Jennifer Keenan's Friday FAQs!

Happy Friday!  Let me share with you this week's questions, we have some god ones.  Let's see what's up...

• We bought a home to renovate and flip in 2014.  We paid 500,000 for it and owe 403,000.  We had it listed for over a million dollars, but the property has not yet sold.  We have decided that we would like to make this house our home - we love it!  We do not want any cash out, but we would like to pay off the existing commercial note on the property and put 30-year financing in place.  We would like to roll our closing costs into the loan.  Is this going to be a problem?  Question first...did you both personally guarantee the existing loan on the property?  The objective would be to view this transaction as a refinance.  In order to do this, the property has to be titled to you personally or have you attached to the property through debt instrument.  If this has to be viewed as a purchase then there has to be a down payment.           
• I would like to buy a new home.  I have a 10% down payment now, but I also have a piece of property for sale.  I would like to use the proceeds to reduce my mortgage balance.  How can I do this?  This is called a principal curtailment.  Most mortgage servicers will allow you to do this.  Anytime you would like to reduce the principal by $10,000 or more, they will charge a nominal fee and do, what we term, re-cast the loan, re-amortize the loan for the remaining term.  You may also may a principal reduction without re-casting.  This would not change your payment but accelerate your pay off.       
•  How is it going with TRID?  Any change can be scary - we have certainly seen a lot of it in our industry since 2007.  TRID requires the loan officer to do a better job up-font in collecting documents, and closing must be aware of the calendar.  All is to benefit the borrower.               

Please feel free to contact me with any questions you might have.  I look forward to working with you and your clients.  Please remember, I am licensed in Virginia, North Carolina and Florida.