February 5, 2012

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Home Sales Surge in Pleasant Hill California While Surrounding Cities Stay Flat

January 3, 2012 By Leave a Comment

Posted by Jason Wheeler | Fully Follow Me | Subscribe

Home sales in Pleasant Hill California have had quite a surge in the last month and reach their highest point in the last year. Do you think this trend will continue? Surrounding cities that share a border with Pleasant Hill CA such as Lafayette, Concord, Walnut Creek and Martinez have yet to see surges like this…

What is it that is setting a city like Pleasant Hill California apart from it’s neighboring cities? What is keeping YOU from getting pre approved for a mortgage loan and contacting your local Realtor? In most cases you can save money compared to what you are paying in rents!

As a long time resident, business owner and your Mortgage Lending Expert I want to know one thing… What is it that is keeping you from buying your piece of real estate in today’s market. Leave me your comment at the bottom of this blog post.

 

Some of the Loan Options we Specialize in Are

Call or Email Us now for a Quick Approval and Personalized Quote 925-285-2172

 

 

Filed Under: Articles, Business Tips, Mortgage Tips, Real Estate Investing Tips

New Year 2012 CA Bay Area Mortgage Trends Best Rates in teh Bay

January 3, 2012 By Leave a Comment

Posted by Jason Wheeler | Fully Follow Me | Subscribe

By MIA LAMAR

Average fixed mortgage rates in the U.S. over the past week finished the year near all-time lows, with the 30-year home loan at 3.95%.

According Freddie Mac’s weekly survey of mortgage rates, the rate for a 30-year fixed-rate mortgage has been at or below 4% for the past nine consecutive weeks and only twice in 2011 did it average above 5%.

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So… you want today’s best mortgage rates for your home purchase or refinance?

Bank rates change daily and sometimes multiple times daily. See below for most up to date data on mortgage trends. If you would like pin point pricing you should email or call us anytime.

Remember… the rates in the below trend chart are the average rate in California. We work with several wholesale lenders and in almost every case we can beat the Average interest rates by up to .5% If you have questions about today’s best mortgage rates in the Bay Area get in touch with us today and find out how you can get the best rates the market can offer in today mortgage market.

Some of the Loan Options we Specialize in Are

Call or Email Us now for a Quick Approval and Personalized Quote 925-285-2172

Rates on the above trend chart show the AVERAGE mortgage rate currently in California. The rate on your loan scenario could be lower or higher than the posted average rate depending on different criteria and what lender we work with. For absolutely NO OBLIGATION email us and we will shop over 30 lenders in order to get you the best combination of rate and costs to close along with the criteria required to close your loan. In order to get your FREE Custom Quote just email us with:

  1. The Loan Amount you wish to qualify for
  2. The property you want to finance and weather you occupy it or not
  3. Reason for the loan ext… (lower my rate, take cash out, purchase a property)

Within 24 hours we will email you back with a custom quote that you can compare with other lenders like your personal bank or current broker. YOU DON’T EVEN HAVE TO CALL OR PROVIDE A PHONE NUMBER!

You can apply quickly by inquiring here

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Filed Under: Articles, Mortgage Tips

Getting a VA Home Loan with Imperfect Employment History in the CA Bay Area

December 29, 2011 By Leave a Comment

 

Posted by Jason Wheeler | Fully Follow Me | Subscribe

Guest post by Kevin Pearia

Tips to Secure a VA Home Loan with Imperfect Employment History

The mortgage meltdown seen in recent years made securing a home loan more difficult than most people can remember. Conventional lenders tightened lending requirements, which made it nearly impossible for many veterans to achieve eligibility due to the high credit scores and large down payments required.

Government backed programs, such as the VA Home Loan program, then became the go to lending product for interested homebuyers due to the lenient eligibility requirements given to veterans and active duty service members. In spite of these lenient eligibility requirements, the program does have a few income and credit requirements that often make veterans question their ability to qualify. However, these are general guidelines for lending; they don’t dictate which veterans can and cannot receive a loan.

Employment History

The VA Home Loan program generally requires that a prospective borrower have two years of steady employment in order to secure a loan. However, for veterans, providing documentation of a steady 2-year income isn’t always easy. VA-approved lenders understand that securing a job after service can lead to a short employment record, and are willing to work with those recently discharged.

In order to grant approval, most underwriters will make sure that a veteran’s service record indicates that they have skills beyond service and that they will be able to keep their recently acquired job.

