Study Shows Lender Choice Influenced by Realtor

A new national study just released shows that nearly 50% of homebuyers make the decision on which lender to finance their purchase, using their realtor’s recommendation.

So instead of shopping around for a lender, homebuyers are influenced by their agent to use the lender of the realtor’s choice-- for better or for worse. Realtors want speed and reliability from a lender and usually establish relationships with lenders who offer both. The downside to that might be that the lender does not offer the lowest rates or the best terms for the borrower.

Just blindly going with the referred bank or lender clearly isn’t wise, because when it comes down to it, you really won’t know how competitive they are, unless you shop your loan elsewhere. Often times when a buyer makes an offer on a home, the real estate agent will ask them to get pre-approved with the recommended “preferred lender.” While it may be in your best interest to get the pre-approval to show you’re very serious about buying the property, the buyer doesn’t need to use that lender to obtain your financing. You can still shop that mortgage around for the best rates and terms. Now, we are not in the slightest saying not to use the realtor’s preferred lender, just to be prudent and get other quotes.

Using a mortgage broker like indigo Mortgage can mean the difference of a .25 to .5 % in the interest rate, which over the life of the mortgage, can save the borrower thousands of dollars. If it’s an FHA or VA loan, the borrower can also see a swing of several thousand dollars in lender-paid closing costs, again saving you money.

A mortgage broker has access to several different lenders so the buyers’ chance of getting the best rate and getting their loan closed is much greater. Remember, It’s actually best to start with a lender before even contacting a real estate agent or looking for homes because this way the borrower can be approved for a certain level of mortgage, and will have full knowledge of their loan before they make an offer. 

For questions about selecting a mortgage lender, contact Indigo Mortgage in Albuquerque at 505-836-5700. Indigo Mortgage offers five mortgage divisions including Residential, VA Loans, Reverse Mortgages, Construction and Commercial. They are licensed by the Nationwide Mortgage Licensing System (NMLS #239924), and can provide loans anywhere in New Mexico.

Mortgage Updates and Tips

Things in the mortgage industry are always changing! Today, we have a quick overview of some recent changes and enhancements and some tips. The first one that the “HARP-2” or Home Affordable Refinance Program was set to expire in December of this year but has now been extended until the end of 2015. This is due to the fact there are millions of borrowers who are eligible for the HARP-2 but still have not refinanced. That means that any homeowner who has not refinanced in the past several years should really reach out now and see if they can’t save substantially each month on their mortgage by refinancing.

Another big change is that FHA has increased their monthly and upfront mortgage insurance premiums again. This has made the mortgage insurance permanent for the life of the loan, no matter how low the loan-to-value gets. In other words, until that FHA loan is paid off from either selling or refinancing, the mortgage insurance is permanent.

Now, for a couple of tips. A recent trade magazine article states that using a mortgage broker in today’s mortgage environment carries some big advantages. First, a mortgage broker has access to many different lenders and most likely will find the lowest rate available on the market. Because mortgage brokers have access to many lenders, they can offer a wider range of underwriting guidelines. That means your chance of getting your loan done are much better, and likely at better rates than using a single-source lender. Most mortgage brokers are locally owned and operated, so you’re likely to also get better customer service.

And of course, Indigo Mortgage is a true mortgage broker right here in Albuquerque. Contact Indigo Mortgage at 505-836-5700 for any mortgage related questions. Indigo Mortgage is a locally owned and operated company, serving homebuyers in Albuquerque, Rio Rancho, Santa Fe and all across New Mexico. The company has five mortgage divisions for Residential, VA Loans, Reverse Mortgages, Construction and Commercial loans. Our mortgage broker and underwriters are certified by the National Mortgage Licensing System, NMLS # 239924.

Study Lists Reasons Borrowers Not Utilizing HARP Refinances

April 9, 2013-- Albuquerque, New Mexico.

Fannie Mae just released a new study showing that many HARP -2 eligible borrowers have still not refinanced. The study wanted to know what has caused these borrowers to not take advantage of the HARP-2 program. The study found that perceived Costs, rigid loan terms, distrust of the lender or offer, and misperceptions about qualifying are the main reasons why people are not refinancing.

Along with those reasons, borrowers also said they don’t want to take out another 30 year loan; they feel they’ve been bombarded with mailers and offers; they still think their home has lost too much value; there is too much paperwork; and they do not like or trust their current servicer.

We’d like to address several of these issues. First, borrowers can still use the HARP to refinance into shorter terms and they do not have to take out just a 30 year loan-- they can do a 10, 15, 20 or 25 year term, which also would decrease the amount of interest paid during that loan.

At Indigo Mortgage, we realize that borrowers are sometimes inundated with offers and mailers so we try to be more of a resource. We can often answer many of their questions without even doing an application. Remember that a borrower does not have to return to their current lender to take advantage of the HARP refinance. As a matter of fact, these homeowners would be well served to shop their mortgage around before and review various offers in order to choose their new lender.

Indigo Mortgage has completed many HARP-2 refinances and we strive to make it as easy and seamless as possible to complete your refinance. If you have questions on a HARP refinance or for any other mortgage or refinance information, contact Indigo Mortgage at 505-836-5700. 

Indigo Mortgage is a locally owned and operated company, serving homebuyers in Albuquerque, Rio Rancho, Santa Fe and all across New Mexico. The company has five mortgage divisions for Residential, VA Loans, Reverse Mortgages, Construction and Commercial loans. Our mortgage broker and underwriters are certified by the National Mortgage Licensing System, NMLS # 239924.

HARP Just Extended to 2015

The Federal Housing Finance Agency today announced that borrowers with mortgages backed by Fannie Mae (FNMA) or Freddie Mac (FMCC) will have until the end of 2015 to obtain new loans under the Home Affordable Refinance Program (HARP).

HARP had been scheduled to expire at the end of 2013. This program allows borrowers to reduce their loan payments by refinancing at lower interest rates even if they are in homes that have lost value since the mortgage was originated.

To date, more than 2.2 million borrowers have used the HARP program. To meet the program’s qualifications, homeowners must be current on their payments and have loans that originated before June 1, 2009.

HARP is “a useful tool for reducing risk,” FHFA Acting Director Edward J. DeMarco said in a statement. “We are extending the program so more underwater borrowers can benefit from lower interest rates.”

The FHFA will soon begin a marketing campaign to expand the program’s reach to additional homeowners, DeMarco said in the statement. Some industry analysts estimate that as many as two million eligible borrowers haven’t taken advantage of HARP.

HARP loans began to surge last year and now account for almost a third of all refinancing applications, according to the Mortgage Bankers Association. Nearly 1.1 million borrowers used HARP last year alone, equaling the 1.1 million in the first three years of the program combined.

About a quarter of HARP loans have gone to borrowers who owe more than their properties are worth. In January, nearly half of HARP refinancings were for such underwater borrowers.

To see if you meet the requirements for refinancing through the HARP program, contact Indigo Mortgage in Albuquerque at 505-836-5700. Indigo Mortgage offers five mortgage divisions including Residential, VA Loans, Reverse Mortgages, Construction and Commercial. They are licensed by the Nationwide Mortgage Licensing System (NMLS #239924), and can provide loans anywhere in New Mexico.