Rochester Mortgages

First Time Homebuyer Credit Coming to an End

2009-09-07T09:59:00.000-04:00

If you live in Rochester, NY and are hoping to receive the $8,000 First Time Home Buyer credit you are running out of time. In order to receive the $8,000 first time homebuyer taxcredit you must close on the purchase of your new home before December 1, 2009 and have not owned a primary residence in the past three years.

$8,000 First Time Home Buyer Tax Credit

2009-04-30T08:30:00.001-04:00

The $8,000 First Time Home Buyer Tax Credit has generated a lot of questions in the Rochester area. Hopefully I can clear up some of these with a little FAQ:

How Do I Qualify For the $8,000 First Time Home Buyer Tax Credit?
If you are a first time home buyer in the Rochester, NY area you will qualify for the First Time Home Buyer Tax Credit if you purchase a home and take possession on it by December 1, 2009.

Will the First Time Home Buyer Tax Credit Automatically Give Me $8,000?
Not necessarilly. The first time home buyer tax credit will give you 10% of the purchase price of the home, with a maximum of $8,000. If you purchase a home for less than $80,000 the credit you recieve from the first time home buyer tax credit will be less.

Will I Recieve Funds from the $8,000 First Time Home Buyer Tax Credit at or before closing?
No. You must buy the home using a mortgage or your own funds. The First Time Home Buyer Tax Credit will not be awarded until you file your new tax retun.

For the Purposes of the Tax Credit, what is a "First Time" Home Buyer?
You will be eligible for the $8,000 First Time Home Buyer Tax Credit if you have not had ownership interest in a home in the last 3 years.

If you have additional questions that you would like answered please post them in the comments section below. We are happy to help you understand the $8,000 First Time Home Buyer Tax Credit.

What to Consider When Refinancing Your Mortgage

2009-03-27T14:13:00.002-04:00

When you're making your decision, there are numerous things to keep in mind.

First, even a small rate reduction can quickly pay off. That is because you can usually find mortgage companies that are willing to waive some routine mortgage refinancing charges such as application fees, processing fees and legal fees (which can add up to $1,500 to $3,000). Of course, in exchange for reduced up front costs, you may have to accept a rate that is a little higher than the market’s best interest rates.

Second, if you are planning to stay in your home for at least three to five years, it may make sense to pay "discount points" (a point equals 1% of the loan amount) and closing costs to get the lowest interest rate possible on your refinance.

Third, you can avoid laying out cash and still get a low rate by rolling the points and closing costs into your new mortgage. Does that mean acquiring a lot of extra debt? Not necessarily. If you've had your current mortgage for at least three years, you've probably reduced your balance by a significant amount. You may be able to add your closing costs into your new loan and still wind up with a mortgage that's smaller than your original one -- plus, of course, a lower rate and lower monthly payment.

You should use our mortgage calculator to determine how much you will save by refinancing your mortgage.

Rochester Mortgage Rates

2009-03-27T12:22:00.010-04:00

Rochester Mortgage Rates for March 31, 2009 are listed below:

30-year fixed rate conforming
0.000 Points - 5.000% 5.045% APR
0.375 Points - 4.875% 4.953% APR
0.750 Points - 4.750% 4.860% APR
1.250 Points - 4.625% 4.778% APR
1.625 Points - 4.500% 4.685% APR

25-year fixed rate conforming
0.000 Points - 5.000% 5.045% APR
0.375 Points - 4.875% 4.953% APR
0.750 Points - 4.750% 4.860% APR
1.250 Points - 4.625% 4.778% APR
1.625 Points - 4.500% 4.685% APR

20-year fixed rate conforming
0.000 Points - 5.000% 5.045% APR
0.375 Points - 4.875% 4.953% APR
0.750 Points - 4.750% 4.860% APR
1.250 Points - 4.625% 4.778% APR
1.625 Points - 4.500% 4.685% APR

