NC Bank Mortgage Lenders
When you start to look for a next home or refinance and existing loan in North Carolina a key step is to compare North Carolina mortgage lenders and North Carolina mortgage rates.
No matter what the home loan situation, the right mortgage solution starts with local mortgage lenders and North Carolina has an abundance of large bank mortgage lenders.
The NC mortgage lenders listed not only provide conventional, fixed, or adjustable rate (ARM) mortgages but most also offer FHA Insured mortgage loans and VA loans in North Carolina.
Use the contact list of the top bank mortgage lenders in North Carolina to learn about the types of mortgages available to before applying for a new loan or even before the start of house hunting. The home loan chosen will directly affect how much house a borrower can afford and the amount of their monthly payments.
While most of the news coming from the housing sector has been negative, mortgage rates in NC have continued to drift lower making home loans much more affordable and refinancing existing loans a viable financial option to save money.
The top ten bank mortgage lenders based in NC listed by total assets include:
Bank of America, the second largest bank in the nation is the largest bank mortgage lender in North Carolina. Bank of America has a lot of bank branches, over 5,900 retail banking offices across the U.S. Bank of America mortgage department can be reached at 888-233-4124.
Branch Banking and Trust Company or BB&T Bank is the 10th largest bank in the nation and the second largest NC based bank mortgage lender. BB&T Bank has 1,800 banking centers in the Carolinas, Virginia, West Virginia, Kentucky, Georgia, Tennessee, Maryland, Florida, Alabama, Indiana, Texas and Washington, D.C. BB&T Bank can be reached at 800-226-5228.
RBC Bank also calls NC home and is the among the top 50 largest bank mortgage lenders in the US and the third largest in NC. RBC Bank has over 420 bank branches serving North Carolina, South Carolina, Virginia, Georgia, Florida and Alabama. An RBC Bank loan officer can be reached at 800-789-1108.
First-Citizens Bank & Trust Company is the fourth largest bank in NC. First-Citizens Bank & Trust has 370 bank branches in North Carolina, Virginia, West Virginia, Tennessee, Maryland, California and Washington. The main customer service number for the bank is 888-323-4732.
First Bank, based in Troy, NC is the fifth largest bank mortgage lender in The Tar Heel State. First Bank operates in NC, SC and Virginia. The bank has over 90 bank branches. First Bank can be reached at 866-792-4357.
Yadkin Valley Bank and Trust Company is the sixth largest NC bank mortgage lender. Yadkin Valley Bank and Trust Company encompasses five community banks, Piedmont Bank, High Country Bank, American Community Bank and Cardinal State Bank and has 42 branch branches in NC. Yadkin Valley Bank can be reached at 336-526-6382.
Communityone Bank is based in Asheboro, NC and is the seventh largest bank. FNB United Corp. is the bank holding company for Communityone Bank and the bank’s subsidiary, Dover Mortgage Company. Communityone Bank operates 45 bank offices throughout central, southern and western North Carolina.
The number 8 bank lender is NewBridge Bank. NewBridge Bank has 40 bank branch locations in the Piedmont Triad of North Carolina, the Wilmington, NC area and the area surrounding Harrisonburg, VA. NewBridge Bank is available at 800-991-4243.
Capital Bank headquartered in Raleigh is the ninth bank mortgage lender. Capital Bank has 32 bank branch offices in ten counties throughout North Carolina. The bank customer service number is 800-308-3971.
Southern Community Bank and Trust is the tenth biggest bank mortgage lender in NC. Southern Community Bank and Trust is headquartered in Winston-Salem, North Carolina. Southern Community Bank and Trust is a community bank with 22 bank offices throughout North Carolina. Southern Community Bank and Trust can be reached at 888-768-2666.
Top WV Bank Mortgage Lenders
Find current West Virginia mortgage rates from local West Virginia bank mortgage lenders. Finding the best mortgage involves contacting multiple mortgage lenders to compare the best mortgage rates and terms.
Regardless of the mortgage loan request, whether it is for a new home purchase in West Virginia or to refinance an existing West Virginia mortgage loan, it is important to have the right information about mortgage lenders and mortgage rates before filling out a new home loan application
Shop and compare today’s current West Virginia mortgage interest rates with the top bank mortgage lenders in West Virginia. Bank mortgage lenders listed based on total assets.