Proof of Stable Income

In conjunction with providing proof of 2 years of steady employment, VA-approved lenders also prefer to see proof of a stable income in the form of 2 years’ worth of tax returns. For traditionally employed veterans, this is fairly easy. However, many self-employed veterans may struggle with providing this proof.

In fact, to receive all benefits possible, self-employed veterans should wait 2 years from the time they start their business to apply for a home loan. However, if their business has become highly profitable, they may apply and provide strong paperwork indicating the company’s revenue to prove that they will be able to cover the cost of the mortgage.

Foreclosure and Bankruptcy

The last few years hasn’t exactly been financially easy. The cost of living has continued to increase while wages have stayed the same or become non-existent due to layoffs. Because of the struggling economy, many homeowners were forced to declare bankruptcy or foreclosure.

For many, declaring bankruptcy or foreclosure seems like the end of the road. They believe that obtaining financing in the future will be impossible. However, as long as prospective borrowers can prove that they are back on the right track financially, have not taken out any other large loans, and have allowed at least 18 months to pass since their declaration, they may still be approved for a loan.

If you are interested in securing a VA home loan, contact your local VA home loan specialist to have any additional questions answered or for pre-approval.

Kevin Pearia is a mortgage commentator for Veterans United Home Loans, the nation’s leading dedicated provider of VA home loans

 

Filed Under: Articles, Mortgage Tips

Today’s Best Mortgage Interest Rates for California SF Bay Area Loans

November 6, 2011 By Leave a Comment

Posted by Jason Wheeler | Fully Follow Me | Subscribe

So… you want today’s best mortgage rates for your home purchase or refinance?

Bank rates change daily and sometimes multiple times daily. See below for most up to date data on mortgage trends. If you would like pin point pricing you should email or call us anytime.

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Rates dipped below thier 30 day average and are showing a possible downtrend.

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Remember… the rates in the below trend chart are the average rate in California. We work with several wholesale lenders and in almost every case we can beat the Average interest rates by up to .5% If you have questions about today’s best mortgage rates in the Bay Area get in touch with us today and find out how you can get the best rates the market can offer in today mortgage market.

Powered by CA Mortgage Rates

Some of the Loan Options we Specialize in Are

Call or Email Us now for a Quick Approval and Personalized Quote 925-285-2172

Rates on the above trend chart show the AVERAGE mortgage rate currently in California. The rate on your loan scenario could be lower or higher than the posted average rate depending on different criteria and what lender we work with. For absolutely NO OBLIGATION email us and we will shop over 30 lenders in order to get you the best combination of rate and costs to close along with the criteria required to close your loan. In order to get your FREE Custom Quote just email us with:

  1. The Loan Amount you wish to qualify for
  2. The property you want to finance and weather you occupy it or not
  3. Reason for the loan ext… (lower my rate, take cash out, purchase a property)

Within 24 hours we will email you back with a custom quote that you can compare with other lenders like your personal bank or current broker. YOU DON’T EVEN HAVE TO CALL OR PROVIDE A PHONE NUMBER!

You can apply quickly by inquiring here

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Filed Under: Business Tips, Mortgage Tips

Changes to Obama’s HARP Program 2011 Could Help Many in SF Bay Area

November 1, 2011 By 2 Comments

Posted by Jason Wheeler | Fully Follow Me | Subscribe

Update 1/25/2012 – This program is set to be released in March 2012.  Right now there is a huge back log of people pre-applying so the process may take some time.  Apply today for this program and get your file ready and in line when it is released in March 2012.

What is the HARP Program? (Home Affordable Refinance Program)

New changes are coming to the HARP program on November 11th 2011 that should help thousands keep their homes and save a ton of money in the SF Bay Area!

For a mortgage to be considered for a HARP refinance in the California Bay Area, it must be owned or guaranteed by Fannie Mae or Freddie Mac.

If your home is or will be “underwater” you need to take a look at this program today.

Important Steps to Applying for a HARP Loan

  1. To determine if your loan is owned or guaranteed by Fannie Mae or Freddie Mac, you may verify it yourself by going here
  2. If your loan is a Fannie Mae loan, you may obtain more information on the program, here.
  3. If your loan is a Freddie Mac loan, you may obtain more information here.
  4. If you would like to apply for a HARP Relief Refinance today you can inquire here.

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If your loan is not a Fannie Mae or a Freddie Mac loan, your loan is not covered by the HARP refinance program. You may want to contact your servicer or other lenders to discuss refinance programs you may be eligible for. For more information see:  FHFA HARP page.

