Refinance Program Tag

With home values climbing to record highs, many have rushed to their bank to take out a line of credit against their homes. For some it has been to make home improvements or consolidate debts. For others it was to take a vacation or purchase a car.
Recent changes have made home equity loans less favorable. For one, home equity loans no longer provide a tax deduction. Secondly, most have variable rates that are moving higher with each rate hike the Federal Reserve makes. Given new tax laws and the outlook for continued Fed rate hikes, the cost of borrowing against a home equity line of credit is increasing.
In most cases, I’m not a fan of home equity lines. If they help solve critical financial issues, they are wonderful. However, most are used to spend money that a family would otherwise not need to spend.
If you have a small balance on a line of credit, focus on paying it off as quickly as possible. Make minimum payments on your primary mortgage until the balance of the credit line is paid. Then take the amount your budget is used to paying and apply that as a principal reduction to your mortgage. That will help you pay off your home faster.
If you have a large home equity line balance, consider at what point it makes sense to consolidate that into your primary mortgage. The blended rate of a home equity loan and your current mortgage is often higher than the current rates to refinance. If you need help determining what is best, we are here for you.

Consumer debt among American families was recently
reported to total $12.73 trillion. To put this into
perspective, the US government debt is just shy of $20
trillion. The outrageous amount currently owned by
consumers is higher now than the peak reached in 2008
before the economic collapse. Although consumers are
handling this level of debt better today than they did in
2008, it still represents a tremendous risk to individuals
and our economy as a whole.
Interestingly enough, mortgage debt is now a smaller
percentage of total debt than it was back in 2008. Of
course, this is primarily due to tighter lending restrictions.
This means that Americans are holding more debt in
riskier loans such as credit cards, bank loans and car
loans for example. Much of this debt is subject to
fluctuating interest rates, which is now something we
need to consider as the Fed pushes short term rates
higher.
I believe that consumer debt is usually a habit. Unsecured
debt, such as credit cards, could be a sign of spending
more than the income flowing into the household. To
break this cycle, sometimes more extreme measures
must be deployed. If the goal is to get out of consumer
debt, it could be advantageous to use a mortgage or
home equity loan to help. With values rising to premarket
crash levels, most people have a decent amount
of equity in their homes. However, I strongly caution
against this without a plan to break the cycle that led to
the debt in the first place. Otherwise, the same situation
is likely to occur.

Loan Strategies

We offer many different loan strategies, read below to get more info.

  • FHA Streamline Refinance

    • FHA streamline refinance is a program designed for homeowners who have an FHA loan,who are currently paying a higher interest rate than is presently offered, or whose homes have depreciated in value since they closed on their loan.

    • You can choose an ARM or 15-year or a 30-year fixed term.

  • VA Streamline Refinance

    • VA loans are popular among those who qualify, since there is no requirement for monthly private mortgage insurance, or a down payment.

    • If your payments are up to date on your current VA loan, with no more than one 30-day late payment in the previous 12 months, you can qualify for a VA streamline refinance, known as the Interest Rate Reduction Refinance Loan (IRRRL).

  • Rural Housing (USDA) Streamline Refinance

    • Homeowners who have a rural housing loan can take advantage of today’s lower interest rates by refinancing, quickly and efficiently.

    • The new interest rate going into effect must be at least 1% or 100 basis points lower than your current interest rate.

       

  • Your Term Mortgage

    • City Creek Mortgage is pleased to introduce a new program called, “Mortgage Your Way”

    • With a fixed mortgage rate, you can pick the years of the term, anywhere from 8 to 30. (In the past you were locked into a 5-year ARM, 15-year, 20-year, 25-year or 30-year.)

  • HARP

    •  You could qualify for HARP (Home Affordable Refinance Program) :

    • If you are one of the millions of home owners who home faced massive home value depreciation

    • And if you have continued to make timely payments

  • Home Path

    • With the 2008 housing crisis, many defaulted home loans ended up owned by Fannie Mae.

    • The HomePath mortgage allows home buyers and investors to purchase move-in ready Fannie Mae owned properties, lowering housing inventory, while providing long term perks for new owners.

  • Rural Housing

    • The United States Department of Agriculture created a single family housing program to provide homeownership opportunities for low to moderate income individuals and families in select rural areas.

  • Jumbo

    • Any home loan amount over $600,300 and up to $3,000,000 is considered a jumbo loan.

    • Available in conventional fixed-rate or adjustable rate,

    • No prepayment penalties.

  • Reverse Mortgage

    • An insured loan program that gives senior citizen, 62 and older more financial options to eliminate their monthly expenses, access cash, or move into a home that better suits their life style needs.

    • A reverse mortgage is used to pay off your existing home loan, or if the case that your home is already paid off, you can use the reverse mortgage to turn your equity into cash flow.

Reverse Mortgage

A Reverse Mortgage is available in fixed rate and adjustable rate.

Fixed Rate

  • Are you 62 years or older and looking for ways to increase your monthly cash flow, eliminate your monthly mortgage payment, or buy a new home?
  • Do you worry about day to day living expenses, and want to capitalize on your home equity as an asset?

A reverse mortgage is an insured loan program that gives senior citizen, 62 and older more financial options to eliminate their monthly expenses, access cash, or move into a home that better suits their life style needs. A reverse mortgage is used to pay off your existing home loan, or if the case that your home is already paid off, you can use the reverse mortgage to turn your equity into cash flow.

As long as you live in the home as a primary residence, you will receive all your qualifying benefits of the reverse mortgage terms which may include one or more of the following; no monthly mortgage payment, one lump sum of money, monthly payments to you, or a line of credit for you to access as needed. Once the last living borrower has deceased, the balance of the reverse mortgage loan, or the home’s current value, whichever is lower, will be due. In the case that the home value drops below the amount used in the reverse mortgage, the amount difference will be covered by the FHA mortgage insurance fund, not by inheriting individuals.

Refinance Your Home with a Jumbo Loan

Jumbo

Jumbo

  • Are you looking for a large loan for a home purchase or refinance?
  • Do you want to lower your interest rate?

Any home loan amount over $510,400 and up to $3,000,000 is considered a jumbo loan.  You can select a conventional fixed-rate or adjustable rate, and there are no prepayment penalties. Talking to a certified mortgage planner can help you identify the best loan type for your situation as each program maintains its unique rules and limits.