West Virginia borrowers that are buying, building, refinancing or looking for a vacation home can use these bank mortgage lenders to help find a competitive fixed rate mortgage, adjustable rate mortgage, FHA loan and more.
The top ten bank mortgage lenders in West Virginia include:
WesBanco Bank is the largest bank based in WV. WesBanco is headquartered in Wheeling, West Virginia and has over 110 bank branches in West Virginia, Ohio and Pennsylvania. WesBanco Bank can be reached at 800-328-3369.
United Bank, based in Parkersburg, WV is the second largest bank. United Bank retail customer service contact number is 800-327-9862.
City National Bank of West Virginia is the third largest bank. City National Bank of West Virginia has bank branch locations in West Virginia, Kentucky and Ohio. City National Bank can be reached at 800-896-0769.
The number four bank in WV is Summit Community Bank which has nine bank branch locations in WV and six bank branches in VA. Summit Community Bank contact number is 877-776-9722.
Centra Bank is the fifth largest bank mortgage lender in WV. Centra Bank can be contacted at 877-901-2368
Putnam County Bank is the sixth largest WV bank mortgage lender. Putnam County Bank has three bank branches and one bank lending center. The loan center can be reached at 304-562-5055.
First Sentry Bank is the seventh largest bank and has four bank branches in the WV. First Sentry Bank is available at 304-522-6400.
Huntington Federal Savings Bank is the eighth biggest bank mortgage lender in WV. Huntington Federal Savings Bank is based in Huntington, WV and has five bank branches in the state. A Huntington Federal Savings Bank loan officer can be reached at 309-528-6230
First Century Bank is the ninth largest bank in WV. First Century Bank is based in downtown Bluefield, West Virginia and has ten bank branch locations in the state. First Century Bank can be reached at 877-214-9426.
Clear Mountain Bank is the number 10 bank. The bank mortgage department can be reached at 304-777-4663.
Top FHA Mortgage Rates May 21, 2010
FHA mortgage rates have continued to move measurably lower this week and are now at the lowest rates for the year. Based on the current survey of FHA mortgage rates from Findlocalmortgagerates.com, the average 30 year fixed rate FHA loan has a mortgage rate of 4.700% with 0.575 points. The current FHA mortgage rate from the top five FHA bank mortgage lenders is down from last week’s average rate of 4.95% with 0.70 points.
FHA loans are government insured loans through the US Department of Housing and Urban Development. The Federal Housing Administration (FHA) and the U.S. Department of Veterans Affairs (VA) offer government insured mortgage loans through approved mortgage lenders. These home loans have features that usually make theses mortgage loans easier for first-time home buyers to obtain. The 30-year fixed rate mortgage remains one of the most popular loans for both conventional home financing and FHA loans.
Home loan borrowers who have existing FHA mortgages may want to consider the streamline refinance programs or conventional refinance programs for those borrowers interested in refinancing their existing VA or FHA Mortgage for a lower mortgage rate or to obtain cash out at these historically low mortgage rates.
The list below displays current FHA mortgage interest rates from the top FHA bank mortgage lenders in the U.S. including Bank of America Home Loans, Wells Fargo Home Loans, US Bank, SunTrust Mortgage and HSBC Mortgage.
Mortgage rates, points and closing costs may vary based on loan features, geography and/or other terms and conditions. Mortgage rates, points and closing costs are subject to change without notice.
The 30 year FHA mortgage rate at Bank of America Home Loans is now at 4.50% with 0.75 points with an APR of 4.607%.
Wells Fargo Home Loan offers the 30 year FHA mortgage rate at 4.75% with 1.0 point and an APR of 5.497%.
The current 30 year FHA mortgage rate with US Bank is at 4.625% with no points and a 5.271% APR.
SunTrust Bank has a 30 year FHA mortgage rate of 4.875% and 1.125 points with an APR of 5.083%.
HSBC Mortgage has dropped their 30 year fixed rate FHA home loan to 4.875% with no points and an APR at 5.067%.
All mortgage loans are subject to bank or mortgage lender approval. FHA mortgage rates listed are based on home loan amounts of approximately $200,000.00 for owner occupied, single family homes based in Illinois.