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Some of the new guidelines and rules that were announce by President Obama and the Federal Housing Finance Agency are as follows.

The new program enhancements address several other key aspects of HARP including:

  1. Eliminating certain risk-based fees for borrowers who refinance into shorter-term
    mortgages and lowering fees for other borrowers;
  2. Removing the current 125% percent LTV ceiling for fixed-rate mortgages backed by
    Fannie Mae and Freddie Mac;
  3. Waiving certain representations and warranties that lenders commit to in making loans
    owned or guaranteed by Fannie Mae and Freddie Mac;
  4. Eliminating the need for a new property appraisal where there is a reliable AVM
    (automated valuation model) estimate provided by the Enterprises; and
  5. Extending the end date for HARP until Dec. 31, 2013 for loans originally sold to the
    Enterprises on or before May 31, 2009.

You can review the official press release and new rules from the FHFA Here.

If you would like to apply for a HARP Relief Refinance today you can inquire here.

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The Home Affordable Refinance Program HARP is alive and well in the SF Bay Area. Most lenders will go up to 110% of your homes current value however we work with several lenders that will allow for up to 125% of the homes value.

President Barack Obama announced a set of new rules recently designed to make it easier for homeowners to refinance their mortgages even if they owe more than their home is worth.

Bay Area lawmakers had pushed hard for the changes, which eliminate some fees and ease rules on refinancing home loans owned by the government-controlled mortgage finance companies Fannie Mae and Freddie Mac. For more than a year, Sen. Barbara Boxer (D-California) has been pushing legislation that would force Fannie Mae and Freddie Mac to help people reduce the amount they owe on their mortgage.

In a statement Monday, Boxer said she was “very pleased” with the new changes and would urge the Federal Housing Finance Agency, which regulates Fannie Mae and Freddie Mac, ”to move swiftly to assure that these new policies will help as many homeowners as possible.”

President Obama threw a lifeline to some underwater homeowners Monday in announcing his administration will revamp a program to refinance homes with mortgages greater than their current values.

“This will help a lot more homeowners refinance at lower rates,” Obama said, speaking in a modest neighborhood in Las Vegas, a city walloped by foreclosures. The president said he would do “everything in my power to help stabilize the housing market.”

The plan will streamline and expand the existing Home Affordable Refinance Program, or HARP, to make it easier to use with fewer fees, broader eligibility and no limit on how far underwater a home can be. The program so far has helped about 894,000 homeowners, far shy of the projected 5 million when it was rolled out two years ago.

Underwater homeowners who qualify will be able to take advantage of today’s bargain-basement interest rates, which are around 4 percent. Since many are now stuck with much higher interest rates, they should save several hundred dollars a month by refinancing.

“This will help a lot more homeowners refinance at lower rates,” Obama said, speaking in a modest neighborhood in Las Vegas, a city walloped by foreclosures. The president said he would do “everything in my power to help stabilize the housing market.” Read more form the San Francisco Chronicle on this

We will see how long it takes for banks to start implementing or if they even will implement these new rules for stressed home owners. So far the HARP Home Affordable Refinance Program has not helped as many Bay Area Home owners that is was designed for.

 

Filed Under: Articles, Business Tips, Front Page, Mortgage Tips

Home Affordable Refinance Program (HARP) Gets Revamp From Obama in the SF Bay Area

October 25, 2011 By Leave a Comment

 

Posted by Jason Wheeler | Fully Follow Me | Subscribe

The Home Affordable Refinance Program HARP is alive and well in the SF Bay Area. Most lenders will go up to 110% of your homes current value however wer work with several lenders that will allow for up to 125% of the homes value.

President Barack Obama announced a set of new rules Monday designed to make it easier for homeowners to refinance their mortgages even if they owe more than their home is worth.

Bay Area lawmakers had pushed hard for the changes, which eliminate some fees and ease rules on refinancing home loans owned by the government-controlled mortgage finance companies Fannie Mae and Freddie Mac. For more than a year, Sen. Barbara Boxer (D-California) has been pushing legislation that would force Fannie Mae and Freddie Mac to help people reduce the amount they owe on their mortgage.

In a statement Monday, Boxer said she was "very pleased" with the new changes and would urge the Federal Housing Finance Agency, which regulates Fannie Mae and Freddie Mac, "to move swiftly to assure that these new policies will help as many homeowners as possible.”

President Obama threw a lifeline to some underwater homeowners Monday in announcing his administration will revamp a program to refinance homes with mortgages greater than their current values.

