Mortgage Scenarios and Solutions

Below are some recent success stories

Scenario: 190k Ohio FHA purchase mortgage, limited assets, 2006 bankruptcy, 660 credit score, retaining current (negative equity) home as a rental property, 49% debt to income, planning to stay long term in the residence.  Solution: Re-allocation of household debts to non-borrowing spouse.  Refinance and re-amortize auto and student loans into more favorable terms. FHA 30 year fixed rate at 4.25%, 3.5% down-payment (family gift), and $1900 in origination fees, all closing costs financed into the new loan. 

Scenario: Ohio mortgage refinance, A+ borrower with excellent credit and less than 20% equity due to declining home values.  2006 purchase price $300,000.  Current home value $240,000, mortgage balance $220,000. Current rate 6%. Current loan to value = 91.6%.  Solution:   Making Home Affordable refinance. No lender fees and no appraisal required! Interest rate 4.375% no PMI.  Monthly savings of $340. Total closing costs (title and filing fees only) $1700, all financed into the new mortgage loan.

Scenario: 134k Ohio FHA purchase mortgage, limited liquid assets, and 690 credit score. First time homebuyer.  Solution: FHA 30 year fixed.  Initial interest rate locked in at 4.5%, re-negotiated to 4.25% (4.62% apr) at no cost to the customer.  Down payment came from 401k loan, repayable to self at zero interest. Seller paid all closing costs, appraisal refunded after closing.

Scenario: Ohio Investment property refinance.  Current Rate =  7.125%. 710 credit score.  Original loan 20% down.  Current appraisal 123k, current loan payoff 115k.  93% loan to value.  Solution: 30 year fixed Making Homes Affordable at 5% Appraisal refunded at close.  No other money out of pocket. $225/ month savings.  $3100 in total closing costs. NO PMI.

Scenario: Ohio mortgage refinance, A+ credit score , current interest rate 5.5%, 340k appraisal, 300k loan amount 88.8% loan to value.   Solution: No closing cost 15 year fixed rate of 4.25%, appraisal refunded at closing. No PMI.  Eliminated 3+ years of mortgage payments, potentially saving customer $83,000, and saving unnecessary interest expense.  No closing costs.

Scenario: Ohio refinance mortgage 305k, 720 credit score, current rate 5.625%,  appraised value 340k, 89% loan to value.  Solution:  30 year fixed rate at 4.375% (4.536% apr), No monthly PMI.   Monthly savings of $215.

Scenario: Ohio mortgage refinance, current interest rate of 5.625%, A+ credit, 226k loan amount, existing home equity line of credit, 80% LTV/ 90% CLTV.  Solution: 30 year fixed 3.99%/ 4.121% apr. $4,400 in total closing costs.  Monthly mortgage payment reduced by $393.  Home equity line retained.

Scenario:  Ohio refinance mortgage, current mortgage rate 5.625% on a 30 yr fixed.  Returning customer, last refinanced 8 months ago, with no lender fees.  Self pay taxes and insurance.  Solution: No closing cost 30 year fixed refinance. No appraisal fee, no closing costs. Current loan payoff = new loan amount. No escrow account required.  Reduced interest rate to 4.5%/ 4.5% apr.