The mortgage lenders listed offer a variety of repayment terms and mortgage loan options for FHA loans as well as other mortgage loan programs. For more information on the mortgage lenders listed and current FHA mortgage rates, the contact numbers are:
Bank of America 800-586-9861
Wells Fargo Home Loans 877-937-9357
US Bank 888-831-7524
SunTrust Mortgage 800-634-7928
HSBC Mortgage 800-975-4722
What Type of Mortgage is Best for You?
When buying or refinancing a home, choosing the right mortgage is essential. The type of mortgage that is chosen can help a home owner towards greater financial stability, provide flexibility for life’s unforeseen circumstances, or help to build net worth at a faster rate. The right mortgage can make owning a home much easier, as well as help improve a home owner’s financial situation, but don’t wait until the time of the loan application to decide which mortgage loan is best suited for your needs.
The number of mortgage loan products available has dwindled in recent years as many of the esoteric loan products, such as sub prime loans and stated income – state assets loans are no longer being marketed. There are, however, many mortgage choices available and choosing the right one can be overwhelming. Prospective home loan borrowers should assess their financial situation and the attributes found in each loan type before choosing a type of mortgage, to help determine which mortgage is right based for their financial position.
Mortgages currently available usually fall into just a few main categories. The main mortgage loan categories are either fixed rate mortgages, adjustable rate mortgages, or a balloon mortgage. There are also FHA mortgages and jumbo mortgages, but these are categories of mortgages which in turn will have fixed rate terms, adjustable rate terms and balloon terms.
Each of these mortgage loans have different features and benefits, making them work well for different financial situations. There are also many types of individual mortgages within these categories that may involve how the rate changes on an adjustable rate mortgage or the term of the mortgage whether it is fixed, adjustable or a balloon loan.
Fixed rate mortgages are the most common home loan products and become an even larger share of mortgage originations when mortgage rates are low. A fixed rate mortgage may be right for you if you are on a fixed salary and have a regular budget. A fixed rate mortgage allows the borrower the security of knowing what their monthly payment will be each month, and this payment does not change. Fixed rate mortgages can be obtained with a variety of different terms with the 15 year terms and 30 year term being the most common.
The 30 year fixed rate home loan is by far the most common loan among all mortgage loans. Borrowers that choose shorter terms on fixed rate loan will build equity faster in their home and generally get a slightly lower mortgage rate. While it is certainly nice to build equity faster, standard 30 year loans do not have prepayment penalties and the borrower can prepay their loan at anytime either with a little extra every month, with an extra payment annually or a lump sum payment as they see fit and build equity quickly at their own pace.
Adjustable rate mortgages have the disadvantage of having a mortgage rate that may change over time and the advantage of a lower initial mortgage rate. In a low rate environment many borrowers become concerned that interest rates over the long term have only one direction in which they may go, which is up. The prospect of higher mortgage rates drives more borrowers to fixed rate loans even if the initial rate is modestly higher on the fixed rate loan. Of course, should mortgage rates decline, an adjustable rate mortgage may also experience a reduction in rate while fixed rate loans will not.
Another consideration, often overlooked in comparing an adjustable rate mortgage and a fixed rate mortgage in low interest rate environments, is that the difference between a fixed rate home loan and adjustable rate loan is often quite small. If interest rates rise it is always advantageous to borrow money at a low fixed interest rate that is subsequently paid back with a monthly payment that has been eroded in value by an increasing rate of inflation. And when mortgage rates are already relatively low, there is little room for an adjustable rate mortgage to come down any further.
An adjustable rate mortgage may very well still be a choice for those just starting out, who may not be able to afford a big mortgage payment or for those borrowers who know they will be in the home for only a short period of time. An adjustable rate mortgage allows the borrower to lock in a lower interest rate and low monthly mortgage payment amount for the first year or even few years of the loan. When the initial low rate expires, the monthly payments and mortgage rate may go up. Theoretically, by that point the borrower will be able to afford the higher payments, if they are just starting in their careers or will have moved on if they intended to reside in the home for only a short period of time.
