Applying for a home loan with a low credit score can feel like playing a game of limbo. Having a mortgage application denied can feel like being in limbo.
Borrowers that do not initially qualify for a mortgage due to their credit score can shorten the time they are in credit-rebuilding-limbo with a few simple steps. Although, it might be helpful to first understand how credit scores are used when buying a home.
Lenders pull a tri-merge credit report from all three bureaus for each potential borrower. All lenders use the middle score, which for many lenders needs to be no less than 640 in order to qualify a borrower for a mortgage.
If the applicant’s score does not meet the cut off, the lender will then try to determine the cause of the low credit score. Collections and judgments are common causes of low credit scores, and must be paid before the mortgage application can be approved.
Medical collections are different. Medical debt that collectively adds up to less than $1,000 does not have to be paid off in order to be approved for a mortgage, so long as that debt does not affect the credit score. Lenders will vary on this rule. You should ask your lender about medical collections before you do anything with them.
Some creditors will take longer to update paid debts than they do to turn over the debt to collections in the first place. In this instance, the lender can use written proof that the debt has been paid. The document must show all the account information, borrower name, and company letterhead. For the revolving debt, or credit card accounts, the credit bureaus like to see you utilize your revolving credit, but not too much. It is suggested that the balance remain under 40% of the credit limit to ensure the outstanding debt can be handled and paid timely. As always, if you remit more than the minimum payment, it is looked upon in a positive manner to show the bureaus continue credit worthiness.
Completing this step is sometimes all it takes to increase a borrower’s credit score that fell just below the cut off. If a borrower’s credit score is too far below 640, than they may be in credit-rebuilding-limbo for a while. There are still additional ways to speed up the process.
Potential borrowers can gather up documents that show they have been regularly paying their debts, and overnight them with return receipt requests to each of the credit bureaus. The credit bureaus will then research and update the borrower’s credit score. This usually occurs within a few months.
Lastly, borrowers may not have to pay off all of their debt in order to qualify for a mortgage. There is a calculation system, available to some most lenders, which allows them to see how credit scores would be affected if the borrower paid off a percentage or the balance of their debt. Although it is not a certainty, it typically helps borrowers know where they need to be in order to take out a mortgage.
As the potential borrower pays off their debt and gathers documentation, it is always good to stay in contact with the mortgage loan officer and/or the person that is assisting you in repairing your credit.
If you have any additional questions about how credit scores affect the home buying process, please call Stuart directly at 410.491.0200 or email at septstein@baybankmd.com.
Our customers save money and close their loans quickly because we employ the most advanced mortgage technology available.
Showing posts with label Carrolton Mortgage Services. Show all posts
Showing posts with label Carrolton Mortgage Services. Show all posts
Friday, September 6, 2013
Tuesday, September 3, 2013
Federal Home Loan Bank of Atlanta (FHLB) Is Back!
We have been given a rare opportunity to access the remaining funds for 2013; effective August 26, 2013!
The First-time Homebuyer Program (FHP) provides matching funds for down-payment and closing-cost assistance to low- and moderate-income homebuyers. Federal Home Loan Bank of Atlanta partners with member financial institutions to make awards of up to $5,000 per household. The money is distributed to eligible homebuyers on a first-come, first-served basis.
Check with us on 2013 Income limits to see if you/your buyer is eligible today!
Let Us Work for You!
Please call Stuart directly at 410.491.0200 or sepstein@baybankmd.com.
The First-time Homebuyer Program (FHP) provides matching funds for down-payment and closing-cost assistance to low- and moderate-income homebuyers. Federal Home Loan Bank of Atlanta partners with member financial institutions to make awards of up to $5,000 per household. The money is distributed to eligible homebuyers on a first-come, first-served basis.
Check with us on 2013 Income limits to see if you/your buyer is eligible today!
Let Us Work for You!
Please call Stuart directly at 410.491.0200 or sepstein@baybankmd.com.
Monday, August 5, 2013
Understanding the Home Appraisal Process
Both homeowners who are selling their home and potential buyers are often confused by the home appraisal process.