"This will help a lot more homeowners refinance at lower rates," Obama said, speaking in a modest neighborhood in Las Vegas, a city walloped by foreclosures. The president said he would do "everything in my power to help stabilize the housing market."

The plan will streamline and expand the existing Home Affordable Refinance Program, or HARP, to make it easier to use with fewer fees, broader eligibility and no limit on how far underwater a home can be. The program so far has helped about 894,000 homeowners, far shy of the projected 5 million when it was rolled out two years ago.

Underwater homeowners who qualify will be able to take advantage of today’s bargain-basement interest rates, which are around 4 percent. Since many are now stuck with much higher interest rates, they should save several hundred dollars a month by refinancing.

"This will help a lot more homeowners refinance at lower rates," Obama said, speaking in a modest neighborhood in Las Vegas, a city walloped by foreclosures. The president said he would do "everything in my power to help stabilize the housing market." Read more form the San Francisco Chronicle on this

We will see how long it takes for banks to start implementing or if they even will implement these new rules for stressed home owners. So far the HARP Home Affordable Refinance Program has not helped as many Bay Area Home owners that is was designed for.

 

 

 

Filed Under: Articles, Business Tips, Mortgage Tips

Loan Denied by Wells Fargo, Chase or Bank of America? I Can Likely Still Help You

October 24, 2011 By Leave a Comment

Posted by Jason Wheeler | Fully Follow Me | Subscribe

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Things sure have been busy the past few months with a major refinance boom happening. In the past three months I’ve been able to several people refinance thier home and save a ton of money. If you have not asked me about my lending options you should. Even if you’ve been turned down by banks like Bank of America, Wells Fargo and Chase. I may still be able to help you.

  • Refi in Concord CA for a Retired Individual dropped her rate 2% and saved her over $600/month
  • I helped a couple get out of thier double loan delema and got them one Jumbo Loan at 3.875% on a 15 Year.
  • I helped a gentlmen in Pleasant Hill who was upside down on thier house qualify for a special loan up to 125% of thier homes value.

According to the Wall Street Jounal there is another lending re vamp planned by the Obama Administration

Federal regulators on Monday unveiled a major overhaul of an underused mortgage-refinance program designed to help millions of Americans whose home values have tumbled.

The plan is the latest White House effort to deal with one of the most critical impediments to economic recovery—a stagnant housing market caused in part by a surfeit of homeowners who are unable to refinance.

The overhaul will, among other things, let borrowers refinance regardless of how far their homes have fallen in value, eliminating previous limits. That could open up refinancing to legions of borrowers in Nevada, Arizona, Florida, California and elsewhere who are …

Offering programs like:

We have the ability to offer what many brick and mortar banks simply cannot. Call or Email Us now for a Quick Approval and Personalized Quote 925-285-2172

 

Filed Under: Articles, Mortgage Tips

Why did the Government FHFA Sue the Nations Largest Banks. How will it Effect SF Bay Area Real Estate and Lending?

September 2, 2011 By 1 Comment

Posted by Jason Wheeler | Fully Follow Me | Subscribe

It looks like the Federal Housing Finance Agency (FHFA) will be suing banks like Bank of America, Barclays, JP Morgan Chase and many others. The FHFA says many mortgage loans given in the SF Bay Area and through out the United States have been Fraudulent and these banks failed to properly underwrite these loans. Seems like two big behemoth organizations meaning the US Government and the Biggest Banks will be going head to head. It should be interesting to see how this all continues to play out wouldn’t you think?

If you ask me it seems wild that the same people (the US Government) forked out trillions of dollars to "Bail Out" these big banks and now they are suing them seems absurd. So why is the US Government suing these large banks anyway?

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A bruising legal fight pitting the country’s most powerful banks against the full force of the United States government began Friday, as federal regulators filed suits against 17 financial institutions that sold the mortgage giants Fannie Mae and Freddie Mac nearly $200 billion in mortgage-backed securities that later soured.

The suits are the latest legal salvo fired at the banks accusing them of misdeeds during the housing boom. Investors fled financial shares Friday amid growing concern that the litigation could last for years and undermine earnings and balance sheets in the process.

News reports say that the Federal Housing Finance Agency (FHFA) will sue 17 major banks in order to recover some of the losses that Fannie Mae and Freddie Mac sustained on mortgage-backed securities the banks issued.

The suits will seek to make the banks repay a share of about $30 billion in losses from securities that Fannie Mae and Freddie Mac bought before they essentially failed and the FHFA took them into conservatorship in September 2008.

