Category Archives: FHA Loans

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Rent is Too High! It’s Time to Buy!

By | Adjustable Rate Mortgage Loan (ARM), FHA Loans, Fixed Rate Loans, HARP Loans, Monster News, VA Loans | No Comments

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Have you recently looked into renting a new home and been shocked by the high costs all around? You aren’t the only one. According to a report from CNBC, renters in the U.S. now are expected to pay 30% of their monthly income to rent alone, up 6% from pre-housing boom levels. Depending on where you live, that number can jump to as high as 40-50% of your income, specifically in areas like Los Angeles and New York.

That’s an astronomical number to be paying for something you will likely never own. And with more people renting now than ever, there just are not enough new apartment buildings to keep up with consumer demand.

This isn’t all necessarily a bad thing. While the renting market is hovering near historic highs, buyers are spending half as much as renters, 15% of their monthly income on average, on mortgage payments. Unlike with rent, this is actually down 6% from pre-housing boom levels.

And the numbers indicate that owning will be cheaper than renting for the foreseeable future. Even if rates nearly double to 6% in the next year, home owners will still be spending less than 30% of their income on average for mortgage.

To put things simply, if there was ever a time to stop renting and start owning, it would be now. With the recent loosening of credit restrictions for new home owners, buying your dream home today may be more realistic than it’s ever been.

So what are you waiting for? Get a free MonsterLoans quote today!

FHA Loosens Credit Requirements for Potential Home Owners

By | FHA Loans, Monster News | No Comments

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In a move that could have huge implications on the housing market, the Federal Housing Administration (FHA) announced new steps that would encourage lenders to work with what are considered ‘riskier’ customers.

How does this affect potential new home owners? Credit restrictions that in the past may have prevented borrowers from qualifying for a home loan have now been loosened to help the approval process become easier. Under this initiative, borrowers with lower credit ratings or tighter credit restrictions are now more likely to qualify for a loan than any other time since the collapse of 2008.

This is huge news in a housing market that has seen costs skyrocket. Borrowers who now would have needed to wait a few more years for their credit scores to rise can move forward before home prices climb even higher.

The move will also help lender confidence as it allows the FHA to look over a much wider variety of credit scores to better determine which loans are acceptable risks. In the past, lenders were only able to compare a borrower’s credit to that of peers in the market, but now their credit scores will only be compared with FHA’s risk tolerance. This means that lenders will have more comfort handing out these loans and borrowers will have an easier time qualifying for them.

Overall, this is great news for all potential home owners and the housing market!

About MonsterLoans

MonsterLoans is a privately-owned mortgage lender based out of Irvine, CA. Founded in 2003, MonsterLoans is the premier national mortgage lender specializing in VA, FHA, Harp, Fixed, ARM and Jumbo loans. With all services centralized under one roof, MonsterLoans is able to provide precise and specialized attention to every client, ensuring the best loan possible for each specific situation. At MonsterLoans, we depend on your loyalty and satisfaction, and our mission is to never let you down. For more information, please visit http://www.MonsterLoans.com

Tracking Today’s Market Trends

By | FHA Loans, Fixed Rate Loans, HARP Loans, Monster News, VA Loans | No Comments

 

mortgagesavingsWith the housing market constantly evolving, keeping up with trends can be a tedious task. Should you refinance? Is now the time to buy? Are home values at a place where you want to sell? These are all questions that can be difficult to answer if you do not have a solid grasp of the market and its trends.

But fear not!

Instead of leaving you to read the market and figure things out on your own, MonsterLoans has put together a list of key trends in today’s market to help you decide your next step!

  1. MI Reduction in your FHA Loan – Not all home-owners are interested in a refinance that totally changes their loan. Instead, they are just looking to save a couple hundred dollars a month to help with other bills. Due to the Department of Housing and Urban Development (HUD) dropping the mortgage insurance premium on FHA loans, a simple refinance can drop your MI premium and easily give you some extra cash every month!
  2. Converting Your Conventional Loan – MI reduction sound great, but not an FHA loan holder? No problem! Converting from your conventional loan to an FHA will help you take advantage of the MI Reduction and put some cash in your pockets. Rising home values indicate that it’s likely you are in a better position today to refinance than any time in the past.
  3. Home Values Continue to Skyrocket – Speaking of rising home values, industry experts predict that we will continue to see them climbing through the end of the year and into the foreseeable future. In fact, some forecasts predict a 4-5% annual gain in home prices. With your homes value likely up in a big way, now is the time to cash-out on your equity and get some immediate cash!
  4. I’m Cashin’ Out! – With home values on the rise and debts continuing to pile up, it’s no surprise that one of the fastest-growing refinance methods in the country today is the Cash-Out refi. Home-owners are taking advantage of their equity to pull some cash for immediate relief. The best part? There are NO RESTRICTIONS on how you can spend this money. Use it for home upgrades, credit card and debt relief or just to take a vacation!
  5. Streamline to the Rescue – In today’s economy, a lot of people are just getting by making mortgage payments and trying to get their credit score back on track. Saving money and refinancing don’t seem like much of an option, but there’s a program out there that can turn lowering your rate from a dream to a reality! The VA’s Streamline Refinance program (aka IRRRL program) can be done with zero out-of-pocket cost and can help a home-owner in need of financial relief without the burden of a high-cost refi.