Balloon mortgages generally have level payments for a certain number of years and then the remaining balance on the loan is due before the scheduled payments pay the loan off in full. The initial payment period is based on a longer period of time than the time at which the full balance is due. For example, balloon mortgage payments are frequently based on a 30 year term even though the full balance will due at the end of shorter term such as 5 years. Once the level payment period ends and the balloon balance is due, the borrower can refinance, sell the property or otherwise pay off the loan. The benefit of the balloon loan is a lower mortgage rate. The difference in rate when mortgage rates are high may be substantial but the difference is often quite modest when rates are low.
Before committing to any type of mortgage, research your options carefully. The key to making a sound financial decision regarding the choice of a mortgage is to both identify and measure the risks associated with that mortgage and to then determine if the risks worth the reward and even if any risks associated with a bad outcome be tolerated. But, the borrower would fully understand the risks, rewards and the costs of the home loan before filing out a mortgage loan application.
Washington Mortgage Rates with West Coast Bank
West Coast Bank is a Northwest bank that operates 65 bank branches in Oregon and Washington and offers, among a number of consumer products, home mortgages with competitive mortgage rates in Washington and Oregon.
West Coast Bank is headquartered in Lake Oswego, Oregon. The bank combines a wide array of mortgage loan products with consumer service and local decision making.
Along with mortgage loans, West Coast Bank offers personal and business checking and saving accounts, credit solutions, treasury management, personal loans, credit cards, and certificate of deposit. West Coast Bank offers an array of personal and commercial banking products and services in addition to commercial, residential, construction, and mortgage loans.
When it comes to home financing options presented by West Coast Bank, there are many different alternatives to choose from. The bank’s home loan choices include fixed rate mortgages and adjustable rate mortgages. The mortgage loans come with several different terms and different mortgage rates and point combinations.
Since there are such a variety of loans available and financial decisions involved in either obtaining a home loan for purchasing or refinancing a home, West Coast Bank has a number of loan representatives to answer questions and assist with home lending needs.
Borrowers can call or e-mail one of the mortgage professionals to answer questions or to ask for advice. West Coast Bank also offers easy free pre-qualifications to help borrowers understand the process and allow prospective home buyers to search for a new home knowing that they can afford the mortgage.
Current mortgage rates in Washington offered by West Coast Bank include the following rates and terms:
A 30 year mortgage in Washington has a mortgage rate of 5.125% and 0.875 points with an APR of 5.258%.
A 15 year mortgage in has a mortgage rate in Washington of 4.500% and 0.125 points with an APR of 4.611%.
For an adjustable rate mortgage, West Coast Bank offers a 3/1 ARM with a mortgage rate of 3.875% with 0.500 points and an APR of 3.084%.
The longer fixed period adjustable rate mortgage is the 5/1 ARM. West Coast Bank offers the 5/1 ARM with a mortgage rate of 3.875% with 0.25 points and a 3.211% APR.
The mortgage interest rates in Washington, annual percentage rates (APRs) and points offered by the bank are subject to change without notice. All loans and mortgage rates listed are based on an owner occupied single family property with a loan to value of 75%. All loans are subject to bank approval. Additional terms as well as mortgage rates in Washington are available.
For current mortgage rates and additional home loan information from West Coast Bank a bank representative can be reached at 800-981-7999. The bank offices are open 7-4 Mon-Fri.
Mortgage Rates in Illinois at Harris Bank
Harris Bank is a Midwest bank headquartered in Chicago, Illinois. Harris offers mortgage loans across the U.S. The bank provides mortgage loans and competitive mortgage rates in Illinois as well as other states on a variety of different home loan products.
Harris offers loans for purchasing new homes and refinancing existing home loans. Mortgage loans products include standard fixed rate home loans with different terms, adjustable rate loans with different fixed rate periods and even biweekly mortgage loan programs.
Potential home loan borrowers that are not sure about loan qualifications, Harris has a pre-approval that provides a firm loan commitment from the bank.
Current Illinois mortgage rates offered by Harris Bank include the following products, terms and mortgage rates:
30 year fixed rate mortgage has a mortgage rate of 5.125 with no points and a 5.161% APR.
The 30 year fixed rate loan with 1.0 point has a mortgage rate in Illinois of 4.875% and a 4.999% APR.
