Many home owners are missing a golden opportunity by not refinancing to a 15 year mortgage. Most borrowers are looking to save $100.00 to $200.00 per month by refinancing their mortgage. This concept represents an average annual savings of approximately $1,800.00 per year. With 15 year fixed interest rates as low as 4.625% the savings vs. a 30 year 6% loan can be in excess of $300,000.00. This opportunity may not exist for long. In planning for one’s retirement in today’s economic environment, a 15 year mortgage payment can be the best way to achieve financial freedom in the future. Homeowners should also consider the rapid increase in equity that is achieved by having a 15 year mortgage. In as little as 9 years your mortgage payment and interest payment are at a 50/50 ratio. A 30 year term loan takes over 21 years to reach this same ratio.

No one was prepared for the tremendous economic down turn that we have been experiencing over the last several months. Many home owners have seen the values of their home depreciate by as much as 30% in some areas of the country. Along with this 401k plans, stocks, bonds and other investments have suffered as well. It may serve one well to look into the concept of a 15 year term loan. Our highest income producing years are usually from the age of 40 to 55 years old. Why not put this to use by paying down your current mortgage at a lower interest rate and rapid term. Our professional staff of senior loan officers at Aequor Funding are available to discuss the benefits of this concept with you. Why not give us a call today.

Martin Cornbluth
Aequor Funding Corp.
Senior Loan Officer

As a mortgage professional, my greatest reward is witnessing a client’s reaction to grants, programs, and benefits they had no idea were available to them. It is my job and passion to stay informed in an ever-changing industry in order to help my clients achieve their dream of homeownership or a better way of life through debt restructuring.

Did you know?
From hud.gov (05/29/09), The American Recovery and Reinvestment Act of 2009 offers homebuyers a tax credit of up to $8,000 for purchasing their first home. Families can only access this credit after filing their tax returns with the IRS. Today's announcement details FHA's rules allowing state Housing Finance Agencies and certain non-profits to "monetize" up to the full amount of the tax credit (depending on the amount of the mortgage) so that borrowers can immediately apply the funds toward their down payments. Home buyers using FHA-approved lenders can apply the tax credit to their down payment in excess of 3.5 percent of appraised value or their closing costs, which can help achieve a lower interest rate.

What programs can help you?

Find out more about this government program and others like it by contacting Aequor Funding today.

Rod Manrique
Aequor Funding Corp.
Senior Loan Officer

Fannie Mae has introduced a new loan program that offers borrowers a chance to reduce their mortgage payment with no minimum credit score or mortgage insurance with a maximum loan to value of 105%. Home owners who were previously turned down because of credit score and LTV issues can now enjoy the benefits of a lower fixed interest rate loan.

What types of properties are eligible under this program? 1-4 unit primary residences and warrantable condos; investment properties included. There is no limit on the number of mortgages to the same borrower. Loan limits in the State of New Jersey are $625,500.00 on 1 family- homes and up to $1,202,925.00 on 4 family-homes.

The new mortgage offered by this program must result in a tangible net benefit to the borrower. This benefit can be in the form of a reduced interest rate with a lower monthly payment; the replacement of an adjustable rate mortgage with a fixed interest rate or a reduction in the term of the existing first mortgage. Existing subordinate financing is allowable with no maximum combined loan to value. However, no new subordinate financing is allowed.

The loan being refinanced must have been sold to Fannie Mae. The borrower on the existing loan must be the borrower on the new loan. An additional borrower may be added with no seasoning requirement. Loan documentation is limited to 1 current pay stub or 1 year’s federal tax return for self employed individuals.
Aequor Funding urges the readers of our news letter to contact us for more details of this truly remarkable loan program.

Gregory J. Greco Jr.
Aequor Funding Corp.
VP of Sales

When we first opened our doors here at Aequor Funding Corp. (AFC) we had a mission to ensure the education of our clients. As you have all heard me say in the past, consumer education will be essential to our economic recovery and also be instrumental in making sure we avoid repeating this same economic history again in the future. We take our job of educating our clients while they are in process with us very seriously, however, we want to take it a step further and have the ability to reach a broader audience. We figured that our monthly newsletter would be the perfect medium to do just that. Starting with this month’s newsletter, we are going to have a section dedicated to providing you knowledge, insight and even terminology of the mortgage industry. The information that we will share with you will range from explaining to you what it is underwriters look for in a loan to how we calculate you’re DTI (Debt to Income Ratio). Everything that we cover will make you more of an informed consumer and put you in a position where you can ask the proper questions of your mortgage professional to ensure he or she has your best interests at heart.

I feel that a great place to begin in regards to mortgage education is how to calculate your DTI (Debt to Income Ratio). We are living in a time where consumer debt has dramatically increased while at the same time many families have lost income. It is important to know how much of your income is going towards your mortgage(s), credit card bills, auto loans, real estate taxes, homeowners insurance and condo fees if applicable. It is important to have an idea of your DTI, because it is important to know exactly where your money is going on a monthly basis. It is also one of the key factors that lenders and underwriters will look at when preparing to make a decision of approval. So, what is your DTI? Your DTI is the percentage of money going out each month compared against your GROSS monthly income. The lower that this percentage is, the stronger your loan application will be. We like DTI’s to be less than 45% for approval purposes; however we have seen loans close with a 60% DTI, as long as there are very strong compensating factors such as a significant amount of liquid assets. The impact that the DTI percentage will have will vary depending on which lender and loan program you’re applying for. Again, please keep in mind that these figures are for loan approval purposes only. In reality, I would love nothing more than to see all of my clients have a 20% DTI or less. The reason being, I would rather see you getting to enjoy you’re hard earned paychecks rather than having to use it to pay creditors. How is the DTI calculated? Very simply, we add up all of your monthly payments that are active and open on your credit report plus your real estate taxes and homeowners insurance and divide that figure by your GROSS monthly income. There are certain items that do not get factored into your DTI. This would include your monthly telephone, gas, water and electric bills just to name a few. So, in between now and the next newsletter, take a few minutes, sit down and calculate your own DTI. The next time you’re dealing with a mortgage professional, present him with the figure and they will immediately know that they are dealing with someone who knows how this industry works!
All the Best!