Pay off the mortgage before retirement?

We are the New Jersey title insurance agent that does it all for you. For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us, Vested Land Services LLC. We can help!

Question posed by a homeowner nearing retirement: 

Should we pay off our mortgage early if we can afford it?

The answer, from NJMoneyHelp.com is not simple. There are some pros and several cons about it.

Q. I am 60 and my wife 56. We plan to move in four or five years. At that time, I will retire and our adjusted gross income will drop by 60 percent. We plan to buy a home without a mortgage. We currently earn $200,000, and our 15-year mortgage is about $250,000 with a 2.99 percent rate. We paid $7,000 in interest last year. The mortgage would be paid off in 2030. Based on an accelerated payment of $1,000 per month, we’d have the mortgage paid off in 2025 with an interest savings of $30,000. In all, we’d pay $60000 more to save $30,000 in interest. Is it worth it? — Almost retired

A. Paying off a mortgage isn’t always a slam dunk.

It might seem to provide peace of mind and be a no-brainer if you can afford it, but there’s more to consider, said Ken Van Leeuwen, a certified financial planner with Van Leeuwen & Company in Princeton.

Pre-paying the mortgage would eliminate five years of tax deductions of mortgage interest, he said.

The tax deductions could be helpful for offsetting some income tax burden if you take money from your 401(k) and other qualified retirement accounts when you retire.

You should also consider any additional debt that you are currently carrying.

“With an interest rate of 2.99 percent, you may want to consider paying down other debts that have less favorable rates such as credit cards,” he said.

And as you get closer to retirement, if you aren’t already, you should consider maxing out your retirement accounts to take full advantage of any employer matching contributions and additional tax deductions, he said.

In looking at the purchase of your new home, for some clients, Van Leeuwen said, he has recommended taking a partial mortgage because it presents some advantages.

“Assuming you can afford the mortgage payments out of retirement cash flow, taking a partial mortgage allows you to fund the purchase of your home at a relatively low interest rate,” he said. “In doing so, you free up additional capital which can be used in a more beneficial way.”

He said putting a large amount of capital into a new home, potentially limits opportunities for future growth because you are tying up a large portion of funds into a “non-working asset.”

“Instead of using the sales proceeds from your current home to fund the purchase of your new home, consider investing these funds,” he said. “While it is certainly not guaranteed, we have seen that historically, over long periods time investments in a diversified portfolio can provide growth that outpaces mortgage interest while still allowing you to deduct your mortgage interest.”

Email your questions to Ask@NJMoneyHelp.com.

This story was originally published on Sept. 18, 2019.

We can't advise you on matters such as tax planning for retirement, but we sure can give advice when it comes to your home purchase and mortgage refinance.  Give us a call! 

For your real estate purchase or mortgage refinance or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow@vested.com

@vestedland

Sphere: Related Content

Weekly mortgage applications tank

Weekly mortgage applications tank even more, as rising rates make homes less affordable

• The numbers are getting uglier for potential homebuyers and homeowners looking to save some money.
• Mortgage interest rates jumped again last week, causing mortgage application volume to fall 6.6 percent from the previous week.
• Volume was just 3.5 percent higher than the same week one year ago, according to the Mortgage Bankers Association.

See the full report at CNBC

For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us. We can help. Located in Fairfield, NJ, we are the title insurance agent that does it all for you.

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow AT vested.com

Sphere: Related Content

Vested Land Services LLC - about underwater properties and their mortgages

We at Vested Land Services LLC are not strangers to the plight of New Jersey homeowners.

They say a picture is worth a 1,000 words.  Well, here's one about underwater properties.

An "underwater" property is one where the value of the property is 75% less than the amount of the mortgage on it.

According to a recent report NJ.COM, hundreds of thousands of NJ homeowners find themselves in this situation.


