As I pointed out in my earlier Blog about the Home Affordable Refinance program. There is another major positive aspect about this program that make it one of the few programs the government has put out there for people to take advantage of AND THIS PROGRAM WELL APPLY TO YOUR RENTAL PROPERTIES.  Now there are still some restrictions that are going to apply.  Such as you cannot have over 10 financed properties, Although i have found a lender that well finance people with over 10 financed properties. (This is a Commercial Real Estate Loan) As I stated before this program allows you to refinance even if your loan is up to 105% of the value of you property and when you refinance with this program your Mortgage Insurance remains at the same level it was before the refinance. This means that if your current loan doesn’t have mortgage insurance that if you go over 80% you do not need to obtain mortgage insurance on the new loan. This is huge because the mortgage insurance always adds so much to the payment in some cases when you add mortgage insurance it negates the savings. If you have mortgage insurance now you would be required to obtain the same level of mortgage insurance that you currently have, so if your MI premium was at 85% your premium would be the same.   You all need to check into to this program, there are many who don’t understand or think that there is actually  a program that can help them out.  If your not sure; you need to ask.  You can always call and ask.  Andrew Hahn: president Capital Advantage LLC. Mortgage lending. Or visit my business website at Capitaladvantagemortgage.com.

I never hurts to ask and that’s free. If you are eligible for the program you could realize 30 years or so of savings

When considering a refinance in Denver Metro area or anywhere in the state of  Colorado Consider Capital Advantage

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From Andrew Hahn President of Capital Advantage LLC. a Mortgage Lending Company located in Commerce City Colorado Serving Colorado and the Denver Metro area. 18 years in the Colorado Real Estate Finance.

As I pointed out in my earlier Blog about the Home Affordable Refinance program. There is another major positive aspect about this program that make it one of the few programs the government has put out there for people to take advantage of.  As I stated before this program allows you to refinance even if your loan is up to 105% of the value of you property and when you refinance with this program your Mortgage Insurance remains at the same level it was before the refinance. This means that if your current loan doesn’t have mortgage insurance that if you go over 80% you do not need to obtain mortgage insurance on the new loan. This is huge because the mortgage insurance always adds so much to the payment in some cases when you add mortgage insurance it negates the savings. If you have mortgage insurance now you would be required to obtain the same level of mortgage insurance that you currently have, so if your MI premium was at 85% your premium would be the same, its like your paying it now so your used to paying it but could refinance at the lower rate and still realize the saving created from the new refinance (they were thinking right when they made this program) real help and real savings. You all need to check into to this program, there are many who don’t understand or think that there is actually  a program that can help them out.  If your not sure; you need to ask.  You can always call and ask.  Andrew Hahn: president Capital Advantage LLC. Mortgage lending. Or visit my business website at Capitaladvantagemortgage.com.

I never hurts to ask and that’s free. If you are eligible for the program you could realize 30 years or so of savings

When considering a refinance in Denver Metro area or anywhere in the state of  Colorado Consider Capital Advantage

APPLY HERE

Andrew Hahn here President of Capital Advantage LLC. a Colorado Mortgage Lending Company since 1991. Located in Commerce City I want to urge all those who obtained a conventional mortgage  18 months ago or older that you may qualify for for the Government HARP Program which stands for HOME AFFORDABLE REFINANCE PROGRAM. this is really one of the best programs out there that helps home owners. As I am a licensed Mortgage Broker in the state of Colorado I provide my services to home owners located in Colorado and the Denver Metro Area. The information I provide regarding HARP includes all, as this is a national program.  First of all this program is aimed at those people that have conventional loans through Fannie Mae or Freddie Mac. Your loan can be an ARM or an interest only loan and you can still refinance to a fixed rate loan; it’s a great deal, now is the time to roll out of that loan with the uncertainty of there futures into a loan that can get you through the next 30 years if need be. Now if your not sure if Fannie Mae or Freddie Mac owns your loan you can go to their website and input your address and it well tell you if they own your loan; this works most of the time but there are some instances where it doesn’t work.  The best and easiest way to find out who owns your loan is to call the loan servicer who has to tell you.  Once you have found this out you now know if this program well work for you.  If you want you can contact me Andrew Hahnand I’ll be glad to help.  The best part of this loan is it allows you to take advantage of today’s low rates even if your property is worth less than what you owe ( as though as that sounds, I think we all want to keep our homes). Most lenders now when refinancing the first mortgage well go up to 105% some well go up to 125% under certain circumstances. Get ahold of me and I’ll help you determine which Loan to Value you qualify for.  Now we are only talking about the first mortgage, remember up to 105%, now if you also have a second mortgage you still qualify for the refinance but if you have a second mortgage they well need to step behind the new mortgage this is called a subordination. At first second mortgage companies were not helping out here but after some time most have come to their senses and are allowing the new first (since it is lowering your total payments what took so long for them to figure this out). Usually the second mortgage is going to want a copy of your loan application, an appraisal and a few other documents so they can make a decision if they well subordinate or not and as the way it goes the generally want some money upfront to process the request. USAA is free and subordinates most of the time. I have seen the fee anywhere from $50.00 to $300.00 (it depends on your lender). And again this is something I can help you with. If you are considering refinancing and live in the Denver Metro area please give me a call and we can set up an appointment so I can go over your options and give you an interest rate quote.

