What is CFPB and How Does this Affect My Home Loan?

The CFPB Proposed Rule Changes are here and the way we do business is going to be different…we think anyway. What is the CFPB anyway? CFPB stands for “Consumer Financial Protection Bureau.” As you know the market collapsed and world as we know it went upside down for a while. We are now right side up but the legislation aftermath that followed has not slowed down. Hence…the CFPB Proposed Rule Changes was born. The CFPB was born in July of 2011 and it overseas “ALL” consumer financial products. This means it supervises banks and non-banks and integrates disclosures under the “Dodd-Frank Act” which started in 2010 after the collapse. The CFPB covers Federal and State Regulatory issues. Is the HUD-1, GFE, and TIL Going Away? Good question, and the answer is YES. This sounds scary and it kind of is because we have all been doing business a certain way for a long time and now some major changes are headed our way. Here are some NEW terms for you to familiarize yourself with: 1. The GFE (Good Faith Estimate) is now going to be the Loan Estimate. 2. The HUD-1 is now going to be the Closing Disclosure Form or CDF 3. 3 Day Rule in affect where the borrower needs to see Final figures. If off by more than $100 a re-disclosure has to take place. 4. Either the Lender or Title Company was deliver the Closing Disclosure Form 5. Limits to Closing Cost increases 6. APR will now change to include more fees normal Title and Escrow Charges 7. Implementation could take 12-18 months. All in all you need not worry. As long as you make sure you adjoin yourself with a lender who has been trained properly in the new changes, you can sit back, relax and let them work their magic to help you obtain your home loan, or home refinance. Ultimately if you find a company who has already put these changes into play ahead of time, you will have no problem reaching your ultimate goal. Texas Premier Mortgage has teamed up with some of the best in the industry to brain storm and make a plan to implement these changes so that is does not affect our customers…it just helps them to achieve a higher level of satisfaction once they sign those closing papers! If you need any assistance at all, contact Steve Head, President and Owner of Texas Premier Mortgage to assist you with your next home purchase. Find us online at www.txpremiermortgage.com or call 281-627-4222 today!

Renting VS. Buying: The REAL DEAL

Have you been renting and considering purchasing a new home but not sure on where to turn? It is easy to get into a routine and not take that leap of becoming a home owner. But honestly, if you look at today’s interest rates you would really be doing yourself a favor by purchasing. Mortgage rates are back in the 3s and there's an argument to be made that there's no better time to buy a home than right now. Affordability is high, low-down payment loans remain readily available, and home prices continue to ratchet higher -- as do rents in many U.S. markets. However, because buying your first home will likely be the largest financial commitment you've made in your life so far, it's in your best interest to weigh the pros and cons of homeownership; and there are both. Yet, mortgage rates are currently super low, which has lowered the cost of a monthly mortgage. In many markets, it's now cheaper to pay on a loan than to pay monthly rent to a landlord. This is especially true in cities such as San Francisco and Seattle where rents are rising faster than wages. Renting can give you flexibility, but homeownership can give you wealth. Which is more important to you? Buying and owning a home is the essence of "The American Dream". Each month, your housing payments go towards owning your home instead of renting it; building your personal wealth and assets instead of someone else's. History has shown that homeownership is a clear path to wealth-building, with homeowners boasting net worths which are multiples higher than the net worths of renters. This happens because renter "own nothing" while living in a home. A homeowner, by contrast, owns the home and, as the home's value changes, those changes are bestowed upon the owner. Historically, real estate has increased in value nationwide. There's no guarantee that values will continue to rise, but in the majority of U.S. markets, it's likely over the long-term. So, if you buy a home for $250,000 -- regardless of your mortgage! -- and that home's value rises to $300,000, you have accumulated $50,000 in additional net worth. Renters can't make that same claim. Owning a home can anchor a household, as well, offering stability and predictability to life. When you own your own home, there's no landlord to give you "30 days notice", after all. Then, there are the tax benefits to consider. For homeowners who itemize deductions on their federal tax returns, owning a home grants access to multiple tax breaks, including the monies spent on mortgage interest each year and the monies paid in real estate taxes. Still trying to consider between renting and buying? Make a list of the pros and cons that you can thing of between the two and then make an educated decision based upon what is best for you and your family. Have mortgage questions or wondering how much mortgage you can afford? Contact the local Woodlands, TX Mortgage Expert Steve Head, President, Owner and Broker for Texas Premier Mortgage since 2006. His expertise in the current market has helped thousands of homeowners make their dreams come true. Check out the website at www.txpremiermortgage.com, or give him a call at 281-907-6401 extension 100.