What's to be done.  Unlike Mrs. Hobbs' request above, there will be no downward adjustment to the monthly mortgage bill.  But there are programs, Federally-backed, that allow the lender to modify mortgage the mortgage balance and restructure the loan in ways that provide some sort of relief to the homeowner.

Vested Land Services LLC, NJ's premier title agency, can help you get going if you want to stay in your home,  Give us a call and we'll get you started in maintaining your dream.

For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us. We can help. Located in Fairfield, NJ, we are the title insurance agent that does it all for you.

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645
www DOT vested DOT com

E-mail sflatow AT vested.com

Sphere: Related Content

Robo-signing still haunts borrowers

For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us. We can help. Located in Fairfield, NJ, we are the title insurance agent that does it all for you.  Call us for a title insurance quote.

* * *

Borrowers, Beware: The Robo-Signers Aren’t Finished Yet



The New York Times' Gretchen Morgenstern writes about the lingering effects of the foreclosure mess created by robo-signing.

Remember the robo-signers, those mortgage loan automatons who authenticated thousands of foreclosure documents over the years without verifying the information they were swearing to?

Well, they’re back, in a manner of speaking, at least in Florida. Their dubious documents are being used to hound former borrowers years after their homes went into foreclosure.

 It seems the lenders are now pursuing deficiency judgments for amounts being the difference between the debt foreclosed and the amount realized after foreclosure sale.

“Sending these cases to debt collectors when the underlying foreclosures involved unlawful robo-signing is unfair and potentially even deceptive,” said Kathleen C. Engel, a research professor at Suffolk University Law School in Boston. “Fannie Mae is not entitled to collect on those debts when the foreclosure was unlawful.”

It's a story worth reading.  Which you can do here.

 

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow AT vested.com

Sphere: Related Content

NY Times real estate trends for 2014

 Karnak says, "real estate is a puzzle."  The question, what will 2014 bring?  The NY Times tries to answer that question, too.

The coming year is expected to be a little kinder to home buyers. While affordability will continue to be a problem in hot markets like New York and San Francisco, buyers in general may find they have more homes to choose from and more lenders vying for their business.

MORTGAGE RATES CONTINUE TO CLIMB. As the economy improves and the Federal Reserve winds down its monetary stimulus, mortgage rates will rise to reflect that lack of stimulus...

But rates will continue to be low and the sign of a stronger economy.

LENDERS LOOSEN UP, A LITTLE. Rising rates will also mean fewer borrowers seeking to refinance out of higher-priced mortgages. Lenders will try to fill that gap in capacity by competing more aggressively for purchase business. 

What will down payment requirements be?  How about credit scores?

Regulatory guidelines that take effect in January will set parameters on how much easing lenders can do without straying outside the government’s “qualified mortgage.” Lending outside that safe harbor isn’t likely to be liberal, and will mainly consist of low-risk loans to the wealthy...

HOMEOWNERSHIP RATES FLATTEN OR FALL. It may seem counterintuitive that the level of homeownership would be unresponsive to improving market conditions. But the national rate is only just stabilizing — at around 65 percent — after dipping from the historically highs during the housing bubble.

 And those young adults who, because of a stronger economy, are finally able to find jobs and move out of their parents’ homes are more likely to rent than buy.

ARMS, CASH-OUT ‘REFIS’ MAKE A COMEBACK. Adjustable-rate mortgages, or ARMs, were viewed as risky after the housing-market collapse. But they are slowly regaining their appeal, and as rates on fixed-rate mortgages rise, more borrowers will take advantage of lower-rate adjustables.[See our earlier post on ARMS.]

Cash-out refinancing was also abandoned after the collapse emptied borrowers of equity [but] interest rates will still be low enough to make cash-out refinancing an option for many people. 

Only time will tell, and that time is just a few weeks away.  Read the full report.

For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us. We can help. Located in Fairfield, NJ, we are the title insurance agent that does it all for you.

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow AT vested.com

Sphere: Related Content

Single women buy more homes than single men

The New York Times reports on an interesting statistic [I do hate statistics] showing that more homes are bought by single women than bought by single men.