On a 15 year term, the fixed rate loan in Illinois offered by Harris has a mortgage rate of 4.500% with no points and a 4.561% APR.
With 1.0 point, the 15 year mortgage rate is 4.250% and an APR of 4.461%.
For Illinois mortgage rates with adjustable rate terms, Harris Bank offers several options.
The five year adjustable rate mortgages with a 30 year terms has a mortgage rate of 4.125% with no points and an APR of 3.510%.
The 5/1 ARM with 1.0 points has a mortgage rate of 3.75% and a 3.458% APR.
The seven year adjustable rate mortgage in Illinois has a mortgage rate of 4.625% with no points and a 3.869% APR.
With 1.0 point, the 7/1 ARM has a mortgage rate of 4.375% and an APR of 3.833%.
The listed mortgage rates in Illinois are based on a loan amount of $250,000.00 with a 20% or greater down payment for a single family owner occupied property. Other mortgage rates in Illinois and point options are available.
Illinois mortgage rates are current as of this publication, March 10, 2010 and are subject to change at anytime without notice. A home loan borrower’s final mortgage rate may vary based on the specific characteristics of their loan transaction including, but not limited to, the region where the loan is originated, any additional loans against the property, the borrower’s credit profile up to the time of closing. All mortgage loans in Illinois are subject to approval by Harris.
Harris Bank is part of the BMO Financial Group and along with mortgage loans, provides a variety of personal, business and corporate clients with banking, lending, investing and wealth management products and services.
US Bank Home Mortgage Arkansas Mountain Home
US Bank home mortgage loan officer contact for Mountain Home, Arkansas. US Bank has six loan officers listed as contact personnel in the state of Arkansas. Home loan applications with US Bank can be completed with the loan officer or the mortgage loan application can be completed online.
US Bank operates in 24 states and has over 2,851 bank branches. A U.S. Bank Home mortgage consultant can be reached at the US Bank home mortgage phone number 888-831-7524.
The contact information for the US Bank mortgage loan officer in Mountain Home is:
Rhonda Reaves
Mortgage Loan Officer
U.S. Bank Home Mortgage
100 South Main Street
Mountain Home, AR 72653
Office: 870-424-9182
Cell: 870-421-3879
Fax: 870-424-4478
Rhonda.Reaves@usbank.com
US Bank home mortgage loan officers can assist with purchasing a new home, refinancing an existing home loan, first time home buyers and mortgage calculations regarding how much a borrower can afford and monthly mortgage payments.
Mortgage rates for single-family, primary residences can be found on the US Bank website. US Bank home mortgages are available for conforming fixed, ARM loans or adjustable rate mortgages, Jumbo fixed rate mortgages, FHA loans and VA loans.
U.S. Bank is the 6th largest commercial bank in the United States. US Bank provides a wide assortment of bank products and services including home mortgages, home equity loans, personal loans, deposit products and more.
Mortgage Rates in New York at Ulster Savings Bank
Ulster Savings Bank is a New York based bank that is a locally owned and operated in Ulster County, New York and has been in business since 1851.
Ulster Savings Bank offers a variety of standard bank services such as checking accounts, savings accounts, telephone banking, online banking services and consumer loans. The bank loan department handles residential mortgages, new construction loans, home equity loans as well as automobile loans, commercial mortgages, and business loans.
Ulster Savings Bank offers several mortgage options and services for buying or refinancing a home. The bank mortgage department provides a wide array of residential and construction loan products to fit a number of needs. Ulster Savings Bank home loans cover loans available for first time homebuyers looking for their first home to seniors interested in reverse mortgage options.
The bank provides solutions for a wide array of lending situations with mortgage products that fit most needs with very competitive mortgage rates. Home financing options from Ulster Savings Bank have many different options to choose from. Current mortgage rates and terms from the bank include:
30 year fixed rate mortgage at 4.750% with 2.50 points and an APR of 5.031%
30 year fixed rate mortgage at 5.250% with 0 points and an APR of 5.311%
20 year fixed rate mortgage at 5.250% with 0 points and an APR of 5.332%
15 year fixed rate mortgage at 4.625% with 0 points and an APR of 4.727%
FHA 30 year fixed rate mortgage at 5.250% with 0 points and an APR of 5.986%
3 year fixed / 1 year adjustable rate mortgage 4.875% with 0 points and an APR of 3.582% for 30-year term.