Sellers often feel that their home is worth a certain amount especially if they upgraded their home, made improvements or added amenities. On the other side of the process, a potential buyer may have found their dream home for X amount and wonder if the house is really worth that much.
These questions and concerns are at the heart of home appraisals.
At its core, an appraisal determines the value of taxable property or property that appreciates; such as fine jewelry, art, businesses and land. A home appraisal is simply the opinion of a state-licensed third-party professional whose expertise is in determining the value of the land and buildings or structures contained on the property.
In residential properties, the appraiser will usually compare the sales cost of other properties in the area. However, the appraiser will also evaluate the lot size, square footage of finished and unfinished spaces, condition of the property and features like a garage or fireplace.
When it comes to home improvements, it is important to remember that there is no set amount associated with upgrades. The appraised amount of any upgrade could very well be less than the cost the homeowner paid for the upgrade. Again, appraisers will look to other properties in the neighborhood with similar upgrades to determine the value.
For example, a homeowner may spend $25,000 on a swimming pool but if the local marketplace can only support a $10,000 pool, then that upgrade will be marked on the appraisal as $10,000. This is the reason why homeowners should choose their upgrades wisely.
Lenders determine appraisal guidelines in order to force appraisers to attach a fair market value on a home based on comparable sales. Comparisons are based on the most recent six months of market activity and often examine closed or pending sales of at least three similar properties. This process prevents appraisers from over-valuing the home in question; a practice that some believe contributed to the 2007 housing bubble. Recent Federal rules have been instituted to prevent lenders from having influence over the appraiser’s results by requiring non-interested third party services to select and communicate with the appraiser prior to its completion.
Although the home appraisal process protects the lender from unnecessary risk, it also protects the buyer from overpaying on a house.
If you have any additional questions about the home appraisal process, please call Stuart directly at 410.491.0200 or email at septstein@baybankmd.com.
Sellers often feel that their home is worth a certain amount especially if they upgraded their home, made improvements or added amenities. On the other side of the process, a potential buyer may have found their dream home for X amount and wonder if the house is really worth that much.
These questions and concerns are at the heart of home appraisals.
At its core, an appraisal determines the value of taxable property or property that appreciates; such as fine jewelry, art, businesses and land. A home appraisal is simply the opinion of a state-licensed third-party professional whose expertise is in determining the value of the land and buildings or structures contained on the property.
In residential properties, the appraiser will usually compare the sales cost of other properties in the area. However, the appraiser will also evaluate the lot size, square footage of finished and unfinished spaces, condition of the property and features like a garage or fireplace.
When it comes to home improvements, it is important to remember that there is no set amount associated with upgrades. The appraised amount of any upgrade could very well be less than the cost the homeowner paid for the upgrade. Again, appraisers will look to other properties in the neighborhood with similar upgrades to determine the value.
For example, a homeowner may spend $25,000 on a swimming pool but if the local marketplace can only support a $10,000 pool, then that upgrade will be marked on the appraisal as $10,000. This is the reason why homeowners should choose their upgrades wisely.
Lenders determine appraisal guidelines in order to force appraisers to attach a fair market value on a home based on comparable sales. Comparisons are based on the most recent six months of market activity and often examine closed or pending sales of at least three similar properties. This process prevents appraisers from over-valuing the home in question; a practice that some believe contributed to the 2007 housing bubble. Recent Federal rules have been instituted to prevent lenders from having influence over the appraiser’s results by requiring non-interested third party services to select and communicate with the appraiser prior to its completion.
Although the home appraisal process protects the lender from unnecessary risk, it also protects the buyer from overpaying on a house.
If you have any additional questions about the home appraisal process, please call Stuart directly at 410.491.0200 or email at septstein@baybankmd.com.
