If you are in Denver or Colorado and looking for a home loan there are many options for you, thanks to technology. You can look for a loan from anywhere in the country, but that doesn’t mean you should if you are looking to buy a refinance a Denver or Colorado mortgage.

No one has the knowledge of Denver or Colorado home loans like local Denver mortgage lenders, despite the fact you can shop for a Colorado or Denver mortgage online or fill out a Colorado and Denver application with the press of a button. Those far removed from the unique housing market of the area can really give you the understanding you need for a Denver and Colorado mortgage.

Colorado and Denver Mortgage lenders and their knowledge

The real estate market in Colorado is its own animal. It’s unique and a Colorado mortgage company will know that. Denver mortgage lenders understand that you can find modest single family homes, investment properties, luxury homes and vacation

properties all in the same market. Other markets are very different, with not as many kinds of properties available, so lenders outside the market may try to fit only one type of Denver and Colorado home loans to a lender — without success. Those seeking Denver Colorado home loans and properties will be more successful if they find a Denver mortgage lender who can offer more products specifically targeted to the individual’s needs.

The unique nature of the market means you must have someone working for you with a good knowledge base of Denver and Colorado home loans and a Denver or Colorado mortgage company that can get to a variety of products.

The best Denver mortgage lenders should be able to access many different funding sources for Denver Colorado home loans, jumbo loan products for those seeking larger Denver Colorado home loan and standard Denver Colorado home loans for conforming loans under $417,000.

With these products, Denver mortgage lenders can also provide program flexibility, with the ability to access both fixed and variable rate products for Denver mortgage lenders serving short- and long-term home seekers.

Different buyers have different Denver Colorado home loan needs, including those who want to sell after a few years, those who are looking to refinance and those who want to stay in their homes for a long time and want stable Denver Colorado home loan payments (and preferred fixed rate loans from Denver mortgage lenders).

The bottom line for those looking for a loan is that the needs will differ depending on what kind of loan you want and need. Finding the best rates for your needs means finding a good Denver and Colorado mortgage company which is flexible and experienced enough to provide a good Denver and olorado home loan. Consumer watch groups like the Tom Martino mortgage referral system can help those shopping for Denver Colorado home loans. The system makes looking for a good Denver mortgage lender that much easier. Plus, the added security of a good consumer advocate can be a big boost in finding reliable Denver mortgage lenders.

For many people, mortgage payments are their single largest expense. Yet, when financing a home, most Canadians don’t comparison shop to ensure they’re getting the best mortgage rate and terms available. This mistake can cost homeowners tens of thousands of dollars over the course of their mortgage.

Here are seven ways mortgage brokers can help:

Access to competitive rates

Brokers deal with multiple competing lenders and can often access exclusive rates. Based on the number of mortgages brokers complete each year, they also have the power to negotiate rate discounts from lenders, which can be passed on to their clients.

A free service

Mortgage brokers’ services are typically available at no cost to consumers. Brokers are paid by the lender selected by their clients.

Knowledgeable advice

Brokers offer consultative service, advice and solutions that are customized to each client’s needs. And unlike banks, brokers work for you.

Speed and convenience

Brokers will work around a client’s schedule to make the transaction as easy and convenient as possible.

Pre-qualification

Whether you’re shopping for a new home or refinancing your existing mortgage, a broker can help you obtain a pre-approved mortgage, often with up to a 120-day interest rate guarantee.

Preserved credit rating

When you shop for a mortgage, there is an accumulation of lender inquiries on your credit bureau report, possibly affecting your credit rating and, ultimately, the rate and terms of your mortgage. This isn’t the case with a mortgage broker, who only does one inquiry yet can still get many competing lenders to quote on your business.

Peace of Mind

The Canadian Association of Accredited Mortgage Brokers has a stringent Code of Ethics that members are required to adhere to in order to retain membership.

First and foremost; the bank does not, nor do they want to own your home. So why do so many people believe this? Prior to FHA getting involved in 1988, the lenders would take an equity position in their Borrowers homes.  That practice has resulted in unfavorable feelings towards today’s reverse mortgages. The Federal Housing Administration (FHA) has set the new standards and guidelines for HECM reverse mortgage loans and their involvement has produced a safe, well thought out and balanced loan for Seniors. Look below to find some of the pros and cons of reverse mortgages.

