Category: Think About It

Is Buying A Home Really More Expensive Than Renting?

If you rent, you probably have good reasons. I bet that “paying my landlord’s mortgage”, “noisy neighbors”, or other caveats aren’t among them. Look, we know that owning isn’t right for everyone. As much as we write about why owning a home is better than renting, there are legitimate reasons for choosing to rent. For one thing, while renting may require a deposit, it doesn’t require a down payment. Renting is often the first choice for someone who wants or needs to be able to move with minimal hassle, or for someone whose focus is too occupied to be concerned with managing repairs and maintenance.

Whatever your reason, there is little doubt that most people probably want to eventually own their own home, even if not yet. If your reason is financial, you may think that buying is more expensive than renting. On one hand, you may have a point. On the other hand, the long view casts a long shadow of doubt on that assumption. Even if you plan to rent for awhile longer, educating yourself is always a good idea, especially if you plan to one day own, rather than rent, your own home.

Let’s talk about it.

Costs of Buying and Owning

Let’s talk about equity.

Before we jump into the actually costs of buying and owning your own home, It would be shortsighted to not discuss how equity plays into the equation. For starters, if you don’t know what equity is, it is just the portion of a whole asset that you own. It can be calculated by subtracting the remaining loan balance from the total value of the home. This is a major reason why a Self-Made Millionaire Told Millennials To Buy A Home three years ago.

With every mortgage payment, a portion of it goes toward the principal balance of the loan. (See: Why Buying Is Investing) This means that, without any extra effort on your part, your net worth grows by the amount of the principal portion that you pay each and every month. How much of your rent adds to your net worth? Oh.. sorry, I didn’t mean to make you feel bad. When you rent, you add to your landlord’s net worth, not your own net worth. Hey, at least your money is helping someone, though, right? Let’s move on.

Do you need a lot of cash for a down payment?

That depends. How much how do you want to buy? How much do you consider to be a lot? The truth is, you don’t need as much as traditional wisdom may have led you to believe. In my last article, Owning A Home May Already Be Within Reach, I talk a little more about that. There are conventional loan programs that require as little as 3% down, depending on your particular scenario. Assuming a $250,000 purchase price, 3% amounts to $7,500. However, a down payment is just putting your own investment dollars into the transaction. A down payment reduces your liability, and while you will no longer have the cash in hand after the transaction, it will not reduce your overall net worth. On the contrary, it could be the vehicle that gets you on your way towards a higher net worth than you would have access to otherwise. See a previous article we published, called Homeowner Average Net Worth 3,600% Higher Than Renter.

What about closing and other transactional costs?

Ah, closing costs. Sometimes surprising first-time home buyers, the purchase of a home requires a lot of moving parts, and many parties who work together to make this transaction of real estate possible. Apply the economic principle of “There is no such thing as a free lunch” to the purchase of a house, and it’s logical, really. So how much are they? That all depends.

Generally speaking, home buyers will pay roughly 2-5 percent of the purchase price in closing and transactional costs. These can be seen as true costs, as they do not translate to equity in the purchased home. There is almost always room for negotiation on these, so it’s worth talking to your loan officer about this ahead of time. It is their job to put together a mortgage package that fits nicely with your own personal financial situation and goals.

There will be other costs of ownership.

When the plumbing needs work in your apartment, you know what to do. You either call your landlord, a property manager, or the maintenance number. At some point, someone will come to your apartment to do the necessary repairs. Simple.

When you own your home, you are on the hook for arranging the repairs yourself. Sure, there are home warranty packages you can purchase that cover certain repairs, but you’re on the hook for setting that up, too. Don’t be intimidated by this, though, because home warranty sellers are anxious to trade their promises for your hard-earned money. The debate about whether a home warranty is worth it or not is for another post.

Another option is to find your own contractor. This sounds like more work, but this is actually a huge advantage. Want to upgrade? Go for it. Find a killer deal? You’re free to call whoever you like. Depending on the repair, you may be able to DIY and learn a new skill while saving your money.

No matter which way you go about it, repairs and maintenance costs will come directly from your pocket. Do not gloss over this fact when considering how much house you can afford, or you might find yourself “house poor”. Remember, however, that homeownership is not a quick win. It is a long game of wealth accumulation. That’s probably not even the top reason why people buy homes. What’s your motive?

