Hard Money-Mortgage Loan Houston-Texas

Houston-Texas. Refinancing mortgage from Hard money lender to a Fannie Mae Lender

This article is designed for those borrowers who currently have a hard money lender and now want to come out of hard money lender and switch their mortgage to a standard Fannie Mae or Freddie Mac backed lender.

Just to give a back drop. Borrowers go for hard money lender when their books are not in order. It is generally taken as short term measure for a period of year or two. The rates are double than what you have in the market. So if a Houston-Texas mortgage borrower would have qualified for a mortgage rate of let’s say 4.5% going by today’s market rate. The hard money lender would charge a rate of 10% or higher and what they capitalise on is the equity in the mortgage. So if the borrower has 50% to 60% equity in their home a hard money lender would be willing to help them.

If Houston-Texas mortgage borrower is looking to come out of hard money lender. Its a wise decision. They generally do not report mortgage to credit agencies hence when you pull the credit report of such borrowers, it’s not surprising to see that credit report is not reporting mortgage anywhere.

Hard money lenders do the mortgage very quickly because they hardly require any documents but when you are switching to a standard mortgage. Your loan will now be properly underwritten as per Fannie Mae and Freddie Mac guidelines. 

Two years of income details as reported on IRS. The income should be either stable or showing inclining trend is good. Cash asset reserve of small amount would be asked for to make sure that the borrower has some cash reserve to continue making payments in the event there is any contingency.

The mortgage would take 3 weeks to fund. Houston-Texas mortgage borrowers are looking at standard market rates now. That would be applicable. Credit score would be considered for rates for conventional loan. So it’s important that in all these years when the borrowers were with hard money lender they have taken time to put their documents in order before applying for refinancing.

Should the borrowers be looking for a mortgage expert to help them with their situation? You have come to the right place.

For more information visit www.affordable-payment.com or call 323-705-3191 if you are a California Mortgage borrower or If Texas Mortgage Borrower call 713-463-5181 EXT 154. 

Artical by Roger Shanker

Closing Cost in refinancing your Houston-Texas mortgage

Houston-Texas Mortgage Closing Cost and How it Works.

Many borrowers feel that there is something secretive/hidden about closing cost on mortgage Texas. The article will help borrowers who are looking at refinancing their Texas mortgage about closing cost and how it works.

The biggest fee that gets built in to your Texas mortgage conventional loan is the Title fee which is approximately 1.25% of your principal amount and if you have taken cash out in past its even higher. One way you can reduce this cost is by contacting the same Title Company that did your title search the last time and ask them for 40% to 50% discount on cost. They are getting repeat business and since they did your Title search the last time they have most of the paper work already with them. Less time would be involved this time

An adjustable rate mortgage will not attract higher closing and lesser if you go for fixed rate mortgage Texas.

You will see a marked shift in closing cost when you tell your mortgage expert that you want to buy the lowest possible mortgage rate paying extra fee as discount points.

Most borrowers talk about points involved on the mortgage referring to closing cost. A point means 1% of the total loan amount. So if your mortgage balance is $ 400,000 and closing cost is $ 4000. It means 1 point or 1% has been applied to your mortgage.

The reason why you would find similar cost with most banks or lenders is because the fee is pretty standard. Processing fee, underwriting fee, title fee. A processor won’t charge a higher fee if the loan amount is big or small or complicated or not complicated file. The underwriter too will charge the same fee regardless of the fact whether it takes him to approve your mortgage in 2 weeks or 6 weeks. It is not that since his man hours on a particular file is more so the underwriter would charge more. No it doesn’t work like that.

Hopefully I was able to answer and clear your doubts on fee that it’s a pretty standard format or form with all lenders or banks.

For more information visit www.affordable-payment.com or call 323-705-3191 if you are a California Mortgage borrower or If Texas Mortgage Borrower call 713-463-5181 EXT 154. 

Artical by Roger Shanker