Right now could be the right time for you to refinance your loan

Why?

The Federal Reserve Board is in charge of setting interest rates, because of the economy we are in right now, they have set very low rates. This makes it a very good time for refinancing.

Why should you refinance?

If you refinance, you can take advantage of these low rates and you can shorten your loans. Lower interest rates mean smaller payments. So lowering your interest by any amount can lower your payments as well! Now, if you have a long term loan like a 30 year loan, you can refinance to make your loan term shorter. If you made your loan a 10, 15, or a 20 year loan you can pay off your loan faster and cheaper!

ARM refinancing

If you have an Adjustable Rate Mortgage, then refinancing might be a good step for you. Even though you have these great rates right now, this might not always be the case. Refinancing to a fixed rate would allow you to not have a major jump in your payments due to interest rates.

If you or anyone you know is looking for a low rate with a local company give us a call (757)552-7000. Right now Consumer Mortgage has a 10 year rate at 2.625% and A.P.R. of 2.626%

The VA Streamline Refinance (IRRRL) Loan

The Interest Rate Reduction Loan allows you to refinance your current mortgage interest rate to a lower rate than you are currently paying. The Streamline Loan is very popular because of its ease of use. It is very simple to lower your interest rate and experience savings. In most cases, an experienced loan officer will have your loan closed in two weeks. VA refinance closing cost can be rolled into the cost of the loan allowing the veterans to refinance with no out of pocket cost. There is no appraisal or income proof in the VA Streamline Loan. To qualify for the VA Streamline, you must be current on your mortgage with no 30 day late in the past 12 months. You cannot receive any cash out on the IRRRL. The only other conditions are that your loan must be a VA loan and have a credit score of at least 640. It’s that simple! So check out our website www.consumermtg.com or give us a call at 757-552-7000 or 1-800-882-0066.

Reduce interest rate and term?

Can you believe its 2013.  The housing market appears to be on the rebound and interest rates declined in the third quarter of 2012. So now is the time to refinance or purchase that new home. With rates at historically lows now is the time to reduce your rate and term. What do I mean by reducing your term well, if you had a 30 year mortgage and you are thinking of refinancing to take advantage of lower rates you should also explore lowering your term. Term is the amount of time or duration of your mortgage. Example a 30 year mortgage has a term or duration of 30 years. 15 year mortgages are available at a lower rate than the typical 30 year mortgage and can shave years off your repayment period. So when you think of lowering your rate also look at lowering your term. Can me and we can look at your options. Jeff  Moore 757.552.7000.

The holiday season is around the corner. The morning air is much cooler and the leaves are starting to change to the beautiful color of Fall. Instead of putting things off like we all do. Why not take advantage of the low rates for a mortgage. We all can use extra cash for the holidays. So consider an cash out refinance or rate and term to reduce your budget. Why not consider a new dream home to enjoy the holidays with all your love ones .We at Consumer Mortgage wish you  great Holiday  Season . Give us a call at 757 -552-7000 or 1-800-882 0066 

Right of Rescission

Have you ever made a decision you later regretted, only to wish you could take it back?  Well the “right of rescission” period is a provision under the Truth and Lending Law that   essentially gives homeowners who are refinancing their mortgage a chance to think things over before committing 100% to the new loan terms.  If a homeowner decides to refinance their mortgage, once closing loan documents are signed, they will have the right to rescind for a period of three business days.  The right to rescind is essentially the “right to cancel” the mortgage transaction and have any fees refunded if they aren’t happy with the loan for any reason.

Rescission   Period is a Chance to Change your Mind

During the rescission period, the borrower has the opportunity to asses the situation and make absolutely certain they want to go through with the refinance.  At this time, they can shop mortgage rates and find something better if need be.  And most importantly, if at any time during those three days they decide they want to back out entirely, they can do so without penalty.  Perhaps you felt pressured by your bank or mortgage broker, or feel you were a victim of predatory lending.  This would be a great time to rescind the mortgage and go someplace else. 

When the Right of Rescission Period Begins

The rescission period begins at midnight the day after loan documents are signed, and ends three business days later including Saturday, but not Sundays or holidays.  At midnight on the third business day the rescission period is over, and the signed loan documents become official.  Borrowers cannot forgo the right of rescission, and must wait it out regardless of whether they like the terms or their mortgage or not.  That said, a bank or lender cannot fund the loan until the rescission period is over.  Example of right of rescission: If loan documents are signed on Monday, the rescission period begins Tuesday and ends Thursday night at midnight.  On Friday the loan would fund and record.  

There Isn’t a Rescission Period on all Mortgage Transactions

It is limited to refinances on owner-occupied properties only!  Purchase transactions do not have a rescission period.  Additionally, vacation/second homes and investment properties do not have a rescission period, even if it is a refinance transaction.

More great tips from Consumer  Mortgage. Gives us a call at 757-552-7000 or 1-800-882-0066 for your next mortgage.

Pre-qualified versus Pre-approved

            Getting pre-qualified is the first step in the mortgage process, with no cost to the customer.   It involves supplying a lender with basic information regarding your debts, income and assets.  From this information, lenders can get an idea of the mortgage amount for which you qualify. 

            Getting pre- approved is the next step.  This process requires you to complete a mortgage application and supply a lender with all the necessary documentation to check your financial background and credit rating.  You will then be told the exact mortgage amount for which you are approved.  The obvious advantage of completing both of these steps before you look for a home is  knowing in advance, how much you can afford to spend.  You won’t waste time looking at properties beyond your means.  The initial pre-qualification stage allows you to discuss with your lender any goals or needs you may have regarding your mortgage.  Your loan officer can then explain your mortgage options and recommend the type of mortgage that might be best suited to meet your needs.  Getting pre- approved for a mortgage also enables you to move quickly when you find the home of your dreams and make an offer that is not contingent upon obtaining financing.  It also lets a seller know your offer is serious and could prevent you from losing out to another purchaser who already has financing arranged.  

            Another great tip from Consumer Mortgage.  Give us a call at 757-552-700 or 1-800-882-0066 and get your financing arranged for your purchase.