Eugene Mortgage News

The Covid-19 Coronavirus has led to some challenging times for all of us. 
 
The Government has created the CARES Act to assist homeowners whose income may have been adversely impacted by the coronavirus.  One of the components of the CARES Act is the possibility of mortgage forbearance.
 
Forbearance is often misinterpreted.  Many people are mistakenly thinking that forbearance equals forgiveness.  It does not.  This is truly intended as temporary relief for those who need it most. 
 
Forbearance means that the payments will be suspended for a short period of time, initially up to 6 months, but will need to be caught up when the forbearance period is over. Think about when you buy something at a furniture store that offers “no payments” for 3 months.  You still must pay for the furniture…the payments are just deferred. 
 
There is absolutely no financial benefit by exercising forbearance
, as you will either have to pay a lump sum, modify your loan, or owe the balance when you refinance or sell your home. 

If you really need to exercise forbearance, you cannot just decide to stop making payments.  You must notify your Mortgage Servicer and agree to the forbearance terms.  
 
Depending on your situation, I may be able to help by eliminating your debts, lowering your payment, and giving you a cash cushion during these turbulent times.   
Contact us to see how we can help at 541-683-3300.
Posted by Mike Herborn on April 3rd, 2020 10:55 AM

Whether you are refinancing, buying or selling, you will want to make you home picture perfect for the appraiser and Lender.  The house is clean and bright without clutter throughout and outside looks parklike.  Picture perfect!  The appraiser is taking pictures to show the lender what your house is about.  You want to make sure your amenities look its best!

Make sure that you give yourself enough time to get your items fixed on your to do list. 

  • The appraiser will look at Improvements to kitchens and baths, windows, the roof and the home’s systems (heating, electrical and plumbing) over the previous 15 years that make the home more up-to-date, functional and livable by today’s standards.  Exterior amenities such as patios, RV parking, garden area.

  • Repair what you can.  Broken windows, holes in walls, open electrical wires, all have to be fixed. Make sure that your water heater is strapped and that you have smoke and carbon monoxide detectors throughout.

  • Freshen up Paint that might be peeling or faded. 

  • Any pets should be contained and smells masked. You don't want the appraiser to be rushed to get out. 

Get your home ready for the Appraiser!

  • The home is clean throughout and the lights are on for it to be nice and bright.

  • The lawn is mowed and yard is clean of clutter. 

Coming up with value.  The appraiser will look at similar comparables that have sold within the last 6 months within a ¼ of mile from your home.

Posted by Mike Herborn on February 14th, 2019 11:09 AM

What is Refinancing?
Refinancing is the process of replacing and paying off a current mortgage with a new mortgage. Refinancing is typically done if it offers a better interest rate and term to save the borrowers some money.  The original mortgage will be paid off, allowing for the new mortgage to be created. If you have a loan that has a high interest rate or making your payments has been tougher than you expected, you may consider refinancing. Below we have listed some of the pros and cons of refinancing your mortgage: 

Pros 

1. Save money: A typical reason to refinance your mortgage is to get a new loan with a lower interest rate than your current interest rate. In the long run, a lower interest rate could end up saving you a significant amount of money. 

2. Lower monthly payments: Usually when you refinance into a mortgage with a lower interest rate, you can end up having lower monthly payments. This leaves you with more money accessible for other monthly obligations. 

3. Shorten the term of the loan: You may refinance to shorten the term of your loan. For instance, if you have a 30-year loan you might refinance into a 15-year loan to get rid of your debt faster. 

4. Change the type of loan: You may refinance to change the type of your loan. If you currently have a variable-rate loan and want a set monthly payment for the life of the loan, you might consider refinancing into a fixed rate loan. 

Cons 

1. Transaction cost: Like any home loan, refinancing will still have closing costs. It is important to consider this and make sure refinancing will benefit you and end up saving you money. 

2. Debt: It is important to realize that your loan balance will not change if you refinance. You may have lower monthly payments and a lower interest rate on your new loan but you still have debt.  

As always, you should converse with your mortgage consultant about whether or not refinancing will benefit you and your needs. If you have any questions or need to make an appointment to talk about whether or not you should refinance, call 541-683-3300! We are always happy to help. 

Posted in:Mortgage
Posted by Mike Herborn on February 23rd, 2018 1:56 PM