Monday, April 15, 2013
Carrollton Bank and Bay Bank Are Tying the Knot
Banking on Positive Changes: Carrollton Bank and Bay Bank Merger
Carrollton Bank is excited to announce to our clients and future clients that the closing date for the merger with Bay Bank has been scheduled for April 19th. Carrollton Bank has received the necessary regulatory approvals from the Office of the Comptroller of Currency (OCC).
Carrollton Bank’s current and future clients can expect the same great service and same great rates. Carrollton Mortgage Services will be continuing business as usual especially as the housing market ramps up for the summer season.
Carrollton Bank and Bay Bank are coming together to create a new bank that will be in a better position to compete in the market. The two holding companies will merge under Carrollton Bancorp and the banks will operate as Bay Bank. The combined 12 branches will be able to serve a broader market. The merger is a wonderful opportunity for both banks to become the bank of choice for consumers and businesses who want a bank with deep roots in the community.
Carrollton Bancorp will be a well-capitalized institution in good standing with our regulators. In 2010 Jefferson Bancorp formed Bay Bank after purchasing the failing Bay National Bank. This merger will pay off $9.1 million in Troubled Asset Relief Program (TARP) funding to the U.S. Treasury and remove both banks from the limitations imposed by this program. This allows the new bank to better leverage successful services such as Carrollton Mortgage Services.
The new team of over 160 employees will have a broader reach in the community and the deeper management team will continue to build the bank into a top-tier bank in the region. Carrollton Bancorp will have a strong Board of Directors made up of both Bay and Carrollton directors who are active in the business community in the region.
The Carrollton Bank and Bay Bank merger will combine the strengths of both organizations to provide better service to customers and be the go-to local bank in the community.
Look out for new exciting mortgage products coming soon!
If you have any questions, please call Stuart directly at 410.491.0200.
Carrollton Bank is excited to announce to our clients and future clients that the closing date for the merger with Bay Bank has been scheduled for April 19th. Carrollton Bank has received the necessary regulatory approvals from the Office of the Comptroller of Currency (OCC).
Carrollton Bank’s current and future clients can expect the same great service and same great rates. Carrollton Mortgage Services will be continuing business as usual especially as the housing market ramps up for the summer season.
Carrollton Bank and Bay Bank are coming together to create a new bank that will be in a better position to compete in the market. The two holding companies will merge under Carrollton Bancorp and the banks will operate as Bay Bank. The combined 12 branches will be able to serve a broader market. The merger is a wonderful opportunity for both banks to become the bank of choice for consumers and businesses who want a bank with deep roots in the community.
Carrollton Bancorp will be a well-capitalized institution in good standing with our regulators. In 2010 Jefferson Bancorp formed Bay Bank after purchasing the failing Bay National Bank. This merger will pay off $9.1 million in Troubled Asset Relief Program (TARP) funding to the U.S. Treasury and remove both banks from the limitations imposed by this program. This allows the new bank to better leverage successful services such as Carrollton Mortgage Services.
The new team of over 160 employees will have a broader reach in the community and the deeper management team will continue to build the bank into a top-tier bank in the region. Carrollton Bancorp will have a strong Board of Directors made up of both Bay and Carrollton directors who are active in the business community in the region.
The Carrollton Bank and Bay Bank merger will combine the strengths of both organizations to provide better service to customers and be the go-to local bank in the community.
Look out for new exciting mortgage products coming soon!
If you have any questions, please call Stuart directly at 410.491.0200.
Thursday, April 4, 2013
Lean Green Mortgages
Going green isn’t just a trend anymore; what started as a not-so-cost-effective environmental movement is now proving to have a twofold benefit, both to our wallets and Mother Nature.
Most people want to save on their electricity bill. Double-pane windows, low-wattage lights, better insulation, programmable thermostats, and smart appliances all contribute to reducing a home’s carbon footprint.
But could an energy efficient home lower your mortgage payments?
The Institute for Market Transformation (IMT) partnered with the University of North Carolina in a study released on March 19th 2013. The study found that Energy Star homeowners are 32 percent less likely to default on their mortgages.
The results of this study may prompt lenders to reduce the monthly mortgage payment when considering how energy efficient a home is.