Mortgage rates subject to change and additional conditions will apply. Actual mortgage interest rates and APR’s may vary based on home loan applicant’s credit history. Current mortgage rates and loan information can be obtained by contacting the bank directly at 866-440-0391
Bank CD rates offered by Ulster Savings Bank can be found at selectCDrates.com.
Using a Mortgage Loan for Debt Consolidation
Cash out refinance transactions for debt consolidations is a popular mortgage transaction. Cash out refinances represents a large portion of mortgage refinance transactions each year. For consumers that own a home and have a fair amount of consumer debt, a cash out refinance for debt consolidation purposes is well worth considering.
Sometimes a person can get into debt problems without much effort at all. Perhaps you have even experienced credit problems and are showing various signs of damaged credit do the debt overload. If you are willing to be disciplined, in a serious fashion and you own a home, one way out may be a cash out refinance to consolidate these debts. This may help you solve your credit and debt situation despite some of the inherent risks involved with such a home loan.
It may be possible to refinance your mortgage that you currently have with a loan amount greater than the existing loan balance. This is called cash out refinance. The extra money obtained from the new refinance transaction can be used to pay off other bills and debts. A cash out refinance for debt consolidation loan gives the home loan borrower money to pay off their existing debt, resulting in just one monthly payment and quite possibly a lot less stress. With discipline, this home loan makes it much easier to manage your budget since you only have to worry about a single monthly mortgage payment schedule. This type of refinancing option means you will pay a longer term and subsequently more mortgage interest over the life of the debt.
When applying for refinance for debt consolidation, make sure you explain this to the mortgage lender and loan officer. During the qualifying process for a refinance, the debt ratios the mortgage lender will evaluate are as if the new mortgage loan is in place. When this mortgage loan is for cash back to pay off consumer debt the application will not consider the existing payments of the debt being paid off to calculate the debt ratios.
The three key factors in evaluating your loan request will be the debt ratios, the loan to value and your credit report. In order to make sure the debt ratios are not excessive, it is important that the mortgage loan application does reflect the debts to be paid off otherwise the home loan application could result in a loan denial for an excessive debt ratio.
When you consolidate various high interest rate debts into one mortgage loan the results can be very attractive and appealing. With a debt consolidation mortgage, you do not have to pay different interest rates to creditors, or pay your creditors at different times of the month. A debt consolidation mortgage refinance combines your debts into one loan payment a month, one that you should be more manageable.
Since mortgage loans are secured by real estate, the interest rate or mortgage rate is generally much lower than that of credit cards and personal loans. And in most cases, the interest paid on a mortgage is tax deductible. With discipline, you can now budget better to increase savings or prepay on the new refinanced mortgage and extinguish all of your debt early.
Be careful; do not use the freedom of lower monthly payments to avoid getting your financial house in order. Do not increase in your unsecured debt after you consolidated through a mortgage refinance. Pay strict attention to your financial outlays and use the home loan to improve your financial health.
Benefits of a cash out refinance for debt consolidation include:
The ability to take all different types of high interest loans and combine them into one lower interest mortgage when you enter into a refinance. This pays off the higher interest debts.
Improves your credit rating by reducing the amount of outstanding debts per account.
Most mortgage loans allow prepayment without penalty, allowing the borrower to have the option of not only consolidating many consumer debt payments into one but also to pay a higher monthly mortgage payment if they choose and reduce the total debt early.
By paying off debts that may have been outstanding, you stop and eliminate debt collection activities, foreclosure, bankruptcy, and other potential negative actions that affect your overall credit status.
The process to get a debt consolidation mortgage is fairly simple. Research and shop around for repayment plan that meets your budget and risk, and find the lowest mortgage rate and closing costs that you can. Be cautious before signing anything and make sure you understand all the repayment terms, mortgage rates, and costs of the refinance transaction. Use the mortgage calculators to evaluate the mortgage rates and mortgage payment options.
