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SunTrust Mortgage: A Brief Review

SunTrust Mortgage is the mortgage lending division of SunTrust Banks Inc., an American bank holding company with 1700 branches and offices throughout the southern United States. In its current form, SunTrust Banks Inc. is the result of the 1985 merger of the Trust Company of Georgia and Sun Banks Inc of Florida.

One of achievements of SunTrust Mortgage is that they helped underwrite the IPO of Coca Cola back in 1919 resulting to SunTrust Banks to hold 48 million shares of Coca Cola worth approximately $2 billion. SunTrust offers ten to forty year fixed rate mortgages with financing on up to 1035 of the property value.

They also offer a variety of ARM loans with cap on interest rate varying from year to year. SunTrust Mortgage also offers Jumbo loans, FHA, and VA mortgages, and special terms for loans on student condominiums. Florida foreclosures are up 70% over last year. Currently the state is behind only CA and Nevada in number of foreclosures. While many lenders have given lip service to the current loan crisis and the need for individual assistance, SunTrust is one of the few to actually make a commitment to refinance and write off some loan amount in order to keep Florida residents in their homes.

An in-depth review of SunTrust Mortgage and their holdings will be posted in the next couple of weeks.

Reverse Mortgages: Refinancing with These

When people think about refinancing a mortgage, they typically think about the existing, conventional loan on their home. But a reverse mortgage — a financial product increasingly popular among older adults — also can be a candidate for refinancing.

First, some background. A reverse mortgage allows homeowners who are 62 or older to borrow against the equity in their property. The proceeds can be taken in the form of a monthly check, lump sum or line of credit. Hence, the word “reverse”: Instead of a homeowner making payments to a bank, for instance, the bank makes payments to the homeowner. The loan is repaid, with interest, when the borrower sells the house, moves or dies. While these loans have their drawbacks (including the potential for some steep fees), more families are using them as a way to produce income without having to dump assets like stocks in a volatile market. To date, sales volume this year is up about 20% from 2002, according to the National Reverse Mortgage Lenders Association, a trade group based in Washington.

Why refinance?

By taking advantage of four changes since you first acquired a reverse mortgage — in your age, the value of your home, interest rates and the size of loans insured by the Federal Housing Administration — you might be able to put more cash in your pocketREFINANCING IS AN OPTION WITH REVERSE MORTGAGE…. .

Should I Refinance Home

These are crucial times. The housing industry is in a slump and jobs are threatened. Everyday we are reading more and more bad news from the economy. Sometimes, the important question we ask ourselves is:

Continue reading Should I Refinance Home

An Argument for Home Mortgage Refinancing

I want to make another case for home refinancing because with the uncertainty of the times, it is a good idea to always know what kind of options you may have when it comes to financing. One of these options may be to take advantage of your home equity through refinancing.

Refinancing?

Home mortgage refinancing means taking out a new loan with a new set of conditions, terms and interest rate and uses it to pay off an existing mortgage. This service is usually offered by a lot of financial institutions, and your current mortgagor may also offer this. A best way to go is to research aggressively for offerings that will give you the best possible interest rate.

Advantages of a Home Mortgage Refinance

Why should you consider refinancing? Could there be any benefit? Yes there are several! Here are some:

(1) Lower monthly payments – you achieve this by extending the terms of your loan. By taking your existing 10 year loan and refinancing this into a 30 year term, you can lower your monthly payments considerably, thereby increasing the cash that you have at the end of each month which you can use for more important causes.

(2) Lower interest rates – with the current credit crunch, loans may be harder to come by, but if you can do it, you can take advantage of such historically low home mortgage interest rates now available in the market.

(3) Instant Cash – Yes, you can get a nice lump of cash by refinancing and applying for a loan larger than what your current mortgage owes. Of course, this is still money you owe, so it would be smart to put this to good use, like renovating your property.

(4) Shorter mortgage – If you have some extra money to spend and you’re not comfortable with having such a long-term, you can use refinancing to take out a shorter-term loan and at the same time take advantage of the lower interest rates that these loans offer.

Of course, refinancing your existing mortgage is not without its disadvantages or cost. We will tackle this more in a later feature.

Refinancing advise

Question/Scenario:

We currently have a 20/80, 30yr fixed loan. Together the rate is about 7.5%. We still owe over 270,000 on the loan. Would it be wise for us to refinance?

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Latest from the News

Read the news carefully today. You never know what you're gonna get. For recommended reading materials on mortgages and refinance aspects and how to fix your deeds or just plain news on real estate, check out the new york times online. It's a very good source of information.