Opportunity Costs

Like every other decision you make, there is an undeniable opportunity cost to buying a home. When you buy a home, you’ve lost access to the money that you used as a down payment. Maybe you wanted to use that money to pay for college, start a business, or save for a rainy day. Then again, maybe you recognize that the better option for you is to put it into a real asset like a home.

Another factor to consider is flexibility. You lose the opportunity to move in a hurry. If location flexibility is important to you, it can be beneficial to only have to pay a fee to break the rental contract and go at your convenience. If you own a home, you will either need to keep paying the mortgage for a home you’re not living in while paying for rent or a new mortgage for a home in your new location, or you will need to coordinate the sale of your home with your planned move. When you sell, you are taking the equity you’ve accumulated in the home in cash, which is difficult to see the down side of. You can also potentially keep your previous home, and make it available to rent to someone who could then help pay the mortgage for you with your asking rent price.

Your situation is your own, and it’s your responsibility to decide what is best for you. I sincerely hope you find this article helpful when you make that decision.

Costs of Renting

There is no such thing as a free lunch, and there is also no such thing as a free home.* When you rent, the most obvious cost to you is just that: rent. Whether you think your rent is a good deal, or whether you think it’s too high, the rent must be paid. Your rent helps pay for your landlord’s mortgage, adding to his (or her) net worth. Unfortunately, there is no long term fiscal benefit to the rent payment. It especially doesn’t help when the rent price goes up.
* Unless you live with family.. or other less common exceptions.

Lack of Privacy

Since your home is not your own, you are at the mercy of your landlord, their property management, and local laws for your personal safety and security. Have you ever heard your neighbors arguing through the wall? Has a party gone on in the unit above you until well past a reasonable hour? Do the neighbors’ kids not understand what ‘courtesy’ means?

See: Owners Enjoy More Privacy and Security.

I’m not saying that buying means you get to choose your neighbors, but you can at least choose your neighborhood, and buy a single family home with no attached neighbors, if that’s what you want to do. If you buy a house with a yard, you have a green space to enjoy without having to go to a public park or courtyard just to enjoy the fresh air.

No Personalization

If you rent, you give up the option to really make your (well, your landlord’s) home your own. Do you want to change the paint color, wallpaper, tile, or carpet? You have to either get permission, do the work yourself, or both. With the costs involved, you probably won’t want to invest in your landlord’s equity with your own cash. I don’t blame you, especially since one of the benefits of renting is its transient nature.

Opportunity costs

Renting means giving up any future possible financial gains on your residence, because it’s not yours. (see: This New Year, Reach Your Dream of Homeownership for a little math on this). It’s possible that you can see any of the previous costs as opportunity costs as well. With a financial stake in your community, you will be more invested in the culture and politics of your neighborhood and your hometown. This is not to say that you cannot also be personally invested if you rent, but that may come from owning or operating a local business rather than renting a home.

The Answer Is Ultimately Subjective

“Expensive” is relative. Expensive compared to what? Does buying a home come with a lot of cost, including upfront costs? Yes. Is it cheaper to pay rent, without gaining equity, for decades? No. However, is the cost worth it to you? Ultimately, that’s the question, isn’t it? I don’t know your particular life circumstances, goals, or timelines. However, you do. This is an answer you will need to arrive to on your own, based on your own priorities.

More recommended reading: Rent or Buy? A Fool, Do Not Be

If you are curious to see specific numbers to bring clarity, you will want to talk to one of our mortgage professionals. At Benchmark, our loan officers specialize in tailoring the best matching loan arrangement for your personal goals and financial situation. Find your branch, and contact them for more information.Contact us today. It would be our honor to help you decide what’s best for you.Please call me or request a call. I would be honored to be part of helping you decide what’s best for you.

Benchmark brings you home.

What is mortgage forbearance, and what does it mean for you?

by I Am Benchmark

In a mortgage forbearance agreement, the lender agrees not to foreclose on a mortgage, and the borrower agrees to a plan that will result in a temporary adjustment to provide relief, and to pay the balance to be current with the original payment plan.