The number of single people buying homes has dipped in the last few years, but single women remain better represented among buyers than single men. Today they are buying at roughly twice the rate.

According to the National Association of Realtors, single women accounted for 16 percent of home buyers last year, lower than their long-term average of 20 percent. Yet they were still well ahead of single men, who accounted for only 9 percent.

But it's not all rosy-

But then again, many single women who have never owned a home are intimidated by the process, said Jeanie Douthitt, an agent with Private Label Realty in the Dallas area.

She tries to ease these fears with a step-by-step program she created called Smart Women Buy Homes. The idea is to educate women new to the market, a group that includes single moms, divorcees, recent college graduates and older professionals who have never been married.

Want to read more?  Go to Homeownership: Where Single Women Prevail.

For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us. We can help. Located in Fairfield, NJ, we are the title insurance agent that does it all for you.

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow AT vested.com

Sphere: Related Content

Getting a mortgage will be a bit harder

Realty Times reports: "Fannie Mae Tightens Underwriting Rules for Condo, Refinance Loans, Borderline Borrowers" by Shashank Shekhar.

Fannie Mae is putting the squeeze on underwriting guidelines this fall, making it tougher for some condo, borderline and refinancing borrowers to land a home loan.

Effective Oct. 20, 2012, the stricter rules are designed to reduce Fannie Mae's ever growing exposure to risk. They will also force more borrowers to shop around.

Here are some highlights:

Condominium Loan Documentation – Right now with less than 10 percent down, condo buyers need to complete a two-page condo questionnaire about the homeowner association's financials and provide additional documents including a reserve study, by-laws and a copy of the master insurance policy.

The documents are readily available from the homeowners association, but with Fannie Mae lenders pouring over more documents, there's a greater chance more loans could be denied for failing to meet Fannie Mae's condo loan underwriting criteria.

End of Discretionary Approvals – Discretionary approvals, also called "Expanded Approvals (EAs)" will end for all Fannie Mae refinances, except Fannie Mae's Refi Plus Program loans, also called HARP (Home Affordable Refinance Program) loans.

Self-Employed Borrowers – Fannie Mae will require self-employed borrowers seek a loan to provide two consecutive years of federal tax returns, instead of the current one year tax return requirement for some returns.

Because of the new two-year average approach, one bad year out of two could sink a self-employed homeowner's application even if the most recent year would have qualified him or her under the old rules.

Maximum LTV Reduction for Adjustable Rate Mortgages (ARM) – The current LTV allowed for ARM home purchases and refinances, 97 percent, will be reduced to 90 percent.

You can read the full article here.

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow AT vested.com

Sphere: Related Content

California proposal to condemn mortgages; will it be next in New Jersey?

refinance

In the foreclosure-battered inland stretches of California, local government officials desperate for change are weighing a controversial but inventive way to fix troubled mortgages: Condemn them. Officials from San Bernardino County and two of its cities have formed a local agency to consider the plan. But investors who stand to lose money on their mortgage investments have been quick to register their displeasure. refinance

Of course, there's another investor behind this that will earn fees for arranging the taking of the loans and their restructuring. Others are livid over the proposal. refinance

Timothy Cameron, managing director of the Securities Industry and Financial Markets Association's asset managers group, told the authority that residents of the region would find it harder to get loans and investors — including pensioners — would suffer losses. He also said such a move would invite costly litigation. "The use of eminent domain will do more harm than good," he said. "We need mortgage investors and lenders to come back to these fragile markets — but this plan will force both groups to avoid them."

Will it work in New Jersey? What do you think?
Read the full article - here.

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow AT vested.com

We can help you refinance your mortgage at low cost Sphere: Related Content

Little known fee to raise interest rates

Loan fees are about to rise, and you won't even know it.  The fee in question is a guarantee fee collected by Fannie Mae and Freddie Mac that is part of the interest rate you pay.  It's not set forth on the settlement statement because it does not have to be disclosed.