The Upsides

• There are no monthly payments associated with a reverse mortgage. You will never be required to make a monthly payment while you reside in your home.
• You stay on title and any equity remaining in the property is yours. The lender does not take title to your home!
• You can never owe more money than your home is worth. HECM reverse mortgages are “nonrecourse” loans. This means that no matter how long you stay in your home, you will never be obligated to the lender to pay them any more than the value of the property, even if the loan exceeds the value.
• A reverse mortgage will not effect Social Security or Medicare benefits.
• Qualifying is easy. You must be at least 62 years of age and have value in you home. You do not not have to prove income or have good credit. The value of your home and your age determine loan amounts. It’s that simple.
• The money you receive from your reverse mortgage is tax free.
• The funds you receive can now be designed for your specific needs. Depending on the amount of funds you require, you can create your loan with a fixed or variable rate. You can also design your loan to provide one upfront payment of all cash, you can receive monthly payments or keep all of the funds due you in a line of credit and withdraw the funds as you need them. You can also create a combination of all three methods.
• The funds from a reverse mortgage may be used anyway you want. After paying off any existing mortgages, tax liens or heath and/or safety issues regarding your home, you can use the funds for any purpose you desire. Take a vacation, you deserve it. Make repairs or upgrades to your home. Put all the cash on 7 and spin the wheel, the funds are yours.
• You built the equity in your home over years of hard work, now you can let this equity work for you. You can feel the self reward and know that you are not necessarily reliant on your children or other family members to help you. There seems to be a since of pride that goes along with method.
• FHA insures these loans. Given the state of this economy, you do not want to find out that the bank funding your monthly payments has gone out of business. With FHA insuring your loan proceeds, you can be comfortable knowing that your next payment will be guaranteed by the US government.
• NRMLA. Lender/members of the National Reverse Mortgage Lenders Association are an elite group of individuals who are dedicated to helping American Seniors fulfill their retirement dreams. This group is available for you.  

The Downsides 

• Lenders generally  charge their origination fees, FHA upfront mortgage insurance (MIP) and other closing costs that add up in a hurry. The flip-side to this, however, is that if you really need the funds from the equity in your home you could borrow the funds traditionally as long as you can afford the monthly payments or sell the property. If you sell the property, you are left without a home to live in and the 5-6% cost to sell your home is considerably higher than those fees assessed with a reverse mortgage. The longer you live in the property the lower the costs average out.
• Most reverse mortgages require utilizing a variable rate. This can be overcome by using a fixed rate. Unfortunately, the fixed rate reverse mortgage requires that you draw all funds available to you and may not be the right loan for all applicants.
• Your mortgage debt rises fairly quickly, but, there is no surprise that the loan increases rapidly since you do not make any payments while living in the property. The interest that would be due as in a traditional loan simply adds on and creates a new higher principle value.
• Borrowers are of course responsible to keep the property properly maintained and they must stay current with their homeowners insurance and property tax.

 
All in all I believe the upside to reverse loans far outweighs the downsides. Call on a NRMLA member and do your homework. Vist us online: www.mlsreversemortgage.com

Just imagine as you’re going through your favourite coffee drive-thru this week that a well-dressed gentleman stops and offers you $11,000 for your medium double double. Who would hesitate? We’d take the cash. It’s not so far-fetched. In fact, if you take that coffee budget and apply it to your monthly mortgage payment a mere $30 extra per month -you could save yourself about $11,000 over the life of your mortgage.

Most of us can accept the idea that we must borrow money to purchase a home. We look for the best mortgage, and then just keep doling out the money for as long as it takes to pay it off. Most Canadians choose to amortize their mortgage over 25 years. That’s a long financial commitment, and it could more than double the cost of your home. But with good planning and a few smart tactics you should be able to enjoy your mortgage-burning party much earlier.

Here are a few strategies for fast-tracking your mortgage:

1. Increase your monthly payments. Rather than choosing your amortization period first, ask yourself how much you can afford each month. For example, you may feel that you can afford $1,000 per month. You’re delighted when your $125,000 mortgage only demands an $800/month payment (at a 6% interest). But make a monthly payment of $1,000 instead, and you’ll shave 8.75 years and almost $46,000 off your total interest cost.

2. Take advantage of lower rates. In addition to reducing the overall interest component of your mortgage, you can take the opportunity to pay down more principal faster simply by maintaining your original payment. You should even increase your payment if you can, to reap the benefits of the cheapest mortgage money in memory. Again, you could take years and thousands of dollarsoff your ontario mortgage.

3. Tie mortgage payments to your pay schedule. Many Canadians are paid on a bi-weekly schedule. If you accelerate your payments to bi-weekly instead of monthly, you could improve your own cash flow and fit in an extra payment each year. That means that you’re paying off principal faster leaving you with less interest to pay overall. It doesn’t seem like much but like putting your coffee budget to work the bi-weekly strategy can have you mortgage free four years sooner, with almost $22,000 in savings.

