Tag: Todd Kurio

$1500 in Extra Down Payment Assistance Available

 

Capstar Lending through the State Affordable Housing Corporation is offering $1500 in Extra Assistance to borrowers with incomes at or below 80% AMI who use our Preferred Conventional Product.

For more information please call Todd Kurio, Residential Mortgage Loan Originator. 512 459 2405, NMLS #214411/216616, todd.kurio@capstarlending.com. Capstar Lending, Equal Housing Lender.

This is not a commitment to lend or extend credit. Restrictions may apply. Information and/or data is subject to change without notice. All loans are subject to credit approval.

Help is on the Way with Your Credit Report

Read about the National Consumer Assistance Plan and how it will make credit reports more accurate.

Highlights:

Medical debts won’t be reported until after a 180-day waiting period to allow insurance payments to be applied. The credit reporting agencies will also remove from credit reports previously listed medical collections that have been or are being paid by insurance.

The credit reporting agencies will provide special attention to consumers who are victims of fraud or who have credit information belonging to another consumer on their file.

http://nationalconsumerassistanceplan.com/about/

For more information on credit reports, please call Todd Kurio, Residential Mortgage Loan Originator. 512 459 2405, NMLS #214411/216616, todd.kurio@capstarlending.com. Capstar Lending, Equal Housing Lender.

This is not a commitment to lend or extend credit. Restrictions may apply. Information and/or data is subject to change without notice. All loans are subject to credit approval.

Credit Inquiries and Credit Score

Accounts: All 4 Types of Inquiries

Inquiry—is the common term that is used to describe someone who is checking into and/or viewing your credit. Basically they’re inquiring about someone’s track record and payment history to creditors.
Many experts in the industry rate the inquiries down to a two part description. The two part description is usually labeled “hard pull” or “soft pull” inquiries. Most people who refer to these two terms lack the over all understanding that there are actually 4 types of inquiries. The four different types of inquiries are used for different purposes and can either affect your score or not affect your score.

The four different types of credit inquiries are labeled as: account review inquiries, promotional inquiries, standard inquiries, and self pull inquiries. It’s easier to just use the first part of the term rather than having to verbally state all the words attached to inquiry with every description.

An “Account review inquiry” is when a potential creditor requests from the bureaus, permission, to review your account for only negative information within a certain time frame. This potential creditor does not receive good information about your credit and does not receive your credit scores (only information on recent delinquencies). An example would be if your ALLSTATE INSURANCE desires to request an account review on your negative payment history over the last 12 months. This information could be very valuable in determining your financial strength, financial reliability and responsibility, and in determining if there may be a common sense reason that you are now a higher insurance risk and are more prone to be in an accident and cost ALLSTATE INSURANCE more money.

This type of inquiry would be labeled a “soft pull”, because it is not factored into the credit risk scoring formula to remove points off your credit score. One of the major flaws with the account review inquiry is that it does not take into detail or exception if an individual has earned a lot more money, opened a lot of new accounts, mistaken or misapplied payments or, had lates that another creditor should’ve paid off to another creditor in the transfer and pay off of prior loans. This unfortunate example could lead to increased insurance rates to a prospering and responsible individual which is completely unfair.

“Promotional inquiries” are requested with the sole purpose of just receiving a credit score only. A promotional inquiry will not include information on recent lates, collections, public records, information on types of accounts, and who your creditors may be. Once again the only information that is provided to your requested potential creditor is simply a credit score. Promotional inquiries are usually distributed for the sole purpose of deciphering statistically who would be the best candidates to send credit promotions. The most common type of credit promotion is mailing offers with applications for credit cards. The credit card companies save time and money by narrowing their targeted audience to people who they feel would qualify for their credit offer. This saves them time, money, and makes the credit card companies way more money. Promotional Inquiries do not hurt your credit score and just like Account Review Inquiries, they are not even seen by your future potential creditors when they view your credit history.

“Standard Inquiries” are requested by your creditors when you are applying for a loan, money, line of credit, or extension of credit. You may be shopping for a car, boat, applying for a mortgage, applying to rent an apartment, leasing a tractor or construction equipment, buying/leasing furniture, or
computer equipment etc. These loans are very important to you because you want the best deal
knowing you can save thousands of dollars on interest by purchasing from a lender that gives you the best interest rate. The problem is the more you shop around the more potential risk you have of continually lowering your credit score. The scoring model has attempted to make changes so they don’t continually brutalize the savvy and thrifty shopper that is trying to get the best deal.

Copyright © 2016 Credit CRB, All rights reserved.

This is not a commitment to lend or extend credit. Restrictions may apply. Information and/or data is subject to change without notice. All loans are subject to credit approval.

Home Buyer Education Certificate May Help You Qualify for a Loan Program that Offers Lower Rates, Lower Mortgage Insurance

If you are a first time homebuyer and are looking for a homebuyer education course to help you achieve your homeownership goals and possibly help you qualify for a special first time homebuyer program that offers a lower interest rate and/or lower mortgage insurance rate- try this free, interactive course at http://www.freddiemac.com/creditsmart/tutorial.html

For more information about qualification, please call Todd Kurio, Residential Mortgage Loan Originator, at 512 459 2405. NMLS #214411/216616, todd.kurio@capstarlending.com. Capstar Lending, Equal Housing Lender.