15-year fixed rate conforming
0.000 Points - 4.750% 4.827% APR
0.375 Points - 4.625% 4.759% APR
0.625 Points - 4.500% 4.671% APR
1.000 Points - 4.375% 4.603% APR

10-year fixed rate conforming
0.000 Points - 4.500% 4.610% APR
0.375 Points - 4.375% 4.566% APR
0.625 Points - 4.250% 4.495% APR
1.000 Points - 4.125% 4.451% APR

The Rochester Mortgage Rates listed above assume a conventional mortgage with conforming dollar amounts of $417,000 or less for a single family residence and $533,850 or less for a two-family, owner-occupied residence.

All Rochester Mortgage Rates assume qualifying credit and meeting underwriting quidelines. APR assumptions based on $100,000 loan and $509 in fees (plus applicable points). Fees included in APR are application fee of $250, Tax Service Fee of $69, Flood Certificate of $15, and Underwriting fee of $175.

It is important to note that each individual loan is different. The above list summarizes typical Rochester Mortgage Rates. The mortgage rates that you receive may be higher or lower. Rochester Mortgage Rates are not guaranteed by the management of this website.

Tips for 2nd Mortgages

2009-03-16T16:20:00.003-04:00

2nd Mortgages may be an attactive option if you are looking for some extra money. Second mortages, or home equity loans, allow you to tap into the value of your home to obtain any cash that you may need.

When shopping for 2nd mortgages make sure that you understand all the details associated with the loan. Pay particular attention to items that may affect your future payments, such as changes in interest rates, prepayment penalties or penalties for late payments. There are many homes on the market because people obtained mortgages without understanding what would happen to their payments in the future.

when you are looking for cash an alternative to 2nd mortgages may be a mortgage refinance.

Information on VA Home Loans

2009-03-13T10:48:00.004-04:00

we've been working diligently on creating a site dedicated to VA Mortgages. we understand that there are many new veterans that are having troubled understanding and obtaining the home loans that they are entitled to.

If you have questions about VA Mortgages please stop by the new website and post your comments. Hopefully we can help you and other people may have similar questions.

The new site is still under construction, but there is a lot of good information on VA Mortgages loaded on already. If you are looking for more information on VA home loans please stop by VA Mortgages Made Easy.

First Time Homebuyer Programs Rochester, NY

2009-03-09T15:44:00.004-04:00

Home ownership in the Rochester, NY area is reaching an all-time high. One reason is the number of first-time home buyer assistance programs available. The biggest hurdle for most people is coming up with the down payment. There are a number of programs available to help with that, including zero down and down payment assistance.

Many of the first time homebuyer programs allow the prospective homeowner to move into their new home with little or no money down.

We can help you qualify for any one of these programs. Let’s find the right program for you and get you started on owning a home. Now is a great time for first home buying.

Closing Costs When Buying a Home

2009-03-04T13:03:00.004-05:00

Closing on a property is a very challenging time for a would-be homeowner. Being informed, either through your mortgage broker, your real estate agent, or through self knowledge is the best thing you can be when going through this procedure.

A good real estate agent can help you tremendously. They should know the local market well enough to help you save money in whatever way they can. Since closing costs are handled differently in different areas, having a professional with experience in that area is your best bet. They can give you a better idea of what costs are customarily paid by the buyer, and which ones are paid by the seller.

The mortgage broker you deal with can make a big difference in your closing costs too. Have them show you several programs suited to your needs. There are lots of ways to structure closing costs based on your points and down payment.

After finding a property, you will want to get qualified by your mortgage broker. Your mortgage broker will send you a Good Faith Estimate within 3 days as required by law. A GFE is a list of your closing costs from your lender. There may be additional closing costs that the lender does not control, so always be prepared to pay for other items also. A good number to be prepared to pay would be to double the GFE amount.

Closing costs on average are from 3% to 5% of your loan amount, and the exact amount will be told to you the day before the closing. All closing costs are to be paid at the settlement of the mortgage loan.