Since any recovered money would reduce the over $150 billion the taxpayers have already spent on bailing out the two housing giants, this should be good news. However, the FHFA should not start counting the money it plans to recover quite yet. The suits are being filed now because the statute of limitations expires next week, and the burden of proof that the FHFA will have to meet will be high.

The FHFA is expected to charge that the 12 or so banks should have known that the mortgages that had been packaged into the securities that Fannie Mae and Freddie Mac bought were riskier than advertised. It claims that the banks failed to adequately check the quality of the mortgages before either selling them to packagers who combined mortgages into mortgage-backed securities or packaging them into securities themselves.

Continue reading more ==> Here

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Do you think it makes any sense for the Federal Government to spend trillions of tax payer dollars to again "bail out" these big banking institutions and then turn around and sue them? Sounds pretty fishy to me. It looks like the federal government and a whole lot of lawyers have a whole lot to gain financially should they be found the winner in any of this. What a bunch of crooks!!

Filed Under: Articles, Business Tips, Mortgage Tips Tagged With: , , , ,

What’s Happening In Real Estate and Mortgages Today

July 29, 2011 By Leave a Comment

Posted by Jason Wheeler | Fully Follow Me | Subscribe

Rates continue to drop the week of July 29th 2011 for Contra Costa Mortgage applicants.

interest-rate-trends-7-29-11 

Chart from Investools.com

Heres the weekly report according to the Wall Street Journal

Mortgage rates in the U.S. were again little changed over the past week, as readings on the U.S. economy continued to show mixed signals, according to Freddie Mac’s weekly survey of mortgage rates.

"Macroeconomic data released this week were a mixed bag," said Freddie Mac Chief Economist Frank Nothaft. "On the positive side, the index of leading indicators in June rose for the second consecutive month, beating the market consensus forecast. Partly offsetting this, orders for durable goods were weaker than market expectations for the same month."

The 30-year fixed-rate mortgage averaged 4.55% for the week ended Thursday, up from 4.52% the previous week and last year’s rate of 4.54%. Rates on 15-year fixed-rate mortgages averaged 3.66%, flat from last week though down from 4% a year earlier.

Five-year Treasury-indexed hybrid adjustable-rate mortgages averaged 3.25%, down from 3.27% last week and 3.76% a year ago. One-year Treasury-indexed ARM rates averaged 2.95%, down from 2.97% in the prior week and 3.64% in the prior year.

To obtain the rates, 30-year fixed-rate mortgages required an average payment of 0.8 point, while 15-year fixed rates required an average 0.7 point payment. A point is 1% of the mortgage amount, charged as prepaid interest. Five-year adjustable rate mortgages required an average 0.6-point payment, while one-year adjustable rates required an average 0.5 point payment.

Artice By MIA LAMAR

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Filed Under: Articles, Business Tips, Mortgage Tips Tagged With: , , , , , , , , , , , , , , , , , , ,

Why Use A Private Portfolio Mortgage Lender

May 11, 2011 By Leave a Comment

 

Posted by Jason Wheeler | Fully Follow Me | Subscribe

I’m always talking to people about the benefits of working with myself and Clarion Mortgage Capital compared to what I call the big three retail lenders. Bank of America, Chase, and Wells Fargo. While these big retail banks have the marketing dollars to get their name out there and a branch on every corner it seems like they lack one very important thing in today’s difficult lending market… Options. The facts are simple that if your loan gets declined by strict government guidelines enacted by Fannie Mae and Freddie Mac you will never be able to close your loan with the “Big Three”

We offer the option of Portfolio Lending! Read below and see how Investopedia describes Portfolio Lending.

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What Does Portfolio Lender Mean?
A company that not only originates mortgage loans, but also holds a portfolio of their loans instead of selling them off in the secondary market. A portfolio or private lender makes money off the fees for originating the mortgages and also seeks to make profits off the spread (difference) between interest-earning assets and the interest paid on deposits in their mortgage portfolio.

Investopedia explains Portfolio Lender
Many mortgage lenders avoid the risks of holding mortgages, only profiting from origination fees and then quickly selling off the mortgages to other financial institutions. There are pros and cons to both methods. Companies who profit off mortgage origination experience less risk and likely a more stable profit stream, while portfolio lenders have a chance to experience more upside on their portfolio, but also more risk.

