VA Loans - No Down Payment – No Monthly Mortgage Insurance

VA Loans in Maryland, Pennsylvania, and Virginia – No Down Payment – No Monthly Mortgage Insurance

Who is eligible for getting a VA loan?

The VA loan is available to veterans, active duty service members, and reservists.  Your VA eligibility can be verified through VA directly or you can contact a VA Lender who can verify your eligibility for you.

Why use VA?

1. VA is one of the only mortgage products left that allows NO DOWN PAYMENT – that’s right 100% financing
2. There is no required Mortgage Insurance
3. The credit qualifications are easier than FHA and Conventional
4. Interest rates are GREAT

I am a VA Approved lender and work for a Baltimore based local community bank that has been around for over 100 years!  We process, underwrite, close, and fund VA loans in-house.  We know the local real estate market.  We are VA experts.

If you are moving to the Maryland, Virginia, or Pennsylvania area and are part of the BRAC realignment, we have additional incentives for you as well.  How about free money to pay for your closing costs?  Ask us about the BRAC Homeownership Incentive.

Contact the Stuart Epstein team for more details….

Why Should I Refinance from a 30-yr Fixed to a 15-yr Fixed Rate Loan?

Mortgage Rates in Maryland - Why should you Refinance from a 30-year fixed to a 15 year fixed rate loan now?  

I will tell you why.  Suppose you took out a $250,000 mortgage on your home two years ago.  You have made your payments on time (like a good boy or girl) and after two long years, guess what your principal balance is…….$243,000 – ouch!  You have barely made a dent.

Now suppose you could get in your time machine, go back 2 years and do a 15-year mortgage instead.  After two years your balance on the mortgage would be $224,000.  That’s a difference of almost $20,000!!
 
Even you do not have a time machine…well… sorry... there is still hope.  What about refinancing that evil 30 year mortgage now while the rates are great and get into a 15 year mortgage…and watch your debt melt away!!

Here is the math:  Using the scenario above, if you are two years into your 30 year loan at a rate of 5.5%, and you refinance your loan into a 15 year mortgage at 3.75%, you will save over a hundred grand.  Would you like to save a hundred grand?  I think so!

If you keep the existing 30 year loan, after 15 years of regular payments, you will be left with a balance of $177,000 you still owe.  If you refinance to a 15 year loan, you will be left with a balance of $0 after 15 years (obviously).  The difference in the payment for the 15 year mortgage is about $400/month (times 180 payments = $72,000).  $177,000 minus $72,000 equals $105,000 in your pocket!!

My suggestion – bite the bullet if you can and consider refinancing to a 15 year loan while rates are at historic lows….but only if you are interested in savings lots of money!

Feel free to contact us at any time if you are interested in refinancing your loan. You can also visit my website for more information at www.stuartepstein.com/.

Attention First-Time Homebuyers:

We have some really exciting news from the Maryland Mortgage Program (some know this program as the CDA loan or MMP).  The MMP has added the FHA 203(k) Streamline Renovation loan program to its offerings!!
You can now take advantage of the awesome benefits of the Maryland CDA loan and closing cost assistance - and add up to an additional $35,000 to renovate your new home at the same time. This is a big deal!!  And here is the best part – the CDA program is offering this loan at a 30-years fixed rate of 3.875% and zero points – for a limited time.

We have been waiting for years for this program to be released.  This loan is especially helpful if you are interested in buying a foreclosure or any “neglected” property that needs some TLC, or perhaps a new kitchen or bathroom(s).  The Maryland Mortgage Program also comes with DSELP, a $5000 zero percent interest loan from the State to help with your down payment and closing costs.  There are several other grants that come along with this wonderful program as well.

Traditionally, when using the Maryland Mortgage Program, you had to have a home inspection and the program required that all the items on the home inspection be repaired before settlement.  This was very prohibitive for buying homes where the seller was not able or willing to make those repairs.  That issue no longer exists with this new program.  You, as the buyer, select you licensed contractor and make your list of repairs and wish list of renovations/upgrades, and we add that to your loan, up to $35,000.  You can make the house into your dream home before you move in!

The eligibility for this MMP 203(k) loan is the same as the regular CDA mortgage.

As always, I am happy to walk you through this great program, and answer any questions you may have.  Feel free to check out all the details on my website http://www.stuartepstein.com/, or go to the website for the program - http://www.mmprogram.com/.

How do I shop for a mortgage?

How do I shop for a mortgage?          

Are you wondering why you see such a wide range of rates being advertised on the internet and newspaper when you are shopping for a mortgage?  Well, the answer is simple - mortgage companies want to generate “leads”.  Once they have you on the phone, they have accomplished half of the goal.  It is easy for a lender to explain away the “teaser” rate that you saw advertised by simply telling you “Well, that was last week’s rate”, or “That rate you saw is for an adjustable mortgage and only for 25% or more down, let me go over with you what you’re rate is….”.  You see, lenders want to generate phone calls.  If you are getting rates quoted to you from one lender that are a lot lower than everyone else – it is probably too good to be true.  Remember, all lenders are working from the same bond market.

                Here are some simple tips that can help you when you are shopping for a mortgage:

1.       First of all, ask your Realtor who they recommend.  Even if you don’t use the lender your real estate agent recommends, you can be assured that they are going to at least give you an honest assessment.  After all, they don’t want to upset the person who referred you to them and make them look bad J

2.       Find a local direct lender or bank who knows the local market, and ask them for a written estimate.  Have them review the estimate in detail with you so you understand the components and closing costs, specifically which of the costs are related to the lender, and which are third parties that you have control over.

3.       Compare fees between lenders before you are under contract on a house, but compare interest rates only after you are under contract.  Until you have a ratified contract on a house, it doesn’t matter what a lender tells you their current rate is – because you can’t lock in until you have a house to lock in with.  Some lenders will give out “teaser” rates that are not realistic, knowing they do not have to commit to it if you do not have a house under contract yet.  When you are ready to lock in – that’s when you can legitimately compare Lender A, B, and C.

4.       You can get general information on the mortgage market by visiting bankrate.com and other trustworthy websites, but keep in mind that there are many factors that determine rates.  For example, if you are doing an FHA loan, the rate will typically be lower than if you are doing a Conventional loan.  Also, if you have an 800 credit score, your rate may be slightly better than if you have a 710 credit rating.  The amount of money you are putting down can also impact the rate.  Have your lender explain what drives the rate they are giving you so you understand the “Why” of it.

5.       Lastly – trust your instinct.  I can’t tell you how many times I have had clients tell me “I just didn’t feel good about that other person I was working with” before they came to me.  If you don’t feel confident in the person you are dealing with – MOVE ON!  There are plenty of honest and competent mortgage professionals that want your business.

Of course you can contact the Stuart Epstein team anytime and we can give you all the guidance you need.  Feel free to visit my website:  www.mdtoplender.com.  We have lots of resources to educate you on the process of buying or refinancing a home in Maryland!