This is not a commitment to lend or extend credit. Restrictions may apply. Information and/or data is subject to change without notice. All loans are subject to credit approval.

OWELTY LIEN: A Great Way to Refinance and Split up Equity in a Divorce

No one wants to get a divorce. However, if it is inevitable, there are ways for partners to make a clean break and get their fair share of the property in question by getting an Owelty lien.

Since Texas is a community property state, if you are married, and you own a primary residence with a homestead exemption, both spouses have equal rights to the equity in their home.
If Your Name is On the Mortgage, You Are Still Responsible For Payments After A Divorce. Most spouses think the divorce decree releases them from obligation to the lender. That is not the case. Even if the decree awards the property and the debt to one spouse, if the other spouse is on the mortgage, they are still responsible for the debt. Any late payments or other derogatory reporting will be reflected on both spouse’s credit report and would negatively affect each spouse’s credit score.

An Equitable Work Around

An Owelty Lien is a way to give each spouse what is owed to them as detailed in the divorce decree without having to sell the house. You don’t have to have the required 20% equity which would be required on a Texas Cash Out Refinance.

For more information on Owelty Liens, please call Todd Kurio, Residential Mortgage Loan Originator. 512 459 2405, NMLS #214411/216616, todd.kurio@capstarlending.com. Capstar Lending, Equal Housing Lender.

Capstar Lending Announces NEW Mortgage Assistance Program!

Capstar Lending is pleased to offer the Travis County HFC Hill Country Home Down Payment Mortgage Assistance Program. This program is for properties located anywhere in Travis County including anywhere within the City of Austin. This is a grant for up to 5% of the loan amount. This assistance can be used for down payment, closing costs and prepaids.

This program is for new or existing homes, 1-4 units detached or attached, condos or townhomes that meet the lender’s requirements. Borrowers must occupy the home as their primary residence.

There is no first time homebuyer requirement for this program and there are no purchase price limits. The loan amount maximum is set by the type of loan program you are applying for. For example, the FHA loan limit for a single family home in Travis County is $305,900.

The maximum income limit for this program is $105,560. This is based on the qualifying income used on the loan application. There is no recapture tax on this program.

Borrowers must have a minimum, middle credit score of 640.

For more information or to apply,please call Todd Kurio, Residential Mortgage Loan Originator. 512 459 2405, NMLS #214411/216616, todd.kurio@capstarlending.com. Capstar Lending, Equal Housing Lender.

This is not a commitment to lend or extend credit. Restrictions may apply. Information and/or data is subject to change without notice. All loans are subject to credit approval.

IRA Withdrawal for Home Purchase

IRA’s consist of two types- Traditional and Roth. Funds contributed to traditional IRAs are “before-tax” contributions because they are made and, thus, lower taxable income and tax liability.
However, when traditional IRA funds are withdrawn (and not rolled over to another pension- type account), the funds are fully taxable regardless of the age or other circumstances of the taxpayer.

If the IRA is Roth, IRA withdrawal for home purchase of up to $10,000 for a “first home” are completely free of tax and penalty (as long as the funds have been in the IRA for five years or more).

The 1997 Taxpayer Relief Act changed some IRA rules to allow certain types of IRA withdrawals early, without penalty, in some circumstances.

The rules for taking a distribution from a Roth IRA to finance a first time home purchase are slightly different than those for a traditional IRA.  The law defines a ‘first time home buyer” as someone who has not owned for 2 years. So the law helps even newer home buyers.

If you are a first time homebuyer and you meet the Roth IRA rules as a qualified distribution (after the account has been open for 5 yrs)you can withdraw $10,000 or less to purchase a home (if the funds are used directly toward the home acquisition-which includes down payment, closing costs, etc).

If the withdrawal counts as a qualified distribution you will avoid paying income taxes and early withdrawal fees. If you are married, and you and your spouse are first time homebuyers, you can each pull from retirement accounts, giving you $20,000 to use for a home purchase.

If you have not set money aside for your home purchase or don’t have a Roth IRA to tap- then you might want to consider other down payment options.  Capstar Lending offers Mortgage Assistance Programs and other grant programs that will provide the funds for your down payment and closing costs.

Please consult your financial/tax advisor for more detailed information.

This is not a commitment to lend or extend credit.  Restrictions may apply.  Information and/or data is subject to change without notice.  All loans are subject to credit approval.

Please call Todd Kurio, Residential Mortgage Loan Originator for more details. 512 459 2405, NMLS #214411/216616, todd.kurio@capstarlending.com.   Capstar Lending, Equal Housing Lender.

 

Low Mortgage Rates on VA Loans in Texas!

Want to learn more about historically low mortgage rates for Texas Veterans in Austin, Texas and other cities across Texas?

