The Process of Refinancing can seem not only confusing but daunting. When you refinance your Idaho Mortgage, you take out a new home loan and use some or all of the proceeds to pay off the existing one. If you obtain a lower interest rate on your new loan than you had on your old one, you’ll be saving money. If you refinance and payoff debt this could also save you money not only each month but hopefully at the end of the year come tax season when you write off your total mortgage interest.
When is it the best time to refinance?
There are two good times when it’s wise to refinance your mortgage. One good time to refinance your Idaho Mortgage Loan is when you’ll save money by getting a lower interest rate. In this case, you’ll want to make sure that your monthly savings will pay back your refinancing costs while you’re still living on the property.
If you are like the millions of other American’s experiencing difficult cash flow issues, you may be tempted to lower your monthly mortgage payments by refinancing to extend the term of the loan. Take a careful look at the overall picture and ask your mortgage loan officer to help you run the numbers to see if this will provide some overall comfort and stress relief immediately.
Another crucial time to refinance is when have an adjustable rate mortgage, and are coming due to adjust. More then likely your payment will increase. If you refinance to a fixed rate mortgage, particularly to a rate comparable to your present low adjustable rate, you’ll avoid the higher monthly mortgage payment before the adjustment even takes place.
How to pick the best Idaho Mortgage Broker
To get the best mortgage refinancing deal you need to deal with an honest broker that genuinely has your best interest in mind. Idaho Mortgage Brokers usually follow certain practices when dealing with their customers. Not favoring just their own loan product like big national lenders. Insuring complete understanding, an Idaho Mortgage Broker will explain this to you in a clear way, so you can understand it. This is so you can weigh it out and decide for yourself if refinancing is actually in your best interest!
Written by Lisa Kratz
Apex Mortgage | Meridian, Idaho | (208) 888-9251 | myIdahoHomeLoan.com
Many have been hearing about the recent turmoil with Fannie Mae and Freddie Mac, the private equity firms responsible for funding about half the nation’s mortgages. Home owners, as well as loan-seekers want to know: “What does it mean for me?”
The following article explains well the situation, as well as the proposed solutions for these Idaho mortgage funding institutions. In short, they have enough money, it’s simply a matter of investor confidence that they will always continue to have enough money. The proposed government solutions help reassure investors that they will. “There has been no liquidity crisis for Fannie or Freddie … It’s simply been a crisis of confidence in the equity.”
The details of the problems and solutions will continue to unfold. Some experts think lending requirements could continue to tighten, until full market confidence returns. More than ever, we believe loan seekers should work with a local lender who will take the time to listen, and take advantage of borrower attributes that might be skimmed over by large lending firms.
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Written by Lisa Kratz and Mike Little
Apex Mortgage | Meridian, Idaho | (208) 888-9251 | myIdahoHomeLoan.com
– The federal government moved in to help bolster Fannie Mae and Freddie Mac on Sunday with a Treasury Department proposal that sets the stage for a government-orchestrated rescue. In the short term, the plan enables the two quasi-governmental agencies to continue to borrow money at favorable rates in order to fund their operations.
Last week, concerns about the financial stability of Fannie Mae and Freddie Mac were at the forefront of investors’ minds, and shares of both companies tumbled.
Here, a look at some of the factors behind the rescue operation launched this weekend.
What is the government proposing?
The Treasury Department disclosed a three-part plan to enable both companies to continue to play “a central role” in the nation’s housing market in their “current form as shareholder-owned companies.”
The department’s plan would temporarily increase Fannie and Freddie’s line of credit with the Treasury; give the Treasury Department the ability to purchase stock in either of the two companies — if it becomes necessary; and give the Federal Reserve a say in setting financial requirements and standards for the companies.
The department said it arrived at the plan after consultations with the Federal Reserve, the Office of Federal Housing Enterprise Oversight — the agency that regulates Fannie and Freddie — as well as the SEC, and Fannie and Freddie. Congress would have to approve any of the measures.
