Happy New Year!

Happy New Year from my family to yours!

http://www.new-hampshire-home-mortgage.com

Merry Christmas and Happy New Year from Evolution Mortgage LLC.

We will be continuing our BLOG after the holidays -- have to take time to play with the kids during their school vacation!

As always you can reach us via our web site at
http://www.new-hampshire-home-mortgage.com

Lower rates...?

Rates have dropped. This is a fact. As a matter of fact they are as low as during the refinance boom of a few years ago. Why the question mark in my heading? These rates are great for those not taking cash out with superb credit scores and very low loan amount to value of the home. For example if you take a person that bought a house 6 years ago with a first mortgage then this person 2 years ago took out a second mortgage for home improvements and they have a 680 credit score at 80% Loan To Value Ratio -- this clients refinance is considered a Cash Out refinance and the higher Loan To Value will mean that the broker or lender is being charged more via Fannie Mae and Freddie Mac's Rate Adjustments. For the client this means that rates may not be as great as you think.

You need to deal with a professional that will be up front with you every step of the way and point out preferred financing solutions. The person above may be better off subordinating the second mortgage and simply doing a Rate and Term refinance OR even consider an FHA mortgage. The FHA mortgage will have Mortgage Insurance but the lower rate may compensate for this additional monthly fee -- furthermore the Mortgage Insurance on an FHA loan will go away after 5 years.

Today's market demands experience to give you the best advice possible. If you are interested in discussing your opportunities contact us via our website at: http://www.new-hampshire-home-mortgage.com

FHA Mortgages

FHA is a premier program for today's borrowers. There are many great opportunities to purchase or refinance with this program as you are being backed by the Mortgage Insurance pool from the government. Lenders utilize this as a very safe mortgage product.

There are straightforward guidelines for debt to income ratios BUT with compensating factors these can be overcome. A great compensating factor is more than 3 months of housing payment in reserve. Another is superb credit.

But this program will go below a 580 credit score and still get you to a 96.5% Loan to Value ratio. Remember though you have to have a clean credit history for 12 months minimum and be able to explain what happened to lower your score.

This program is also great for suberb credit as you can purchase a home combined with a NH Housing Finance Authority Grant and only have to have 1% of the purchase price come from your own funds.

Connect to us via our website at: http://www.new-hampshire-home-mortgage.com

100% Financing...

Don't believe the news. I was watching one of the networks and they stated you needed to have 20% down to qualify now... this is wrong. The story was on the bailout of the major banks and how credit has tightened. This story failed to mention that the US Government already has a great program in place for 100% financing -- USDA Rural Development. This is a government insured backed mortgage where you can buy a new home and even finance closing costs and home improvements if needed, depending on the appraised value.

The fine print: There are income limitations on this program defined by Metropolitan Statistical Areas -- basically the population of an area. Also there are 13 towns in New Hampshire that do not qualify for this program -- too much population (the name is Rural Development).

The Mortgage Insurance is financed into the loan and there is NO MONTHLY Mortgage Insurance! This keeps the monthly payment lower!

For example a family of 4 buying a home in my town of Boscawen NH has an income limit of $81,100. BUT if the 2 children are in any type of day care or after school care the costs of this can be subtracted from your gross income to help you qualify!

Definitely worth asking about to cut down on your required down payment.

As usual check our website for more information at:
http://www.new-hampshire-home-mortgage.com

Ice Storms and State of Emergency

Well we have just come through a major Ice Storm in NH and ME. This has caused a State of Emergency to be declared.

If you are in the midst of a refinance or purchase your lender may require that the appraiser go back to the home to make sure it is still in the same condition. This can cause last minute delays and problems. Especially with purchases and rate locks. You should communicate with your lender to find out if they will require the appraiser to go back out to your home or your potential new home. While on the surface this seems like a waste of time, the lender wants to make sure they are lending on a solid property not one that was taken out by a tree and not fixed! You as a buyer should also do another walk through to make sure there are no problems. If the power is off wait until it is back on and pipes are working to avoid any plumbing issues from burst pipes. An extra ounce of prevention right now can save you in the long run.

for more questions contact me through my website at:
http://www.new-hampshire-home-mortgage.com

Interest Rates... Shopping and Stopping!

Rates have been dropping! This a great thing for people with the need to refinance or lower the interest rate and save money every month. But I constantly get the question of when is a good time to lock my rate? Are rates going lower? This is the crystal ball question that nobody can give you a gaurantee on and if the do ask them for the lotter numbers at the same time.

