Mortgage Rates Charlotte NC

Charlotte Mortgage help can be hard to find when purchasing a new home for the first time. Finding the right home can be a huge accomplishment, but you will need to have the right financing to go with it. With our help, you’ll be able to find the information you need to finance your new home. We can provide a smooth transaction with great rates, and low closing costs. From application to decision, we’ll hold your hand to guarantee your satisfaction.

Charlotte Refinance for your current mortgage has never been easier. We will provide full disclosures to make sure there are no surprises at the closing table. We make it worry-free to reduce your current mortgage rate, and your current mortgage payment. Our professionals will help guide you, and provide you with the NC mortgage information that will suit your needs.

Mortgage Charlotte NC – Charlotte home appreciation has been going up, and a lot of homeowners have been taking advantage of this. They have been refinancing their Charlotte home mortgage to take cash out to pay off debts, take out PMI, or to just have some cash handy. We’ll provide the best mortgage options whether it would be a 30yr fixed rate mortgage or an ARM. Our mortgage professionals can give you the best mortgage loans Charlotte rate that will interest you! Whether you’re making a commitment in buying a new home, refinancing a mortgage, or cashing out your home equity, we’ll make sure to provide you with full mortgage options. Please search our website to learn more about our products, and to view our current mortgage rates.

Why Choose Us?
We offer a wide range of mortgage solutions.
We promise to provide you with the best possible  mortgage terms.
Because our representatives are mortgage loan experts, and can help you with making the right decision.
We offer fresh start mortgages to those with past bad credit problems (foreclosure, bankruptcy, judgments, and collections).
We search investors for the best available NC Mortgage refinance products.
We have the best mortgage rates for all credit grades for a North Carolina Mortgage
 

NC FHA Loans
VA Loan
Fixed Rate Mortgage
Refinance Cash Out for any reason
North Carolina First Time Home Buyer
Super Jumbo Mortgage
Adjustable Rate Mortgage
NC Mortgage Rates

LIBOR ARM Refinance

According to Kathleen M. Howley from Bloomberg this is “the biggest jump in the London interbank lending rate in seven years could wreak further havoc on the U.S. housing market and there’s nothing the Federal Reserve can do about it.”

About 6 million U.S. mortgages, including almost all subprime home loans and 41 percent of prime ARMs, are linked to the London Interbank Offered Rate, or Libor, according to First American CoreLogic in Santa Ana, California. Today’s rate more than doubled after Lehman Brothers Holdings Inc. collapsed and American International Group Inc. struggled to stave off bankruptcy. If it remains elevated, it will boost the one-month to one-year Libor indexes that average the daily rate, said Keith Gumbinger, vice president of HSH Associates Inc., a Pompton Plains, New Jersey- based mortgage research firm.

“If this is more than a flare, if the rate remains high, there is no doubt it will have an effect on resetting mortgage contracts in the U.S.,” Gumbinger said in an interview. “Even a small bump in the one-month rate will be additional stress on the marketplace.”

Rates on those home loans are beyond the reach of Federal Reserve Chairman Ben S. Bernanke and others on the Federal Open Market Committee, which is meeting today. The so-called Libor- indexed loans, including the subprime mortgages that helped spark the global credit crunch, have interest rates that are set by London bankers who report to the British Bankers’ Association.

ARM Adjustments

The overnight Libor ARM rate in U.S. dollars soared 3.33 percentage points to 6.44 percent today, its biggest jump in at least seven years, according to the British Bankers’ Association. Many Libor-linked U.S. mortgages don’t limit the size of a loan’s first adjustment, with caps of 2 percent on subsequent changes. That means a monthly mortgage bill could double or even triple when it first resets.

“If the Libor market seizes up and stays that way, it’s going to complicate everything,” said Bill Fleckenstein, president of Fleckenstein Capital in Seattle. “What you are seeing is the unwinding of the financial system as we know it.”

Banks tightened lending as AIG was downgraded by Moody’s Investors Service and Standard & Poor’s, adding to evidence that the fallout from the collapse of the U.S. mortgage market is spreading. The surge in funding costs came less than a day after Lehman’s bankruptcy, the biggest in history, and Merrill Lynch & Co.’s sale to Bank of America Corp.

Fed Meeting

The FOMC began its meeting this morning and is scheduled to announce its decision at about 2:15 p.m. in Washington. Policy makers have cut rates seven times from September 2007 to April 2008. They suspended the easing as oil prices surged, increasing expectations inflation would accelerate.