Does it Make Sense to Refinance? 5 Things To Know

by Jason Haeger

If you are thinking about refinancing, you probably have a good reason. Maybe you are curious if you could save money by locking in a lower interest rate. Maybe you wonder if you could use some of the equity you have established in your home. Whatever your reason, here are 5 things to know before deciding if refinancing makes sense for you.

1. There are Good Reasons To Refinance

Not sure if Refinancing is a good idea? While refinancing may not be the best choice for everyone, there are a few good reasons to refinance.

A. A Shorter Mortgage Term

Maybe you are motivated to pay off your home sooner. If so, by refinancing to a shorter term mortgage (for example, a 15 year mortgage from a 30 year mortgage), you could set yourself up to be paid off in nearly half the time, depending on the maturity date of your existing mortgage.

Shorter term mortgages often come with smaller interest rates than their longer term counterparts. This can make the increased mortgage payment easily justifiable with the potential decrease of interest payments overall.

B. A Lower Interest Rate

Maybe you bought when interest rates were higher. While timing the market is a risky practice, at best, if the current average interest rates are significantly lower than the rate on your current mortgage, refinancing may look like an attractive option.

C. A Lower Monthly Payment

If your current mortgage is a few years old, refinancing into a new mortgage with the same term could reduce your monthly payment obligation. While this will likely increase the total interest you will have paid over time, the lower payment could free up cash for other expenses or goals.

D. Trade an Adjustable Rate for a Fixed Rate

If you opted for an adjustable rate mortgage due to a lower starting interest rate, you have likely noticed the periodic shifts, up or down, that your interest rate may have taken since originating your mortgage. If you are seeking a little more financial consistency, refinancing with a new fixed rate mortgage may be an appealing option.

E. Access The Equity In Your Home

Has your home increased in market value since you bought it? Do you think your equity could be used better than being tied up in your home? A Cash Out Refinance may be for you. Mind the risk!

F. Consolidate Debt

Do you have other debt with higher interest rates? Do you think it would be a good idea to roll that debt into your mortgage instead? A Cash Out Refinance may be an appropriate option for you. Just like above, we strongly recommend that you mind the risk!

G. Drop Private Mortgage Insurance (PMI)

Low down payment mortgages are a great way to take advantage of the right opportunity, but it comes with Private Mortgage Insurance. In order to get a new loan without PMI, you will have to have at least 20% equity in your home. If you have that, dropping the added monthly expense for the PMI could help pay your home off sooner (with a shorter term mortgage), or result in more available cashflow on a monthly basis.

2. Pay Attention To The Term

The Amortization date (or the time until the death of the loan) is an important aspect to consider if you think you may want to refinance your home. A longer term (like the common 30 year mortgage) will have lower monthly payments, but means you will be paying more interest overall, and paying for more years. A shorter term, like a 15 year mortgage, benefits from less overall interest cost due to fewer interest payments. Shorter terms also often come with lower interest rates than their 30 year counterparts, helping you save even more over the long run. However, a shorter term also means higher monthly payments, as the principle is spread over a shorter period of time.

Deciding which term is right for you will depend on your monthly cash flow, and your personal goals. Your loan officer can help you to determine the right loan for you.

3. Crunch The Numbers

The costs associated with Refinancing can be complicated, when all is taken into consideration. If your goal is simply to save money, it may or may not make financial sense to refinance. Your loan officer can help you consider all facets that may effect the overall cost or benefit of a refinance.

If you are refinancing for a different reason, do the math to be clear on where you stand. A mortgage is a big commitment, and it’s a good idea to thoroughly understand the new agreement before jumping in.

4. Know The Break-Even Point

Total Closing Costs / Monthly Savings = Break-Even Point

The “Break-Even Point” is calculated by a simple formula, dividing the total closing costs by the monthly savings. The calculator linked below can help give you an idea about what your break-even point might be. This is the point in the life of the new loan where the new mortgage effectively pays for its own closing costs.

Calculators

Why is this useful? If your goal is to save money, you may want to stay in your current mortgage if you plan to sell your home before the break-even point. Selling before you’ve reached the break-even point will end up costing you more overall.

5. Know The Risk

As mentioned earlier, a mortgage is a big commitment. There is always risk present when taking out a loan, especially when defaulting means losing your home. This is especially important to consider before taking a Cash Out Refinance to consolidate debt, especially debt that is not secured.

