Upside Down Mortgage

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Mortgage Help In Michigan

Question: I want to refinance from a balloon to a 15 year fixed rate mortgage?

I live in Saginaw, Michigan.
The house is supposed to be worth $95k.
I still owe $68k.
I refinanced already twice and didn’t have to pay PMI because the first mortgage was a VA loan.
Will I have to pay PMI this time, and what lender should I choose?
The balloon mortgage is due in september 2010.

Answer: You only pay PMI when you are borrowing more than 80% of what you appraisal comes in at. If your house really is worth $95,000, you could borrow up to $76,000 without PMI.

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Mortgage Help Michigan

Question: Recommended Mortgage Brokers in Michigan…?

I am a first time home buyer, not looking to put any money down (because I don’t have much). But I do have good salary, minimal debt (aside from law school loans) and average credit. I want a really good company that will allow me to take advantage of my first time buyer status. I hear that Rock Financial is good. But my nerves are really wrecked right now and I want “good” over “popular name.” If they are good, then I will try them. What about Lending Tree? Or my credit union? Just too many choices!!

And what do I look for in a good broker?

Please let me me know any recommendations that you may have in the metro Detroit area. Thanks!

Answer: Well considering the market these days, you definitely will have a lot to choose from and should be able to crack a deal on your terms.

As for who to use, my mortgage guy was great and was recommended by a family member who use to sell real estate. His name is Mark Bowers and he works for Community Bank of Dearborn, which is located in Dearborn on Michigan Ave. He spent time educating us and encouraged us to not fall for a gimmick like "get a $200000.00 loan for $500.00 a month". Alot of my friends fell for gimmicks, spent more than they could afford and now are filing bankruptcy because of the market and job loss. ARM loans are tricky because eventually the terms change.

Also don't believe the adage that a house is an investment that you will be able to profit from - that type of housing market is non-existent right now and it will take 5 to 10 years before the local economy starts to bounce back.

Owning a house is expensive, underbuy so that you can afford to live on less than you make. Plus you will be amazed how much money a house will consume and most of that you will never make back in a return.

Be careful you will be approved for a lot more than you can spend, don't get caught up in bigger is better. Also I would encourage you to see a budget specialist who will help you figure out how much you can truly afford. If you belong to a credit union like DFCU they offer that service for free.

Good luck to you.

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