There are two types of closing costs

Non-recurring closing costs are the ones that you pay once and never have
to pay again.

Recurring closing costs you pay repeatedly over the course of your home ownership.
These would be items like property taxes or homeowner insurance. Property taxes
placed in escrow are one of the largest expenses at closing.

The following is an alphabetic listing of the items that may be on your Good Faith Estimate (GFE). Some items listed here may not be on your GFE.

Loan Origination Fee
Loan Discount fee
Loan Application fee
Points to be paid
Lender’s attorney fees
Buyer’s attorney fees
Appraisal fee
Credit Report
Lender’s Inspection fee
Mortgage Broker commission or fee
Tax service fee
Processing fee
Underwriting fee
Wire transfer fee
Interest from the day of settlement to the date of the first mortgage payment
Private Mortgage Insurance (PMI)
Hazard Insurance premiums
Property taxes from the day of settlement to the end of the tax year
Settlement or closing/escrow fee
Notary fee
Title search & Title insurance to protect your lender
Title insurance to protect you
Recording fees
Tax stamps
Pest inspection

Your closing procedure will go smoothly when you are armed with the right information and guided by the right real estate and mortgage professionals. Good Luck & Happy Home Buying!

Rochester, NY City Living Sundays

2009-03-04T09:41:00.003-05:00

Rochester, NY Mayor Bob Duffy has brought back the very popular "City Living Sundays" to help promote home ownership in Rochester, NY.

City Living Sundays have a fair like atmosphere and provides one-stop shopping for purchasing a home. There will be lenders on hand to help with financing, "How-to-Buy" Seminars, Affordability Counseling, City School and Neighborhood
Information, and, of course, the Open Houses!

City Living Sundays begin March 22, 2009 at Theodore Roosevelt School #43, 1305 Lyell Ave. and continues March 29, 2009 at East High School, 1801 E. Main St.

Rochester, NY has been named in Forbes Magazines "Top 25 Housing Markets." We never saw the explosive growth in home prices that much of the nation has seen. As a result we haven't seen declines in value either. Real estate in Rochester, NY is expected to appreciate at a rate of 3% annually.

If you've ever thought about buying a home in Rochester, NY you should be sure to attend City Living Sundays.

Why You Should Buy a Home in Rochester, NY

2009-03-03T15:41:00.001-05:00

The reasons for home ownership in Rochester, NY are personal and plentiful. Your home is a place to shape and call your own...It is the core of the Great American Dream.

The home you purchase will usually be a very solid and stable investment. Not only will it provide you with money saving tax benefits, it will also help you build equity for a stronger financial future. Many people think of their home as an investment that you can live in thatdelivers a great return as your home continues to increase in value.

Buying a home is a big step. One that many people find incredibly daunting. How do you know when to jump into the market? Where should you begin? How much can you spend? The questions seem to keep coming and coming.

But there is good news. At Rochester Mortgage we have pared all the essentials of home buying down into a few easy steps. If you have just begun thinking about buying a house you have come to the right place.

Bi-Weekly Mortgages

2009-03-03T14:45:00.000-05:00

A Bi-weekly Mortgage Payment is a mortgage loan requiring half of the agreed upon monthly payment every two weeks. This results in a larger amount being paid each month, which reduces the principle balance and the length of the term.

By making Bi-weekly payments a borrower can significantly reduce the amount of time and money they spend on their mortgage payments. On a typical 30-year mortgage in Rochester, NY of $125,000 with a fixed rate of 6.5% a home owner would pay off their loan 5 years and 11 months earlier and save a whopping $36,738.95 in interest.

You can use our bi-weekly mortgage calculator to determine how much you can save on your mortgage by making bi-weekly payments.

Which Mortgage is Right For You?

2009-03-03T14:43:00.000-05:00

You’ve found the home that is right for you, and now you need to do the same thing for a mortgage. There are several options for people out there, each one designed for a different type of buyer.