Lenders compare monthly expenses to monthly income when assessing lending risks. For years, lenders assumed that smaller utility bills from energy efficient homes would reduce lending risk, but there was never any hard data to back up the claims. Lack of study metrics, and small survey pools yielded inconclusive data.
For the recent study, the IMT researchers looked at a real estate database from CoreLogic in order gather a sufficient sampling. In an effort to make the study more controlled, researchers factored in metrics such as the borrower’s credit score, the size and age of the home, local unemployment rates, and local climate and energy prices.
The study examined 71,000 single-family, owner-occupied homes across 38 states and D.C. between 2002 and 2012. Real estate statistics from California was unavailable due to privacy laws and the real estate data from Alaska and Hawaii deviates substantially from the rest of the continental US, so these three states were left out of the sample.
Approximately 35 percent of the homes sampled were Energy Star-certified.
The study measured loan default based on the percentage of homeowners who fell behind on their mortgage by 90 days or more. Foreclosure laws differ from state to state making measuring default based on this indicator relatively tricky.
The “urban legend” that lenders had assumed to be true, did indeed turn out to be true: homeowners of energy efficient homes were 32 percent less likely to default on their mortgage. It is likely that having a couple of hundred extra dollars a month in a homeowner's pocket from energy savings could make well-insulated, tightly sealed homes a safer bet for banks.
However, there could be other factors contributing to these results. Since these homes tend to be more expensive, it is possible that a person who pays a premium for an energy efficient home may also be someone who is already more financially stable or astute than a conventional home buyer, even despite the fact that the study factored in a homeowner’s credit score,
Ultimately, this report could benefit homeowners looking to lower their mortgage. Lenders could better assess risks and offer attractive rates to encourage people to buy efficient homes.
If you have any questions about this topic, don't hesitate to contact us. You can call us at 410.491.0200 or email at septstein@baybankmd.com.
Most people want to save on their electricity bill. Double-pane windows, low-wattage lights, better insulation, programmable thermostats, and smart appliances all contribute to reducing a home’s carbon footprint.
But could an energy efficient home lower your mortgage payments?
The Institute for Market Transformation (IMT) partnered with the University of North Carolina in a study released on March 19th 2013. The study found that Energy Star homeowners are 32 percent less likely to default on their mortgages.
The results of this study may prompt lenders to reduce the monthly mortgage payment when considering how energy efficient a home is.
Lenders compare monthly expenses to monthly income when assessing lending risks. For years, lenders assumed that smaller utility bills from energy efficient homes would reduce lending risk, but there was never any hard data to back up the claims. Lack of study metrics, and small survey pools yielded inconclusive data.
For the recent study, the IMT researchers looked at a real estate database from CoreLogic in order gather a sufficient sampling. In an effort to make the study more controlled, researchers factored in metrics such as the borrower’s credit score, the size and age of the home, local unemployment rates, and local climate and energy prices.
The study examined 71,000 single-family, owner-occupied homes across 38 states and D.C. between 2002 and 2012. Real estate statistics from California was unavailable due to privacy laws and the real estate data from Alaska and Hawaii deviates substantially from the rest of the continental US, so these three states were left out of the sample.
Approximately 35 percent of the homes sampled were Energy Star-certified.
The study measured loan default based on the percentage of homeowners who fell behind on their mortgage by 90 days or more. Foreclosure laws differ from state to state making measuring default based on this indicator relatively tricky.
The “urban legend” that lenders had assumed to be true, did indeed turn out to be true: homeowners of energy efficient homes were 32 percent less likely to default on their mortgage. It is likely that having a couple of hundred extra dollars a month in a homeowner's pocket from energy savings could make well-insulated, tightly sealed homes a safer bet for banks.
However, there could be other factors contributing to these results. Since these homes tend to be more expensive, it is possible that a person who pays a premium for an energy efficient home may also be someone who is already more financially stable or astute than a conventional home buyer, even despite the fact that the study factored in a homeowner’s credit score,
Ultimately, this report could benefit homeowners looking to lower their mortgage. Lenders could better assess risks and offer attractive rates to encourage people to buy efficient homes.