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If you have been denied by another big bank or even if you are working with another broker in the California Bay Area, before you give up you should learn about the benefits our Portfolio Private Lender can offer you. We specialize in loans slightly outside the box, we are not always agency sellers so most of our loans represent agency fallout or turn down’s of some kind.

Our goal is to be in every consumers product mix so you can offer all products available in the market place.  We have 30 Fixed Rates and 15 Fixed Rates that are very close and competitive with Conventional Lending rates…

CRUNCH TIME; when it really counts…  

  • FASTEST funding’s in the industry!!! ( 1 week funding’s)
  • Use of your own appraiser
  • Direct access to decision makers
  • Same day review on request
  • Draw docs SAME DAY as CLA.
  • Fund in 24 hours no BS…

Until Next time Here is to your success! Jason Wheeler

 

Filed Under: Articles, Front Page, Mortgage Tips

HomePath Financing East Bay Area Contra Costa – 3.5% Credit for Closing Cost From Fannie Mae

April 19, 2011 By 1 Comment

Posted by Jason Wheeler | Subscribe

HomePath Mortgage allows a borrower to purchase a Fannie Mae-owned property with a low down payment, flexible mortgage terms, no lender-requested appraisal and no mortgage insurance. Expanded seller contributions to closing costs are allowed. Currently Fannie Mae is offering up to 3.5% of the purchase price as credits towards borrowers closing costs on a property.

What few people know is that you can even use this program to finance renovations to a property that you would like to buy and make repairs to. Did you know you can get Fannie Mae to give you up to $35,000 to repair a HomePath property you are in contract to close on and buy?! That is right! Fannie Mae will GIVE you money to make repairs on your new home in California.

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Download the HomePath Renovation Details Here and share it with your borrowers and clients.

If you would like to find a HomePath property in the CA Contra Costa East Bay Area you can search for qualified properties in Contra Costa and surrounding Counties here

Benefits to You, the Borrower

  • Low down payment and flexible mortgage terms (fixed–rate, adjustable rate, or interest–only).
  • Down payment (at least 3 percent) can be funded by the borrower’s own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer.
  • No lender-requested appraisal.
  • No mortgage insurance; ask your lender for cost details on loans without mortgage insurance.
  • Expanded seller contributions for closing costs allowed.
  • Available for primary residences, second homes and investment properties.
  • Many condo project requirements are waived; ask your lender for details.
  • For more information, contact a HomePath us today.

Connect Online | Facebook | Twitter

Until Next time Here is to your success! Jason Wheeler

Filed Under: Articles, Front Page, Mortgage Tips Tagged With: , , , ,

What is an Impound Account – Why Do I Need an Escrow Account When I Buy Bay Area Real Estate?

April 14, 2011 By 1 Comment

Posted by Jason Wheeler | Subscribe



 

What is an Impound Account?
An account maintained by mortgage companies to collect amounts such as hazard insurance, property taxes, private mortgage insurance and other required payments from the mortgage holders; these payments are necessary to keep the home but are not technically part of the mortgage. Impound accounts are often required of borrowers who put down less than 20%, but are usually optional in other cases. The purpose of the impound account is to protect the lender. Because low down-payment borrowers are considered high risk, the impound account assures the lender that the borrower will not lose the home because of liens or loss, as the lender pays insurance, taxes, etc. from the impound account when they are due.

Investopedia explains Impound
Though the impound account is designed to protect the lender, it can also help the mortgage holder. By paying for these big-ticket housing expenses gradually throughout the year, the borrower avoids the sticker shock of paying large bills once or twice a year, and is assured that the money to pay those bills will be there when they need it. However, if the mortgage company does not pay these bills when they are due, the borrower will be held responsible, so borrowers should keep an eye out to make sure their mortgage companies are fulfilling their end of the bargain.

How It Works according to Investopedia

An impound account (also called an escrow account, depending on where you live) is simply an account maintained by the mortgage company to collect insurance and tax payments that are necessary for you to keep your home, but are not technically part of the mortgage. The lender divides the annual cost of each type of insurance into a monthly amount and adds it to your mortgage payment.

Required Mortgage Impounds
Since low down payment borrowers are considered to be a higher due to their lower personal stake in the property, lenders want some level of assurance that the state will not seize the property because of non-payment of property taxes, and that borrowers won’t be without homeowners insurance in the event that the property is damaged. An impound account ensures that the only person who will become owner of the house in case of default will be the lender.

Connect Online | Facebook | Twitter

Until Next time Here is to your success! Jason Wheeler

Filed Under: Articles, Business Tips, Mortgage Tips
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