Using a cash out refinance mortgage for a debt consolidation can make sense, and help overcome severe debt problems, but it does result in higher interest and higher fees. It will take discipline to make sure the new payment amount is handled in a timely fashion. You will have a longer mortgage term and pay more over the length of the loan. It is often smart to restructure your debt this way, but this does result in a larger single debt amount. For this reason it’s smart to investigate shorter-term mortgage options to try and avoid paying a larger amount of money over time.
Home Loan Delinquency and Foreclosure Help
The mortgage foreclosure pandemic has not yet abated. While investors talk about a rebounding stock market 1000’s of new foreclosure filings continue to be processed.
For some home owners the foreclosure process can be a bitter end to poorly fitting monthly mortgage payment. In these cases, the mortgage amount and monthly commitment probably never matched the household income. Servicing the mortgage payment combined with the new homes expenses and recurring monthly living expenses was a budgeting nightmare the day the mortgage loan was signed. But for others, the late mortgage payments and impending foreclosure are not a product of risky lifestyle decisions and too much consumption but standard income stresses like the loss of a job, divorce and unexpected financial calamities.
The economic crisis has made it hard for a number of homeowners who were not having trouble in prior months finding it hard to now make ends meet. For some of these people who were finding it difficult to make their mortgage payments, they have been able to save their home from foreclosure. For those borrowers who do nothing, they could lose their home if they continue to ignore the problem and do nothing
If you are having trouble making your payments, sift through the mess to understand what the underlying financial problem is and seek help sooner rather than later. The longer a home loan borrower waits to call, the fewer options they will have.
One of the first steps to make in times of financial distress and when experiencing payments problems is to analyze your monthly expenses and income and to see where savings can be made. Dramatic savings made have to made, if necessary. As your try to fix the household budget leaks, make sure to understand then consequences of mortgage payment delinquency and the foreclosure process so you know what you are up against if you can not realign your budget.
Review the mortgage loan contract you signed when your mortgage lender loaned the money necessary to buy the house or more likely, the last home loan refinance transaction since that will be the mortgage that is secured against the house. The mortgage loan agreement will cover the terms under which you agreed that if you can’t repay the home loan, the mortgage lender can foreclose to take ownership of the house. If you do not pay your monthly mortgage payment, you are technically in default on your mortgage.
State laws vary, but generally, a mortgage loan that is as little as 90 days delinquent can be considered in foreclosure and the process of foreclosing on the home may begin. Your mortgage lender may send a notice indicating that they are starting foreclosure proceedings, but a homeowner should not wait fro this document to arrive. It is important to take steps to prevent a foreclosure as soon as you realize you are having trouble paying the monthly mortgage payment.
The good news is that there has been a tremendous amount of pressure applied to banks and mortgage lenders that originate and service mortgage loans to take prudent attempts to find solutions for homeowners having trouble making their mortgage payments. Contact your mortgage loan servicer (the company that collects your monthly mortgage payments) to discuss your options as early as you can. Many home loan servicers are expanding the options that have made available to their borrowers. It is certainly worth calling your mortgage loan servicer even if you had a request that was denied in the past. Mortgage loan servicers are getting a tremendous amount of calls from distressed borrowers. Be persistent and try to be patient but by all means find out what your home loan lender or servicer can do for you.
While you will want to discus any and all options the mortgage lender may have, one option that is being sponsored by the present administration is home loan modifications. Many home loan servicers implemented new loan modification programs in 2009 to assist homeowners experiencing financial difficulties by lowering their monthly mortgage payments. Plus, many home loan servicers are participating in the government’s Making Home Affordable Program as well as working with non-profit counseling agencies through HOPE NOW.
In a mortgage loan modification, the home loan servicer and the home loan borrower agree to permanently change one or more of the mortgage’s terms to make the monthly mortgage payments more manageable for you. The changes could include reducing the mortgage rate, extending the term of the loan, creating a forbearance on the past due interest or forgiving principal, or a combination of these factors.
With the government sponsored loan modification program in order to be eligible, the home must be the primary residence, the mortgage loan balance must be no more than $729,750 for a single-family home, the monthly mortgage payment (on a first mortgage) must be more than 31 percent of the borrower’s gross monthly income, and the homeowner must either be having trouble meeting mortgage payments or be at serious risk of falling behind. Don’t worry if you had a bankruptcy filing, this does not automatically disqualify a homeowner from participating in a loan modification program.
