Refinance into a lower interest rate

For borrowers with strong credit scores (a minimum of 700, but the higher the better) and low loan-to-value ratios (LTV), this is an excellent time to shop around for low interest rates. More lenders are advertising rates in the low 3s and even 2s, but they’re also raising minimum requirements. You can compare refinance offers on Bankrate.

Before you apply for a refinance, check your credit score and LTV (use Bankrate’s LTV calculator). An ideal scenario for conventional refinancing is a FICO score above 700 and an LTV below 60 percent. Borrowers can qualify for refinancing with LTVs of 80 percent or lower. Anything more than 80 percent and private mortgage insurance kicks in.

Refinance into a different loan term

You can also change the term of your mortgage. If you want to pay off your mortgage faster (and reduce the total amount of interest you pay), you can refinance into a shorter loan. Of course, this doesn’t change the amount you owe, which means your monthly payments will be higher.

Let’s say you only have 10 years left on your existing 30-year mortgage. You can refinance into another 30-year fixed-rate mortgage with a lower interest rate. This will reduce your monthly payments, but you will pay more in total interest because you’re resetting your loan. To maximize your total savings, you should lower your interest rate and shorten the term of your mortgage.

Here are three scenarios that show what happens when you reduce the rate on a $200,000 loan to 3.5 percent with a 30-year, 15-year and 10-year fixed rate mortgage.

If your goal is to reduce interest on the life of the loan, then the 10-year fixed-rate option is the best one. Keep in mind that you might get a better interest rate on a shorter loan, which would help ease those monthly payments and further trim your total interest debt.

Cash-out refinance

More

https://www.bankrate.com/mortgages/choose-the-right-kind-of-refinance/

How to shop for a mortgage
Before you begin comparing mortgage offers and rates, consider the kind of mortgage you want and what you can qualify for. Common loan types include:

Also consider the loan term, or the time frame in which you are required to pay off the loan plus interest. Mortgages commonly come in 15-year or 30-year terms, but you can find ones with other terms as well.

Once you know the kind of mortgage and term, gather documents that show your income, investments, debt and more. In order for lenders to give you the most accurate quote, they need your:

Tax returns
W-2 forms and other documents reporting income
Bank statements

Statements for any investments, including brokerage and retirement accounts
Records of all your debt, including student loans, car loans and personal loans
Utility payment records
Renting history
Gift letters indicating that money gifted to you to buy a home is not a loan
Divorce, child support and alimony documentation (if applicable)
Records of bankruptcy and foreclosure (if applicable)

Once you have these handy, you can compare mortgage offers online. Talk to your bank (or other financial institution you have a relationship with) as well — they may offer a better deal to existing customers — and ask family and friends for referrals.

In addition, consider contacting a mortgage broker, who may be able to find you an offer you can’t find on your own. Mortgage brokers work with wholesale lenders who don’t work directly with consumers.

“If you’re feeling particularly overwhelmed by the process or you’re looking for a higher touch experience, a mortgage broker may be able to help,” says Austin Kilgore, director of digital lending at Javelin Strategy & Research. “A mortgage broker shops your application around to find you the best rate.”

How to compare mortgage rates
When shopping around for a mortgage, it’s important to compare mortgage rates. You can do this online with Bankrate, which allows you to set specific preferences, like loan amount and credit score, to find quotes from different lenders.

Keep in mind that the interest rate only tells you so much about the cost of buying a home. Getting a mortgage generally comes with closing costs and can include fees such as:

Application fee
Credit report fee
Appraisal fee
Underwriting fee
Property taxes and other government fees
Points
Lenders disclose these costs on the Loan Estimate.

What to know about the Loan Estimate
The Loan Estimate is a three-page document that lists your loan amount, quoted interest rate, fees and all other costs associated with the loan. Comparing Loan Estimates can help determine which offer is more cost-effective.

“The Loan Estimate is a great tool for consumers because it gives them a real apples-to-apples comparison of all the intricate details of a loan,” Kilgore says. “Every lender uses the exact same form, which makes it easier to do a side-by-side comparison.”

Every lender is legally required to provide you with a Loan Estimate within three days of getting your application and pulling your credit report. The costs listed on the Loan Estimate generally don’t change any time in the mortgage process.

“Fees can decrease on a Loan Estimate but not increase,” says Ralph DiBugnara, vice president of Cardinal Financial.

On the Loan Estimate, keep an eye out for fees that may sound unfamiliar, including:

Balloon payments: A fee you pay at the end of the loan term, typically applied in exchange for lower payments during the first few years.
Prepayment penalties: Fees you must pay if you pay off your loan in the first few years.
Homeowners insurance premium: Insurance premiums that may be applicable if you make a small down payment.
Estimated cash to close: A payment you must make before your loan is finalized (in addition to closing costs).
Some lenders promise low interest rates but also charge excessive fees and closing costs. You can easily detect this if the rate on one Loan Estimate is low compared to others, while the closing costs are drastically higher.

Some lenders may quote you a low rate, but they’re only possible if you buy mortgage points. Also known as discount points, these are upfront fees you pay to lower your interest rate. Depending on the cost of those points, this may not make sense for you. A different lender may be able to offer you the same rate or better without the need for points.

How many mortgage quotes should you get?
There is no definitive answer, but the CFPB recommends consulting with multiple lenders to maximize your potential for savings.

