Oxford Capital

Waiting Periods Required After Short Sale

Oxford Capital — Thu, 31 May 2012 20:49:35 +0000

Waiting Periods Required After Short Sales

A short sale is a home that sold but the sales price didnâ€™t cover the amount owed to the bank. Therefore; a short sale is considered a derogatory credit event. Letâ€™s explore the difference between the requirements imposed on Conventional Loans verses those required with FHA Loans.

Conventional Loans will be determined by date of application relative to date of derogatory event.

â€¢ 7 years from date short sale closed and transferred to new owner or transferred back to the bank for less than 10% down payment
â€¢ 4 years from date short sale closed and transferred to new owner or transferred back to the bank with 10% down payment
â€¢ 2 years from date short sale closed and transferred to new owner or transferred back to the bank with 20% down payment
â€¢ 2 years from date short sale closed and transferred to new owner or transferred back to the bank possible with acceptable extenuating circumstance and 10% down payment.

FHA Loans can be determined by date of credit approval or a waiting period.

â€¢ 3 years from date short sale closed and transferred to new owner.
â€¢ No waiting period if borrower had no late payments on any mortgages and consumer debts within the 12 month period preceding the short sale and they are not taking advantage of declining market conditions.

If you were forced into selling your home for less than you owed the bank, and would like to see if you qualify to buy another home while the prices and rates are low, give me a call and I will be happy to discuss your options.
http://www.ocdirectloans.com/home.html

Oxford Capital — Thu, 10 May 2012 20:29:24 +0000

Third-Party Accounts Protect All Parties to a Home Mortgage Loan…When taking out a home mortgage loan, youâ€™ll encounter the issue of having an escrow account with your lender to handle payments for your homeownerâ€™s insurance and property taxes. Some lenders require borrowers to use an escrow account for such payments, while other lenders home mortgage loan programs offer an escrow account as an option.

How does a home mortgage loan escrow account work? Rather than paying insurance and taxes yourself as those bills come due, you pay an additional pro-rated amount every month â€“ based on 1/12th of your estimated yearly insurance and tax costs â€“ along with your monthly home mortgage loan payment for principal and interest. Insurance and tax bills are sent to your lender (instead of to you) and are automatically paid from your account by their due dates.

Home mortgage loan programs that require Escrow Accounts are useful because:
â€¢ They guarantee that important home-related bills are paid on time.
â€¢ Unexpected increases in taxes or insurance are taken care of. Lenders cover shortages when taxes or insurance payments increase. (If this occurs, youâ€™ll see a compensating increase in your monthly escrow payment at the anniversary date of your home mortgage loan.)
â€¢ Home mortgage loan rates and down payments are kept lower by escrow accounts because they help protect lenders form third parties placing liens on the property for non-payment of these items.
â€¢ Local governments save money with home mortgage loan programs that require escrow accounts. Since the lenders make the payments through the escrow accounts, local governments can avoid resorting to more-expensive ways to collect taxes on a home mortgage loan.
http://ping.fm/iZgSk

Oxford Capital — Thu, 03 May 2012 23:05:58 +0000

Your First Home Can Help Buy Your Second Home

Are you thinking about purchasing a vacation home, second home or investment property? If so, you may be able to use your first home to finance it.

Homeowners who have equity in their principal residence should consider the advantages of buying a second home using a second mortgage on the first home rather than a first mortgage on the second home. Generally, second home mortgages involve less time to process and have lower closing costs. Of course, you may pay a somewhat higher interest rate to get those advantages, but it could be worth it, depending on your situation.

Using a second mortgage on your first home (to buy your second home) offers almost as many tax breaks as a first mortgage. Mortgage interest payments are deductible in most cases (see IRS Publication 936, Home Mortgage Interest Deduction for details). You can also deduct any loan discount points paid for the second mortgage on a prorated basis over the life of the loan (rather than all at once, as with a home acquisition loan).

Even if you decide to opt for a first mortgage to buy your second home, you may want to tap your homeâ€™s equity for the down payment on the second home, retaining your hard-saved cash for other things. Again, your interest expenses on a second mortgage for the down payment would be tax deductible within the parameters set by the IRS.
http://ping.fm/R6yxb

Oxford Capital — Mon, 30 Apr 2012 22:31:53 +0000

Remodeling may Hike Your Tax Bill

When remodeling your home, youâ€™re likely to need a building permit. While it hangs in your window during the remodeling process, a copy heads straight to the local tax assessorâ€™s desk. Here, the value of your home will be recalculated, and may increase your tax bill.

Be prepared for tax consequences, especially if youâ€™re purchasing a fixer-upper or a smaller home with plans of remodeling, be it bump up or bump out. When your remodeling adds square footage to hour home, your tax bill will increase. This may not happen right away, but eventually it will cause an increase.

When remodeling, you may actually be able to reduce your tax bill with special tax-deferred programs from your state or local jurisdiction. Remodeling a home in an older area, for example, may qualify you for a tax break because youâ€™re improving the value of the areaâ€™s housing pool.

Once you have completed the remodeling and your new tax bill comes in, make sure itâ€™s accurate. The tax assessor doesnâ€™t necessarily have the final say on your tax bill. You can challenge the assessment if you think the new valuation is too high relative to the remodeling.
http://ping.fm/pVioF

Oxford Capital — Mon, 30 Apr 2012 21:56:36 +0000

Todayâ€™s Mortgage-Application Outlook

Despite media reports, mortgage loans are readily available to qualified buyers. Lots of our mortgage applications and loans get approved every day! If you have a steady work history and the paperwork to substantiate it, along with a good bill-payment history, a decent credit score and down payment, youâ€™re mortgage application is likely to be accepted. It then stands to reason that you will qualify for a home mortgage loan today.

