Choosing a Mortgage Lender

After more than 20 years in the Mortgage Industry, I strive to give each individual client what they need and deserve when buying a new home or refinancing their existing; respect and honesty.  I will be happy to supply you with a free  'Borrow Smart' report that will show you up to 3 loan comparisons for a bigger picture of how we may serve you.  Just go to www.summitfunding.com and look for the Borrow Smart Apply Now tab.  Fill in as much information as you can so that we may look at good alternatives.  If you are first time homebuyer, call us at 1.800.281.1155 to get you started.  Ask for Dave, Your Mortgage Guy!

 

*A lender is critical to the cost and success of your home purchase. For one thing, he holds the purse strings. For another, his level of service can make the difference between a happy new homeowner and a disappointed would-be buyer who missed out on a home.

Beyond finding a good interest rate, you are relying on a lender to lock in your rate fast — if you want that 6 percent rate, he needs to jump on it because rates can change like the wind. You are also relying on him to close the loan on time; you could lose a house if there is a hang-up for some reason beyond your control. And many fees are determined by the lender, fees that can be negotiable if you know what to ask.

Shopping for a lender requires a homework assignment:

• Know thyself. Before you even pick up the phone or turn on the computer, figure out what mortgage type you are looking for. Not all lenders handle all loans. You can be more selective if you know what you're looking for.
• Know thy prevailing mortgage rates. It's easy to compare rates online, and many sites allow you to see the rates from local lenders for various types of loans, but beware that you might need to enter your name and address to see rates.
• Understand the players. Study the types of lenders and their advantages and disadvantages for your situation. Some lend their own money, and others find the money for you.
• Understand the fees. Beyond the interest rates, there are closing fees and points, and occasionally commissions that you don't see. 

(*Originally posted on Zillow)

March Market Update

Follow this link for your March market update!
From Your Mortgage Guy, Dave.

 

Click here 

Make Your IRA Contribution - Borrow Smart Repay Smart

Make Your IRA Contribution - Borrow Smart Repay Smart
There's still time to make a regular IRA contribution for 2011! You have until your tax return due date (not including extensions) to contribute up to $5,000 for 2011 ($6,000 if you were age 50 by December 31, 2011). For most taxpayers, the contribution deadline for 2011 is April 17, 2011. Normally, your tax return must be filed by April 15. However, the IRS has extended the deadline to April 17 this year because April 15 is a Sunday, and April 16 is a holiday in Washington D.C. (Emancipation Day).

You can contribute to a traditional IRA, a Roth IRA, or both, as long as your total contributions don't exceed the annual limit. You may also be able to contribute to an IRA for your spouse for 2011, even if your spouse didn't have any 2011 income.

Traditional IRA
You can contribute to a traditional IRA for 2011 if you had taxable compensation and you were not age 70½ by December 31, 2011. However, if you or your spouse was covered by an employer-sponsored retirement plan in 2011, then your ability to deduct your contributions depends on your filing status and whether your modified adjusted gross income (MAGI) is within prescribed limits (see chart below). Even if you can't deduct your traditional IRA contribution, you can always make nondeductible (after-tax) contributions to a traditional IRA, regardless of your income level. However, in most cases, if you're eligible, you'll be better off contributing to a Roth IRA instead of making nondeductible contributions to a traditional IRA.

2011 income phaseout ranges for determining deductibility of traditional IRA contributions:
1. Covered by an employer-sponsored plan and filing as:
Single/Head of household	$56,000 - $66,000
Married filing jointly	$90,000 - $110,000
Married filing separately	$0 - $10,000
2. Not covered by an employer-sponsored retirement plan, but filing joint return with a spouse who is covered by a plan	$169,000 - $179,000