According to the New York Times,

INSIDE the interest rate quoted on your home lies a small hidden fee that has been charged by government-sponsored entities like Fannie Mae and Freddie Mac for more than three decades. It’s an add-on rate known as the guarantee fee.

Everyone has to make a living, including Fannie Mae and Freddie Mac, don't you think?  But just think of the fees collected over the years that seem to have been squandered in the so-called "sub-prime crisis."  In any event, it means a small rise in interest rates is coming in the days ahead.

Read the full story here.

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Title Inc.

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 201-656-4506

E-mail vti@vested.com - www.vested.com

Sphere: Related Content

Turned down for a mortgage? Maybe here’s why

The New York Times’ Vickie Elmer addresses reasons for mortgage loan application rejection.

“WE regret to inform you...” Nobody applying for a new mortgage or a refinancing wants to see or hear these words. But last year more than two million people were turned down for home loans, according to federal data, often because they didn’t meet certain lender requirements or because their applications were incomplete or otherwise problematic. Lenders’ underwriting criteria have become more rigorous in recent years; some banks have tightened up beyond federal requirements.

Here are the six biggest triggers for rejection, according to industry experts.

• INSUFFICIENT INCOME Lenders want to make sure you can afford to make the mortgage payments. Someone who earns, say, $40,000 a year need not bid on a $750,000 apartment, unless there’s a trust fund with quarterly payouts or other money available. Also, lenders typically look for at least a two-year track record of income, which could hurt those who may have switched jobs recently.
• CLOUDY FINANCIAL PICTURE. Generally, total debt payments, including the mortgage, cannot exceed 45 to 50 percent of your adjusted gross monthly income. Borrowers may be surprised at what counts and what doesn’t.
• BAD CREDIT Lenders typically reject applicants with a FICO score below 620. Failing to pay your mortgage on time affects your score.
• LOW APPRAISAL. This is the predominant reason people are denied home loans today, according to industry experts.
• PROPERTY PROBLEMS. Issues within an apartment unit or a house such as major repairs have to be addressed. In our area of NJ, there are several condominiums with lawsuits pending against them that have turned into deal killers.
• INFORMATION MIX-UPS. About 12 percent of new mortgage applications were denied because of unverifiable information or incomplete credit applications, according to the Federal Financial Institutions Examination Council.

Read the full article.

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Title Inc.

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 201-656-4506

E-mail vti@vested.com - www.vested.com

Sphere: Related Content

Is that the best mortgage you can get?

The New York Times suggests vetting the lender when you buy a home.

“BEFORE buying a house, borrowers will undoubtedly do a thorough check of the property, examining its structural soundness and the surrounding neighborhood, among other things; they will research the best type of loan, comparing interest rates, terms and fees. But not all borrowers do due diligence on their lenders.”

“Ferreting out good information is not that easy. For one thing, different kinds of lenders are held to different rules, licenses and disclosure requirements. Some states, like New York and New Jersey, require mortgage brokers to complete criminal background checks through the state police.”

 So what to do? According to industry experts they

“suggest that borrowers focus more on the individual who would be their mortgage broker, loan officer or loan originator. Among the questions borrowers should be asking them: How long have they been in the field? How well or promptly do they answer questions? Do they want to know the borrower’s financial goals? A look at their work experience and background on their LinkedIn profile may also be helpful.”

What should you look for?

• are good listeners, and helpful with personal-finance questions.
• size might be one factor. whether a blemish on a firm’s record, say a large number of foreclosures or a class-action lawsuit settled three years ago, will dissuade you from cultivating a helpful relationship.
• governmental and quasi-governmental sites may be helpful.

A minefield? Maybe. Read the full article to learn more

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Title Inc.