You need to ask yourself several questions when searching for a mortgage type.

How long am I planning on being in this home?
What monthly payment can I afford?
What type of payment fits into my long-term financial plan?
What type offers me the best rate for my situation?

Since most people like the security of knowing what their payments will be long term, many will get a 15 yr. Or a 30 yr. Fixed rate loan. But this may not be what would work best for you. Below are some things to consider when making your selection:

Fixed Rate Loan-This works well for those with a steady income who like the stability of knowing what their monthly payments will be. If you have little or no down payment, a 30 yr. Fixed Rate loan is probably the best one for you. If you have a larger down payment and can afford a higher monthly payment you can opt for a Fixed Rate loan for 15 yrs., or even in lengths of 10, 20, or 25 years. Some lenders offer 40-year mortgages, which would allow some people to buy a larger house without the larger payment. The longer the loan terms, the more interest you end up paying. You always have an option to pay additional principal as the loan progresses. This would decrease the amount of interest you pay on the loan long term, and shorten the length of the loan.

Variable Rate Loan-Most Variable Rate loans start out with a fixed rate for a specified length of time and change to a variable rate loan. These work well when people expect their income to increase dramatically after a few years, or those planning to move from the house after a few years. The most common loan lengths are 3/1, 5/1, 7/1, and 10/1. The first number is the length of time in years the loan is at a fixed rate. The second number is the length of time in years that it would adjust in after the fixed rate period. There is a cap on the amount of percentage points it can go up after the fixed rate period. It is usually 2% a year. With these types of loans you may pay more principal and less interest in the long run.

Biweekly Fixed Rate Loan-This loan type works similar to the fixed rate loan, but essentially is a guarantee that you will put extra money toward your principal. You pay half your payment every two weeks instead of monthly. You end up making 13 payments a year instead of twelve, thereby reducing your principal early and reducing the length of your loan.

With some careful consideration on your part you will be picking the perfect loan for you in no time at all.

VA Mortgage Loans

2009-03-03T14:41:00.001-05:00

Uncle Sam has a gift for the men and women who serve our country. It is the VA loan. The VA loan, short for Department of Veterans Affairs home loans, is available to veterans, active service members, reservists, and members of the Public Health Service. These loans are so popular, that in the past fiscal year alone, Uncle Sam has guaranteed 300,000 VA loans totaling more than $38 billion.

Why are these loans considered a gift to our servicemen and women? Because VA loans require no down payment and are available from most lenders. Additionally, the government limits the amount of closing costs, origination fees, and appraisal fees. Because VA loan rates generally run the same as conventional rates, skipping the down payment is a big advantage. Not surprisingly, about 91 percent of VA buyers do just that.

Best of all, there is no private mortgage insurance (PMI) because the government prohibits lenders from requiring it. Not having PMI is a considerable cash savings for a borrower. For example, on a $126,000 loan, PMI would run approximately $40 to $64 a month for the first three to five years of a 30-year loan. The total savings? $1,440 to $3,840.

However, there is a downside:
* FUNDING FEES - In 1982 Congress levied a one-time funding fee on VA loans. And these fees can range anywhere from 1 1/4 percent to 3 percent, depending on the veteran’s service and whether it’s a first or subsequent loan. Although the VA will lower the fee if the borrower makes a down payment of at least 5 percent, and a buyer can finance the fee along with the home, there is a hidden cost. For example, on a $126,000 mortgage, a 2-percent fee can bloom into $14,474 over the 30-year life of a 6-percent loan.

* LOAN LIMITS - The maximum guaranteed is $240,000, yet buyers in high-priced markets such as California or Manhattan may have to evaluate other options for their financing. And while the eligibility certificate indicates how large a loan the government will guarantee, the vet may not be eligible. Just like a conventional loan, the actual mortgage amount will be based on income, assets, debts and credit history.