If you miss payments on a credit card, or student loan, you will have collectors giving you a hard time. If you the same debt is rolled into a mortgage, it becomes guaranteed by your home. Defaulting on a mortgage could result in losing your home. While consolidating high-interest debt into a low-interest mortgage can be a good long-term strategy, it may not be for everyone.

Be Smart: Talk To Your Benchmark Loan Officer Today

At Benchmark, we do more than sell a low interest rate. We look closely to help you determine the right loan for you. Even if you don’t feel ready, talking to us now can help you set a course for success.

Find your Benchmark branch, and contact them today for more information.Give us a call or contact us today. At Benchmark, we’ve got your back.Give me a call, send me an email, or request a call today. Along with my Benchmark community of mortgage pro’s, I’ve got your back.

Top 20 Things to Recycle in Your Home

by I Am Benchmark

November 15th is “America Recycles Day!”

In honor of this sustainable celebration, we have made a list of common household items that we can all recycle to help conserve resources and protect our environment.

Kitchen

Food Boxes
cereal boxes, frozen meal boxes, crackers, pasta, etc
Food Cans
canned foods, canned drinks, canned sauces, etc
Plastic Jugs
milk jugs, juice jugs, etc
Paper Towel Rolls
don’t forget plastic wrap rolls, aluminum foil rolls, and their boxes
Plastic Bottles
condiments, soft drinks, dressings, etc
Old Appliances
microwaves, toasters, dishwashers, refrigerators, stoves, etc
Cooking Oil
vegetable oil, canola oil, peanut oil, and other frying oils can be used as biodiesel

Bathroom

Shampoo Bottles
don’t forget conditioner and other bottled cosmetic cleansers
Soap Boxes
paper wrappers and other cardboard cosmetic and hygiene product boxes as well
Toilet Paper Roll
if you have small children in your house, consider reusing them for crafts!

Living Room

Household batteries
AA, AAA, C, D, 9V, and button cell batteries
Electronics
televisions, remote controls, blu ray players, stereos, speakers, sound bars, game consoles, etc

Bedroom

Tissue Boxes
don’t forget other cardboard panels and containers
Magazines
and newsletters, books at the end of their life, etc
Mattresses
foam, innerspring, latex, or combination

Office

Junk Mail
postcards, letters, fliers, and more. more fun to throw, so consider a bin for recyclables next to the trash bin
Scrap Paper
printing mistakes, notepad pages, hole punched holes, and more no paper left behind!
Ink Cartridges
some models allow you to reuse them, or exchange for refurbished at a discount

Garage

Tires
don’t forget lawn tractor and other tires
Automotive Fluids
oil, power steering fluid, coolant, brake fluid, can all be either used for fuel or recycled

Some items require advanced processing and recycling may not be available in all cities. Click here to see if recycling for these items is available in your area.

Remember, it is better to reduce what you use, and reuse what has already been used, and lastly, to recycle items that would otherwise end up in a landfill. Paper, cardboard, and organic matter can also be composted to help feed your garden.

Benchmark Took Their Talents to South Florida with Todd Duncan

by Jason Haeger

Every year, the nation wide Benchmark family comes together during our annual Production Trip to celebrate our Core Values, and to learn ways to better serve you, our amazing clients. This year, we invited Todd Duncan to join us.

Last week in Miami, our team sat down with Mr. Duncan to discuss High Trust Leadership, leveraging relationships, and delivering amazing client experiences.

Here are three highlights from Todd Duncan’s talk:

“Trust is the hardest thing to gain. It’s the easiest to lose. And the most important to hold onto.” — Todd Duncan

Todd is right. If you have ever had to earn someone’s trust, you know. It takes persistence, and it can take a long time. For something that takes so much to acquire, it is strikingly easy to lose. Trust is developed when expectations arise, which are then consistently and faithfully fulfilled. It only takes one unmet expectation for a crack to form in the bedrock of trust. Just like a house on a bad foundation, a relationship standing on unsure footing is precarious indeed.

