Down below by the hour glass is a blog I wrote back in October of 2009 Talking about the Adjustable Rate Mortgage discussing the philosophy of when to consider refinancing out of your current ARM loan And moving to a  fixed rate loan. I am Andrew Hahn and as  a Refinance Specialist located in Commerce City Licensed in the state of Colorado its time to up date that old post and point out that NOW is more than likely that time to make the move to the fixed rate loan. For those of you who have ARM loans you need to know your Index and your Margin; this is the information you need to be able to calculate what your interest rate is going to be. There are two main index’s that are used, either the LIBOR (could be 6 month or 1 year) or the 1 year treasuries CMT, It makes a big difference you need to know this information. If you don’t know you can search through your old closing documents or to make it easy on yourself and call your loan servicer and ask them for this information, OR you can always contact me Andrew Hahn and I’ll help you; you need to write it down and keep where you can check it from time to time, ALTHOUGH NOW IS THE TIME TO KNOW THIS INFORMATION. Ask them what your index is; ask them what the margin is (you add the margin plus the index to figure out what your interest rate well be) another important bit of information is ask them in what month do they calculate your interest rate. Generally its one month before your ARM is set to adjust. So if your loan is set to adjust in December they well use the index from November and your January payment would be the 1st month of your newly adjusted interest rate.  Although now what you need to consider is that those index’s are not moving up as fast as the mortgage interest rates so your loan could adjust down yet another time or two. You need to think that if your true intention is to lock in the lowest fixed rate that time would by all indication be now and that the absolute best rates might be behind us now. So in order to not lose any more ground regarding catching those fixed rates I feel now is the time. I don’t think we are going to see the 30 fixed rate below 5% again or at least for anytime in the foreseeable future. In fact the prediction is to see interest rates in the low to mid 6% by the end of this year. Since the end of December rates have been creeping up; a loan that I could have locked before Christmas at 4.875% would now be at 5.25%. One of the most important thought here is that if your looking to stay in your real estate and want the better rates NOW IS THE TIME in the long run Mortgage interest rates could go way back up due to inflation that is bound to happen from all the bailout money that has been printed over the past year. If you have any question or want to talk to me about your refinance strategy give me a call or write me a comment or email  me which ever works best but don’t just sit there and think rates are going back down I don’t think that is going to happen.Visit my business website all my information is there CapitalAdvantageMortgage.com or my personal website Andrew-Hahn.com

Refinance Philosophy for those with ARM loans

In today’s chase for the best rate, for those who have a *conforming Adjustable Rate Mortgage or to be more specific a loan owned by Fannie Mae or Freddie Mac the chances are your ARMs interest rate has been going down and is lower than today’s fixed interest rate loans. If you want to get out of the uncertainty of an ARM and want a fixed rate loan have you a decision to make. More than likely to make the move to a fixed rate loan your rate is more than likely going to be higher and therefore your payment is going to go up. Now the challenging aspect is going to be timing. You want to take advantage of your lower rate as long as possible yet when you make the move to a fixed rate loan you want to lock in at the lowest rate you can. Timing the market is always a tough call and trying to guess when the 30 year fixed rates are going to reach their lows is even more difficult given the challenges in the markets today. Unless there is another sizable drop in the market we might have seen the all time lows and rates are starting the trend back up. Now could be the time to start watching the rates to try to catch them on a dip and get locked in, in the upper 4%’s to low 5% range, at this time 4.75% or lower doesn’t appear to be in the stars; unless you buy the rate down (not usually money well spent unless paid by some else). So what I recommend is that we start crunching the numbers now to determine a strategy and to be at the ready when rates get to your sweet spot. To sign up for my rate quote click here.

* Non conforming loans such as subprime loans or portfolio loans (some institutions keep their loans) are probably seeing their rates go up and are not eligible for loan programs created by Fannie Mae and Freddie Mac.

Don’t waste this opportunity to get in to that fixed rate loan; Contact Andrew Hahn your refinance expert located in Commerce City Licensed in Colorado Mortgage refinance in Denver and the entire State of Colorado.