Don’t stop when you find an offer you like, either. Use that offer as leverage to get a better deal from another lender. Even if the other lender offers you a loan with the same fees but a slightly better rate, you can save money.

https://www.bankrate.com/mortgages/how-to-compare-mortgage-offers/

At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here’s an explanation for how we make money.

The banking model is flipped in the world of negative interest rates. In theory, it’s an environment where you pay the bank to hold on to your money and get paid by the bank to take out a loan, including a mortgage.

Here’s how negative interest rates could impact mortgage rates and what it means for you as a borrower.

How negative interest rates could impact mortgage rates
Negative interest rates could result in reduced mortgage rates for borrowers, but it might not be much of a decline.

Dropping yields below 0 percent is one of several policies that’s been discussed to help stabilize the U.S. economy, although Federal Reserve Chairman Jerome Powell said that negative borrowing won’t likely be an appropriate policy for the U.S.

“Even if the Fed went to negative rates for the federal funds rate, I can’t picture mortgage rates dipping much below current rates,” says Kurt Johansson, senior loan officer for Shelter Lending Services in Nashville, Tennessee.

Yet, the Federal Reserve has already slashed interest rates to near-zero, dropping them to historical lows. And some experts, including Bankrate chief financial analyst Greg McBride, CFA, say that negative interest rates are inevitable in the U.S.

In a negative interest rate environment, lenders take on heavy risk when they extend a loan, and they want to be compensated for taking on that risk.

“There is a line in the sand for mortgage lenders at some level near 3 percent when the cost to produce and the risk of holding and servicing the mortgage is too great to drop rates much lower,” Johansson says.

He notes that even in the financial crisis of 2008, rates didn’t go below 3 percent without the borrower having to pay points.

What determines mortgage rates
Mortgage rates are determined by a mix of the 10-year Treasury note rate and a markup called a spread. The 10-year note acts as a benchmark for 30-year mortgage rates, with the two often moving in similar directions. As the 10-year Treasury note increases, typically so does the rate on 30-year loans.

The spread on mortgage rates helps banks cover operating costs and make a profit. It also helps lenders continue to operate and fund loans. According to experts, the spread is often 1.8 basis points, but that moves up or down based on the market.

Due to the spread, mortgage rates are consistently higher than the rate on the 10-year Treasury note.

Origination costs and your financial situation and credit profile also have an influence over the mortgage rates that you receive.

What this means for you
Even if there are negative interest rates, it will still cost something to borrow money.

“The idea of negative interest rates sounds great to borrowers, but bad news: No one is going to pay you to take out a mortgage,” McBride says.

He adds: “If the U.S. government, which has the luxury of printing money to pay back their debts, has to pay 1.4 percent to borrow money for 30 years, then the rest of us will need to pay something well in excess of that.”

Fortunately, if you’re in the market for a mortgage, rates are already near historical lows, and they could stay that way for quite some time.

“Low interest rates and the bad economic environment do create a prolonged window of attractive mortgage rates for homebuyers and refinancers alike,” McBride says.

And there’s a chance mortgage rates could fall even further.

“Although mortgage rates are near record lows, they really should be lower based on benchmark Treasury yields,” McBride says. “As lenders add staff and free up capacity to take on more applications, they may well lower mortgage rates to earn more business.”

https://www.bankrate.com/mortgages/negative-interest-rates-and-mortgage-rates/

LAKEWOOD, Jun 03, 2020 (GLOBE NEWSWIRE via COMTEX) — Call to be held at 4:30 PM Eastern Time on Wednesday, June 3, 2020

via NEWMEDIAWIRE — Reliance Global Group, Inc. (OTCQB: RELI) (“RELI” or the “Company”), today provided an update for shareholders and reminder that it will host a conference call at 4:30 PM Eastern Time on Wednesday, June 3, 2020 (dial-in information below). The call will include a more detailed update on the Company’s progress, including its real estate and insurance strategies, which will be followed by a question and answer session.

When Joel Bitonio was scheduled to participate in a conference call, he likely didn’t anticipate having to operate as the Cleveland Browns player spokesman on the issue of race in America. Tuesday, that was the role circumstances conspired to have the All-Pro guard play.

Bitonio did an admirable job, understanding that he doesn’t have all of the answers, encouraging people to listen and learn while also being able to address the topic fully and honestly. It didn’t seem awkward or forced or uncomfortable. Because of that, it came off with additional meaning, appropriate for moment in time.

Watch video

https://www.si.com/nfl/browns/news/joel-bitonio-on-race

A traditional real-estate closing begins with a bunch of people passing pens and papers around a table. It ends with a round of amiable handshakes. During the coronavirus pandemic, however, the customary mortgage closing seems hazardous. Electronic closings, or e-closings, may be a partial solution as buyers and sellers attempt to navigate social-distancing guidelines.

Most mortgage e-closings still require in-person meetings. So if you’ve pictured e-closing as something done completely online, that’s probably not how it’s going to go.

Even so, an e-closing is likely to proceed faster than a traditional mortgage closing, and you’re probably going to be more well-informed about what’s happening each step of the way.

What Is an E-closing?

“An e-closing is a loan closing where at least one document is signed electronically,” Rachael Sokolowski, president of Magnolia Technologies, an information technology consulting firm, said in an email.

The mortgage closing, or settlement, is the process in which a home buyer and seller review and sign the documents to finalize the loan and transfer the property. Up through the 20th century, settlement documents were paper and signed in ink.

More

https://www.thestreet.com/personal-finance/how-to-do-mortgage-e-closing