The Fed also said Sunday that the companies could borrow funds at a discounted rate — known as the “discount window” — from the Federal Reserve Bank of New York “should such lending prove necessary.”
So does all of this amount to a bailout?
Right now, it’s more of an effort to battle the markets’ lack of confidence. Opening the discount window to Fannie and Freddie “instills confidence in investors, so investors will continue to fund Fannie and Freddie,” says Frederick Cannon, chief equity strategist for Keefe, Bruyette & Woods. “I don’t see them using the window.”
Fannie and Freddie float bonds in the debt markets and use the money they raise to fund mortgages and guarantee mortgages. There has been no liquidity crisis for Fannie or Freddie, Cannon explains: “It’s simply been a crisis of confidence in the equity.” The actions over the weekend, he says, will enable the two companies to continue to support the mortgage market.
Why did the government choose to step in over the weekend?
The rescue effort was orchestrated to calm investors worldwide and to prevent the collapse of these two housing finance giants. Fannie and Freddie own or guarantee more than $5 trillion in mortgages — nearly half of all the mortgages issued in the United States.
The announcements on Sunday were intentionally made prior to the opening of the Asian stock markets and a Monday morning auction of $3 billion in securities by Freddie Mac.
Last week, Treasury Secretary Henry Paulson said no immediate bailout was necessary in an attempt to calm investors. The Treasury’s proposal on Sunday reflects a shift in gears to assure investors that the companies have all the money they might need, and that there’s no immediate danger of a collapse. It’s also a means for encouraging the continued purchase of Fannie and Freddie’s securities.
Both companies said on Sunday that they hold more than adequate capital. Freddie Mac also said it expected that its June 30 results will show that the firm has “a much greater surplus” above the minimum requirements.
What are the next steps?
The rescue provisions announced over the weekend will be added to a housing bill that is making its way through Congress. But Congress has to wrestle with a number of questions that regulators left unanswered. Fannie and Freddie are chartered by Congress, but they are public companies. What implications does this have for other private companies if the government bails out Fannie and Freddie? If the Treasury Department steps in and buys Fannie and Freddie stock, will those shares be of the same class as those held by institutional and indvidual investors, and will they be worth the same?
What are the implications of these proposals for taxpayers?
For years, advocates in Congress and in the private sector have been pushing for Fannie and Freddie to have a stronger, single regulator. Among those is FM Policy Focus, a group of financial services and housing organizations. Executive Director Mike House says the legislation in Congress now is “strong and adequate” for meeting this goal. The group also supports the Treasury’s proposals, which it says “will prevent taxpayers from having to bear the burden on this.”
House says the key thing is for “Congress to act expeditiously and get the legislation passed so that the market will get stabilized.”
If I own a home or plan on purchasing a home, what does this mean for me?
The stability of the mortgage market — keeping money available for people to buy homes — is closely tied to Fannie and Freddie. That’s because the companies presently fund a huge block of the nation’s mortgages, and the cornerstone of their mission is to fund mortgages for low- and moderate-income buyers.
“My sense is that all the turmoil makes homeownership more difficult,” both in terms of perceptions of homeownership and its value, says Bruce Gottschall, executive director of Neighborhood Housing Services, a Chicago-based nonprofit that assists low and moderate-income people with homeownership.
The tightening of the credit markets that has been building over the last couple of months impacts peoples’ ability to borrow money to buy homes. “From our experience, those in the low and moderate income are hit hardest and earliest in terms of that availability of credit,” he says.
– Written by Joshua Brockman, NPR, with reporting by Jim Zarroli. The Associated Press contributed to this report.
If you are in the market for an Idaho Home Equity Loan - sometimes called a Home Equity Line of Credit, or simply HELOC - there are a few important considerations. With these loans, you are essentially putting your home up as the collateral, so be sure you are getting the best Idaho mortgage rate and that you can afford the payments.