About MonsterLoans

MonsterLoans is a privately-owned mortgage lender based out of Irvine, CA. Founded in 2003, MonsterLoans is the premier national mortgage lender specializing in VA, FHA, Harp, Fixed, ARM and Jumbo loans. With all services centralized under one roof, MonsterLoans is able to provide precise and specialized attention to every client, ensuring the best loan possible for each specific situation. At MonsterLoans, we depend on your loyalty and satisfaction, and our mission is to never let you down. For more information, please visit http://www.MonsterLoans.com

What Do Rising Interest Rates Mean to Home Owners?

By | FHA Loans, Fixed Rate Loans, HARP Loans, Monster News, VA Loans | No Comments

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In recent months, the housing market has seen increases across the board. Fortunately for home owners, there has been a surge in home values throughout 2015. However, we have also seen a spike in interest rates in recent months, and with the Fed expected to hike rates as soon as September, the low rates we have seen over the past year could soon be a distant memory.

So how does this affect you, the homeowner?

If you are considering a refinance on hour home, these trends indicate that moving forward in the process now while rates are still low is your best option.  While we are yet to see drastic spikes in our interest rates, we have seen a noticeable increase. As a home owner, you may see the rate jump from 3.735% to 4.25% and not think much of it, however on a $200,000 loan not only is that a $70+ increase in payments, but also an issue that could affect loan and refinance approval.

At MonsterLoans, we want to help you kick-start your refinance and guarantee the lowest possible rate on your refinance. Simply put, with rates on the rise, now is the time to lock in your low rate!

About MonsterLoans

MonsterLoans is a privately-owned mortgage lender based out of Irvine, CA. Founded in 2003, MonsterLoans is the premier national mortgage lender specializing in VA, FHA, Harp, Fixed, ARM and Jumbo loans. With all services centralized under one roof, MonsterLoans is able to provide precise and specialized attention to every client, ensuring the best loan possible for each specific situation. At MonsterLoans, we depend on your loyalty and satisfaction, and our mission is to never let you down. For more information, please visit http://www.MonsterLoans.com 

What Are the Benefits to Converting Your FHA Loan?

By | FHA Loans, Monster News, VA Loans | No Comments

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Could you use a couple hundred dollars extra per month to help pay your bills or pad your vacation fund? If the thought of refinancing has crossed your mind, there is an option out there that could save you money immediately. By converting your FHA Loan, you may be able to eliminate your month Mortgage Insurance (MI) premium, saving you hundreds of dollars monthly.

With home values on the rise, there is no better time to refinance with no MI payment included. For those who have attempted to refinance in the past, it is likely that you are in a better position to do so today due to your home likely having a higher value.

Another benefit of converting your FHA loan is that these mortgages often times can offer lower interest rates. Along with dropping your MI payment, this refinance could in fact save you money on the total amount due on your mortgage.

While converting from an loan does offer these great benefits, whether or not you should refinance in this manner should always be looked at on a case-by-case basis. Let our MonsterLoans experts help you find the best option for YOUR refinance today!

About MonsterLoans

MonsterLoans is a privately-owned mortgage lender based out of Irvine, CA. Founded in 2003, MonsterLoans is the premier national mortgage lender specializing in VA, FHA, Harp, Fixed, ARM and Jumbo loans. With all services centralized under one roof, MonsterLoans is able to provide precise and specialized attention to every client, ensuring the best loan possible for each specific situation. At MonsterLoans, we depend on your loyalty and satisfaction, and our mission is to never let you down. For more information, please visit http://www.MonsterLoans.com

 

 

Taking Advantage of the Mortgage Insurance Reduction in Your FHA Loan!

By | FHA Loans, Monster News | No Comments

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What could you do with an extra couple hundred dollars in your pocket every month? You could afford a new car payment, or add some money to your vacation fund, or just have some extra spending cash! What if this hypothetical scenario was actually an incredibly easy process for homeowners with an FHA loan?

In an effort to make home financing a more affordable option for consumers, the Department of Housing and Urban Development (HUD) announced earlier this year that they would be reducing the monthly mortgage insurance (MI) premiums on all FHA loans. This is huge news for homeowners with an FHA loan who are looking for a quick way to save money every month!

The simple change of dropping MI premiums allows a homeowner with an FHA loan to potentially save a few hundred dollars a month right away. According to CNBC, FHA purchase applications have gone up over 18% over the past year despite a decrease in the same applications for the rest of the market. The numbers here tell the story as many homeowners in a FHA loan have already begun to move forward on a refinance that allows them to drop the MI in their payment.

If you are already in an FHA loan, do yourself a favor and take a look at refinancing and taking advantage of the MI reduction today!

About MonsterLoans

MonsterLoans is a privately-owned mortgage lender based out of Irvine, CA. Founded in 2003, MonsterLoans is the premier national mortgage lender specializing in VA, FHA, Harp, Fixed, ARM and Jumbo loans. With all services centralized under one roof, MonsterLoans is able to provide precise and specialized attention to every client, ensuring the best loan possible for each specific situation. At MonsterLoans, we depend on your loyalty and satisfaction, and our mission is to never let you down. For more information, please visit http://www.MonsterLoans.com

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