“The more you do what you don’t want, the more of what you don’t want you will get.” — Todd Duncan

Following the logic of the above, it follows that the more you do what you want to do, the more you will get what you want. When Benchmark was founded in 1999, our founders had a vision of not only helping families achieve the American dream of owning their own home, but of being a mortgage company which the best in our industry would want to join. Our core values were formed during a round table discussion several years into our journey, and they resonate to this day. As of writing, we have grown to more than 80 branches nationwide, with an annual trip which we unofficially and affectionately refer to as our family reunion. At Benchmark, we do not wish to deliver an image to deliver numbers; we wish to deliver service to develop relationships. It turns out, the more we have done that which we set out to do, the more success we have built. So focus on the positive. The future looks bright for those who do.

“To be an effective leader, it is important to reflect regularly on your growth, and the growth of your team.” — Todd Duncan

Good leadership requires perspective. Looking back at your team’s, as well as your own progress and growth, will help you gain a high level perspective and sense of direction. Looking ahead, are you pointed the right direction? Look back, how often have you wavered? How far have you come? In order to lead effectively, it helps to have a clear vantage point in both directions.

We are a community of mortgage professionals: experts to help you through every step of the process. Our team of loan officers, underwriters, appraisers, and funders work tirelessly to close your loan as quickly as possible. We measure our success on the growth and efficiency of our entire team to deliver the best service and experience possible. Learn more about Benchmark at https://whois.benchmark.us.

Ready to Buy a New Home? 5 Free Resources to Get You Started

by lmills

Are you purchasing a home for the first time? Are you looking to move? We have compiled five free resources to ensure you have an amazing experience buying your new home.

1) Your Way Home

Do you want to learn more about the process from applying for a mortgage through closing on your new home? Do you have a realtor? Do you need one? Why do you have to sign so many documents? Confused? Don’t be. Checkout this free tool that explains the process from start to finish and provides a customized path to finding and purchasing your home after you answer four quick questions.

Go see it out here: Your Way Home

This tool is available on our loan officer sites. Go here here, and visit one to see more.

2) Simplifying the Home Buying Process In 7 Steps

What’s the difference between prequalification and preapproval? What do home inspectors look for? What happens during your closing? Watch these short videos featuring actual loan officers, realtors, appraisers, and underwriters who will walk you through the process of buying your dream home.

Check it out here: Benchmark University

3) Gather Your Documents

What paperwork do you need to compile to apply for your home loan? Your loan officer will help you gather all of the documents you need to seek approval for a loan. Want to get a leg up? Check out what documents you will need here.

See which documents you should have ready: Benchmark University

4) Mortgage Calculator

What will your monthly payment look like? How much will you pay in interest over the life of your loan? Can you really afford the house you want? Use this free, easy, and intuitive mortgage calculator to calculate your estimated monthly payment.

Do some mortgage math: Mortgage Calculators

5) eBooks on Buying and Selling

Stressed about buying a house? Having trouble selling your current home? What is a short sale? These free ebooks will help you purchase or sell a home with confidence.

Check out (no pun intended) our free eBooks: Benchmark University

Still have questions? Ready to get started? Reach out to one of our Branches to start the process of purchasing your new home today, or apply now!

Still have questions? Ready to get started? Contact us or apply now to start the process of purchasing your new home today!

Still have questions? Ready to get started? Call me, contact me, or apply now to start the process of purchasing your new home today!

Homeowner Average Net Worth 3,600% Higher Than Renter

by I Am Benchmark

Not only has the housing market made a strong economic recovery, but also in consumer and expert confidence in home-ownership as an investment.

Not Because of a Difference in Lifestyle

In the New York Times, an editorial entitled, “Homeownership and Wealth Creation” explains:

“Homeownership long has been central to Americans’ ability to amass wealth; even with the substantial decline in wealth after the housing bust, the net worth of homeowners over time has significantly outpaced that of renters, who tend as a group to accumulate little if any wealth.”

The Federal Reserve’s Own Research Agrees

While we have referenced this article before, many of the claims that the article makes are backed by the research that the Federal Reserve has conducted in their Survey of Consumer Finances. The study found that,

the average net worth of a homeowner ($194,500)
is 36x greater than that of a renter ($5,400).

The National Association of Realtors (NAR) expanded on the Federal Reserve’s research and projected that,

by the end of 2015, the average homeowner will have nearly
41x the net worth of a renter.

That’s nearly 4,100%!