CapitalAdvantageMortgage.com and for an interest rate quote Click Here

For those who still have equity in your home and are thinking about consolidating dept here are some points to consider when paying off those credit cards and or fixed term loans such as a car loan or unsecured loan.  What ever you consolidate into the new loan is going to paid off in the loan term of the new loan, so if you had a car with 3 years left on the term and you refinanced to a new 30 year term that balance just got spread out over that same 30 years.  Now on the other hand your payment went down considerably and the the interest on the car payment that probably wasn’t tax deductible you might find yourself deducting it now with your mortgage interest deduction ( not accounting advise you need to talk to your accountant to determine how it would affect your tax situation).  Now when considering consolidating credit cards again there are points again to consider like the car the balance you consolidate into a new loan are again spread out over the term of the new loan.  Some big differences are that the fixed term on a loan being paid off is done paid in full, now with a credit you pay it off and you can use it again and again potentially running the balance up again with the unintended consequence of not helping but putting you even further in dept.  The only cure for this is SELF CONTROL, easy to say hard to do but if followed through  can put you back to the road to prosperity.  Another option of closing the account sounds good but can be bad for your credit score.  When you close a credit card account it hurts your credit score, a factor in determining the credit score is how much credit you have (credit limit) vs. how much credit you’ve used ( credit balance).  I’m not sure where the line falls some say when you get over 50 to 60% of used credit it can start to have a adverse impact on your score.  It’s hard to determine but it’s like this if you have credit cards that you have close to maxed out that’s not good and well hurt your score.  I think that if you can refinance out of a high interest rate to a lower rate you can’t lose, why pay 18%, 21%  or more in an interest rate when you can pay 5% .  I feel the goal should be to take some of the amount of money you would be saving because of the lower payment and start powering down on the saving account.  Here is a great tool for you to use to help determine how long it would take you to payoff a credit card CLICK HERE to go to this website.  For those of you who’s interest rate is over 21% it starts to get pretty scary on how long it would take you to payoff a credit card and the amount of interest you would the credit card company.

Now feel free to contact me if you would like an interest rate quote or CLICK HERE to go to my website and fill out a secure online loan application.  If you have more questions feel free to contact me and I’ll go over your situation to help you find the best solution for you goals.

Andrew Hahn Capital Advantage LLC a mortgage lending company

I am an independent mortgage broker with over 18 years experience in the mortgage industry.

This is not a website that’s a lead generating website that sells your information to other mortgage companies.

Take this in to mind when your looking to refinance. For the most part the greater majority of mortgage advertising has gone away. For those that are still around advertising and promoting their business’s with their website promotions; it amazes me the that they are still using those old get a free appraisal or apply online line and get the online discount. The way I have always run my business at Capital Advantage LLC. is to be honest with my clients and offer the best rate and the lowest actual fees the market has to offer. I am an independent mortgage mortgage broker located in Commerce City Colorado that specializes in Real Estate Finance in the State of Colorado. I provide mortgage loans for refinance and for purchase. I’m dedicated to providing you the best service combined with the honesty and integrity you deserve. Let my 18 years of experience help you achieve your real estate financing goals.

Andrew Hahn President of Capital Advantage LLC a residential and commercial mortgage lender.

Click here to go to my business website Capitaladvantagemortgagelending.com

It is reported Mortgage Interest Rate are near all time lows, well as that news comes out Dec. 3 & 4th coincidentally these past few days the interest rates have actually have been going up. This morning the unemployment report that came out this morning was quite a surprising which in turn caused mortgage interest rates to deteriorate. With a continued flow of positive news in the market like this, could mean the end low mortgage rates. With the government purchasing Mortgage Backed Securities program ending come March /April the chances are good that, that is going to be the beginning of the end of these extremely low rates, but with this type of positive flow of information that end could start sooner than that. This might be the time for those who have been sitting on the fence to take this as a bottom of the lowest rates and make your move. Barring any other shoes to fall scenarios that could drag the economy back down; such as the woes in Commercial Real Estate or maybe unemployment isn’t really as it seems to be and further job loss and the negative impact on housing too could drag the economy backyards again, this would be the signal of the end of the really low rates. So if you have been sitting on the fence you might want to ask yourself if you want to take the chance that there is going to be another leg down; also something else to keep in mind that as time passes since the mortgage meltdown the trend for more conservative lending standards is continuing to tighten making it more and more difficult to refinance or purchase. There is a continued movement to reduce Loan To Values requiring either more money down or more equity in your property in order to qualify for a mortgage. Other changes that are continuing to make it more difficult to qualify is the reduction of qualifying ratios or debt to income ratios.If you would like an interest quote and are considering a refinance CLICK HERE to visit my website and fill out a secure application.