Here are a few more tips on getting the best Idaho home equity loan:
Know your credit score before applying for a loan. This will give you the leverage you need to get the best interest rate! Your credit report will show your credit score, sometimes called FICO credit score, from the three major credit bureaus (Transunion, Experian, and Equifax). They’ll all show about the same number, so lenders just use the middle one. Your “middle credit score” affects your ability to qualify and ultimately your interest rate.
It’s popular – and a good idea – to use your Idaho Home Equity Loan to pay off credit cards and other high-interest debts, but be sure to think it through carefully. Make sure you can afford the home equity loan payment and that your home value is stable. I wouldn’t advise going over 100% loan-to-value in today’s current real estate market. In other words, don’t let your mortgage balance plus your total home equity loan balance total more than your house is worth.
Once you get those nasty credit cards paid off, destroy them (at least cut up all but one)! You do not want to let yourself fall into the same trap again. Next get on a simple household budget and, here come’s the hard part… stick to it. Once you receive the money from your loan, be sure to use it wisely and save a bit of a safety net for emergency and unexpected expenses.
Do some research and comparison shopping of these loans. Most folks think all loans and lenders are the same – but they’re not. A good loan officer will take the time to understand your unique circumstances, then seek out the best loan for you.
My Idaho Home Loan. com can help you obtain a Home Equity Loan, or an Idaho mortgage loan for all types of goals. We offer innovative loan products, a simple process, and fast, friendly service. Click here to get pre-qualified immediately.
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Written by Lisa Kratz and Mike Little
Apex Mortgage | Meridian, Idaho | (208) 888-9251 | myIdahoHomeLoan.com
Posted by admin on 10 Jul 2008 2:03 pm. Filed under Scenic Idaho.
Located 20 miles west of Boise, along I-84, Nampa is the second largest city in Idaho, at about 80,000 residents. The city is considered part of the Boise metropolitan area. Nampa is also the state’s fastest growing city, with a population growth rate of 47.66%.
Thousands of residents each year move to Nampa to save money on their homes, get relatively more house for less money, and pay less monthly on their Nampa Idaho mortgage payment (click here to get pre-approved).
Unlike other cities hit hard by the tough real estate market, property assessment values in Nampa are holding steady – many have, in fact, gone up in the latest Canyon County tax assessment.
Nampa is home to the NNU, an award-winning liberal arts college. The city is also home to the Snake River Stampede Rodeo, one of the top twelve rodeos in the pro rodeo circuit. More recently, the Idaho Center was built in Nampa and hosts major music and outdoor events.
Nampa has its own airport (though commercial carriers use nearby Boise Airport), as well as the close-by Warhawk Air Museum. Nampans are also excited about their “Historic Nampa Downtown Revitalization Project,” which aims to give local business a boost, as well as foster a sense of old-town charm in the heart of the city.
VA loans are guaranteed by U.S. Dept. of Veterans Affairs. VA does not make loans, it guarantees loans made by lenders.
VA determines your eligibility and, if qualified, issues you a certificate of eligibility to be used in applying for your VA loan. This guaranty allows veterans of our armed forces to obtain Idaho Home Loans with very favorable loan terms:
A down payment is usually not required.
Low interest rates - generally comparable to regular conforming loan rates.
No monthly private mortgage insurance; just an upfront VA loan funding fee that can be rolled into the loan.
This VA Loan Funding Fee is part of VA’s Home Loan Guarantee Program, and is usually around 2-3% of the loan amount. And this fee may be waived for disabled vets receiving VA compensation. Your mortgage lender can help you apply for a VA Loan, and complete the forms to receive this waiver.
Boise Mortgages that utilize the government’s VA Loan program are a very good option for veterans - rather than conventional loans - especially for those with less-than-perfect credit.
You can get pre-approved quickly and easily for an Idaho VA loan by completing a mortgage loan application with My Idaho Home Loan.com or by calling us direct at (208) 888-9251.
