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All posts tagged Lending

Boston Home Loan Rates Tick Down A Bit

Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average mortgage rates moving lower for the third consecutive week.

News Facts

30-year fixed-rate mortgage (FRM) averaged 4.09 percent with an average 0.5 point for the week ending Jan. 19, 2017, down from last week when it averaged 4.12 percent. A year ago at this time, the 30-year FRM averaged 3.81 percent.

15-year FRM this week averaged 3.34 percent with an average 0.5 point, down from last week when it averaged 3.37 percent. A year ago at this time, the 15-year FRM averaged 3.10 percent.

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.21 percent this week with an average 0.4 point, down from last week when it averaged 3.23 percent. A year ago, the 5-year ARM averaged 2.91 percent.

Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following link for the Definitions. Borrowers may still pay closing costs which are not included in the survey.

Looking for home financing information? Click the ink below.

 
Click Here to Find Local Lenders

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FHA Reduces Monthly Insurance Rates | What Does That Mean For Home Buyers?

January 13, 2017 By Chris Graves, Mortgage Broker

The beginning of the new year comes with some BIG news for first time home buyers. FHA announced reduced monthly mortgage insurance rates for FHA loans starting January 27, 2017. This will reduce monthly payments for FHA buyers or allow them to qualify for a higher priced home. Here’s what you need to know about this change.
New Reduced Monthly Mortgage Insurance Rates for FHA Loans

The mortgage insurance rate on FHA loans is based on a the purchase price, down payment amount, and term. Most FHA buyers obtain a 30 year loan for under $625,500 and make a down payment of less than 5%. In this case, the monthly MI rate drops from 0.085% to 0.06% per month. On a $400,000 loan, this results in a $100 per month savings. Buyers making a down payment of 5% or more will see rates drop from 0.08% to 0.055%.

For loan amounts above $625,500, the savings is even greater. Loans with 5% down payment will drop from 0.1% to 0.06%. Lower down payment loans will change from 0.105% to 0.06%. On a $700,000 loan, this results in a $315-$420 per month savings.
Effective Date of Reduced Monthly MI Rates

In the past, FHA home loan changes were dependent upon the date that a case number was issued. This is not the case with the reduced monthly mortgage insurance rates for FHA loans starting January 27, 2017. All loans disbursed on or after that date will receive the new lower rate. The date that funds are disbursed is not always the same as the closing date. Contact your lender for details. If you have a loan scheduled to close this month, it may be worthwhile to look into altering the closing date in order to receive the new reduced monthly mortgage insurance rates.

Want to learn more? Need to get pre-approved? Learn more about Chris Graves Mortgage Services @ http://chrisgravesmortgageexpert.com

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Pros And Cons Of Using a Hard Money Lender

Whether you’re investing in a property to fix and sell, a landlord looking to invest in rental property, or a builder looking to get a construction loan, you’ve likely heard that hard money loans from private lenders are the best way to go. This all sounds like a no brainer but you should truly understand the difference between the two and if it makes financial sense for what you are trying to accomplish. Here we’ll talk about the pros and cons of choosing a hard money loan, and some things to expect when going through them.

Pros Of Hard Money Loans

  • Quick Approval: For Fix and Flips or construction loans, the borrower will typically be hard-pressed to get the loan within a certain amount of time that traditional lenders may have difficulty adhering to, due to the mountains of paperwork required and long standard approval processing times. With hard money loans, however, you can expect to close on a deal much more quickly – some within as little as 24 hours, for Boston we’ve average around 7 days. Once you’ve developed a relationship with a lender, the process can move even more quickly, allowing you to turn your properties around and make a faster profit.
  • Flexibility: because hard money lenders don’t use a complicated standardized underwriting process, they are able to evaluate each deal individually, and depending on your situation, and your relationship with the lender, you may have a little more wiggle room. This makes them much easier to work with than traditional lenders.
  • More Collateral Options: with hard money lenders, they are investing in the value of the property or properties themselves, not your individual credit. Due to this, they are typically willing to accept different types of collateral as long as the borrower can present profitable collateral to secure the loan. This means presenting them with solid plans for the property, as well as value of the land and the property as it is currently, to give them a better understanding of what they are working with. 

Cons Of Hard Money Loans

  • Higher Interest: the one major downside of hard money loans is the typically higher interest and fee rates due up front. The higher terms are due to the fact that they focus on the property value rather than the borrower, but may increase the risk on the borrower’s part. When choosing a hard money loan, make sure you’re managing your investments carefully and properly to avoid default or loss of property.
  • Short-Term Only: because they are private loans and are used primarily for the renovation, building, or flipping of property, many hard money loans are only available as a short-term means of financing. These usually range anywhere from 6 months to 2 years, and because of this the payments per month are typically higher along with the higher interest rates.

