Welcome to Home Mortgage
California Home Mortgage Rate Refinance Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
You may also listen to this article by using the following controls.
Home mortgage refinancing – What’s in your Contract?
from: Linda Scott
Are you one of the millions of Americans who will be refinancing their home mortgage loan this year? When you sign your contract and the other papers for your refinance, will you know what you’re signing?
Your home mortgage loan contract: This one is simple, but I would guess very few people do it. READ THE ENTIRE CONTRACT. It seems that usually the home mortgage refinancing contract is written with the preparer pointing out the obvious terms, i.e. sales price, earnest deposit, closing date, inspections, etc., but all of the language in the contract is binding; not just the part that your read and/or understand. Read it and if you don’t understand your home mortgage loan, seek legal counsel. This is the agreement for every part of the transaction. How taxes will be prorated, who pays for what, when do you agree to close the transaction and when will you be allowed to take possession of the property are all in your home mortgage refinancing contract.
If your purchase is new construction there are often many specific clauses to your sale. Remember the builder probably sells many more houses than you buy and knows what language to include in his contract to protect and benefit him. Make sure this language is something you are willing to abide by.
There should be specific language in all home mortgage loan contracts as to what amount will be used to prorate items, in particular property taxes. It is particularly important in new construction or areas that are being reappraised to understand how taxes will be prorated. If it states that the last available tax amount will be used you need to find out, before agreeing to it, that this amount was not based on a lesser value.
In new construction the property was probably taxed on land value only or a partial value of the improvement. The tax bill that you will be responsible for will probably be based on a higher amount. If the Seller is giving you a credit for their part of the year that they owned the property before an actual tax amount can be ascertained, make sure that the best available information is being used to estimate the taxes. You also need to be aware that if you have an escrow account with your lender that they may set your monthly tax payment up on a lower amount than when your property is fully assessed. Be prepared to have your home mortgage loan monthly payment increase when the higher tax bill is paid and your escrow account is analyzed. You many have a shortage that you’ll want to pay all at once rather than have it included in your payment increase.
If your escrow account is already short from a previous tax payment there will not only be an increase for the next year’s tax bill, but an additional increase to cover the already existing shortage. Paying the shortage in one lump payment would eliminate this double increase. Your payment will still increase to the amount required to pay the next year’s bill, but you won’t also be making up for last year’s shortage. This can be confusing so ask your home mortgage refinancing closer or loan-servicing department of your lender to explain your options.
If you’re buying a property that was split at the time of your sale (duplex, large parcel split into smaller ones, or some types of new construction) make sure that your property is assigned it’s own tax identification number before a tax bill is issued. You don’t want to receive a tax bill that includes other property other than the one that you own.
When you review your preliminary title commitment tax information should be included in the search. You can find out if the tax identification number included other property. This number is also what you will use if you need to contact the County for any other information regarding taxes.
Before you sign, if there is something that is not clear to you or you don’t understand, ask. Most home mortgage refinancing contracts are standard forms and your loan officer or mortgage loan closer can usually clear up any confusion you may have. Remember that the papers you sign are legal documents and you are agreeing to the terms stated in the contract. If you’re not absolutely certain that you understand your home mortgage loan contract, seek legal counsel.
Find out more about Home mortgage refinancing
Discover how you can save on your home mortgage. Refinance,
Apply for online home equity loans or home loans for bad credit.
http://www.2applyforloan.com
California Home Mortgage Rate Refinance News
Landmark settlement with mortgage lenders provides relief for some struggling ... - MiamiHerald.com
 ABC30.com | Landmark settlement with mortgage lenders provides relief for some struggling ... MiamiHerald.com Florida's share: $8.4 billion, second only behind California. Under terms of the settlement, Floridians who have lost their homes or have fallen underwater on their loans could receive a $2000 check, a $20000 mortgage reduction or a lower interest rate ... Valley homeowners to benefit from mortgage settlement Mortgage settlement is too little, too late for many Florida Homeowners Find Little to Cheer in Deal With 'Gangsters' |
Senator Boxer Faults BofA for Mortgage-Refinancing Delays of Up to 90 Days - Bloomberg
Senator Boxer Faults BofA for Mortgage-Refinancing Delays of Up to 90 Days Bloomberg “Delays could prevent borrowers from taking advantage of today's historically low interest rates and improvements recently made to the Home Affordable Refinance Program,” the California Democrat wrote in a letter today to Chief Executive Officer Brian ... |
Foreclosures to Climb Before Bank Deal Helps US Housing Market - BusinessWeek
 Telegraph.co.uk | Foreclosures to Climb Before Bank Deal Helps US Housing Market BusinessWeek Foreclosure starts fell 46 percent in December from October 2010, when the investigation into the so-called robo-signing of mortgage documentation began, according to Irvine, California-based RealtyTrac Inc. The agreement will direct $17 billion to ... Foreclosure Deal to Spur U.S. Home Seizures, Help Heal Market |
Mortgage rates still at record lows - OCRegister
 OregonLive.com | Mortgage rates still at record lows OCRegister By JEFF LAZERSON / For THE ORANGE COUNTY REGISTER What's up with Mortgage Rates? Jeff Lazerson, of Mortgage Grader in Laguna Niguel, gives us his take… NEWS SUMMARY: From Freddie Mac's weekly survey the average 30-year fixed loan remained unchanged, ... Bankrate: Mortgage Rates Up Slightly Mortgage Rates: Low Mortgage Rates Trend Continues While Refinances Surge |
Arizona gets $1.6 billion in mortgage fraud settlement - Tucson Citizen
Arizona gets $1.6 billion in mortgage fraud settlement Tucson Citizen 09, 2012, under Arizona Republic News Marking a watershed day in the aftermath of the national housing crash, Arizona officials announced a pair of settlements with large banks over allegations of improper lending and foreclosure practices that will ... |
Obama Seeks Refinancing Aid to Lift Housing - Wall Street Journal
 Wall Street Journal | Obama Seeks Refinancing Aid to Lift Housing Wall Street Journal By NICK TIMIRAOS And LAURA MECKLER President Barack Obama is expected to announce a fresh bid to revive the housing market Wednesday—despite likely congressional opposition—by letting millions of homeowners refinance their mortgages, ... California REALTORS(R) Applaud Obama's Proposal to Help Troubled Homeowners California Dems wary of President Obama's new housing plan Cardoza applauds Obama's new housing initiative, says will help Valley |
C.A.R. Commends Obama's proposal to Aid troubled homeowners - LoanSafe
C.A.R. Commends Obama's proposal to Aid troubled homeowners LoanSafe “Allowing homeowners whose homes are not backed by Fannie Mae and Freddie Mac to refinance could benefit additional homeowners who are struggling to keep up with their mortgage payments and help thousands of California families who are paying far above ... |