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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.

Published in Blog

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 .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, NM 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 #188348), and can provide loans anywhere in New Mexico.

Published in Blog