fha refinance loan programs

Download FHA Refinance Loan Programs

Post on 18-May-2015

740 views

Category:

Education

0 download

Embed Size (px)

DESCRIPTION

Another home ownership education class about FHA refinancing options.More important than knowing what programs are available is understanding the cost involved and how to determine if a refinance will really benefit you.This informative on-line class discusses how to do a cost benefit analysis to determine your actual benefit, as well as a complete discussion of what FHA loan programs are available for you to take advantage of.

TRANSCRIPT

  • 1. A Complete Guide to FHA Refinance Loan Options Thank You for Attending Class will begin at 7:00pm Presented By: Broadview Mortgage Corporation Presenter: Scott Schang Contact Information: Phone:866-667-6724 [email_address]

2. A Complete Guide to FHA Refinance Loan Options

  • The Purpose and Goals of this Class
  • To Educate and Empower Home Owners
  • To tell you the things that lenders/brokers dont usually like you to know about
  • Educate you about the FHA refinance options available to you in todays market
  • Empower you with the ability to make educated decisions about your refinance options

3. A Complete Guide to FHA Refinance Loan Options

  • Topics We Will Cover In This Class
  • The Importance of doing a Cost/Benefit Analysis when considering a refinance
  • FHA Refinance Options
    • Rate and Term Refinance
    • Cash Out Refinance
    • Streamline Refinance
  • Wrap Up and Take Aways

4. A Complete Guide to FHA Refinance Loan Options

  • Ask Questions throughout presentation
    • You may type questions in at any time during the presentation Questions box on your screen
    • Home loan specialists are standing by to answer your questions during the presentation
    • The only dumb question is the one you dont ask
  • Write number down now in case you get disconnected
    • 1-866-667-6724

5. A Complete Guide to FHA Refinance Loan Options

  • Empowering you to make educated decisions about your refinance
  • Refinancing your home is a serious financial decision that requires careful consideration
  • The information you will receive here today will help you to see through common advertising and marketing tactics and enableyou to make sound financial decisions about your familys greatest investment.Your home.

6. A Complete Guide to FHA Refinance Loan Options

  • Establishing your motivation
  • 3 motivations for refinancing
    • Reduce monthly payment - Save money
    • Reduce term of loan - Pay off earlier
    • Cash out Pay off bills / Home Improvement
  • Common misperceptions about refinancing
    • Reducing monthly payments will save you money
    • You must reduce the term to pay loan off early
  • Many lenders may not tell you this part..

7. A Complete Guide to FHA Refinance Loan Options

  • Performing a Cost / Benefit analysis
  • Reducing your monthly payment
    • There is always a cost to refinancing
    • Resetting your term may lower your payments but cost you thousands
    • Red Flag if a lender does not explore your motivation or discuss cost / benefit analysis
  • Cost Benefit Analysis Example
    • Bought 2 years ago for $200,000
    • $195,200 Loan Amount currently
    • 6.25% Interest Rate
    • $1,231.43 payment Principle and Interest only

8. A Complete Guide to FHA Refinance Loan Options

  • Performing a Cost / Benefit analysis
  • First, lets take a look at the Benefit
    • New Interest Rate 5.25%
    • New Payment - $1,115.45 Over $115 a month!
    • Thats a Savings of over $41,400 over the term of the loan! (30 year fixed)
    • Sounds not too bad right?Maybe, maybe not

9. A Complete Guide to FHA Refinance Loan Options

  • Performing a Cost / Benefit analysis
  • Next, lets look at the estimated Cost
    • New Loan Amount - $202,000
      • Origination/Discount 1% - $2,020
      • Processing/Underwriting - $795
      • Lender / Broker fees - $995
      • Title / Escrow / Notary - $1,100
      • Interim Interest 15 days - $435
      • Escrow Account Depends on time of year
        • Taxes 7 months- $1,500
        • Insurance 2 months - $85
    • Actual costs may vary This is realistic

10. A Complete Guide to FHA Refinance Loan Options

  • Performing a Cost / Benefit analysis
  • And finally, the Analysis
    • Old Loan amount of $195,200
      • $1,231.43 paid for remaining 336 months
      • Total pay off - $413,760.48
    • New Loan amount of $202,000
      • $1,115.45 paid over 360 months
      • Total pay off 401,562.00
    • Actual life of loan Savings is $12,198.48
      • $33.89 actual monthly savings

11. A Complete Guide to FHA Refinance Loan Options

  • Performing a Cost / Benefit analysis
  • Paying off home sooner Reduce term
    • There is always a cost to refinancing
    • Red Flag if a lender does not explore your motivation or discuss cost / benefit analysis
  • Cost Benefit Analysis Example
    • Bought 2 years ago for $200,000
    • Have 30 year fixed now
    • $195,200 Loan Amount currently
    • 6.25% Interest Rate
    • $1,231.43 payment Principle and Interest only

12. A Complete Guide to FHA Refinance Loan Options

  • Performing a Cost / Benefit analysis
  • First, lets take a look at the Benefit
    • New Interest Rate 5.00%
    • New Payment - $1,597.40
      • Only $365.97 increase
      • Pay off home in half the time!
    • Sounds not too bad right?Maybe, maybe not

13. A Complete Guide to FHA Refinance Loan Options

  • Performing a Cost / Benefit analysis
  • Next, lets look at the estimated Cost
    • New Loan Amount - $202,000
      • Origination/Discount 1% - $2,020
      • Processing/Underwriting - $795
      • Lender / Broker fees - $995
      • Title / Escrow / Notary - $1,100
      • Interim Interest 15 days - $435
      • Escrow Account Depends on time of year
        • Taxes 7 months- $1,500
        • Insurance 2 months - $85
  • Reducing the term does not reduce costs

14. A Complete Guide to FHA Refinance Loan Options

  • Performing a Cost / Benefit analysis
  • And finally, the Analysis
    • New Loan amount of $202,000
      • $1,597.40 paid over 180 months
      • Total pay off $287,532
    • Old Loan amount of $195,200
      • Total pay off - $413,760.48
      • Interest Savings of - $126,228.48!
      • OR..Increase payment to $1,597.40
      • Pay $7,000 cost toward loan - $188,200
      • Pays off home in 183 months
    • Now you can make an educated decision!

15. A Complete Guide to FHA Refinance Loan Options

  • FHA Refinance Loan Basics
  • 2009 FHA Loan Limits
    • Based on MSA from $362,790 to $625,500
    • FHA Jumbo is anything above $417,000
      • Results in slightly higher interest rates
  • Owner occupied only - 1-4 units ok
  • Loan limits increased for 2,3,4 units