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Mortgage Insurance

Mortgage Insurance

At Mortgage Depot, we understand that some buyers struggle to come up with the money for a down payment, so we work with lenders offering reduced down payment requirements for loans with private mortgage insurance. PMI allows buyers to qualify for a mortgage with a lower down payment, but no one wants to pay a monthly fee for PMI if it can be avoided. Mortgage Depot is a mortgage broker, so we work with different lenders offering alternatives to PMI.

What is mortgage insurance?

Most lenders require borrowers to put down at least 20% of the purchase price of a home. Mortgage insurance was developed to give borrowers who could not save enough money for a 20% down payment the chance to purchase a home.

PMI is a policy of insurance that pays a lender in the event a borrower defaults in making payments on the mortgage. The monthly cost of PMI depends upon the following factors:

  • Amount of the down payment
  • Borrower’s credit score
  • Loan-to-value ratio

How long it will take a borrower to payback a loan is also a factor in determining the cost of PMI. The PMI for a 15-year mortgage will be less than a mortgage that will take 30 years to payback.

Avoiding PMI

The easiest way for a borrower to avoid the cost of mortgage insurance is by putting down at least 20%, but we know that is not an option for many people. Mortgage Depot has lenders offering an alternative to PMI through a piggyback mortgage.

Piggyback financing involves a first mortgage for 80% of the purchase price and a second mortgage equivalent to 10% of the price of the home. The buyer’s down payment using this method of financing is reduced to 10% of the purchase price, and both loans close at the same time to complete the transaction.

Contact Mortgage Depot

Speak to one of our loan officers about alternatives to mortgage insurance.

To contact us by phone call 800-535-0270 or email us by clicking here.

UWM Sponsors Lunch

UWM Sponsors Lunch

Our valued partner United Wholesale Mortgage graciously catered lunch for the staff of MortgageDepot. We are proud to be partners with UWM. As partners, we work in tandem to provide a wide array of mortgage products from UWM to our clients to help them secure the home or business of their dreams.

UWM bringing the staff together to “break bread” over lunch enhances the feeling of camaraderie among the colleagues here at MortgageDepot. This generous gesture engenders a positive corporate culture that translates into a higher level of customer service for all of our clients.

Thanks to United Wholesale Mortgage for making lunch here at MortgageDepot a “family affair!” If you’d like to gather your family around the table in a new home, contact MotgageDepot today to secure your mortgage. We’ll treat you like family. Our Mortgage loan officers are here ready to make your dream of home ownership a reality. Give us a call today for a consultation, and with the help of United Wholesale Mortgage, we’ll get you the very best mortgage product for your needs.

Reverse mortgage purchase loans

Reverse mortgage purchase loans

Reverse mortgages have traditionally been the method used by senior homeowners to access the equity in their homes without incurring a monthly mortgage payment. Payment of the debt created by a reverse mortgage is deferred until the property ceases to be the borrower’s primary residence. At Mortgage Depot, we offer senior borrowers the ability to use a reverse mortgage to purchase a home through our reverse mortgage purchase program.

Reasons a reverse mortgage purchase loan makes sense

The home a couple lived in while raising a family might not be the best option for retirement. Some of the reasons for selling the family home include:

  • Downsizing now that the children have moved out.
  • Reducing repairs and maintenance costs with a newer home or condominium.
  • Accommodating physical limitations.

Reverse mortgage loans give seniors the chance to buy a new home without adding a monthly payment.

Features of our reverse mortgage purchase loans

Among the features of a reverse mortgage purchase loan are the following:

  • Loans are available for the purchase of existing single-family homes and properties with up to four units.
  • Borrowers must take occupancy as a primary residence within 60 days following the closing.
  • Amount borrowed is determined by the age of the borrower, interest rate on the loan and appraised value of the property.

The difference between the amount borrowed and the purchase price of the home usually comes from the equity from the sale of the borrower’s current residence, but it could also come from other sources, including savings and retirement accounts. Funds making up the difference between the reverse mortgage purchase loan and the cost of the property cannot come from refinancing a second home or investment property.

Contact us today

Speak to one of our loan officers about a reverse mortgage purchase loan today. 

Contact us today at 800-535-0270 for more information or email us here.

Meet Orlando Segundo Jarrin

Meet Orlando Segundo Jarrin

“My role here at MortgageDepot is that as a Loan Officer. Before joining the staff here thirteen years ago, I worked for another firm called Olympic Mortgage. I just happened to fall into the mortgage industry by chance. I was very young, and I intended to buy a used car, but I kept seeing open house signs in the vicinity where I was shopping, and on a whim, I also decided to attend the open house. Instead of the car, I purchased my first property!