If you are interested in finding competitive rates for funding your investment real estate deal, check out one of our partners US Flip Funding. They make lenders compete for your business, ensuring you get the lowest rates in town.

For more information on Real Estate Financing or to learn from industry experts, feel free to contact us directly at Contact@Mandrellco.com or visit our networking group at Boston Wealth Builders where seminars are free but the resources are priceless.

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5 Need Funding For Flips? Here Are The Top 5 Hard Money Lenders In MA

Are you looking for funding for you local real estate flips? Great, Below is a list of the TOP 5 HARD MONEY LENDERS in the Massachusetts area. If you have a deal pending, or would like to get more information about working with these lenders, please contact Doug Medvetz at 617-297-8641.

Endeavor Capital is a “direct” real estate lender that has been providing investors with immediate access to short and intermediate-term commercial loans for over 15 years. Endeavor serves a growing need for experienced investors looking for creative, situational financing within a tight time frame to fund acquisition, construction, and other investment projects.
Unlike commercial banks, Endeavor makes asset-based lending decisions that focus on the financial strength and underlying value of the collateral that secures the loan and not on the credit history of the applicant. The length of these loans is generally between six months and two years for amounts ranging from $100,000 – $10,000,000.

Conquest Capital specializes in private lending secured by real estate. We work with experienced real estate developers and investors primarily in Massachusetts and California to finance the acquisition and construction of non-owner occupied residential properties. The firm’s principals have a combined 30 years of experience in all aspects of real estate lending and investing. Having spent years developing real estate prior to launching the firm, its principals have built Conquest’s private lending platform from the ground up. Since the firm’s inception, its principals have consistently invested their own personal capital into its lending projects alongside its investors.
Conquest Capital’s core investor base consists of individual as well as institutional investors. Our mission is to provide investors with attractive current income and total returns while remaining focused on capital preservation. We aim to deliver real value to investors and to outperform the returns of other secured investments in the marketplace.

Commonwealth Equity Funding is a direct collateral based private real estate portfolio lender with over 50 years of collective experience. We provide investors with bridge financing to purchase, refinance, construct, or renovate their residential and commercial investment properties when traditional lenders cannot perform in a timely manner. Our fast, flexible, and creative financing solutions provide borrowers with near immediate approvals on asset based loan scenarios. Our common sense lending guidelines are solely based on the underlying equity present in the real estate we are securing, the likelihood of default, and the marketability of the property. We use stringent loan to value guidelines and have a hands on approach to our loan investments. Origination, processing, funding, and loan servicing are all handled by our in house team. This allows us a unique understanding of our borrowers and loan portfolio at all times. Our reputation speaks for itself by the repeat clients that choose us for their financing needs year after year.

Grand Coast Capital Group is a national private lending firm based in Boston, MA that provides creative, short-term financing to real estate investors, builders, and developers across the country. As a direct lender, Grand Coast has the ability to analyze and fund loan requests very quickly in order to meet time-sensitive transactions.
Grand Coast finances residential, commercial, industrial, and multi-family properties as well as entitled land, with a primary emphasis on 1-4 unit residential properties. We do lend in all 50 states, but with a particular focus on the Northeast Region and Southern California, in addition to targeting experienced local investors and operators in their perspective markets.
Grand Coast targets lending opportunities that do not necessarily fit within the parameters of conventional bank financing either due to time constraints, complexity, or value-added nature of the transaction. We primarily make first-position mortgage loans with a maximum loan-to-value of 75%. Our typical loan size ranges from $100,000 — $3,000,000.

The Raymond C. Green Companies offer creative, short term financing to builders, developers, and real estate investors throughout New England and Florida. We specialize in providing fast, flexible and reliable alternatives to traditional bank financing. We recognize the importance of customer service, building strong relationships, and QUICK CLOSINGS.
We provide financing for the construction of single family homes, subdivisions, renovation projects, condo conversions, condominium developments, bridge loans, permitted land development, commercial properties, DIP (Debtor in Possession) loans and more.
We are proud to have delivered over 50 years of professional service and look forward to earning your business.

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Purchase A $350,000 Home With An FHA Loan & Down Payment Of Only $12,250

Have you considered buying a home but can’t afford a 20% down payment on the mortgage? You’re not alone! Many home buyers (especially in New England) cannot afford to shell out $40,000 – $80,000 just to get into your average Boston home. Fortunately there’s another option. FHA (Federal Housing Administration) loans are extremely popular mortgage programs because of their lower down payment requirements and less stringent lending guidelines. With this mortgage program, home buyers can obtain a home mortgage with as little as 3.5% of of the purchase price. For your average Massachusetts home (approximately $350,000) that roughly $12,250…a much more affordable and achievable number.  FHA borrowers can use their own savings to make the down payment, but other allowed sources of cash include a gift from a family member or a grant from the government. Another benefit to the FHA program is that is allows individuals with less than perfect credit to obtain a loan. Borrowers need a credit score of just 580 or higher to meet requirements.