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 201-656-4506

E-mail vti@vested.com - www.vested.com

Sphere: Related Content

Saving money on NY's mortgage tax

A client posed a question yesterday-

"I have a borrower who is trying to save money on a refinance in Manhattan, any ideas?"

"Sure," I said, "use a CEMA."

CEMA is shorthand for Consolidation, Extension and Modification Agreement. It helps to save mortgage tax because the original mortgage being paid-off is assigned to the new lender instead of being satisfied. The mortgage tax is paid only on the amount of the loan being given by the new lender. The two mortgages are "consolidated" into one by the CEMA.

The New York Times has an interesting article on the money saving aspects of a CEMA transaction. Read it here.

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Title Inc.

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 201-656-4506

E-mail vti@vested.com - www.vested.com

Sphere: Related Content

Wells Fargo in court over reverse mortgages

Bloomberg news reports, "Wells Fargo Sued Over Reverse Mortgage Policies by Borrowers"

“Wells Fargo & Co. was accused in a group lawsuit of ignoring federal rules on reverse mortgages and forcing homes into foreclosure instead of giving heirs a chance to buy them.

“Estates and surviving spouses have the right to purchase properties at 95 percent of appraised value after the death of a borrower who took out a federally insured reverse mortgage, lawyers for a California man said in the complaint filed Aug. 3 in federal court in San Francisco.

“Wells Fargo hasn't been notifying heirs of this right and has been starting foreclosures if demands aren't met for repayment of the full mortgage balance, according to the complaint filed by the son of a California homeowner. The plaintiff, Robert Chandler, also sued the Federal National Mortgage Association, or Fannie Mae.”

Wells Fargo alleges that it complied with HUD guidelines; guidelines that only came into effect in April 2011.

Read the full story.

For your next title order or if you have questions about what you see here, contact
Stephen M. Flatow, Esq.,

Vested Title Inc.
165 Passaic Avenue, Suite 101
Fairfield, NJ 07004
Tel 973-808-6130 - Fax 201-656-4506
E-mail vti@vested.com - www.vested.com

Sphere: Related Content

Wells Fargo settles mortgage-abuse case for $85M

The AP reports,

“Wells Fargo & Co. has agreed to pay $85 million to settle civil charges that it falsified loan documents and pushed borrowers toward subprime mortgages with higher interest rates during the housing boom.

“The fine is the largest ever imposed by the Federal Reserve in a consumer-enforcement case, the central bank said Wednesday.

“Wells Fargo, the nation's largest mortgage lender, neither admitted nor denied wrongdoing as part of the settlement. The bank agreed to compensate borrowers who were steered into higher-priced loans or whose income was exaggerated.”

Wells Fargo was accused of inflating borrowers' incomes on loan applications from 2004 until 2008. Sales reps also pushed borrowers towards subprime loans, even if they were eligible for lower rate mortgages.

“Between 3,700 and roughly 10,000 people could be compensated under the
settlement, the Fed said. The payments will likely range from $1,000 to
$20,000.”

Read the full report.

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Title Inc.

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 201-656-4506

E-mail vti@vested.com - http://www.vested.com/

Stephen Flatow Wells Fargo mortgages fraud subprime

Sphere: Related Content

For some borrowers, adjustable rate mortgages are the key

The New York Times’ Maryann Haggerty writes about The Appeal of Adjustable Rates

“THE 30-year fixed-rate loan has earned its reputation as the sensible, conservative move in the aftermath of the financial crisis, especially with near-low interest rates. But despite risks, some borrowers still are getting or keeping adjustable-rate loans, which have even lower rates.”

“Adjustable rate mortgages generally attract borrowers when rates are high. The rate is set for a specific time — generally one, five or seven years — and then it adjusts to prevailing rates within boundaries. That means payments can go up. Payment shock has caused plenty of problems over the years. [From the Ed – shows us the cases.] Rates can also go down, as borrowers who took out ARMs five to seven years ago are finding now. But it’s tough to imagine how rates could get much lower than now, short of Japan-style negative rates.”