4. Use any bonuses, tax refunds or “found money” to pay down principal. This is especially valuable in the early years of your mortgage. If you receive an annual bonus or other lump-sum compensation, see if you can put it against the principal. An extra $1,000 per year is a great way to fast-track to mortgage-free!

5. Consolidate your loans into a new mortgage and use the savings to boost your payments. If you’re a homeowner with some equity, you can use your mortgage to consolidate your other loans: student loans, car loans, etc. Add the money you’ve been spending on loan payments to your mortgage payments, and you could see big savings in overall interest.

With ontario mortgage rates at historic lows, you should take the opportunity to get an expert mortgage analysis from an independent mortgage broker with access to mortgages from a wide spectrum of lenders. You’ve got a great opportunity to put some fast-track tactics in place. You’ll remember what a good decision you made at your mortgage-burning party.

There are many stresses associated with home buying – both financial and emotional. And frankly speaking, it doesn’t help that the process comes with its very own foreign language. While your mortgage broker can help de-mystify these terms, it helps to have a bit of a primer on what some of these terms mean. After all, it’s your money and your home we’re talking about; as a Mortgagor, you have a right to understand what you’re reading. (You didn’t know you were a mortgagor? Read on…)

We’ll start with Amortization” and “Term”. Both refer to periods of time in the life of your mortgage, and you’ll want to be sure that you understand the difference.

The amortization” of your mortgage is the length of time that would be required to reduce your mortgage debt to zero, based on regular payments at a specified interest rate. The amortization period is typically 15, 20 or even 25 years, although it can be any number of years or part-years. You could establish that you are able to make a certain payment each month of say $950 for your $130,000 mortgage at 5.5%. In this case, your amortization period will be just under 18 years. Or you could tell your broker that you’d like to be mortgage-free in just 10 years. With an amortization period of 10 years at the same interest rate, your $130,000 mortgage will cost you about $1,407 per month. That’s a tougher monthly payment, but you would save thousands of dollars in interest. (More than $35,000, in fact.) As you arrange your mortgage, then, keep in mind that your amortization period may be fairly long — although the shorter you can make it, the less you’ll wind up paying for your home in the long term.

The “term” of your mortgage will typically be shorter. The “term” is the duration of your mortgage agreement, at your agreed interest rate. This will be a very specific length of time, although you will have several choices. A 6-month mortgage is a very short-term mortgage. A 10-year mortgage will be one of the longest terms, generally with a higher rate of interest to represent the higher degree of uncertainty in the economic outlook. After your mortgage term expires, you will need to either pay off the balance of the mortgage principal, or negotiate a new ontario mortgage at whatever rates are available at that time.

Now, back to the term “Mortgagor”. This is one of three very similar terms: “Mortgagee”, “Mortgagor”, and “Mortgage”. A Mortgagee is the lender of the money: a bank, company, or individual. A Mortgagor is the borrower: the person or persons (or company) that is borrowing the money, and who will pay it back to the mortgagee. The Mortgage, of course, is the legal document that pledges the property as a security for the debt.

Still confused? Speak with a mortgage professional. Get the best mortgage suited to your needs and all your questions answered in plain talk.

These are heavy days for Canadian homeowners. If you’ve been in your home even a few years, you’ve probably already enjoyed a modest climb in the value of your home. Even if you don’t intend to sell, it’s good to know that your real estate investment is doing well. But we’re also enjoying an environment in which mortgage rates have reached historic lows.

That combination — strong valuations and low mortgage rates — has an unprecedented number of Canadians looking for ways to capitalize on the great opportunities available to them.

Whether it’s to buy their first home, trade up, or take equity back out of their homes, Canadians are jumping at the opportunity to borrow at today’s rock-bottom rates.

While many homebuyers are reconsidering the value of fixed-rate mortgages to lock in those low rates, you should keep in mind that adjustable-rate mortgages – the darling of the dropping rate trend – can still offer real value to homeowners. It’s a matter of finding the right combination of mortgage features and options.

As banks have been joined by other lending institutions, we have seen our menu of ontario mortgage options grow accordingly – with some innovative new mortgage types now available to help Canadians take advantage of today’s unusual opportunities.