Yesterday, the federal funds rate soared as high as 6 percent, triple the Fed’s target, as banks hoarded cash. That spurred the Fed to pump $70 billion into money markets through repurchase operations, the most since September 2001.

Premiums on investment-grade U.S. corporate bonds climbed. The extra yield investors demand to buy such bonds instead of Treasuries with a comparable maturity soared to 3.80 percentage points, the highest since Merrill Lynch began keeping the data in 1996, from 3.44 percentage points on Sept. 12.

Bankruptcy Buyout Chapter 13 Refinance

HUD allows Chapter 13 Bankruptcy buyouts, and is subject to your Trustee approval. You will need to show timely payments for a 12 month history with no late Bankruptcy payments, and on time payments for items that were not including in the bankruptcy.

FHA Chapter 13 Refinances require that you a 12 month history from when you have filed the bankruptcy.  It is important that you have equity in your home to be able to roll the Chapter 13 balance into your mortgage. Borrowers may reduce up to 50% of their total monthly payments, and will not need to wait a long time to refinance. This type of mortgage refinance is also known as a fresh start mortgage. By paying off your BK 13, you will be discharged, and receive a fresh start to your new financial future!

You will need to gather your BK documents to start the process, and you can check your credit here
Please visit our Mortgage Rates page for our daily rates!

Charlotte Refinance

Refinancing Charlotte

A Charlotte Mortgage requires a Refinance Benefits Statement. This statement is required by North Carolina to show that there is a benefit in refinancing your current mortgage. Here are the top reasons why most people refinance : a lower interest rate, ARM to Fixed rate mortgage, shorter loan term, debt consolidation, removing PMI, and maybe to receive extra cash. 

No Difference in Mortgage Rate - Most borrowers would consider 0.5% drop in rate as a good thing, but this may not meet the required benefits when refinancing a NC mortgage.  Closing costs can typically range from 3-4% of which you will need a larger drop in rate to recoup the fees paid.  A borrower can calculate this by dividing the amount of costs/fees with the difference in the new payment.

Bad Credit – It’s very important to know your credit score, and what appears on your credit file. You can visit
 to obtain your 3 credit files from Experian, Transunion, and Equifax. The reports are free, but you will need to pay for the credit score. Repairing your credit now will save you a lot of money, and you will be able to avoid a declined application.

Choosing the best option - It’s imperative to research all options to make sure you make the best possible choice.  Picking an ARM can be an issue in the future if the rates rise.  Picking a Fixed rate mortgage will give you a higher rate than an ARM, but will provide the safety of not having to worry about your rates going up in the future.  If you’re planning to move within a few years, then the ARM maybe your best option.

Viewing your current Mortgage - Believe it or not, your current mortgage may be the best option that is available to you. It is important to identify the reasons why you’re planning to refinance, and looking for the short/long term benefits.  If paying PMI will take 10years, then you may want to consider refinancing your current mortgage. If you only have a couple years left, then waiting for the PMI to drop may be your best option.  A lot of borrowers are refinancing because of the high subprime PMI payments.  FHA mortgage insurance payments can be a lot lower, and is a benefit to refinancing.

Foreclosure – There aren’t many mortgage options for those that are about to go into foreclosure. The best option is to call your current lender to see if they will perform a loan modification to lower your rate, and possibly lowering your principal balance. They can also give you a fixed rate mortgage if you’re in an adjustable rate mortgage. 

Shopping for lenders - Using your current mortgage lender to refinance your mortgage maybe costly with rate and fees. Mortgage lenders are known to give the best offers to new borrowers.  Using a mortgage broker can also be beneficial as they will have access to hundreds of lenders, and can provide the best rates and options.  

Mortgage Comparison - It is imperative to pick a broker has access to different mortgage programs.  Not all Charlotte mortgage lenders are FHA or VA approved.  FHA Mortgage applications have been rising for Charlotte Refinances, and it’s imperative that a lender has worked with FHA before. USDA mortgages is another great option that not all brokers offer.

Go over the Disclosures - Not all borrowers go over disclosures, and this maybe a costly mistake at closing.  It’s important that all rates, fees, costs, and terms are discussed before the closing date.  A honest broker will be willing to over all documents, and help you make the right decision.  Many times a borrower maybe lured in with a low rate, but later finding out that they dont qualify for that rate.  Make sure to read all disclosures, and to always ask questions!  

PPP Prepayment Penalties – A lot of borrowers have a PPP on their current mortgage. This will make it harder for you to refinance out of the ARM into a fixed rate mortgage. Although it’s not impossible to refinance a loan with PPP, it can be at a higher cost to payoff the penalty. Make sure to ask mortgage lender if they plan on giving you a PPP on your new mortgage loan.

