Inside

• How To Save Time and Reduce Loan Hassle
• Why the Lowest Rate isn't often the Best Program
• How To Lower or Eliminate Mortgage Insurance

Gary's Home Loan Gazette

The Newsletter of No-Cost Streamline Refinancing and Purchase Loans

Volume 1 Issue 7 by Gary Flanzer 1-866-449-7263
   

Inside: Great technique for lowering your interest rate!

Lower your interest rate without costs or hassle.

Many lenders offer streamline program that allow brokers such as Mortgage Online at 425.com   Mortgage to lower your payments without a full refinance, or purchase a home without paying the normal closing costs.

This newsletter hopes to answer some of your questions about the great opportunity available today to save money every month on your biggest expenses, your mortgage payment and your closing costs.

Today's interest rates are still lower than those a year ago.

Those homeowners who took out fixed rate or balloon loans last year are stuck with high interest rates. Many people like you may not be aware that without closing costs, you can take advantage of today's lower rates, and save a little or a lot on your monthly mortgage payments.

The process is very simple. Often, you may not even change lenders at all! And the long-term financial benefits to you and your family are substantial.

Most of today's lenders want to keep your business. Therefore, they offer approved brokers like Mortgage Online at 425.com   the ability to easily lower the interest rate that you pay. Often a new appraisal or full credit report is unnecessary. All the lender requires is an update to your loan file, along with verification that income and property value has not dropped from when the loan was first taken out. For purchase transactions, a no-cost streamline program is also available!

Customers with ARM loans (adjustable) can easily change to a fixed rate. That way they would not have to worry about interest rates going up. Fixed rate loans of 30 years, 15 years, and 5 and 7 year balloon loans are available as part of this program..

When the Lowest Rate is not the Best Loan

There is more to a mortgage than just a rate. Many borrowers are paying thousands of dollars in closing costs to get the elusive "best rate". Often the extra costs of getting that great rate exceed your savings. Even worse, if interest rates continue to drop, you would have to pay again to lower your rate again. A better way is to avoid all the fees and costs with a free Streamline loan.

Typical Closing Costs Paid for by the Lender

There are many closing costs charged by lenders and brokers when you purchase or refinance a home. Often you do not even know that you are paying them because they add them to the loan balance.

Our streamline and SNAP programs available through Mortgage Online at 425.com   are different. For qualifying borrowers, purchasing or refinancing, the closing costs are paid by your lender. Here is an example of some typical closing costs normally charged. You may wish to look at your last closing statement from the escrow company to see how much you paid when you originally took out your home loan..

• Loan Origination Fee
• Loan Discount fee
• Appraisal fee
• Credit Report
• Tax Registration
• Document Preparation
• Underwriting Fee
• Courier/ Wire Fee
• Closing or Settlement Fee
• Title Insurance
• Recording and Assignment Costs

For qualifying customers, you will receive a credit equal to the cost of all of the closing fees at closing. Even any deposit is credited back to you.A lower interest rate means that you can either pay off your loan earlier, or put more money in your pocket each and every month! If the rates continue to drop, we can lower your interest rate again!Streamline Refinancing

Questions Borrowers Ask Gary

Q: I would like to get an even lower interest rate. Can that be done?

A: Yes. We can easily lower the interest rate that you pay on your fixed rate, balloon, or graduated payment loan. Even a change of one half or one quarter of a percentage point in your interest rate can mean good savings.

Q: Are there any hidden costs? What's the catch?

A: There are no hidden costs. The lender pays for your closing costs, so you can enjoy less interest expense. You are provided with a full "HUD 1" settlement statement showing a credit for all normal closing costs. There is no catch.

Q: What about my escrow account for taxes and insurance?

A: A new escrow account is set up. If there is a balance in your old account, that money will be either rolled into the new account or returned to you. If the new loan-to-value ratio is 80% or less, an escrow account is optional.

Q: Refinancing is such a hassle. Why is this easier?

A: You are already qualified for a home loan when it was originally taken out. As long as you have made your payments on time, and your income has not dropped, we can help you. To make it even easier, we can arrange to have the escrow agent close the new loan near your home or work, or even in your home. What could be easier?

Q: How is this different from the normal refinance?

A: A Streamline loan normally stays with your existing lender. It is quicker, easier, and requires much less paperwork than a conventional refinance.

Q: How can I change the amount of mortgage insurance I am paying?

A: If your home has appreciated, sometimes Mortgage Insurance premiums can be lowered or eliminated. For those homeowners who put less than 20% down, this can be an additional savings. If a new appraisal is needed, the lender will reimburse you for the cost!

Q: Do I need to requalify? Does this extend the life of my loan?

A: Nearly all loans are amortized over 15 or 30 years. Your lender will provide us with an exact payoff figure of your existing loan. You may wish to continue with your present payment amount; that way more of your payment can go towards principal reduction, instead of interest. We can make the new loan amount about the same as the present balance.

Q: Is it possible to have a different loan program than I have now? What if my lender sold my loan to another lender?

A: Yes. There are various fixed rate streamline programs available. Each lender has different parameters. If you are strictly looking for the lowest interest rate, you may "buy down" the rate by paying closing costs or points.

Even if you are not with your original lender, you still may qualify for streamlining with your new lender. Otherwise, we can have your refinance approved in minutes with our high-tech SNAP program. This unique loan uses state of the art computer video conferencing technology. It is designed only for customers with excellent credit and income levels. As with streamline loans, all closing costs are paid for by the lender.

Why wait? Since there are no closing costs, it makes sense to take advantage of today's rates, and see if rates drop again. Since your loan has no prepayment penalties, you are free to use the streamline process again in the future. There is no limit on how often you can lower your rate. Unlike an adjustable rate, the interest rate can not go up.

Q: What do I do to get started?

A: Contact Gary Flanzer at (425) 651-2011
    . We can arrange to meet you or your spouse at your home or office to update the paperwork. Weekend and evening appointments are available.

Gary Flanzer is an independent loan officer affiliated with Mortgage Online at 425.com   Mortgage. He has been providing quality service to homeowners since 1991. As a finance professional, he makes a commitment to competence and compassion in his work.

1-866-449-7263