From Andrew Hahn at Capital Advantage have a great day and don’t miss this opportunity to take advantage of a good government program that allows you to take advantage of these low rates. Don’t wait to long the consensus is is that rates are on the way up.

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Take a closer look at your Adjustable Rate Mortgage; it might not be as bad as they make it sound.

I think with all the rush/push to refinance out of that Adjustable Rate Mortgage in some cases, are alarmist and for people that have ARM loans with either Fannie Mae or Freddie Mac (not subprime) you need to step back and take a closer look at your loan and consider what your payment is going to do and understand how it works. With these ARM’s it’s more likely that your payment is going to go down. The key here is to know how your ARM works; you need to understand how to figure out what your interest rate is going to be. The interest rate is figured by adding an Index this is the variable component of your interest rate and a Margin this is the fixed component of your rate. You need to know what your index is, the two most popular indexes are either the 1-Year LIBOR (London InterBank Offer Rate) or the 1 YEAR TREASURY (1yrCMT); this is extremely important because this is the basis of your interest rate.  The index is what’s going to determine what your rate is going to be. Today 02/24/2009 the 1 year LIBOR is 2.08 and the 1 yr CMT is 0.64. Here is a great link to use to keep track of your index for the 1 yr LIBOR http://www.bankrate.com/brm/ratewatch/other-indices.asp and here is the link for the 1 yr CMT http://www.bankrate.com/brm/ratewatch/1yr-cmt.asp . Now you need to know your Margin this is the amount you add to the index to get what your interest rate will be. Most of margins tend to be between 2.25 and 2.75; again this is for non subprime loans. (The problem with subprime loans is that the margins are extremely high).  To find out what your index and your margin are, look in your closing folder and look for the Adjustable Rate Mortgage loan Rider. Now for examples sake we are going to use a margin of 2.75, now if you have the LIBOR as your index you add 2.08 ( YOU NEED TO ROUND TO THE NEAREST .125 ) this would make your interest rate if it adjusted today 4.75% this is not a bad interest by today’s standards at all. Now if your index is the 1 yr CMT at .64 (ROUND TO NEAREST .125) your rate today is 3.5% can’t touch this in today’s market. This presents a compelling argument that ARM loan aren’t that bad at this time. The question here is how long the indices will stay low. For those of you under water in your property this is the good news. All the talk from the new administration about allowing people who owe more than their property is worth is still just that HAPPY CHATTER; we will have to wait to see if they can make it happen.  Now for those few who can still qualify for a new loan you need to form a strategy of when to refinance into a fixed rate. You’ll also need to know how often your interest rate can adjust; it’s generally either every 6 or 12 months. What you want to do is enjoy your new rate but watch and lock in a new fixed rate loan when those indices start moving up to a point where your adjusted rate will be higher than what you can fix a rate at. Easier said than done; this is where you have to determine what works best for you. Also ask yourself all those important questions, like how long do you intend to stay in the property, how much are the closing cost going to be, ect… Loan to value and credit score are still extremely important and well affect your interest rate. The sweet spot is still 80% or less, whenever you go over 80% you run into mortgage insurance and this just adds to your payment. There are many factors that affect your interest rate and even your ability to refinance. If I can be of any help in determining what works in your best interest please contact me.

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Thank you and I hope this helps Andrew Hahn