The rate is right and you are done shopping when you obtain your goals for the refinance. What are you trying to do with the refinance? Lower rate? Lower Payment? Shorten the term of your note? Pay off Debt? You must first determine what your goal is and only you can decide this. If I offer you a lower rate on a 15 year mortgage that raises your payment but saves you 15 years on your mortgage... is this a good deal? It depends what are YOUR goals.

A mortgage professional will not just quote you a rate nor should you want this -- you want someone to ask "What are you shopping for?" This will open up a discussion on your goals to make sure that what you really want is delivered at the closing table.

When do you stop shopping for a rate? Well as you can tell from above that is simple -- when you have found a professional that will help you obtain your goals. Everyone wants the lowest rate, but this does not always meet your goals -- you can sometimes get a lower rate when you are not taking any cash out of the equity of your home -- but if your goal is to get cash out of your home the lowest rate is not right for you as it will not help you obtain your goal.

Decide what you are looking to obtain and find a professional that is going to work with you to get you there. There are always cheaper options out there, less now than previously, but remember cheap is good but good is not cheap!

If you have any questions about mortgages you can contact me directly via my website at:
http://www.new-hampshire-home-mortgage.com/

Reverse Mortgage Continued

Reverse Mortgages are not for every client over the age of 62. You need to sit down with a professional that will give you the Good, Bad, and Ugly of Reverse Mortgages. Visit other web sites about Reverse Mortgages such as:

AARP's Web Site
http://www.aarp.org/money/revmort/

HUD/FHA's Web Site (Top Ten Questions)
http://www.hud.gov/offices/hsg/sfh/hecm/rmtopten.cfm

These are 2 starting spots to learn!
You can also visit my web site at:
http://www.new-hampshire-home-mortgage.com/Reverse-Mortgage.html

We are updating our information online this week and will get more up to date information.

For example did you know if it makes sense you can get a Reverse Mortgage if one of the spouses are Under age 62? If it makes sense is the key to this statement! You need to do some serious financial thinking.

Or how about using a Reverse Mortgage to buy a new home or to downsize into a condo! WE have seen many people go to single floor living with a new home with all of the upgrades to keep you in your home, safe, and comfortable!

The other item people consider with Reverse Mortgages is using them to pay for at home health care or Visiting Nurses. There are some great opportunities to stay in your home but still have the care you need.

Why would you NOT want a reverse mortgage...

• You are not able to put the home in an Irrevocable Trust. If this is one of your goals for estate planning then you would need to change that part, the home can be in a Revocable Trust.
• You have added a child to your deed... this would have to change as well. You are financially stable, you have plenty of income from stable sources -- there is no need for you to get one!
• You don't have a mortgage now and your kids are assisting you with other financial needs -- you don't need one!
• The thought of a rising debt falling equity loan is not what you want -- Get something else that fits your goals.
• You are only planning on staying in your home for a very short period.. A reverse may not make sense depending on what you are planning -- Consider all the angles

Just because there is a significant amount of discussion about Reverse Mortgages does not mean you need one. Meet with an FHA Approved Lender or Broker that you feel comfortable with and that is responsive to your questions and calls. If you are feeling pressured -- STOP and find someone else to work with. The mortgage process needs to be comfortable and to move at your pace not that of the Mortgage Company -- Remember You Are the Client and You Are In Charge!

I can be reached via my website at: http://www.new-hampshire-home-mortgage.com/ We have a free information package available if you are interested.

Matthew J Butt -- evolutionmortgage@tds.net

December 10 2008 Reverse Mortgages

This is my first Blog. My name is Matthew Butt with Evolution Mortgage LLC in Boscawen NH a small family owned mortgage broker licensed in New Hampshire and Maine.

I want to discuss Reverse Mortgages with you. If you are 62 and over or know someone who is (parent, uncle/aunt etc...) a Reverse Mortgage may be an excellent opportunity for them to enjoy their retirement vs. surviving it!

I have had a client that was on a fixed income that lost 40% of their retirement income -- the client was not invested correctly BUT they still need to live, pay taxes and eat! I was able to take this client from a desperate situation to a comfortable one! The client now has a line of credit that does not require a payment. This line of credit can be utilized to pay their taxes or for whatever purpose needed.

There are good bad and ugly items about a Reverse Mortgage that I will be exploring here more and more. I look forward to comments. You can find us on the web at http://www.new-hampshire-home-mortgage.com/