 According to Sari Rosenberg of Manhattan Mortgage Company whom we’ve worked with, “If a person is debt-averse and has a history of paying off his or her mortgage within 5 to 10 years, then he or she would definitely consider an ARM.”

Who else would benefit?  According to Ms. Rosenberg, “I have another client who knows he is selling his home within the next few years and even with the closing costs he will be saving money,” so he took out a three-year ARM.

“Keith Gumbinger, a vice president of HSH Associates, a financial publisher in Pompton Plains, N.J., said, “ARMs are good for borrowers with short-term time frames, usually seven years or less.”

“Conversely, ARMs aren’t wise for borrowers who plan to stay put, Mr. Gumbinger said, or those who would have trouble managing rising payments. That includes people who expect cash-flow strains, such as those starting a family.”

Is an ARM right for you?  A savvy mortgage counselor can help.  Read the full story.

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Title Inc.

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 201-656-4506

E-mail vti@vested.com - www.vested.com

Sphere: Related Content

Foreclosed? How long before the new mortgage?

The New York Times writes about “The Post-Foreclosure Wait.” The good news is that, “mortgage troubles won’t necessarily shut you out of the housing market forever.”

As the economy and real estate market continue to struggle, millions of Americans have lost their homes through foreclosure, short sale (when a property is sold for less than is owed) or a deed in lieu of foreclosure (when the bank takes ownership without foreclosure).

Even if you think you never want to own a home again, clean credit is important. Bad credit can make it more expensive to rent. In some fields, especially financial services, it can make it difficult to find or keep a job.

What affects recovery speed?

In a short sale where the balance is forgiven and no deficiency is recorded in public records, recovery can be quick.

A foreclosure or bankruptcy can weigh you down for years.

As long as 7 years.

But if someone has gone through foreclosure and still has a mountain of debt and not enough income, bankruptcy is worth considering, said Tracy Becker, the founder of North Shore Advisory, a credit-restoration company based in Tarrytown, N.Y. Sure, it will be another hard blow to your credit rating — but your credit most likely is already “wrecked,” at least for now, she said.

OK, so you have pushed the plunger,

And what about a future mortgage? Fannie Mae, Freddie Mac and the Federal Housing Administration set guidelines for how long a borrower must wait after a “significant derogatory event.”

There are plenty of asterisks and conditions. But to generalize, the wait is longest after a foreclosure. Extenuating circumstances like a job loss, illness or divorce reduce the wait.

With such circumstances, Fannie and Freddie specify a two-year wait after a short sale, deed in lieu, or discharge or dismissal of bankruptcy, and three years after foreclosure. Without extenuating circumstances, waits can extend to four years after bankruptcy and seven years after foreclosure.

Read the full report.

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Title Inc.

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 201-656-4506

E-mail vti@vested.com - www.vested.com

Sphere: Related Content

Higher costs of F.H.A. loans now in place

We have previously written about the increase in costs associated with F.H.A. loans. Well, they're now in place. Did you know that an F.H.A. loan might cost you more than a conventional loan with P.M.I. (private mortgage insurance)?

To get the lowdown on the cost picture, here's a good article from The New York Times - Dealing With Higher Costs of F.H.A. Loans

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Title Inc.

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail vti@vested.com - www.vested.com

Sphere: Related Content

Buying your vacation home blues

The New York Times states

IT might be easier if you just paid cash for that vacation house.

There is loan money available for second-home purchases, but expect bigger down payments, higher interest rates and other standards tighter than on a principal residence — and those standards are tight already. In addition, there are quirks specific to vacation markets.

Back in the day, “there was virtually no difference in underwriting for vacation homes versus owner-occupied homes,” said Guy Cecala, the publisher of Inside Mortgage Finance. “That’s something that’s changed dramatically. The days of being able to buy a vacation home with little or no money down are over.”

