"Shark Tank" Barbara Corcoran's Advice on Mortgage

•  May 29, 2015 

Stop giving away your hard-earned money...

At least that's what Barbara Corcoran, millionaire and star of ABC TV show "Shark Tank" thinks you're doing by sitting on your current mortgage rate. According to the expert, she thinks "not shopping the market...is like giving money away" when mortgage rates are low. 1 Known as "New York's queen of real estate" who famously turned $1,000 into a multibillion dollar real estate business,2 you should listen to her.

With today's mortgage rates at near rock-bottom lows, millions of homeowners are spending tens and thousands of dollars more than they need to.3 By refinancing their homes to today's low rates, homeowners saved on average of $250 a month on their mortgage payments.4 This translates into $3,000 a year, which you could use to pay off debt, go on your dream vacation, or even pay your children's college education.

TIP: These low rates won't last long. Freddie Mac predicts rates to rise this year,5 so now may be your best and only chance to save on your mortgage. There's absolutely no cost to see low rates available today. See Your Low Rates >>

If homeowners could save thousands of dollars a year (and potentially even be mortgage-free by the time they retire), why are they not actively jumping on this opportunity?

What the Banks May Be Hiding from You

Do you think that banks want you paying a lower interest rate, which means less money for them? You can bet that they do not. They would rather keep you at the rate you financed years ago so you can continue giving your money away to them. They also know that you could start shopping around for the lowest rates, which means they could lose your business to another lender. Homeowners may be shocked at the extremely low rates available to them, especially when multiple lenders are fighting and competing for your business.

The Home Refinance Plan That Has Banks "On Edge"

There is also a little-known government program that was not widely publicized by the banks called the Home Affordable Refinance Plan (HARP). During the economic downturn in 2009, the US government designed HARP to help middle-class Americans reduce their mortgage payments and put more money in their pockets. But again, many banks kept this from homeowners because they want to take your money.

TIP: Those who refinanced through HARP reduced their mortgage payments by as much as an astounding $4,264 each year.7 See How Much You Can Save >>

Through HARP, the government relaxed refinance guidelines and “it doesn't appraise your house which allows so many more people to actually refinance the high interest they have on their loan,” Barbara says. If you owe less than $625,000 on your mortgage, you may be able to qualify for this terrfic HARP program.

However, time is running out for homeowners to save money through this program. Set to expire next year, it is vital you act now. The good news though is once you're approved, you're locked into the lower rate.

TIP: Close to a million homeowners could still benefit from this program today.8 Sadly, many perceive this program to be too good to be true. Remember, this is a free government program and there is NO cost to see if you qualify. See if you qualify >>

With average savings of $250 per month4, you could use the extra $3,000 a year for expenses, pay off your credit card debt, and even begin your road to a mortgage-free retirement. But it is important you act now before this opportunity passes. 

Where Do I Start?

With hundreds of mortgage lenders and brokers available, it can take consumers hours to simply contact each one separately and request a quote.

To cut through the clutter, Barbara Corcoran suggests that a great place to start is online9. There are services that could help you save time and money by comparing multiple lenders at once. Services such as The Easy Loan Site10 has one of the biggest lender network in the nation.

There's no obligation to homeowners, and The Easy Loan Site offers easy and fast comparisons. It takes about five minutes, and the service is 100% free. You have nothing to lose, except for your money problems!

Seller stats and trends

Buying cheaper than renting!

Do You Need Mortgage Insurance?

Do You Need Mortgage Insurance Even if It's Not Required by Your Lender? Let's Take a Look 

Finding a proper mortgage loan and understanding the processing procedures behind the loan is the basis of good research. The down payment on a mortgage loan is typically significant when dealing with mortgage insurance.

Most loan applications with less than 20% down payment are required to include mortgage insurance with the loan. However, mortgage insurance may still be required even if it's not typically required by your lender.

Underwriting Requirements

Most home mortgage applications undergo a strict set of standards for approval. These standards are known as underwriting and make up the bulk of time spent on a mortgage application.

Unique situations in employment or credit history may require an additional down payment percentage to avoid PMI or private mortgage insurance. Most underwriting requirements require adequate information on the borrower's credit and employment history for complete application.

Self-employed individuals or those with alternative forms of credit may need a few additional hoops to jump through when dealing with mortgage insurance requirements.

Lender-paid Mortgage Insurance

Lender-paid mortgage insurance is a popular option with potential homeowners that seek to avoid the cost of a PMI or FHA-backed insurance on a home loan. Most lenders incorporate payment of private mortgage insurance in exchange for a slightly higher interest rate.

This is one example of the points system on a mortgage application that eliminates the cost of PMI. The increase in interest rate may or may not warrant the need for a lender-paid mortgage insurance arrangement. 

What's Involved With Risk Assessment?