If you have any questions about this topic, don't hesitate to contact us. You can call us at 410.491.0200 or email at septstein@baybankmd.com.
Monday, January 14, 2013
The CityLIFT Program Explained
Many people would rather own a home than rent one. The choice is easy; you are investing your hard earned money into home equity rather than a putting it into a landlord’s pocket. But the truth of the matter is that many people have been impacted by our economy’s financial crisis and no longer have sufficient savings for a down payment on a home. For this reason, Neighborhood Housing Services of Baltimore has implemented CityLIFT.
The CityLIFT program provides up to $15,000 in down payment assistance or closing cost funds to eligible homebuyers who are purchasing a home within Baltimore’s city limits.
Although Wells Fargo partnered with NeighborWorks America to provide the funding for this grant, eligible homebuyers do not have to go through Wells Fargo to issue the loan. In fact Carrollton Bank is now an approved CityLIFT lender.
CityLIFT assistance requires obtaining a first mortgage. A first mortgage is just a different type of mortgage that has priority over all the other claims of the property. It does not mean that you have to be a first time homebuyer. If you currently own a home, you must sell it before closing on your new home with CityLIFT assistance. Your current home cannot be rented or leased.
Eligible CityLIFT homebuyers must be at or below 120% of the Area Median Income for Baltimore City. There are different income limits depending on the size of your household. In addition, any borrower on the mortgage must also be an occupant of the house.
CityLIFT funds are structured as a “soft second” mortgage. It is a 0% interest loan which is forgiven 20% each year for 5 years. This is why part of the program requirements are that homebuyers must agree to maintain the home as their primary residence for at least 5 years.
In order to close on the house, potential CityLIFT participants must complete homebuyer education through a third party counseling agency that has been approved by the Department of Housing and Urban Development (HUD). Some of the topics that are covered in the CityLIFT counseling session are budgeting and credit, financing a home, shopping for a home, and maintaining a home.
If you believe that you qualify or are interested in learning more about CityLIFT assistance please contact our team and we are happy to assist you. You can contact us by phone, 410.491.0200, or email, sepstein@carrolltonbank.com.
You can find a packet that explains the program here.
The CityLIFT program provides up to $15,000 in down payment assistance or closing cost funds to eligible homebuyers who are purchasing a home within Baltimore’s city limits.
Although Wells Fargo partnered with NeighborWorks America to provide the funding for this grant, eligible homebuyers do not have to go through Wells Fargo to issue the loan. In fact Carrollton Bank is now an approved CityLIFT lender.
CityLIFT assistance requires obtaining a first mortgage. A first mortgage is just a different type of mortgage that has priority over all the other claims of the property. It does not mean that you have to be a first time homebuyer. If you currently own a home, you must sell it before closing on your new home with CityLIFT assistance. Your current home cannot be rented or leased.
Eligible CityLIFT homebuyers must be at or below 120% of the Area Median Income for Baltimore City. There are different income limits depending on the size of your household. In addition, any borrower on the mortgage must also be an occupant of the house.
CityLIFT funds are structured as a “soft second” mortgage. It is a 0% interest loan which is forgiven 20% each year for 5 years. This is why part of the program requirements are that homebuyers must agree to maintain the home as their primary residence for at least 5 years.
In order to close on the house, potential CityLIFT participants must complete homebuyer education through a third party counseling agency that has been approved by the Department of Housing and Urban Development (HUD). Some of the topics that are covered in the CityLIFT counseling session are budgeting and credit, financing a home, shopping for a home, and maintaining a home.
If you believe that you qualify or are interested in learning more about CityLIFT assistance please contact our team and we are happy to assist you. You can contact us by phone, 410.491.0200, or email, sepstein@carrolltonbank.com.
You can find a packet that explains the program here.
Wednesday, January 9, 2013
We Are An Approved CityLIFT Lender!