One of the most innovative mortgages we’ve seen in a very long time is a new adjustable-rate mortgage with some very compelling features. First, it’s based on an institutional rate benchmark known as Bankers Acceptance. Most of us are familiar with the rate benchmark known as Canadian Prime – and we are accustomed to assessing mortgage rates based on Prime. The BA, on the other hand, is the rate at which banks will lend money to one another – and it’s typically a lower rate (sometimes much lower) than the prime rate offered to a bank’s best customers. The new BA-based mortgage – compared to the best prime-based mortgage available – could have saved a mortgage client a bundle over the last several years, primarily because the prime rate tends to be “stickier” in an environment where rates are falling. Often, the more fluid, market-based BA rates deliver the rate change more quickly. The BA rate is no trade secret, by the way; pick up a copy of your favourite financial paper and look for the published money rates to find the Bankers Acceptance Rate.

But the attractive rate structure is not the only perk. The same BA-based mortgage – so welldesigned to help clients wring the last quarter point from their mortgage rate – now also comes with a rate cap which guarantees that your rate will never climb higher than 2.15% above the starting base rate – no matter what happens to rates during your mortgage term. There’s no worry about locking in too high because the rate is always adjustable down.

Only the ceiling is fixed. It’s a homebuyers’ dream:

A mortgage with limited upside and unlimited downside. If you’re thinking about buying a home this year, or you haven’t had your mortgage reviewed in the last several months, take the opportunity to get an expert assessment of your many options from a mortgage professional. It could be the best investment you’ll make this year!

Seniors today often live with a great deal of financial uncertainty. The retirement they imagined may not be consistent with the reality they face.

Incomes are flat or declining, living and medical expenses are higher than ever and few income boosting alternatives exist.  Even those who have heard about Reverse Mortgages may be unsure about how they work or what questions to ask. As they search for information, they often turn to their financial institution for guidance and information. By becoming familiar with the product, you can be an even more valuable resource to your clients providing them with income supplementing alternatives to drawing down assets.  

What is a Reverse Mortgage?

A Reverse Mortgage is a special type of loan that allows a homeowner to convert a portion of the equity in their home into cash they can access. The funds are not taxable to the homeowner and typically don’t interfere with eligibility for Social Security or Medicare benefits. (However, in the federal Supplemental Security Income program, beneficiaries must keep their liquid resources under certain limits.) The customer retains title to the home as well as right to any appreciation in home value when the loan terminates after it is paid off. The loan remains in force until the last titleholder dies, permanently leaves the home or sells the property; the borrower can’t be forced to sell or move by the lender. The loan may be repaid at any time. But unlike a traditional home equity loan or second mortgage, no monthly payments are required. Instead of putting further pressure on an already stretched budget, a Reverse Mortgage can free a senior homeowner of monthly debt obligations.

Most Reverse Mortgages today are Home Equity Conversion Mortgages (HECMs) and are FHA-insured and guaranteed. Because HECMs are subject to FHA lending limits, proprietary products have also been developed to help homeowners with properties in excess of the FHA lending limits.  

Who qualifies for a Reverse Mortgage?

All titleholders must be 62 or older and own a home with some equity. There are no income or credit qualifications. Existing mortgages or liens must be paid off, but are often paid with proceeds from the Reverse. The homeowner must also remain current on insurance and property taxes, but these can also be paid with proceeds from the Reverse.

How can a borrower use the money?

The funds can be used for any purpose from making ends meet to living retirement dreams.  The top reasons for funds used given typically by borrowers are:

• Paying off debts, primarily mortgage and credit cards
• Home repairs and remodeling
• Living expenses
• Travel
• Health care or long-term care
• Easing the financial burden on children
• Education
• Hobbies
• Escalating property taxes

The amount available depends on the borrower’s age, the value of the home, interest rates and local FHA lending limits. Older borrowers can receive a higher percentage of their equity than younger borrowers. Funds can be received in a lump sum, a monthly payment or a line of credit.

What are the costs?

As with most any loan product, there are origination fees and closing costs, but they can be paid from the proceeds of the Reverse Mortgage. HECM loans also have a charge for the FHA’s Mortgage Insurance Premium (MIP). There are usually no out-of-pocket costs to the borrower.

What consumer protections are in place?

Reverse Mortgages are non-recourse consumer loans – the loan payoff can never exceed the value of the home. To get a Reverse Mortgage, the customer must attend a mandatory counseling session and review their financial situation with a trained, professional Reverse Mortgage counselor. Many of the counselors are certified by the AARP. The counselor ensures that they understand the transaction, the costs and their other alternatives.

If you have questions regarding Reverse Mortgages or how they may provide life-changing benefits to your clients, contact MLS Reverse Mortgage at 1-888-888-4834 or www.mlsreversemortgage.com.

Fixed Rate Reverse Mortgage

MLS Reverse Mortgage

Mortgage brokers are blossoming in the current environment and are gaining an increasing share of the mortgage market. This is great news because you should consult with a mortgage professional when you’re making one of the most important financial decisions of your life. But, keep in mind, that not all mortgage brokers have the same level of training and experience.