Roth IRA
You can contribute to a Roth IRA if your MAGI is within certain dollar limits (even if you're 70½ or older). For 2011, if you file your federal tax return as single or head of household, you can make a full Roth contribution if your income is $107,000 or less. Your maximum contribution is phased out if your income is between $107,000 and $122,000, and you can't contribute at all if your income is $122,000 or more. Similarly, if you're married and file a joint federal tax return, you can make a full Roth contribution if your income is $169,000 or less. Your contribution is phased out if your income is between $169,000 and $179,000, and you can't contribute at all if your income is $179,000 or more. And if you're married filing separately, your contribution phases out with any income over $0, and you can't contribute at all if your income is $10,000 or more.
Even if you can't make an annual contribution to a Roth IRA because of the income limits, there's an easy workaround. If you haven't yet reached age 70½, you can simply make a nondeductible contribution to a traditional IRA, and then immediately convert that traditional IRA to a Roth IRA. (Keep in mind, however, that you'll need to aggregate all traditional IRAs and SEP/SIMPLE IRAs you own (other than IRAs you've inherited) when you calculate the taxable portion of your conversion.)
Finally, keep in mind that if you make a contribution to a Roth IRA for 2011--no matter how small--by your tax return due date, and this is your first Roth IRA contribution, your five-year holding period for identifying qualified distributions from all your Roth IRAs (other than inherited accounts) will start on January 1, 2011.

Reposted by permission from Todd Ballenger

Consumer credit balances rising again, watch out if you want to own a home!

This article summary comes from Todd Ballenger, a friend and mentor of mine.  We spend time every week focusing on trends that effect you as a future home buyer and those that already own a home:

From Moody's:  "Consumer credit balances rose rapidly for a second consecutive month. The primary driver of the rise in credit remains the nonrevolving segment. Revolving credit appears to have broken from its holding pattern, as balances have increased in four consecutive months. Banks’ increasing willingness to extend consumer loans is boosting confidence to access credit. While recent growth cannot be sustained, the general pattern will be one of acceleration through 2012 as the recovery strengthens."
Overall, things are getting brighter, but under the covers we haven't solved a lot of problems that still need attention - play hard, play smart, manage your risk.

Related articles

• Consumer Credit Erupts For Second Straight Month (blogs.wsj.com)
• Spending (Borrowing) Increases with Confidence (toddballenger.typepad.com)
• Credit-Card Borrowing Surged Over Holiday Period (blogs.wsj.com)

You Snooze You Lose

Ran into an old friend, David, at a party last night. After the usual pleasantries the conversation turned to mortgages and interest rates. I shared with David how we can do a Zero Cost Refinance which would allow someone with an existing 30 Year Fixed mortgage at 5.875% to refinance into a 20 Year and maintain the same payment. 

How significant is that? One of my clients will save almost $140,000 by refinancing. Where I come from we call that Money.

David commented that there is no rush after all the Fed has announced that they will keep rates down for the next two years. That sentiment is widely held - but not necessarily correct. The Fed is promising to keep overnight rates low.  However, there is no guarantee that Mortgage Rates will remain low.


How do you decide? Simple. Figure out what you would save if you refinanced today. Decide if your savings are compelling enough to act. If they are, don't wait. There is greater risk that rates will rise than there is opportunity for lower rates. And, with a Zero Cost Refinance, you could do it again if rates do drop significantly.

Summit Funding   Registered Mortgage Broker (NMLS #52081) New York State Department of Banking

Summit Funding   Licensed Correspondent Mortgage Lender (NMLS #301151)  New Jersey Department of Banking and Insurance

Summit Funding Inc, Your Mortgage Professionals  Licensed Mortgage Broker (NMLS #84943)  State of Connecticut Department of Banking

How Serious Are Your?

I read a twitter post the other day by Debra Hoffman Brill: "Serious Buyers go out in this heat - and I'm there with them..."

That set me to thinking... If serious buyers go out in the heat, what do serious professionals do?

My first answer is that serious professionals stand by their work.  What do I mean? I mean that professionals should be prepared to guarantee the quality of their work. I back my preapprovals with a $5000 Guarantee.

What do you do to show how serious you are?

Please check out my new site ...

Financial experts estimate that only 40% of the people who should refinance have done so. For some, it is because they do not want to pay up front. Many do not realize that they can refinance at no cost. My new site, zerocostrefinance.com is intended to help people figure out of it would be possible for them to do so.  Please take a look Here and let me know what you think.