We are proud to announce that we are now an approved CityLIFT Lender!
The CityLIFTSM program in Baltimore is designed to provide $15,000 in down payment assistance grants to new Baltimore homebuyers and homebuyer education programs in areas most impacted by the financial crisis. This is a “soft second” mortgage that is forgiven over a 5 year period.
- No First-Time Homebuyer Requirement
- Can use in conjunction with CDA loans and grant programs
- Can use in conjunction with one other city-based program
STUART EPSTEIN - 410.491.0200
*Rates and program details are subject to change.
Tuesday, December 4, 2012
Refinance/Purchase Opportunities Could Outshine Black Friday Deals
There seems to be an emerging emphasis on shopping that has taken the activity to new extremes, almost giving it the feel of a competition. People are constantly attempting to showcase their knack for the biggest and best sales. Never is this more evident than the phenomenon that has become of Black Friday and Cyber Monday.
However, a new study has emerged that suggests this new generation of extreme shoppers don’t apply the same diehard tactics to everything they buy. The people who camp outside in front of shops for days, vulture coupons as if they were winning lotto tickets, and self-induce carpool tunnel syndrome scavenging the web, apparently may be the same people being referred to as the least savvy homebuyers.
A recent poll taken of Black Friday and Cyber Monday shoppers reported that nine out of every ten people cited the appeal of competitive specials and sales as reason for partaking. That same figure of people reported to have compared similar products between brands and stores for pricing prior to purchasing an item. It also suggested that an overwhelming majority of shoppers who turned out for the deals were low to medium income earners.
These people may do staggeringly less research and comparison prior to purchasing a
home.
This poll comes on the heels of an unrelated report on mortgage purchasing by Fannie Mae Chief Economist Doug Duncan, who reported that fewer people shop around prior to obtaining a mortgage and it typically costs them thousands of dollars in closing costs and interest rates.
"Homeowners who don't obtain multiple mortgage offers or carefully compare rates are essentially leaving money on the table, particularly given today's unprecedentedly low interest rates," said Duncan. "Although a home purchase is the largest financial obligation most people will ever make, many borrowers do not fully understand their mortgage products and costs. As a result, some homeowners in this position may find themselves with unsustainable payments down the road."
The report compared the due diligence between classes of income earners, and revealed that low to medium income earners performed 20% less research prior to obtaining a mortgage than medium to high income earners. An additional 43% of the lower income earners also reported not understanding their mortgage rate. Another 10% of the lower income earners reported paying more than expected in closing costs than higher income earners.
While mortgage rates and contracts are naturally more complicated than television discounts and buy-one-get-one sales, they can be easily explained by professionals probably in less time than it takes to wait in the lines at the mall during Black Friday sales.
The deals afforded by current record low mortgage rates are also enough to have even the stiffest of extreme shoppers excited. So the next time you plan on camping out overnight in front of the local Best Buy, maybe consider taking the opportunity to call a few local mortgage professionals and ask about current refinance and purchasing opportunities while you wait. You just may find that you’ve been missing out on deals that will save you way more than Black Friday ever could.
However, a new study has emerged that suggests this new generation of extreme shoppers don’t apply the same diehard tactics to everything they buy. The people who camp outside in front of shops for days, vulture coupons as if they were winning lotto tickets, and self-induce carpool tunnel syndrome scavenging the web, apparently may be the same people being referred to as the least savvy homebuyers.
A recent poll taken of Black Friday and Cyber Monday shoppers reported that nine out of every ten people cited the appeal of competitive specials and sales as reason for partaking. That same figure of people reported to have compared similar products between brands and stores for pricing prior to purchasing an item. It also suggested that an overwhelming majority of shoppers who turned out for the deals were low to medium income earners.
These people may do staggeringly less research and comparison prior to purchasing a
home.
This poll comes on the heels of an unrelated report on mortgage purchasing by Fannie Mae Chief Economist Doug Duncan, who reported that fewer people shop around prior to obtaining a mortgage and it typically costs them thousands of dollars in closing costs and interest rates.
