Mortgages and Refinancing (Special Guest: Theresa Yates)

	Mortgages and Refinancing - Money Problems Radio Show (Opens in a new window. Optimized for Windows Media Player 6.4 and later versions.)
Originally aired on July 29, 2006.

Show Topic:

For many homeowners, tapping into the value of their home and refinancing their mortgage has become a common strategy. This may be a good strategy, but it has to be done correctly, and that's what we discuss on today's show.

Guests:

Theresa Yates is a mortgage consultant with Mortgage Intelligence in Kitchener, Ontario. For 27 years Theresa has helped clients deal with their money problems, and currently serves clients in Kitchener-Waterloo, Cambridge, Guelph, London, Hamilton and surrounding areas.

Theresa can be reached at 519-653-0898.

Show Summary:

Theresa started by explaining the advantages of using an independent mortgage consultant. As an independent mortgage consultant, Theresa can approach up to 50 different lenders to get you the best deal. She specializes in helping people in more difficult financial situations.

Theresa explained that: "The process is not complicated at all. I take care of everything. I start by taking an application and getting the client's story. If the deal is pretty straightforward, I process the application (getting the best deal possible) and obtain an approval. Sometimes a client may not fit the guidelines and I may have to chat with the lender to sell the deal. I have quite a good rapport with many of my lenders and because of this they may bend the rules for me sometimes. After obtaining the approval, an appraisal may have to be done which I also arrange for you. Next, papers must be signed and documents collected from the client. To do this I usually meet the clients at their home at a convenient time whether it is during the day, an evening or a weekend. From there it's pretty clear sailing and the deal closes."

Theresa also explained that:

"People who have run into credit problems do have choices as well. Many lenders have come out with products geared specifically for people with less than perfect credit. I'll give you an example: I had a gentleman contact me within a week of his discharge from bankruptcy. Despite going bankrupt he was able to keep his house. He was a single man, self -employed for over 2 years and no re-established credit. I was able to refinance his house for 75% of its value. The client's property was in excellent condition as required by this equity lender. The client did not have to wait 2 years from discharge with re-established credit to refinance his house like the banks require."

Question of the Week:

Q. My spouse and I both work; my spouse's company closed down two years ago; we had to live on credit until my spouse found another job; we used credit to survive; we have equity in our house, but the bank won't lend us money to pay off our credit cards. What can we do?

A. Since you have equity in your house it may be possible to either refinance, get a second mortgage or obtain a line of credit to pay off your credit cards. You may require a mortgage with a higher loan-to-value. Loan-to-value can be described as the loan to the value of the property, expressed as a percentage. For example if you had a $75000 first mortgage and a property value of $100000 the loan-to value would be calculated: 75000/100000 = 75%. Depending on your financial situation some of the banks won't lend with a high loan-to-value. This is where the alternate lenders come in to play with their specialized products for people in these situations.

We encourage you to contact Theresa Yates at 519-653-0898 for further information.

Don't let your money problems overwhelm you; contact a bankruptcy expert or Theresa Yates today for more information on mortgages and refinancing.