No matter the type of distressed financial past you experienced, mortgages are available again to you. Whether you want to refinance a loan, perhaps to get out of an ARM, combine two loans into one fixed payment, get your rate down; or if it’s time to downsize, right-size or even find a larger home there are some simple rules about when you can qualify for a new mortgage based on the date of your distressed event. Unlike credit reports that hold this information for up to 10 years, you don’t have to wait that long for it to drop off the report before you can get a new mortgage. Your credit score will factor into your qualification and your interest rate.
It should also be noted that a 20% down payment is not necessary, that jumbo mortgages are no different to conforming in relation to qualifying, jumbo loans have had really good interest rates recently, and in general mortgage rates are low. Although the feds hiked their lending rate recently, much to the annoyance of the economy, they do not dictate the mortgage rates. Mortgage rates are linked to the 10 year treasury note. This can fly in the face of the feds and say hey, we don’t care what you do, if the economy does not like it then we don’t either. The bonds are there to attract investors which they cannot do if the economy gets rattled.
Use our mortgage calculator above right to find out what a new payment could be! Click the picture to get the app sent to your cellphone. You can also contact either myself or loan officer Tom Cramer with any questions.
If you ever have time to watch the bond market it goes up and down like a yo-yo, and therefore so do mortgage rates. That’s why mortgage rates change daily, sometimes even hourly. Different mortgage lenders re-act to the market under their own terms. It always takes longer to come down that it takes to go up, and it pays to rate shop. Consider buying your rate down as well, especially if you are going to stay for a while.
Easy Guide Chart to Financing A New Home After Bankruptcy, Short sale and Foreclosure.
One of my preferred loan officers has provided the flyer below to help you understand what the rules are. The good news here is for those of you that ended up filing a bankruptcy, you made a smart move. Not everyone qualifies for bankruptcy and you need a lawyer to help you. Bankruptcy discharges qualify borrowers for new mortgages much quicker than other prior mortgage distresses on your credit report.
No matter the type of loan you want to try for this chart shows how long you have to wait. For bankruptcy it’s as quick as 1-4 four years. Short Sales follow in second place along with Deed In Lieu, and if you had a foreclosure your wait time is the longest. It’s important to note that the recorded date is the start point, not the day you left the house or the day your home was sold. The recorded date may be considerably later. For bankruptcies you got a discharge date and thats your start time for the clock. The reality is the more formal your distress the better off you are now! The idea behind bankruptcy was always to get people a fresh start, kind of like a clock reset. Here’s the reward!
If you are thinking about a mortgage what and when, give Tom Cramer a call! He’ll guide you to the right loan for both buying a new home or refinancing the existing loan. And while everyone thinks mortgage rates are going to climb because the feds have stated they intend to do 4 rate hikes this year, the mortgage rates may not rise at all. Remember its the bonds and economy that drive the interest rates. And the stock market has been unstable for the last week or so, the Chinese twice halted trading, oil is at the lowest price for a very long time and the economy wobbles at all these signs. I do believe we’ll stay low for a while but right now, it’s pretty good pickings interest rate wise.
Contact Tom at 847-852-2882 and tell him Corinne sent you. I don’t make money off your mortgage or refinance, but it’s nice for him to know you read my post and his flyer! Click to view larger to read with ease.
As Tom says, don’t let Foreclosure, Short Sales or Bankruptcy ruin your sale, purchase or refinance. Time has passed since the market tumbled and it might be the right time for your move. Give Corinne a call for your Barrington IL real estate needs. 847-363-3686.