"Homeowners who don't obtain multiple mortgage offers or carefully compare rates are essentially leaving money on the table, particularly given today's unprecedentedly low interest rates," said Duncan. "Although a home purchase is the largest financial obligation most people will ever make, many borrowers do not fully understand their mortgage products and costs. As a result, some homeowners in this position may find themselves with unsustainable payments down the road."
The report compared the due diligence between classes of income earners, and revealed that low to medium income earners performed 20% less research prior to obtaining a mortgage than medium to high income earners. An additional 43% of the lower income earners also reported not understanding their mortgage rate. Another 10% of the lower income earners reported paying more than expected in closing costs than higher income earners.
While mortgage rates and contracts are naturally more complicated than television discounts and buy-one-get-one sales, they can be easily explained by professionals probably in less time than it takes to wait in the lines at the mall during Black Friday sales.
The deals afforded by current record low mortgage rates are also enough to have even the stiffest of extreme shoppers excited. So the next time you plan on camping out overnight in front of the local Best Buy, maybe consider taking the opportunity to call a few local mortgage professionals and ask about current refinance and purchasing opportunities while you wait. You just may find that you’ve been missing out on deals that will save you way more than Black Friday ever could.
Friday, June 8, 2012
A Client Shares His Experience With the Stuart Epstein Team
My experience with Carrollton Bank regarding my mortgage was more than just professional; it was exceptional. I have worked with larger financial institutions in the past with mortgage products, and you feel like a number in a queue rarely speaking with the same person twice. I even had a lender tried to rip me off. My experience with Stuart, Jen and Robert could not have been more different.
I was to close on my house by the end of June, and things fell through with the lender I was working with over a paperwork discrepancy. In a near panic that resulted in coffee being spilled on several of my documents when I arrived on their doorstep, Stuart and Jen took me in, and calmed me down. I explained the situation, and they assured me that things were doable. There may have even been ice cream cake, although I am not sure if that was for all new customers or if I was just at the right place at the right time! Once I was under their care things moved quickly, and they did what was needed to get the loan through under a very tight schedule in a very busy time period.
I cannot thank them enough for what they were able to do for me and in the time frame in which they did it. My new house was only possible because of their team, and I will certainly work with them in the future.
Thanks guys!
Matt Folley
I was to close on my house by the end of June, and things fell through with the lender I was working with over a paperwork discrepancy. In a near panic that resulted in coffee being spilled on several of my documents when I arrived on their doorstep, Stuart and Jen took me in, and calmed me down. I explained the situation, and they assured me that things were doable. There may have even been ice cream cake, although I am not sure if that was for all new customers or if I was just at the right place at the right time! Once I was under their care things moved quickly, and they did what was needed to get the loan through under a very tight schedule in a very busy time period.
I cannot thank them enough for what they were able to do for me and in the time frame in which they did it. My new house was only possible because of their team, and I will certainly work with them in the future.
Thanks guys!
Matt Folley
Tuesday, April 10, 2012
Carrollton Bank Has Merged With Bay Bank
Big news came out yesterday! Carrollton Bank has come into a merger agreement with Bay Bank. This will make us one of the most well capitalized community banks around. We are very excited about this change here at Carrollton. It will enable us to increase our presence and provide even better programs and services to our clients.
If you would like more information about the merger, you can view the press release here.
If you would like more information about the merger, you can view the press release here.
Monday, March 26, 2012
New FHA Changes Effective April 9th, 2012 – Is it a Game Changer?
Have you heard that there are changes coming on FHA mortgages, but unsure how they will affect you or your clients? Here is a simple breakdown of the changes:
On a $200,000 home purchase, under the existing structure, the payment (excluding property tax and insurance) on a 30 year fixed rate loan with an interest rate of 3.75% would be $1088/month. Under the new plan effective April 9th, the payment will go to $1110/month.
So on a $200,000 purchase; it will cost you $22 more a month for an FHA mortgage AFTER April 9th.