With this program, the participation of home mortgage lenders and home loan servicers is voluntary. However, the U.S. Treasury added incentives to mortgage loan servicers to modify loans to make them affordable. Part of the program includes the ability to reduce the mortgage rate to as low as 2 percent, and next, if needed, to extend the length of the loan to 40 years. If that isn’t enough to make the mortgage loan affordable, the home loan servicer may defer repayment on a portion of the mortgage loan, which may result in a large balloon payment that will be due at the end of the home loan term. Another option under the home loan modification program is be for the home loan servicer to forgive some of the loan principal, but technically there is no requirement for the home loan servicers to make the concession.
If the mortgage rate is modified under the program, the modified interest rate will remain in place for five years, and then it will increase gradually by up to one percent per year until it reaches a cap prescribed by the program.
The web site www.makinghomeaffordable.gov provides homeowners with detailed information about the programs. The Web site can help home loan borrowers determine if you may be eligible fro the program, but be aware that even with government pressure, only the home loan servicer of your loan can tell you if you qualify.
In general, you may qualify for a loan modification under the Making Home Affordable Modification Program (HAMP) if: your home is your primary residence; you owe less than $729,750 on your first mortgage; you received your mortgage before January 1, 2009; your monthly payment on your first mortgage (including principal, interest, taxes, insurance and homeowner’s association dues, if applicable) is more than 31 percent of your current gross income; and you can’t afford your mortgage payment because of a financial hardship, like a job loss or medical bills.
If you meet these qualifications you must contact the mortgage loan servicer. Once you start communication with the mortgage loan servicer you will need to provide some documentation for the mortgage servicer or mortgage lender that may include: information about the monthly gross (before tax) income of your household, including recent pay stubs, your most recent income tax return, information about your savings and other assets, your monthly mortgage statement, information about any second mortgage or home equity line of credit on your home, account balances and minimum monthly payments due on your credit cards, account balances and monthly payments on your other debts such as student loans or car loans and a completed Hardship Affidavit describing the circumstances responsible for the decrease in your income or the increase in your expenses.
The government has also sponsored a program called the Home Affordable Refinance. This part of the program is intended to help homeowners who have been unable to refinance into mortgages with a lower mortgage rate because their homes have decreased in value.
In general, to qualify for a mortgage refinancing under this program, homeowners must have an existing mortgage owned or guaranteed by Fannie Mae or Freddie Mac (government-sponsored enterprises that help ensure funds are available for home buyers at affordable interest rates), be current on their mortgage, and have a first mortgage that does not exceed 105 percent of the property’s current market value.
The interest rate and any refinancing fees will be set by each mortgage lender. It will be necessary to call your mortgage lender or home loan servicer to find out if your loan is eligible. For those home loan borrowers who already know that their mortgage loan is held or guaranteed by Fannie Mae or Freddie Mac, these organizations can be contacted directly at 1-800-7FANNIE or 1-800-FREDDIE to see if you qualify for this program.
The bottom line is that homeowners who currently have a hard time making their monthly mortgage payments should contact their mortgage loan lender or mortgage loan servicer or a reputable counseling agency as soon as possible to discuss options. Home loan borrowers who are in distress should also be very careful in dealing with organizations that encourage borrowers to cease making payments or walk away from their home while also promising to repair their credit.
Here is a partial list of mortgage foreclosure prevention resources:
Government Mortgage Modification Programs:
Making Home Affordable
www.MakingHomeAffordable.gov
www.FinancialStability.gov
Hope for Homeowners (H4H)
http://portal.HUD.gov
(800) CALL-FHA or (800) 225-5342
Foreclosure Assistance and Counseling:
U.S. Department of Housing and Urban Development (HUD)
www.HUD.gov
www.HUD.gov/offices/hsg/sfh/hcc/fc
(800) 569-4287
Homeownership Preservation Foundation (HopeNOW)
www.995hope.org
(888) 995-HOPE or (888) 995-4673
NeighborWorks America
www.FindaForeclosureCounselor.org
www.NW.org/network/home.asp
FDIC Foreclosure Prevention Website
www.FDIC.gov/foreclosureprevention
(877) ASK-FDIC or (877) 275-3342