That’s why it’s such great news for Canadians that the mortgage industry now has national accreditation: the Accredited Mortgage Professional (AMP). When you meet with a mortgage broker with an AMP, you’ll be assured that your business is in the hands of a professional.

Canadians are accustomed to purchasing financial products like investments and insurance from an accredited professional. Now they can look for a similar professional designation from their mortgage expert.

Like similar accreditation programs for mutual fund sales people, or stock brokers, the AMP is designed to ensure an appropriate level of training and experience. Mortgage professionals from every field are eligible to acquire the accreditation: from mortgage brokers on the front lines to those who specialize in lending or mortgage insurance, for example.

While the vast majority of Ontario mortgage brokers take seriously the important responsibility that they have to their clients, the designation provides mortgage customers with a tool to help select their mortgage expert. This kind of designation is especially valuable in an industry where provincial regulations vary – and so a variety of practice standards are in place. A single national proficiency standard brings mortgage brokers in line with other financial professionals.

The AMP designation can now offer you confidence that your mortgage broker has industry experience, has taken ethics and industry training, and is committed to a program of ongoing education to retain their designation. In order to qualify for the designation, mortgage professionals must have at least five years experience or successfully complete a recognized mortgage professional proficiency course, and take an ethics training course. They must also commit to a minimum 10 hours of continuing education each year, and agree to be governed by the professional code of the national CIMBL organization.

With a growing number of Canadians now seeking the services of independent mortgage brokers to help them assess their mortgage options – in a $600 billion industry – the timing is perfect. It’s your money, after all, and you should have the tools to make the best possible decision. An independent mortgage broker can offer you the broadest range of mortgage rates and options. Now they can also offer you the added assurance of their newly minted designation: the AMP.

A jumbo mortgages is a home loan that exceeds the limits set by Fannie

Mae and Freddie Mac.

How are jumbo loans different?

What differentiates jumbo mortgage loans is the loan amount. At present, loan amounts that are higher than $417,000 are usually deemed jumbo mortgages. This determination is made by comparing industry standards for average housing loans as governed by the two biggest secondary mortgage lenders, Fannie Mae and Freddie Mac.

Fannie Mae and Freddie Mac set industry standards for ‘conforming loans’; Home loans beyond those maximums are regarded as jumbo mortgages. These two agencies cap the dollar figure for loans that they will buy (that’s where the $417,000 figure comes from). Larger loan amounts are funded by other investors such as banks and insurance companies. Note that the dollar figure set to qualify jumbo mortgages differs by locale, so the limit is higher in Hawaii and Alaska (and in some other states). In the majority of the U.S., jumbo mortgages are those larger than $417K.

Available Terms – 15 Year Fixed, 30 Year Fixed, or Variable 30 Year

Jumbo Mortgage

The terms for jumbo mortgages vary similarly to other types of housing loans. Buyers can choose between variable rates, like 3/1 or 5/1 ARMs, for a 15-30 year jumbo mortgage, or a 15 or 30 year fixed jumbo mortgagerate.

Whether a 15 or 30 year fixed jumbo mortgage or an adjustable rate is best for you will depend on your plans and situation.

A 30 year fixed jumbo mortgage is better for those whole plan to own the home for a very long time. With this type of mortgage, the rate will not go up but it will never go down, either – it stays the same for the life of the loan. This is good because the payment is predictable, and cannot rise sharply if interest rates do. On the downside, the 30 year fixed jumbo mortgage rate is higher since lenders know they can never charge more than the original rate.

The lowest jumbo mortgage rate is usually an adjustable 30 year jumbo mortgage rate. Lenders understand their potential to benefit from increases in rates over time, so they are willing to lend at a lower rate in the beginning. Although, the lower rate won’t last. A variable 30 year jumbo mortgage rate will be fixed for 3 to 5 years, and then will adjust annually according to an index. Even small increases could mean significantly larger monthly mortgage payments.

Going with an adjustable 30 year jumbo mortgage rate works well when a buyer plans to move within the 3 to 5 year fixed period. For a buyer more concerned with smaller initial payments, or who will likely refinance in the near future, the variable 30 year jumbo mortgage rate is better than the 30 year fixed jumbo mortgage. Why pay the higher fixed rate when the buyer knows this isn’t their long-term plan?

All jumbo mortgage products – 15 year, variable 30 year, or the 30 year fixed jumbo mortgage – have their benefits. A trustworthy mortgage lender with experience financing jumbo mortgages is a buyer’s best resource for determining which product is right for them.