Icon

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.

QA1: Should I Refinance?

Question: Should I Refinance? Our home mortgages remain both our biggest monthly bill and our greatest investment. With all the economic uncertainty, we still have very low interest rates between four and five percent for 15 year loans, and less than six percent for many 30 year loans. A question facing many families is: Should I refinance?

Continue reading QA1: Should I Refinance?

Low mortgage rates: Time to refinance?

With the interest rates we’ve been experiencing for the past year or so, it may seem like there is no end in sight to historically low rates.

In the United States, Freddie Mac’s recent Primary Mortgage Market Survey, which provides a snapshot of U.S. average mortgage rates, reported a national average rate of 4.56 per cent with 0.7 points on a 30-year fixed-rate mortgage. At the same time last year, the rate was 5.2 per cent with 0.7 points. So once again, you might be asking yourself, is it time to refinance?

Assuming you can qualify to refinance your mortgage, here are some things to consider.

Your Overall Financial Picture

Refinancing can be a great way to save money. It can also be a great way to get yourself into financial trouble. You shouldn’t refinance if you suspect you will make a refinancing choice that will hurt your financial situation in the long term.

Your Breakeven Period

Your breakeven period is one of the most important considerations in a refinance. To determine your breakeven period, you need to look at the monthly savings you’ll create by refinancing and the total cost to refinance your loan.
The easiest and fastest way to get a complete picture of your refinancing situation is to use a detailed mortgage refinancing calculator, available online.

Some Reasons Why You Should Consider Mortgage Refinancing

Why refinance? A lot of people nowadays need more money than ever. If something bad happens like a retrenchment or if someone gets sick, or if there is simply an opportunity to increase your savings or take advantage of better market rates, there are many reasons why you should refinance. Here are some reasons.

Better interest rates . This is best purpose for getting home loan refinancing . It’s probably logical to look for home refinance loans which will let the home mortgage refinancer to attack lower interest rates . Over a few years, my periodic savings will pay the cost of the house refinance due to poorer monthly refinanced home mortgage payments . Before taking out a cheaper and low interest mortgage , I should analyze if mortgage refinance is sensible .

Travel from an Adjustable Rate Mortgage to a Fixed Rate Mortgage . Homeowners who are risk verse alterations in market rates that involve mortgage refinancing could be fulfilled wth adjustable that definitely proffer gainful monthly payments . Home loan refinancing that present adjustable rate home mortgages are ideal if the owner of the house only means to dwell the home only a few short years . Although if the owner of the house only means to reside the home for a long period of time the owner of the house should bear in mind tenderly switch for a fixed rate term mortgage . This kind of home loan mortgage may probably hold a higher interest rates when compared to an adjustable rate mortgage but the owner of the house’s payments will remain being constant .

Break free from large bumps in payments . Home loan refinancing programs that own a balloon payment are cool when the borrower desire better interest rates and a much better initial monthly payment that are comparable to adjustable rate mortgage refinancing plan . However, the total the balance shall still be payable to the home mortgage company if the home being mortgaged is still in your possesion in the closing stages of the balloon payment term . The homeowner can possibly convert to an adjustable rate mortgage .

Once and for all Break out of Mortgage Refinance Insurance . Small downpayment mortgage refinance options are accessible to be had people . These plans sadly calls for a probable mortgage insurance that has been designed protect the lender in case the mortgage fails . This prerequisite for private mortgage insurance is not considered necessary anymore because the general actual market value of the borrower taking out a refinance’s property is raised and the principal on the person getting refinancing is cut .

Some spare cash will be to be had from your house equity . If the overall market value of the homeowner looking for refinancing home goes up , a cash out home loan refinancing becomes accessible to pay off a party or credit cards or a new swimming pool .

The home mortgage refinancer should be required to cautiously reflect on all the compensation and burdens of all arguments before the mortgager’s buys into a and getting refinancing .  Being safe about this will secure your financial future.

Housing Market Thoughts

Looks like the housing market is looking up….NOT. Housing prices are not recovering. This is horrible. Properties were once one of the best ways to get rich in America but this is not true anymore. According to a lot of articles that are coming out this week, the house is not your biggest asset anymore. You can be better off renting, at least you will be recession proof, or at least your net worth will not take a serious hit if your value of your property takes a hit. Mortgages are crazy these days. The interest rates have started to come up but the housing prices are not. How can people win in an economy like this? Bad credit mortgages can help you do that.

I think it will be easier to just move back in with your parents if you don’t have money to pay for your mortgage. Move in with the entire family, take your wife kids and second car back to mom. Save a lot of money that way by sharing in the utilities, sharing in the space, and paying no mortgage at all. More money for grand family vacations to Europe.

Seriously, if you don’t have work or are trying to find work or don’t think you’ll have any work in the near future, it will be crazy to keep an expensive mortgage. If you lose your job, you don’t have any protection at all and you could lose your house and the money that you already put into it. With housing prices totally depressed, you will lose money on the deal and will probably get no money back. Scary proposition right? Well, that’s the reality of the world these days, folks.

Interesting bits

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.