The good news is the required down payment will still be the same. In this example, that would be $7000 required down. Don’t forget that if you are a 1st time homebuyer, you may qualify for help with down payment, like the FHLB or the Maryland Mortgage Program, just to name a couple.
There are different FHA mortgage insurance rates when the down payment is greater than 5%, and also for 15 year mortgages. If you would like a breakdown of these rates and how they may affect financing, don’t hesitate to ask the Stuart Epstein team to provide you with the numbers.
Also, if you have 5% to put down, you may want to ask us to help you compare the costs and benefits of Conventional financing as an alternative to FHA. Depending on credit and other factors, you may save a ton on money by knowing ALL of your options!
Lastly, stay tuned for exciting refinancing benefits coming in June for those with existing FHA mortgages…
Happy House Hunting!
Please contact the Stuart Epstein team if you have any questions! Call us 410.491.0200 or email me directly at sepstein@carrolltonbank.com.
Up-front Premium – 30 year mortgage
- Existing Up-Front MI premium (financed into the loan) - 1% of loan amount
- New Up-Front MI Premium effective April 9th - 1.75% of loan amount
Monthly MI – 30 year mortgage
- Existing Monthly MI rate - 1.15% assessed annually
- New Monthly MI rate effective April 9th - 1.25% assessed annually
On a $200,000 home purchase, under the existing structure, the payment (excluding property tax and insurance) on a 30 year fixed rate loan with an interest rate of 3.75% would be $1088/month. Under the new plan effective April 9th, the payment will go to $1110/month.
So on a $200,000 purchase; it will cost you $22 more a month for an FHA mortgage AFTER April 9th.
The good news is the required down payment will still be the same. In this example, that would be $7000 required down. Don’t forget that if you are a 1st time homebuyer, you may qualify for help with down payment, like the FHLB or the Maryland Mortgage Program, just to name a couple.
There are different FHA mortgage insurance rates when the down payment is greater than 5%, and also for 15 year mortgages. If you would like a breakdown of these rates and how they may affect financing, don’t hesitate to ask the Stuart Epstein team to provide you with the numbers.
Also, if you have 5% to put down, you may want to ask us to help you compare the costs and benefits of Conventional financing as an alternative to FHA. Depending on credit and other factors, you may save a ton on money by knowing ALL of your options!
Lastly, stay tuned for exciting refinancing benefits coming in June for those with existing FHA mortgages…
Happy House Hunting!
Please contact the Stuart Epstein team if you have any questions! Call us 410.491.0200 or email me directly at sepstein@carrolltonbank.com.
Saturday, January 21, 2012
The FHLB Grant is Back!
Carrollton Mortgage Services is proud to be one of very few lenders in the State to offer this 1st Time Buyer Grant; Buyers may be eligible for $5000 towards their closing costs and down payment on a home! FHLB is a forgivable grant (20% each year up to 5 years total) and is issued at settlement toward the down payment. The $5000 grant is per household, and is allowed to go towards a buyer’s FHA 3.5% minimum requirement for down payment.
Borrowers must meet just a few requirements to qualify for the wonderful grant and it is on a first-come, first-serve basis.
Carrollton helped over 135 1st time buyers just last year alone achieve the dream of homeownership with the FHLB Grant. We also have several other down payment and closing cost assistance programs to offer that can be used in conjunction with FHLB or independently as well.
If you or anyone you know might be able to benefit from these funds, please don’t hesitate to call on us to help! Email at sepstein@carrolltonbank.com or call 410.491.0200.
Borrowers must meet just a few requirements to qualify for the wonderful grant and it is on a first-come, first-serve basis.
Carrollton helped over 135 1st time buyers just last year alone achieve the dream of homeownership with the FHLB Grant. We also have several other down payment and closing cost assistance programs to offer that can be used in conjunction with FHLB or independently as well.
If you or anyone you know might be able to benefit from these funds, please don’t hesitate to call on us to help! Email at sepstein@carrolltonbank.com or call 410.491.0200.
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