Using a 2nd mortgage to avoid Mortgage Insurance

If you have bought a home and put down less than 20% of the sales price, you are probably familiar with the term Mortgage Insurance.  Unfortunately, this insurance does nothing to protect you, it is there to protect the mortgage lender in the event that you default on the mortgage.  Prior to the housing collapse in 2007, there were many creative ways to structure a mortgage to avoid this insurance with less than 20% down.  After 2007, many of those options went away with every other type of creative financing.  It looks like one of those options is making a comeback, Using a 2nd mortgage to avoid Mortgage Insurance.  The way this works is you get a 1st mortgage for 80% of the purchase price (which avoids mortgage insurance).  You put a downpayment of at least 5% down, and then you get a 2nd mortgage for the difference.  Using this method can save you hundreds of dollars per month depending on how much you are borrowing.  Please note that this option is only available for Conventional type financing.  If you have questions or know of someone who could benefit from this, please contact me at 317-563-1122 or chris@chrisminorteam.com.

Happy New Year!!

Mortgage Product Comparison Chart

Earlier this year I created a comparison chart for the mortgage products that get utilized the vast majority of the time.  I have made a few revisions and reposted below.  This represent the guidelines for our in-house products.  We also have the ability to “broker out” to other companies that will accept different guidelines (lower credit score requirements, etc). I hope you find it useful!

Planning to Apply for a Mortgage? Documents needed...

If you are planning on buying a home in the near future and will need a mortgage, here are the documents you should get together:

*  Last 2 years W2 forms and Tax Returns (3 years if self employed)

*  Last 30 days of paycheck stubs (Year to date Profit and Loss if self employed, self prepared)

*  Last 2 months of bank or asset statements (most recent quarter if quarterly)

*  If you have had a Bankruptcy in the near past (most companies require 2 years after a bankruptcy), you will need the Bankruptcy discharge and Schedules.

*  If you have had a foreclosure in the near past (most companies require 3 years after a foreclosure) you will need to know the date the property was deeded out of your name to the financial institution.

This is not meant to be a comprehensive list, but will help you get started.  Your Loan Officer will appreciate your pro-activeness as well.  If you have any questions, please contact me at 317-563-1122 or chris@chrisminorteam.com.

Thanks!

Mortgage Credit Certificate (MCC)

For the right customer, the Mortgage Credit Certificate , or MCC, is a godsend.  For first-time homebuyers (not having owned a primary residence in 3 years) that qualify within the Indiana income limits, it provides a tax credit for a percentage of the mortgage interest paid throughout the year.  Keep in mind that a tax credit is different than a tax deduction.  With a tax credit it is a dollar for dollar rebate at the end of the year.  The percentage is 20-35% of your yearly mortgage interest depending on your loan amount.  This ends up being a significant amount!  Using a simple example, if your loan amount is $100,000 and your interest rate is 5%, you will pay $5000 a year using simple interest.  With a tax credit of 20% your end of year rebate from the MCC program on your taxes would be $1,000.  Of note, the registration fee for this program is .5 points (half of one percent) of your loan amount which is $500 on the $100,000 loan example.  Very worthwhile considering you make back your initial investment within the first 6 months.  The tax rebate lasts as long as you have your mortgage.  Bottom line, if you are a first time homebuyer that qualifies, you don't want to miss the opportunity to utilize this tax benefit.  If you have specific questions regarding this, please call (317-563-1122) or email (chris@chrisminorteam.com)

Thanks!

Grand Opening of new Office

Save the date please!!

You are invited to the Grand Opening of our newest location in Avon!

On Friday November 30th, from 4:00pm to 7:00pm, we will be celebrating the opening of our newest location at:

7728 E. U.S. Hwy 36

Avon, IN  46123

(between AT&T and HR Block)

We would love it if you could join us to meet the newest local Team.  We will be serving hors-d'oeurves and will have many great door prizes, including a Flat Screen TV!!

We hope to see you then.

Super Bowl in Indy time!