The Texas Veteran’s Land Board (VLB) hosts free “come and go” fairs across Texas to let veterans know about the resources and programs that are available to them for the VA loans in Texas program.  VLB staff and other representatives from the U.S. Department of Veterans Affairs and the Texas Veterans Commission will be on hand to provide information on home loans in Texas and other information about disability and pension claims, land and home improvement loans, state veterans homes and cemeteries. For more information about these VLB events, please go to: www.glo.texas.gov/vlb/veterans-benefits-fairs/

These events are located in Austin, Amarillo, Waco, Corpus Christi, Tomball, Dallas, Big Spring, Fort Worth, San Antonio. For more information on Home Loans for Texas Veterans, Please call Todd Kurio at 512-459-2405 –Residential Mortgage Loan Originator, Capstar Lending, NMLS #216616/#214411, e: todd.kurio@capstarlending.com.

What Are Jumbo Loans and What Will They Cost Me?

A jumbo loan (otherwise known as non-conforming) is a loan where the loan amount exceeds the Fannie Mae or Freddie Mac limit.

In Texas, the conforming loan limit is $417,000. In higher cost areas like California, the conforming loan limit is as high as $729,750. Jumbo loan rates in Texas are now lower than the loan rates for conforming loan amounts($417,000).

In the past, jumbo rates were about .50% higher than a conforming loan amount. In my 22 years as a mortgage loan originator, I have never seen the jumbo rates the same or lower than conforming loans. The main reason jumbo rates are so low is because lenders that buy and service these loans want to attract wealthy clients and cross sell them other financial products (like brokerage services) where they can collect ongoing fees.

Given the strict underwriting requirements with all mortgages, especially jumbo loans- borrowers are having to open up their entire financial position in order to qualify and lenders can see what other opportunities there are for opening a brokerage account, life insurance, etc. Also, since the borrowers are taking out a low fixed rate loan, the borrowers are likely to keep their mortgage and won’t be refinancing anytime soon. The affluent client will stay as a bank’s customer for a long time.

Jumbo loans have also become cheaper on a relative basis to conforming loans in part from additional government regulation. The Federal Housing Finance Agency(FHFA), which regulates Fannie and Freddie, has forced lenders to keep additional reserves for potential mortgage defaults on conforming loans. They have increased reserves by charging guarantee fees (GFees) to lenders which increase rates on conforming loans. Since Fannie and Freddie don’t participate in the jumbo loan market, those guarantee fees don’t apply on jumbo loans and therefore are not passed on to borrowers who borrow more than $417,000.

In Austin, Texas, you can still obtain financing with as little as $32,450 down up to a sales price of $649,000. These loans also don’t require private mortgage insurance. You can obtain financing with a minimum down payment of $90,700 on a sales price of $907,000 without mortgage insurance.

We can help you with a purchase or refinance of a jumbo loan in a timely and professional manner. Please call Todd Kurio, Residential Mortgage Loan Originator, at 512 459 2405 or email at todd.kurio@capstarlending.com. Capstar Lending, NMLS #216616

The Two Types Of Private Mortgage Insurance (PMI)

When looking into financing, most borrowers want to avoid paying private mortgage insurance.  Private Mortgage Insurance(PMI) is generally required on conventional loans when the loan amount is greater than 80% loan to value (meaning you have less than 20% equity in the house). The two types of mortgage insurance are Borrower Paid (BPMI) and Lender Paid (LPMI).  Lets take a look at each.

Borrower Paid or BPMI

The lender charges a yearly premium paid out in your monthly payments.  The average BPMI is .21 and 1.15%, depending on how much you put down and what your credit score is.  BPMI can be cancelled by law.  Once the balance reaches 78%, the lender is required to cancel BPMI.  There are other options to cancel the the PMI at 80% loan to value.

Lender Paid or LPMI

Includes the cost of the insurance in the form of a higher rate. In exchange for covering the PMI, the lender charges you a slightly higher rate for the life of loan. It normally results in a lower monthly mortgage payment than BPMI. This type of mortgage insurance can’t be cancelled.   The LPMI is usually an attractive option if you are likely to move or refinance within 7-10 years. LPMI may have tax benefits compared to borrower paid monthly which is no longer tax deductible(for tax advice, please consult a tax professional). Borrowers can generally purchase 5% more house with LPMI than with BPMI for the same monthly payment.

Keep in mind, these types of insurance should not be confused with insurance that pays off your mortgage upon death, or homeowners insurance, which protects you from losses due to such events as wind, fire, damage,etc.  This type of mortgage insurance only protects the lender in case of default (non payment of the loan).  Even though the borrower/buyer pays for this type of mortgage insurance- it does not protect the borrower- it protects the lender.

However,there are ways to avoid the monthly mortgage insurance cost. In addition to doing a “piggyback” loan where you get a first and second loan to avoid the mortgage insurance, you can also avoid monthly mortgage insurance costs by obtaining Lender Paid Mortgage Insurance, one of the two types of mortgage insurance we discussed above.

For more information on ways to avoid mortgage insurance and lower your monthly mortgage payment- please contact Todd Kurio, Residential Mortgage Loan Originator, todd.kurio@capstarlending.com, 512 459 2405 NMLS#216616