Can you Refi?

I found this article on Marketwatch.com today. It is titled “Battle Plan for Refinancing Your Mortgage”. This story provides you a good outline on why it’s a great idea to refi right now, but why you might not be able to. Since 2007 mortgage funding has dried up. It has become harder then ever for people to obtain a mortgage. The biggest factor in getting denied for a loan is equity.

Since home prices have plummeted since 2006, equity is getting harder to come by. Some statistics state that 62% of all homes are underwater. This means that 62% of homeowners owe more on their mortgage then their home is worth. At the same time, this stat is a little bit skewed. Home prices are locally, not national. Some homes in MN have not gone down in value as much as other homes.

I suggest that you read this article and then find out if you can qualify for a mortgage. Rates have never been lower then right now. Please contact me if you would like an honest look in to your mortgage options.

http://www.marketwatch.com/story/a-battle-plan-for-home-refinancing-2009520548520

4 factors for a mortgage

This article was posted on bankrate.com and provides a great mnemonic called the “Four C’s”
The four C's

Capacity, which refers to the adequacy of the borrower's income to pay the interest and principal due on the loan, plus property taxes and homeowners insurance.

Character, which refers to the borrower's track record of paying debts as evidenced by his or her credit history and credit score.

Capital, which refers to the borrower's down payment (or equity) as a percentage of the current value of the home.

Collateral, which refers to the safety and soundness of the home and the value of the home as determined by an appraisal relative to the agreed-upon purchase price.

- Greg Gwizdz, nationalsales manager for Wells Fargo Home Mortgage in Des Moines, Iowa. 7/10/2008

If you are okay according to the four C’s you should be able to get a mortgage. You might also be able to obtain a mortgage if one of these C's is a little weaker then the other one. For example, you have a ton of equity (>35%) and have a lower credit score. You will be able to get a loan or vice versa, you have little equity, but a terrific credit score.

The truth is that there are tons of products on the market for consumers. Don’t be too concerned about not getting a loan if you live within your means and have a good credit score.

If you have any questions regarding your current mortgage, please contact us @ http://www.thesatorigroup.org/.If you meet all of the four C's you might be a perfect fit for our SWBStm.

http://www.bankrate.com/brm/news/mtg/20080710-mortgage-requirements-a1.asp