Once you complete the home mortgage application process, itâ€™s important to get a mortgage pre-approval. Being pre-approved allows you to focus on homes in a price range you know you can afford. In addition, your pre-approved status tells home sellers that you have completed the mortgage application, financing is arranged and your offer to buy is more likely to settle/close than those without pre-approval. Call us to get your mortgage application and pre-approval process started!
http://ping.fm/q6ASj

Oxford Capital — Thu, 26 Apr 2012 20:22:33 +0000

FINANCING OPTIONS for HOME REMODELING

Paying cash to make a few small home improvements makes sense for most people. But you may not be able (or willing) to invest a lot of savings for multiple improvements on a major project. So what are your financing options?
â€¢ Unsecured loans or credit card financing option.
Be sure to look at the interest rate you will be charged. You may be surprised how unfavorably they compare with rates available for home-equity backed loans. Remember, too, you canâ€™t take a tax deduction for interest expenses associated with this type of â€œconsumerâ€ credit.
â€¢ Equity-backed financing option.
Equity is the difference between the market value of your home and how much you owe on your mortgage. You can tap into your equity a number of ways, all of which would yield a larger tax deduction if you meet mortgage-interest deduction requirements. Because you put up your home as collateral, this type of financing option, offers lower interest rates than unsecured loans.
â€¢ With a home equity loan financing optionâ€¦
You would receive a lump sum from a lender. These loans are repaid in monthly installments over a number of years-usually not more than ten. Ask about fees, closing costs and payments.
â€¢ Instead of taking a lump-sum amountâ€¦
An equity line of credit allows you to borrow against your home as needed, up to a certain dollar limit. You simply write checks to tap your equity line financing option. The terms of the agreement will state how long your line of credit will remain open and any minimum amount that must be borrowed each time you write a check. You are only charged interest as you use the money with this financing option. Ask about fees, repayment schedule/amount and interest rate.
â€¢ A cash-out refinancingâ€¦
This financing option pays off your existing mortgage and drafts a new loan that includes the balance of the old mortgage plus the amount of cash you want from your equity. This financing option gives you one payment with a new interest rate. Because it is a new loan, it may require more paperwork and higher closing costs than an equity loan.
â€¢ Please noteâ€¦
Not all lenders offer all four types of financing options. Give us a call to find out the answers.
http://ping.fm/TAP5a

Oxford Capital — Tue, 24 Apr 2012 23:05:59 +0000

Today’s Mortgage Application Outlook
Despite media reports, mortgage loans are readily available to qualified buyers. Lots of our mortgage applications and loans get approved every day! If you have a steady work history and the paperwork to substantiate it, along with a good bill-payment history, a decent credit score and down payment, youâ€™re mortgage application is likely to be accepted. It then stands to reason that you will qualify for a home mortgage loan today.

Oxford Capital — Thu, 19 Apr 2012 16:16:08 +0000

SHAVE AWAY AT YOUR INTEREST, COSTS, PAYMENT

You might be surprised at all the things you can do to save on your mortgage financing. Here are some strategies to get you started in lowering your interest rate, costs and payments. Call us for even more strategies.

Get lower interest rate by taking a loan with a shorter term, say 15 to 20 years instead of 30. Your monthly payments will be higher, but youâ€™ll save tens of thousands in interest expenses over the life of the loan.

Manage your credit profile to get the best interest rate available for the loan you want. Consider paying off some accounts and/or closing some if you have too many.

Pay points (loan discount points, pre-paid interest) to get the lowest interest rate and payment, but plan to keep the loan long enough for the monthly savings to recoup your cash outlay.

Make a 20% down payment to avoid private mortgage insurance (PMI), or put down as much as you can to lower this expense. Another way around PMI: Find out if you can take out an 80% first mortgage and then put 10% second mortgage and then put 10% down. This could also lower your interest rate.

Make extra payments on your loan. One extra payment per year applied to the principal can shorten your mortgagee payoff from 30 years to just over 23 years, saving you many thousands in interest costs. http://www.ocdirectloans.com/home.html

Oxford Capital — Wed, 11 Apr 2012 18:11:15 +0000

Outlook Regarding Low Interest Rates

Whether you are someone who wants to replace their current home with another one â€“ or purchase an investment property â€“ buying now makes more sense than ever because low interest rates can help you afford more â€œhomeâ€ or secure a lower monthly payment. Todayâ€™s low interest rates wonâ€™t last forever, so take advantage of these low interest rates to secure an affordable monthly payment for your new home now. Low interest rates also give you an advantage if you need to sell a home in order to purchase your next one. By reducing mortgage expenses, low interest rates mean more buyers can afford to purchase your home.
http://ping.fm/BV6cH

Oxford Capital — Wed, 28 Mar 2012 20:33:30 +0000

Rental Outlook Verses Purchasing a Home

When you consider current average home prices and low mortgage interest rates, purchasing a home makes more sense than renting. Compare a monthly mortgage payment with the rental cost for a similar-sized home and youâ€™ll see that purchasing a home wins out hands down in todayâ€™s market. Itâ€™s no surprise that even after accounting for other expenses, such as insurance, taxes and maintenance, in many neighborhoods by purchasing a home it can end up costing less than renting the same home. If your life stage finds you at a point where purchasing a home is a favorable move, then this is the perfect time to buy.
http://ping.fm/HPPbk

Oxford Capital

Waiting Periods Required After Short Sale

Previous Post