Refinancing

This is an image of a man holding a miniature model of a home. Mooney and Associates are experts in guiding clients through the transactions of home ownership, sale or refinancing.The most common method of financing real estate transactions is through a loan secured with a mortgage on the property purchased. Many mortgage loan programs exist, and the loan structure, terms and source of funding can effect the loans interest rate and the size of the monthly payments. The source of the funding can also effect the amount of the down payment and closing costs.

A mortgage involves a transfer of an interest in land as a security for the obligation. A borrower typically repays a mortgage in installments which include both interest and principal payments. If the borrower doesn’t make payments, foreclosure can result with the lender declaring that the entire mortgage debt is due immediately. Failure to pay the mortgage debt once foreclosure occurs leads to the sale of the property interest to pay for any remaining mortgage debt. The actual foreclosure process depends on state law, the terms of the mortgage and whether other liens exist on the property. Many states allow late payments to avoid foreclosure, and many lenders attempt to work out a payment plan in order to avoid a foreclosure. If a lender is threatening foreclosure, a borrower should immediately contact a competent, experienced real estate attorney, the attorneys at Mooney & Associates, to protect the borrowers interest and pursue all available resolutions to this problem.

A conventional loan usually requires a down payment of ten percent or more of the loan amount. Such loans include loans secured by government sponsored entities such as Fanny Mae (FNMA) and Freddie Mac (FHLMC) and loans that are funded by private investors for higher loan amounts, which typically carry a higher interest rate.

The federal government and other state, local and private entities have developed programs to provide mortgage loans with a lower down payment. A first-time home buyer or a buyer with a low to moderate income may be eligible for a mortgage insured by the Department of Housing and Urban Development (HUD) through the Federal Housing Administration (FHA), which insures the loans. Although a qualified buyer may be able to obtain an FHA loan with a down payment of three percent of the loan amount or less, the maximum size of the FHA is limited.

Veterans may qualify for loans guaranteed by the Veteran’s Administration (VA). VA mortgage loans offer a low or no down payment with many of the same benefits of the FHA loan.

Real estate transactions and disputes involve many laws which vary greatly from state to state. If you are buying or selling real estate or are involved in a dispute regarding interest in real estate, it is in your best interest to contact Mooney & Associates’ experienced real estate attorneys to make sure that your rights are protected.