Michigan Mortgage

Lemonade, Anyone?

Government looks to increase the FHA minimum down payment. Last month, on May 25th, in the House Financial Services committee meeting, the discussion resumed about increasing the minimum down payment requirement for FHA loans from 3.5% or $3500 on a $100,000 home to 5% or $5000 on a $100,000 home. This idea is gaining traction because FHA loan performance has [...]

Personal Story on Loan Modification

This last post on loan modification is my personal story on this topic.

It’s no secret to many of my good friends and clients that the years 2000 through 2006 were very good years for me as a mortgage broker. I was not one who wrote the high-interest-rate sub-prime loans, but even so, many were buying and selling and refinancing in Michigan during those years, and I was able to help many of them…

Is Modification Like Stealing?

One of my more introspective clients asked this question, and I appreciated it a great deal. He said that since he had agreed to borrow the money up front at a certain set of terms, that anything less than those terms could be considered stealing. Hmmm…

Important Tips to Remember when Doing a Loan Modification

Run the numbers first. Know what would be a good scenario for you. Figure out what kind of budget reductions you can make first and then determine what kind of payment you need to make it work. Come up with one or two ways to get there…

What Is the Process of Getting a loan Modification?

In the previous posts we’ve looked at loan modifications from a few different perspectives: the bank’s motivation, a big-picture definition, and a nuts-and-bolts, real-life example. Today I’ll lay out how to make it happen…

How do Loan Modifications Work?

When looking into a loan modification it’s important to get a little refresher on personal finance. A simple loan calculator can help you. I would suggest playing around with your numbers before you contact your bank so that you have in mind one or two ways that a modification might help you…

What is a Loan Modification?

A loan modification is not a refinance. There are few, if any, fees involved as a result, and no new mortgage is written. The existing mortgage is simply modified. The modification can be slight or it can be all-encompassing.

The main difference between loan mod’s and refi’s, however, has to do with qualifying. When you apply for a refinance the game is to look as strong as possible financially. The better you look the easier it is to get the refinance approved. The same goes with purchasing a new home…

Loan Modification – The End of the Road or Just the Road Less Traveled?

Why do Lenders Modify Loans?

Since we began working with Dave Ramsey’s listeners through our preferred partnership with Churchill Mortgage in November of 2009, I talk with no less than 100 families per month about refinancing their homes. For most, the call quickly becomes a math problem that essentially determines the cost and benefit of the loan and whether or not the person would be better off by simply adding money to their monthly payment and just paying it off more quickly on their own. Refinancing makes sense for some, and for others they should just keep doing what they are doing.

Sometimes though, it’s more complicated and difficult. Yesterday was one of those calls…