Andrew Hahn Specializing in superior customer service.

DENVER REFINANCE, COMMERCE CITY REFINANCE

It’s the day after Thanksgiving and today was a shortened session  in the market rates pretty much remained unchanged.  Credit standards starting to become more strict making it more difficult to purchase or refinance.

Fannie Mae plans to raise minimum credit score requirements next month and limit the amount of overall debt that borrowers can carry relative to their incomes, The Washington Post reported on Thursday.

Starting December 12, the automated system that the government-controlled mortgage finance company uses to approve loans will reject borrowers who have at least a 20 percent down payment but whose credit scores fall below 620 out of 850, the newspaper reported. Previously, the cut-off was 580.  COMMERCE CITY REFINANCE

They just keep making it more difficult. If your thinking about refinancing now is the time. Appy now CLICK HERE

Bare with me on the first part of my explanation

                One seemingly complicated aspect about financing a property is the HUD form that discloses the fees involved with the transaction; there can be a lot of fees. There are necessary fees such as title company fees and generally an underwriting fee; then there are the fees collected on your behalf this would include the monies collected to reestablish your escrow account. More often than not the lender will require that you have an escrow account (there are some exceptions) these monies are collected and held in an escrow account to pay your annual insurance bill and your property taxes which in Colorado is  generally paid out twice a year, ½ on February 28^th and the other ½ on June 15^th. The timing on this can make a big difference in the amount that needs to be collected. For the taxes the closer you are to the date the taxes are due the more they are going to collect at closing to make sure there is enough to pay them when they are due. The amount needed for the escrow of your insurance depends on the anniversary date when your annual payment for your insurance is due. Also collected at closing on your behalf is the interest from the day you close tell the end of the month, so if you close at the beginning of the month they are going to need to collect more than if you close toward the end of the month (*if you are paying off an FHA loan it’s best to close at the end of the month).  NOW , for the other fees. OK now there is the appraisal fee, this is a necessary fee that due to the new mortgage industry rules needs to be collected and paid for upfront to an Appraisal Management Company or AMC this fee is around $370.00 unless you have a Jumbo or unusual property. We’ll have another Blog addressing this new rule the HVCC; Home Valuation Code of Conduct (it’s really not good). The remaining in my case FEE is my origination fee, this is what I make. For most other lenders it’s FEE’S there can be origination fee, credit report fee, processing fee, admin fee and in some cases even more fees. MY philosophy and the way I do business is my origination fee includes the credit report (**usually $25.00) I process my own loans so I don’t charge a fee for that.  The admin fee and those other fees are to collect more money from you with a different label, and I don’t operate like that. Now when you see other lenders offer free appraisals or some kind of closing rebate or discount, we all know that the appraisal gets paid for somewhere in the process and usually what they do is credit you at closing to make sure it’s paid for in case for some reason it doesn’t close. Nothings free it all gets accounted for one way or another. They way I prefer to do business is to quote the lowest fees from the beginning. The only fee collected before closing is the appraisal fee and that’s paid to the AMC not to me (because of the new rule it’s the new protocol). I do not undercut my fellow mortgage brokers to steal business. I prefer to take the professional high road on this one. There are good hard working brokers that provide a good service with reasonable fees; even though I rarely get beat on fees if I’m given the opportunity to give a second opinion I well be honest and upfront with you. Sometimes it’s not worth switching for a hundred bucks. Now don’t get me wrong competition is good and that’s why I always give my best quote and do not need to go back and change fees in order to compete for your business. I don’t want to get to long winded here so I’ll continue this on the next blog. Have a Happy Halloween.

For more information CLICK HERE to visit my website.