Note: An FHA loan may also used to purchase a 2-4 four family home. Many individuals purchase their 1st investments property with FHA or similar “owner occupied” home loan. FHA does require that an individual move into the property for a specific period of time but does not require the borrower to remain in the property for the life of the loan. Talk to your local real estate agent and mortgage broker about whether or not this program is good tool for your purchasing needs.

The FHA allows home sellers, builders and lenders to pay some of the borrower’s closing costs, such as an appraisal, credit report or title expenses. Because the FHA is not a lender, but rather an insurer, borrowers need to get their loan through an FHA-approved lender (as opposed to directly from the FHA). Not all FHA-approved lenders offer the same interest rate and costs — even on the same FHA loan.

The FHA has a special loan product for borrowers who need extra cash to make repairs to their homes. The chief advantage of this type of loan, called a 203(k), is that the loan amount is based not on the current appraised value of the home but on the projected value after the repairs are completed. A so-called “streamlined” 203(k) allows the borrower to finance up to $35,000 in nonstructural repairs, such as painting and replacing cabinets or fixtures.

For more information about FHA loans to get yourself pre-approved for a mortgage, please give us a call at 617-297-8641. We can connect you with one of our local mortgage specialist and get you on your way to home ownership.

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Come join us on September 19th (Quincy Marriott Hotel) for this year’s Real Estate Investor & Developer Trade Show. During the event we plan to have a great discussion on Hard Money Lending. Chris Tobin from Endeavor Capital will be joining us for the day to tell us about his business and to answer all your questions about funding deals through hard money.  Some of the points Chris will touch upon include:

• What is hard money and how does it work?

• What do lenders look for and how can I qualify for a loan?

• How do I get a proof of funds letter so I can make offers?

• What type of property will Endeavor will lend on?

• What if I have bad credit? Can I still get the loan? 

This educational seminar will take place on the same day and in the same location as the MA RE Investor Trade Show. Seating is limited, so please RSVP to save your spot. Only members of Boston Wealth Builders will be allowed to RSVP. To become a member, please visit the group website at http://www.BostonWealthBuilders.com. Membership is complete FREE and only takes a couple minutes.

Hope to see you there!

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 Freddie Mac (OTCQB: FMCC) last week released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates reaching new 2015 highs heading into the holiday weekend and ahead of the June jobs report.

News Facts

  • 30-year fixed-rate mortgage (FRM) averaged 4.08 percent with an average 0.6 point for the week ending July 2, 2015, up from last week when it averaged 4.02 percent. A year ago at this time, the 30-year FRM averaged 4.12 percent.
     
  • 15-year FRM this week averaged 3.24 percent with an average 0.6 point, up from last week when it averaged 3.21 percent. A year ago at this time, the 15-year FRM averaged 3.22 percent. 
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.99 percent this week with an average 0.4 point, up from last week when it averaged 2.98 percent. A year ago, the 5-year ARM averaged 2.98 percent.
     
  • 1-year Treasury-indexed ARM averaged 2.52 percent this week with an average 0.3 point, up from last week when it averaged 2.50 percent. At this time last year, the 1-year ARM averaged 2.38 percent. 

 

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REDUCTION IN FHA MONTHLY MORTGAGE INSURANCE!

I hope all is well!  I wanted to let you know that FHA has recently announced that as of January 26, 2015, the monthly mortgage insurance on FHA loans is being decreased from 1.35% to .85% on loan to values between 95.01% – 96.50% and from 1.30% to .80% on loan to values at 95% or less.

On a $100,000 loan, for example, this reduction in monthly mortgage insurance will reduce the monthly mortgage insurance payment from $135/mo to only $85/mo.

On a $400,000 loan, for example, this reduction in monthly mortgage insurance will reduce the monthly mortgage insurance payment from $450/mo to $283.33/mo.

Not only will buyer that need to use FHA loans be able to save more money monthly but they will also be able to afford a much higher purchase price due to monthly MI reduction!

Please let us know if you have any current FHA mortgages that you would considering refinancing and we can connect you with our mortgage specialist! Of course if you’re considering making a home purchase, give us a call and we can make the connection.  The FHA 30 Year Fixed rates are as low as 3.125%. Other than FHA he also has access to conventional & mass housing loans with as little as 3% down with NO PMI!.

Here’s to a prosperous 2015!

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