It’s very important to go over all disclosures, and to ask all questions.  Make sure to express what you’re looking for in the refinance, and if it will be beneficial to your current situation. Refinancing may not always be your best option.

North Carolina requires NC Mortgage Lenders to complete a Refinance Benefits Statement for a Charlotte Refinance. Refinancing Charlotte mortgage loans is our speciality, and we’ll be glad to help you with all your questions & needs.  Please visit our North Carolina Mortgage Rates page for our daily rates!

NC Mortgage Brokers

As a North Carolina Mortgage Broker we can offer you a variety of mortgage products with various lenders.

FHA seems to be one of the top mortgage programs that our borrowers ask for. Please make sure to visit our FHA mortgage section. We also are having a high amount of VA loan applications from Veterans looking to take advantage of the ‘no down payment‘ program. Please visit our rate page to view Today’s Mortgage Rates.

Charlotte Home Mortgages

Charlotte is one of the fastest growing cities in North Carolina.  We’re experiencing great home appreciation due to residents moving from all over the United States, and buying up the homes for sale in Charlotte.

Charlotte Mortgage applications are coming in everyday for all types of home financing.  Recent Charlotte Home Mortgage inquiries include FHA loans, VA loans, Super Jumbo loans, and your regular Conventional mortgages.

If you’re looking for a Charlotte Home Purchase loan or Charlotte Refinance, we can assist your needs with a variety of mortgage products. Please visit our mortgage rate page as we update our Charlotte Mortgage Rates daily!

PreApproval Underwriting Guidelines

There are 4 main factors that are used today by underwriters to determine a mortgage approval. These factors help a mortgage underwriter understand the borrower’s qualification. These factors determine if a borrower can receive a preapproval, prequalification, and meet necessary underwriting guidelines.

The first factor known to the American population is called the ‘credit’ criteria. Credit scores can help determine the risk level for interest rates, and private mortgage insurance (PMI). Credit scores over 720+ will help to receive the best interest rates, and credit scores of 620+ will help to avoid high PMI payments. FHA mortgage loans have no score requirement, but look towards the ‘credit worthiness’. Credit worthiness consists of how long the credit tradelines have been open, the quantity of credit tradelines, bankruptcies, foreclosures, judgments, and mortgage lates. A lot of borrowers are obtaining 700+ credit scores after filing for bankruptcy within two years! Every mortgage lender looks for 3-5 credit tradelines that have been opened for at least 24months. Superb credit consists of 5-7 tradelines that have been open for at least 4+years. Credit criteria is one of the first steps taken for preapprovals. Underwriting guidelines suggest strong credit history to make a high risk decision.

The second factor looked for is called ‘capacity’. Capacity is how much a borrower makes in income compared to his monthly debt obligations. It also consists of employment history whether it is stable or will be continuous. Self employment income requires two years of business tax returns with all schedules. Any commissions, bonuses, and overtime will need to have been received for two years, and would need to be averaged by two years. If these guidelines aren’t met, then it will not be included towards a borrower’s income. Income earnings can be verified by last paystubs covering 30 days, last two years of w-2’s, and last two years of full tax returns. Alimony, child support, social security, and disability would need to have been received for the last 3months, and have a continuance period of 3yrs. This step is commonly used to prequalify a borrower. Income is calculated against the debt, and no credit is pulled to prequalify a borrower.

The third factor used in a mortgage approval is called ‘capital’. Capital is how much ‘liquid assets’ a borrower may have to cover the down payment, closing costs, and monthly reserves. Liquid assets consists of checking, savings, 401k, IRA’s, stocks, bonds, mutual funds, and certificates of deposits. The amount used for 401k’s is 70% of the ‘vested balance’ minus any loans against it. Down payments can help lower the interest rate by lowering the loan-to-value (LTV). FHA purchase mortgage loans required a down payment of 3%, and conforming loans are from 5, 10, and 20% down. MyCommunity mortgage & HomePossible mortgages are zero down programs, but will require a 620 credit score to avoid high PMI payments. This is the 2nd step used to prequalify an individual for a mortgage. Automated underwriting guidelines tend to ease up when large assets are present.

The last factor used in a mortgage approval process is called ‘collateral’. The Collateral factor looks at the subject property of the mortgage loan. The mortgage rates can receive price hits due to the subject property being a high rise condo, co-op, Non-warrantable condo, second home, investment property, timeshare, rural area, log cabin, and if there aren’t any comparable homes in the area. Most appraisals require at least three comparable homes to find the value of a subject property. This step isn’t required for preapprovals or to prequalify a borrower. Underwriting guidelines are very strict when the market values are declining. New VA home Purchases has the strictest type of appraisal, and can be overwhelming if the home is over 10yrs of age.