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Written by Lisa Kratz and Mike Little
Apex Mortgage | Meridian, Idaho | (208) 888-9251 | myIdahoHomeLoan.com
Posted by admin on 4 Jul 2008 1:17 pm. Filed under Idaho Mortgages.
“FED CUTS RATE TO 2%!”
Here’s the scenario:
You need to buy a home, or refinance your Idaho mortgage. You talk with a local lender choose the perfect loan program and rate, at which point you “lock in” your mortgage rate for 30 days — let’s say, at 6.5%.
The next day you see on the news: “Fed cuts rate to 2%.” Hopeful, you call your lender, “Does this mean my rate goes down a point, to 5.5%?”
The short answer is “No.”
Here’s the long answer:
It’s important to understand what “The Fed” is, what “The rate” is, and what affects - short term and long term - an increase or decrease announcement has.
“The Fed,” or Federal Reserve, is sort of a financial think tank and not, as many believe, part of our federal government. They perform information gathering and economic research. Their primary goal: Promote sustainable growth of the US economy. This includes, of course, fending off recession by doing things like keeping an eye on banks, promoting spending (and lending) as a means to infuse cash into the market and thereby help the economy, etc..
Rates monitored and set by the Fed are:
The Discount Rate (interest rate banks pay on short-term loans from a Federal Reserve Bank) and,
The Federal Funds Rate (interest rate at which a depository institution lends immediately available funds to another depository institution overnight).
This Federal Funds Rate is “The rate” that news reports are referring to when they talk about the Fed changing interest rates.
But, and heres the point, they are setting a target for this rate, not the actual rate itself. The actual rate itself is determined by the open market. So depending on a multitude of open market forces, banks may or may not react quickly to these changes, and when they do, mortgage rates may or may not be significantly affected. Credit cards and second mortgages are more likely to see immediate effects of a rate cut.
Many consumer loans are at or close to the “prime rate,” which is generally three percentage points higher than the federal funds rate. Although the prime tends to track up or down with the federal funds rate.
Longer-term, fixed-rate loans such as Idaho mortgages or student loans track with treasury bonds, so they’re not immediately affected by the Fed’s decision, but they follow broadly. On the other hand, many types of adjustable rate mortgages (ARM’s) are more likely to react (change up or down) sooner than later to Fed announcements.
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Written by Lisa Kratz and Mike Little of myIdahoHomeLoan.com
Apex Mortgage | Meridian, Idaho | (208) 888-9251
In a previous article, we wrote about the benefits of going with an FHA home loan or refinance. But it gets even better! Let’s say you’re already in an FHA mortgage, but you want to take advantage of the new lower rates… or perhaps you want to change terms, such as the length of the loan.
The FHA permits what they call a “Streamline Refinance” on pre-existing FHA mortgages. The “streamline” refers to the amount of documentation and underwriting that lenders need to perform. The whole process is easier and faster… for everyone.
Streamline refinances can be done without an appraisal, but the new loan amount cannot exceed the original loan amount. A popular option, however, is to include all the closing costs into the new mortgage amount. To do this an appraisal is required to ensure there is sufficient equity in the property, which is based in part on the home’s market value.
The benefits of a Streamlined FHA Refinance (what we call one of the FHA’s “little secrets”) are excellent. They include:
Little or no out-of-pocket costs
No credit check, income verification, employee verification, or underwriting fee
Appraisal usually not required
Very little paperwork
Reduced interest rates
Easily increase or decrease the length of the term of your existing loan
The FHA Streamline Refi reduces your monthly expenses by lowering your monthly mortgage payment, but there is no option to receive cash back. It’s a good option for folks who are in good financial standing who want to further reduce their monthly expenses.
For a fast, free, pre-qualification for your FHA Streamline Refinance,
click here –> FHA Streamline pre-qualify.
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Written by Lisa Kratz and Mike Little of myIdahoHomeLoan.com
Apex Mortgage | Meridian, Idaho | (208) 888-9251
This article about Fannie Mae and Freddie Mac is written by N.P.R. and A.P. Next, see our 