* QUALIFIYING - VA loans are available for active and former members of the armed forces who have a specific length and time of service and discharge conditions. Reservists and National Guard members may be eligible if they served at least six years and received an honorable discharge. Veterans discharged for a service-related disability are potentially eligible, as are some members of the Public Health Service and foreign veterans who served with the Allied forces during World War II. Additionally, a widow or widower may also apply for a loan, provided the spouse’s death was service related. MIA and POW spouses may also qualify.
Applying for a VA loan is no different than applying for a conventional loan, except that one needs to obtain a certificate of eligibility from the VA. Not only are VA loans easy to get, Uncle Sam has made it even easier this year. The actual loan process takes about two to six weeks, the same time as a conventional loan. And just about every lender that handles FHA or conventional loans also makes VA loans.

Yet the greatest gift of all remains the fact that VA loans allow a buyer to purchase a home without investing a down payment. And that is a very good gift indeed.

Cancelling Private Mortgage Insurance

2009-03-03T14:40:00.000-05:00

Private mortgage insurance, or PMI, is the safety net of the lender. PMI benefits lenders because it guarantees payment on the balance of loans not covered by the sale of foreclosed properties.

If a borrower makes a down payment of 20% of the cost of the home, the lender can generally trust that he will make his mortgage payments faithfully to protect a large investment. In this case, the lender comes out ahead if the borrower is forced to foreclose on his house, because the lender loans 80% of the cost of the house, but will probably recover 100% of the cost of the house. But, if the borrower makes a smaller down-payment, such as 3%, 5% or 10%, and borrows the rest, and then defaults on his loan, the lender loses money.

If a house is purchased with a conventional mortgage and a down payment of less than 20 percent, PMI is almost always a requirement. The insurance benefits the lender, but the borrower pays for it. An initial premium is included in the closing costs, and a monthly amount in the house payment.

The PMI cost varies depending upon the size of the mortgage and the percentage of the down payment. If the down payment is more than 15 percent but less than 20 percent, the borrower will generally pay about 0.32 percent of the loan amount annually in PMI premiums. That totals about $40 a month for a $150,000 mortgage.

But PMI is not fool-proof. Homeowners can sometimes eliminate private mortgage insurance by refinancing their loans -- even if they continue to owe more than 80 percent of the value of the house. And there are new laws that require lenders to remove PMI if a mortgage does not exceed 80% of the value of a home. But, this new law only applies to loans recorded after July 29, 1999. If a borrower has a loan that was recorded before July 29, 1999 and thinks he might like to cancel the mortgage insurance after a few years, he could, depending on the conditions and whether the insurer allows cancellation.

The most common method used to avoid paying private mortgage insurance is for a borrower to get a "piggyback loan" - a second mortgage that allows him to make a 20 percent down payment. For example, a borrower can pay 10 percent down, get a first mortgage of 80 percent, and a second mortgage of 10 percent. The piggyback loan is always at a higher rate. The borrower is not paying for PMI, but is still making a monthly payment, probably for roughly the same amount as PMI. A piggyback loan also has an income tax advantage because it allows the borrower to deduct the interest from his taxable income. However, he can’t deduct the cost of PMI.

For homeowners who owe between 80 and 83 percent of the house’s value, the best way to avoid PMI when refinancing the loan is to find a lender that won’t immediately sell the mortgage on the secondary market. Generally, to eliminate PMI, a homeowner must have a spotless mortgage payment history and be able to fit a certain profile of borrower. Examples of good candidates include:

A homeowner who is refinancing a mortgage and has had no late payments in the last year or two.
Someone who is barely over the 80-percent PMI threshold. (For example, if he owes $85,000 on a $100,000 house, he probably won’t get a break on PMI, but someone who owes $82,000 might.)
A homeowner who is otherwise creditworthy -- has a high credit score, a stable job, and a good ratio of income to debt.

Even with these credentials, the homeowner must try hard to find a lender that keeps mortgage loans on its books and is willing to take the risk. Most mortgage lenders don’t hold loans for long. They bundle mortgages together and sell them to large investors such as big banks, insurance companies, pension funds and institutions such as the Federal National Mortgage Association, known as Fannie Mae.