This one purchase opened my eyes to a possible career in real estate. I’m excited about each workday as I was during my first real estate purchase. I don’t sell my clients rates. I try to be as versatile as possible and offer them an excellent product; I pride myself on being a savings expert for my clients. And my clients are extremely pleased with the service that I provide to them! They consistently make new business referrals, send thank you gifts and make phone calls thanking me, and they leave glowing reviews on my webpage regularly.

When the financial crisis of 2000-2006 happened, it was the result of insufficient income verifications for people seeking mortgages. The best thing to change in the mortgage industry has been the introduction of new mortgage programs offering flexibility to borrowers. If I could wish for one big thing, I’d like to see legislation that permits the hard-working young people designated as DACA, be afforded the privilege of homeownership.”

FHA 203k Rehab Loan

FHA 203k Rehab Loan

The home of your dreams could be in need of some costly renovations before a lender will provide the financing to purchase it. The professional loan officers at Mortgage Depot have a solution with our home repair escrow programs. We work with a variety of lenders to find the loan that suits your needs and budget.

FHA 203k loans

Traditional mortgage financing provides borrowers with the funds needed for the balance of the price of a home based upon its appraised valuation. The property being purchased must be in livable condition for it to be capable of being appraised.

The FHA 203k program provides funding for the acquisition of a property that is in less than pristine condition. The key feature of the loan program is the availability of funds to complete the purchase of a home based upon its appraised value after completion of repairs required to make it livable. Program features include:

  • Buyers may borrow the funds needed to complete repairs and make the purchase.
  • Borrowed funds may be used to finance temporary housing while repairs are completed.
  • Repairs and renovations must be completed within six months.

Part of the application process for an FHA 203k loan includes preparation of a list of repairs that must be completed to increase the value of the property to an amount required to satisfy underwriting guidelines. The money to fund those repairs is placed in escrow after the closing on the purchase of the home and disbursed as the work is completed.

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Alternative programs to FHA 203k

Some of our lenders offer alternatives to FHA 203k loans for homes that do not require extensive renovations. Features of these alternative loans include:

  • Funding to acquire the property.
  • Up to $5,000 in escrow to pay for repairs.
  • Up to 15 days to complete the work.
  • Repair requirements based upon estimate from a licensed contractor.

Home repair escrow loans are available on FHA, VA and other types of loan products.

Contact us today

Learn more about our financing options by contacting Mortgage Depot. A loan officer is available by calling us.

To contact us by phone call 800-535-0270 or email us by clicking here.

rehab

Real Property Transfer Tax Increases

Real Property Transfer Tax Increases

New York increases transfer and mansion taxes Owners, buyers and developers of high-end luxury properties will be helping state officials in New York balance the budget for 2019-2020. A substantial increase in the state tax on real estate transfers takes effect on July 1, 2019. Property owners in New York City and other cities throughout the state with populations of at least one million people got more bad news with the announcement of an increase in the so-called “mansion” tax on transfers of properties valued at $1 million or more, which also goes into effect on July 1.

multi family

New York State transfer tax

The state transfer tax has been in place in New York for decades. It is a tax levied on the sale of real property located within the state. The tax rate before the most recent action by the state legislature was 0.4% calculated on the amount paid by a buyer or grantee as consideration for the conveyance. Responsibility for payment of the transfer tax falls on the grantor or seller.

Under the new law, the 0.4% tax rate remains for residential properties, including single-family homes, condominiums and cooperative apartments, sold for up to $3 million. The tax rate increases to 0.65% for residential properties sold for $3 million or more.

Sellers of commercial properties will also be subject to an increase in the state transfer tax. The current tax rate of 0.4% increases as of July 1, 2019 to 0.65% on commercial properties sold for $2 million or more.

Mansion tax increase

The conveyance of residential property in cities in New York with populations of one million or more, such as New York City, for consideration of $1 million or more has been subject to a transfer tax equivalent to 1% of the amount paid. The new transfer tax law imposes a higher tax based upon a progressive scale that gradually increases the tax rate from 1% on transfers for at least $1 million but less than $2 million. Rate goes up to 3.9% on conveyances for $25 million or more.

Other points to keep about mind about the new transfer taxes

The effective date of July 1 for the new tax rates can be misleading. Transfer taxes are paid at the time of the conveyance of the property, which would normally be the date of closing of title. The new law grants sellers some relief if they signed a contract to sell their property on or before April 1, 2019.

Another aspect of the new law is that both the buyer and seller are jointly and severally liable for payment of the mansion tax. Learn more about how transfer taxes could affect your real estate transaction by calling us at Mortgage Depot.

Contact us today at 800-535-0270 for more information or email us here.

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