FNMA & FHLMC will not fail : Bernanke

The Chairman for the US Federal Reserve spoke with Congress on 07/16/2008, and stated that the mortgage giants Freddie Mac & Fannie Mac are in ‘no danger of failing’. The US Treasury Department & the FED came to their rescue on Sunday. They will be offering help towards their finances to help alleviate any issues that FNMA/FHLMC maybe experiencing.

The two mortgage giants hold over $5 trillion in home loans. The Bush Administration is asking US Congress to provide temporarily increases to the FNMA/FHLMC’s lines of credit. The two mortgage corporations are “adequately capitalized,” Bernanke said. However, “weakness of market confidence is having an effect” on these mortgagte corporations, making it extremely hard to find investors.

New FHA Risk Premium

The FHA UFMIP – Up Front Mortgage Insurance Premiums have changed, may surprise a lot of borrowers with a low down payment & credit score. The new Annual MIP will be from 0.50% to 0.55%. The highest UFMIP will be at 2.25%, and pay 0.55% in the Annual MIP. 1st time home buyers with FHA approved counseling will only have to pay 2.00% for the UFMIP.

Make sure to read about the New FHA Risk based Premium

Origination fee & Discount points

Before obtaining good mortgage rates a borrower must understand what actually is included in a ‘mortgage interest rate’. There are many factors that affect all mortgage rates in every mortgage transaction. Discount points, origination fees, Yield Spread Premium, and 3rd party fees are a few factors that can change your interest rate. This information will help a first time home buyer determine the different between an origination fee, and a discount point.

Discount points is prepaid interest that is used to lower a mortgage rate. They are tax deductible, and can help lower your monthly payments. One discount point is equivalent to 1% of your mortgage loan amount.
For example:
Purchase Price $200,000
Down Payment $40,000
Loan amount $160,000
Discount points 1% or $1,600 of your mortgage loan amount.

Discount points MAY lower your mortgage rate by 0.5% for every point paid.
Every lender is different, and may only lower your mortgage rate by 0.25-0.375%.
If your current mortgage rate was 6.5%, and you paid one discount point, then your rate can go as low as 6.125-6.25%. By lowering your rate, you will also be lowering your monthly mortgage payment. The one time closing cost will be 1,600, and will be recovered between 3-4yrs. The way to calculate this is to subtract the higher mortgage payment from the new payment, and divide it by the 1,600.

Origination fees work the same way as discount points do. One point is equivalent to 1% of the loan amount. Origination fees do not lower your mortgage interest rate. Origination fees are paid by the borrower to the bank, lender, and/or mortgage broker. This is a common charge on a HUD-1 settlement statement. This charge is associated with ‘originating’ your mortgage loan.

The cash rebate paid to a lender for selling an interest rate higher than the wholesale par rate is called Yield Spread Premium (YSP). If a borrower isn’t willing to pay origination fees or discount points, then the mortgage interest rate is raised to recover the loss of revenue. Also, if the borrower is unable to pay closing costs, the lender can raise the rate to balance the revenue made. An origination fee can be charged with the closing cost, and the rate can be raised to create more revenue. This is called ‘charging in the front, and charging in the back’.

The 3rd party fees such as title fees, title insurance, attorney/escrow, appraisal, etc. can all affect an APR of a mortgage interest rate. Many lenders do not include all fees, and this is why APR’s can be different with the same numbers on a Good Faith Estimate. If one lender is charging more fees/points, that can lead to a higher APR.

Current mortgage rates are displayed at Freddie Mac’s homepage. They update their web page weekly with rates from actual closings. They also display the average fee/points paid on a 30yr fixed mortgage, and a 15yr fixed mortgage. Do not be fooled by various ‘advertising’ websites that doesn’t verify the ads promoted by their lenders. Many lenders undercut their rates to draw borrowers, but many of these borrowers do not qualify through their terms.

The average revenue made in a mortgage transaction is approximately 2.5% in total origination fees, discount points, and YSP. Some lenders may charge more, but it is still negotiable. Mortgage lenders & Banks aren’t required to disclose YSP. You will normally see the interest rate with origination fees and/or discount points. Mortgage brokers are required to show YSP, and is disclosed on a Good Faith Estimate, and HUD-1 statement. Due to higher overhead costs, a mortgage lender and bank can charge a lot more fees than mortgage brokers.