For instance, favorable interest rate loans from the FHA are not available. And you’ll need at least 20% down to meet Fannie Mae and Freddie Mac requirements.

“Thirty percent also seems to be the “comfort zone” this year for down payments in the Jersey Shore towns where Michael Loundy, a broker at Seaside Realty, works. “You can get 20 percent down,” he said, “but the buyer has to look very strong with income-debt ratios.””

Read the full article - Financing a Vacation Home.

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Title Inc.

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 201-656-4506

E-mail vti@vested.com - www.vested.com

Sphere: Related Content

Mortgage foreclosure settlement – a solution?

Sarah Portlock writing in The Star-Ledger reports on the settlement of the New Jersey Supreme Court’s involvement in the mortgage foreclosure crisis. The settlement “will require six of the country’s biggest mortgage lenders to disclose the specifics of how they foreclose on homeowners has been” court approved.

“Under the agreement, retired Judge Richard Williams will review the lenders’ foreclosure processes to ensure all filed documents are based on personal knowledge and accurate business records. He also has the power to periodically review a sample of future foreclosures.”

Nonsense. Can anyone define “personal knowledge” in the day of e-commerce where everything, absolutely everything is compiled, kept and disseminated electronically? We no longer live in the days of bookkeepers wearing eyeshades sitting hunchbacked over ledger books.

“The settlement was made public two weeks ago, and comes four months after Chief Justice Stuart Rabner issued a three-part initiative to investigate what could be rogue foreclosure filings, noting a staggering increase in caseload and concerns judges had inadvertently "rubber stamped" files that had inadequate or inaccurate paperwork. In response, the banks argued they had already revised their foreclosure procedures.”

Read - Judge approves settlement to review mortgage foreclosure process

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Title Inc.

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 201-656-4506

E-mail vti@vested.com - www.vested.com

Sphere: Related Content

Adjustable Rate Mortgages becoming popular again?

The New York Times Lynnley Browning reports on the move back to the once despised adjustable rate mortgage.

“IN the years since the financial crisis, adjustable-rate mortgages, or ARMs, with their low initial interest rates that changed over time, have been considered riskier than fixed-rate loans and shunned by most buyers. But these days more people are being persuaded to give the loans a try.”

However, the mortgage seems to have learned one lesson of the mortgage melt down.

“This time around, lenders are rolling out more conservative ARM products — without the gimmicky extra-low “teaser” rates that adjust every six months, or the “pick-a-pay” and “option” features that allow borrowers to pay less than the monthly interest, only to be hit with a huge bill down the road.”

“Those ARMs were hallmarks of the subprime mortgage boom that fueled the soaring rate of mortgage defaults and home foreclosures nationwide.”

Lenders ranging from Equity Now in New York to Bank of America are increasing the number of ARM transactions.

“Mortgage brokers and lenders say the loans most in demand are the “5/1” and “7/1,” in which the initial interest rate is fixed for the first five or seven years — after which many homeowners typically think about selling or refinancing anyway — then adjusted annually at a capped rate toward a maximum level.”

While many have railed against the risk inherent in changes of interest rates over time, I believe history reveals that ARMs were safe due to caps on increase amounts at each step and over the lifetime of the loan. For a homeowner who plans on selling within a few years, the ARM may give her a nice discount in rate.

Starting rates are usually one to one and a half percentage points below those of 30-year fixed-rate loans.

“But one catch is that getting an ARM may now be harder.

“Last summer Fannie Mae, the government buyer of home loans, said lenders must qualify borrowers on either the initial rate plus two percentage points, or on the full index rate to which the initial rate is tied, whichever is greater.”

While ARMs may be attractive to some, it’s doubtful that the number of ARM transactions will approach the 1994 high of about 70 percent of all home purchases.

Read the full report More Borrowers Are Opting for Adjustable-Rate Mortgages

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Title Inc.

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 201-656-4506

E-mail vti@vested.com - www.vested.com

Sphere: Related Content