Strict lending requirements and banking policy now limit the number of mortgages with zero down payment options. Conventional mortgages and FHA both require private mortgage insurance if it is less than 20% down payment.

However, FHA loans can be more flexible with the initial down payment requirements with adequate credit. FHA mortgage costs are now for the life of the loan. Lenders will look at mortgage insurance as risk protection. 

The risk protection process may or may not require mortgage insurance in your home loan. For example, VA and USDA loans do not usually require mortgage insurance if the borrower's credit and employment history are adequate.

Conventional loans have a reduction in risk once there is at least 20% equity in the home compared to the principal of the mortgage. Don't hesitate to contact a mortgage professional about potentially dropping mortgage insurance in the future to reduce overall loan costs. If you need a referral to a good mortgage professional in your area contact your trusted real estate agent for assistance. 

Paula Deen’s Sprawling Savannah Mansion Is for Sale

Click here to Take a look!

Selling? Boost Your Resale Value

Selling Your Home in 2015? Boost Your Resale Value with These Three Inexpensive Renovations

To get top dollar for your home, renovations may be necessary. However, some renovations can prove costly and they don’t always add value to your home. Here are three inexpensive renovations that are sure to improve the resale value of your home.

First Impressions Matter 

Your home needs to have curb appeal. If the potential buyer doesn’t see that, it will be difficult to get the price you want. Spend money and time landscaping your yard. Pressure wash your driveway. Paint your front door. Make your porch look welcoming. If you do all of this yourself or with the help of family and friends, the costs will be reasonable.

After a prospective buyer is impressed by your nicely kept lawn, you will want to continue impressing him/her with your interior design. Buyers know what they want when it comes to the number of bedrooms and baths. You have something they want or they wouldn’t be looking at your home. Now, you need to keep their attention.

Freshening Up the Interior

Each room needs to be freshly painted in a neutral color. Old wallpaper and borders should be stripped and walls repainted. Make each room look larger by clearing any clutter. If possible, remove any unnecessary furniture and store it somewhere else. Have any carpets professionally cleaned, and be sure to polish any hardwood flooring. In the bedrooms, de-clutter your closets. Your kitchen and bathrooms should be sparkling. Clean and organize counters and cabinets. Again, most of these suggestions cost little but add great value to your home.

Upgrades 

When you think of upgrades, you many automatically assume major costs with little return. However, many upgrades may be within your budget. Consider making some of these affordable upgrades to your home.

Living Areas/Family Rooms – If you’re going for a more elegant touch, add some crown molding. For a more rustic feel, add box beams. Improving the ceilings of main rooms will add value to your home.

Hardware and Fixtures – Painting and changing the hardware on your cabinet doors can change the look of a room dramatically. Add new fixtures such as lighting and doorknobs for a more updated look.

Selling your home may require you to spend a little money, but you’ll likely get the full value of your home.

2015 and Kitchen Design: Three Trends That You Need to Be Aware of Before You Renovate

Renovating your kitchen is an excellent way to improve its look, increase the value of your home and appeal to a more diverse range of home buyers if you decide to sell. However, a kitchen remodel can easily cost $10,000 to $20,000 or more, which is why you want to make choices that you can live with. Learning more about some of hottest trends for 2015 can help you decide what you want and don't want in your kitchen.

Traditional Is Back

Trends come and go, but the classics remain constant. One of the hottest renovation trends for 2015 is a more traditional look. Homeowners today are no longer attached to trendy colors and modern designs; they want homes that have a more traditional look and will retain that traditional look for years to come.

Experts predict that 2015 will bring a return to darker wood colors for cabinets, tables, counters and even floors. There are also some reports that homeowners will use oil rubbed bronze and darker pulls and handles on cabinets and drawers as opposed to flashy and contemporary chrome accents. Other trends include rustic farmhouse tables, double porcelain sinks and natural stone counters.

Going Green

It's hard to go anywhere today without seeing or hearing about green decorating trends, and those trends carry over into kitchens. Homeowners want products made from recycled materials and the chance to "go green" at home. Adding a recycling center is just one of the hottest trends for the kitchen.

Designers also found that homeowners want counters and floors made from recycled or sustainable materials. Bamboo is a sustainable construction material that works well in flooring applications. Homeowners can also find counters made from old tires, soda bottles and other recycled goods.

Homeowners Want More Space

Ask anyone want they need in their homes, and the odds are good that many will say they need more space. Recessed lighting is one trendy accent that adds more space and reduces the number of fixtures and cords hanging down from the ceiling. Other ways to add more space include adding an island with storage to the center of the room and cutting down on the number of cabinets lining the walls.

There are a number of trendy ways that you can renovate and change your kitchen. Going green, adding more space and bringing in traditional elements are just a few of those ways. Talk with a real estate agent about other changes you can make that will add value to your kitchen.