less – verified with an appraisal. 

Lifeline #2 – Credit Has Improved

When you’re young and starting out things happen – from a missed payment on a student loan, to unwinding out of an unwanted cellular plan, your credit can take some hits – things you don’t work out until later.  If your buyers have an FHA loan or a higher interest rate because they were still working through credit issues when they bought their home, perhaps homeownership, having kids, or moving up the corporate ladder a couple rungs has made them more protective of their credit.  Good news, the folks with the best credit get the best rates.  There’s a chance your once 1^st time homebuyers are now seasoned homeowner’s paying more than they need to.  Throw them a lifeline and have the Easterbrook Team analyze their ability to save some money.  

Lifeline #3 Increase their Mortgage

Huh? Perhaps your buyers have gotten a substantial salary increase or gotten married.  They have 20 years left on their 30 year mortgage but have goals of retiring in 10 years and living the good life.  If they still had house payments in retirement, they may be limited on their mobility and have to make sacrifices.  Suggest to them that they may want to explore shortening the term of their loan to 10 or 15 years.  Shorter term loans often have great breaks on their interest rates.   They will be living the good life and singing your praises for the advice. 

We at the Easterbrook Team truly mean it when we say the “We Make the Process Easy”. Why? Because we have great processes.  Let us show you how we can make your loan process the best that it can be.  Want to hear what others say?  Check out our Yelp Page HERE.

VA is Also Hero of the Loan World

With true 100% financing, eligible vets can take full advantage of the benefit that they’ve earned through their service.  VA does not have a loan limit either.  VA will go 100% to $474,950 and 75% of the purchase price for the difference over up to the purchase price.  For example, using VA, the down payment on a $600K purchase would be approximately only 94%.  No other loan type can touch that!  In addition, there is no mortgage insurance!  There is a funding fee added to the loan, but some vets are exempt – call us for details.  

Check out OUR rates, we’ve got some of the best in town!

Based in Folsom, California, Sierra Pacific Mortgage has 144 offices nationwide. The Easterbrook Team at Sierra Pacific is associated with the #1 office in the nation for SPMC for 2015.  We want to thank you so much for the support.  Come by and visit our office at 806 Bidwell Street in Folsom.  Keep the loans coming and we’ll keep closing them at lightning speed with a positive, smooth, and transparent experience.  Call us at (916) 850-6050.    

Do You Have Lender Paid Mortgage Insurance?

Mortgage Insurance vs. LPMI

 

Do You Have Lender Paid Mortgage Insurance?

 

When purchasing a home with a loan, in addition to this being a great idea, you are required to have homeowner’s insurance (sometimes called fire insurance or hazard insurance).  Contact your Insurance Agent to provide you with that type of coverage. When your loan to value is over 80% on your loan, mortgage insurance is typically required. 

 

Mortgage insurance is entirely different from other types of insurance in that it covers the lender against a loss.  There are several factors that determine the cost of mortgage insurance – FICO score, loan to value, and loan type.  The standard option for most buyers is monthly mortgage insurance.  There is, however, another excellent money saving option – Lender Paid Mortgage Insurance (or LPMI).

 

LPMI is paid by the lender by slightly increasing the rate.  Typically, the higher the buyer’s FICO score, the lower the cost of the LPMI.  Unlike most lenders that offer LPMI, Sierra Pacific Mortgage offers savings for borrowers beyond 740 FICOs.  If you are a higher FICO buyer requiring or currently having to pay mortgage insurance, then call us for a comparison—you’ll probably be able to save some money.

 

On a $400K purchase at 95% loan to value, the typical buyer with a 740 FICO will save over $135 per month over traditional monthly mortgage insurance.  In addition, LPMI may allow them to buy more house! 

 

Another benefit of LPMI is for borrowers that want to refinance out of their monthly mortgage insurance, but don’t have the 20% yet in equity to remove it.  LPMI bridges the gap to entirely remove the mortgage insurance up to 95% loan to value. 

 

As home loan interest is typically tax deductible and mortgage insurance is currently not, LPMI may provide additional tax savings too. Confirm with your tax professional.

 

For LPMI or other mortgage questions, call the Easterbrook Team at Sierra Pacific Mortgage.  John Easterbrook (NMLS#226555) and Patty Aguon (NMLS#994635) can both be reached at (916) 850-6050.  We can also be emailed at easterbrookteam@spmc.com.