The reason for selling mortgages is to free up money to lend again because the original lender gets most of its money (and profit) from fees and the sale of the loan, not from interest. The investors who buy pools of loans ultimately earn the interest that borrowers pay.

PMI assures investors that their bundles of loans won’t go bad. Homeowners who put less than 20 percent down are more likely to default. That is why they’re required to have private mortgage insurance. Otherwise, the loans won’t be marketable.

Truths and Myths About Your Credit Score

2009-03-03T14:24:00.000-05:00

There are several very important truths about your credit score:

Truth #1: Your credit score is the single most important factor determining whether you’ll get approved for a mortgage, car loan, refinance loan, or credit cards.

Truth #2: Your credit score affects your APR. If it's low, you'll pay very high interest rates, up to 23%.

Truth #3: Your credit score may affect how much you pay for car insurance, since insurance companies usually run a credit check before selling you insurance.

Truth #4: Your credit score may even affect whether or not you are hired for a job, especially if it’s a managerial or financial position.

Truth #5: You have three credit scores, one from each of the three major credit bureaus, and the scores may vary by as much as 50 points or more.

There are also many widely distributed untruths, or myths, about credit scores:

Myth #1: Checking your own credit will lower your score.

The truth is you can check your credit through the bureaus or a legitimate score seller like MyFICO.com, as often as you wish without impact.

Myth #2: Your age, employment, race, gender, and income are factored into your score.

Personal information, net worth, and income do not affect your credit score. However, eliminating debt will improve it.

Myth #3: Credit Repair companies can remove all negative information.

You can dispute inaccurate information and credit agencies are obligated to investigate credit inaccuracies within 30 days or remove disputed information. However, no one can remove negative (but accurate) information from your credit report.

Myth #4: Too many credit card offers and shopping for loans will hurt your score.

It is true that too many inquiries will lower your score. However, you can shop for a mortgage, home equity loan, or car loan as long as these inquiries are made within 14 days of each other, so they count as one inquiry.

However, this grace period does not apply to credit cards. Credit card offers do not affect your score as long as you don’t respond to them and use all the credit available to you. However, if the ratio of used-to-available credit is high, it reflects a higher risk. Always keep balances below the available credit line.

Myth #5: Marry your spouse and you marry his (or her) credit.

You do not inherit your spouse’s good or bad credit. However, unlike many marriages, your own credit, good or bad, lasts forever.

And when you open joint accounts, the information is reflected jointly, on each of your credit reports.

Conclusion: Take care of your credit score. Your financial health depends on it.

At Rochester Mortgages we strive to make the mortgage process as fast and easy as possible. Click HERE for your FREE mortgage consultation.

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2009-03-01T13:56:00.000-05:00

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Rochester Home Mortgage Loans

2009-01-30T12:02:00.001-05:00

Rochester Home Mortgage Loans are available to all members of the Rochester community that wish to purchase a home or refinance their existing mortgage. Rochester Home Mortgage Loans are available for the following purposes:

Mortgage Refinance to reduce your monthly mortgage payments or shorten the time period of your loan.

+Lower Interest Rates to lower your monthly payment or save money over time.

+Cash Out Mortgages to tap into your homes equity as a ready source of cash.

+Purchase Vacation Homes or weekend homes.

+Investment Properties, rentals or flips

+Commercial Properties for your business or as an investment

+Multi-family and Duplex as owner occupied or investment

+Debt Consolidation to lower monthly payments and reduce high interest credit cards

+Construction Loans to build a new home.

+Cash for Home Improvement or Remodeling

+Poor Credit Mortgages to help you on your path to credit repair.

+Foreclosure Buyouts to help you keep your home

+Extended Terms available to Reduce Monthly Payments

We have a network of experienced home mortgage lenders available that can help with all of your needs for Rochester Home Mortgage Loans.