The Gap Widens

Their findings are detailed in the graph below:

One reason for this large discrepancy in net worth is the concept of ‘forced savings’ created by having a mortgage payment and was explained by the New York Times:

“Homeownership requires potential buyers to save for a down payment, and forces them to continue to save by paying down a portion of the mortgage principal each month.” “Even in instances where renters have excess cash, saving a substantial amount is difficult without a near-term goal, like a down payment. It is also difficult to systematically invest each month in stocks, bonds or other assets without being compelled to do so.”

The Takeaway

“As a means to building wealth, there is no practical substitute for homeownership.”

If you are a renter who is considering making a purchase, talk with a Benchmark Mortgage professional who can explain the benefits of signing a contract to purchase over renewing your lease.

click here to find yours

Is it a Good Idea to Rent Rather than Sell Your Home?

by I Am Benchmark

With more homeowners considering that now may be a good time to sell their home, we thought it would be a good idea to consider whether renting might be a better idea.

According to Fannie Mae’s June 2015 National Housing Survey, 52% of respondents said that now is a good time to sell. Perhaps more interestingly, 59% of respondents expect home rental prices to increase.

Naturally, when you are considering selling your home, and you notice rental prices elevating, you are likely to consider renting. And who wouldn’t? Residual income on an owned asset, or having your house work to pay for itself sounds pretty good, right? This is when it makes sense to ask the question:

Are You Ready to be a Landlord?

Before you jump head-first into the world of being a landlord, take a look at this list. Sometimes what seems to be an obvious benefit can come with some hidden challenges.

10 Questions to ask before renting your home

If your tenant says they can’t afford to pay the rent this month because of more pressing obligations, how will you respond? (This happens most often during holiday season and back-to-school time when families with children have extra expenses).
Because of the economy, many homeowners cannot make their mortgage payment. What percentage of tenants do you think cannot afford to pay their rent?
Have you interviewed experienced eviction attorneys in case a challenge requiring one does arise?
Liability is greater in a non-owner occupied home. Have you talked to your insurance company about a possible increase in premiums?
Will you allow pets? Cats? Dogs? How big a dog?
How will you actually collect the rent? Electronically? By mail? In person?
Repairs are part of being a landlord. Who will take tenant calls when necessary and/or emergency repairs come up?
Do you have a list of licensed tradesmen readily available to handle these repairs?
How often will you do a physical inspection of the property?
Will you alert your current neighbors that you are renting the house?

The Takeaway

If you are prepared to handle the responsibilities that come with being a landlord, renting your home could be a great investment. Historically, renting residential real estate has been just that. However, if you are planning to sell before too long, the responsibilities that can come with renting your home may make any short-term economic benefit not worth the hassle.

New Rules for Home Loans: How Will They Affect You?

by Benchmark

In January, 2014, new home mortgage lending rules aimed at strengthening protections for consumers went into effect in the United States. Created by the Consumer Financial Protection Bureau — a federal agency responsible for regulating financial protection for consumers — the new rules come in the wake of the banking crisis that left millions of Americans in foreclosure, underwater on their home loans or struggling to make payments that they were never financially qualified to make. The law tightens restrictions on the banking industry, spelling out clearly what constitutes a qualified mortgage and placing limits on the fees and terms of some home loans.

However, many lenders already have tightened their lending criteria significantly since 2012, so some of the restrictions will not come as much of a surprise. Borrowers who do not qualify for low-interest mortgage loans will still have the option of applying for a mortgage backed by the Federal Housing Authority; they will just pay more for the loan.

Some of the requirements of the new law seem glaringly obvious from a consumer’s point of view. For example, self-employed borrowers or those whose income includes regular overtime or commission income will have to provide proof of how much money they make. Just asserting that you make 20 percent more than your base pay in overtime every month will no longer work. Additionally, loans to borrowers with an income-to-debt ratio of more than 43 percent are limited.

Another restriction imposed by new law is the elimination of interest-only loans, which were popular right before the housing market collapsed and greatly contributed to thousands of foreclosures in parts of the United States. Consumers who relied on these loans to purchase homes later discovered that they could not meet the higher payments they faced when the interest-only period ended, causing them to default and lose their homes. Adjustable rate mortgages—another popular lending strategy used to help low-income borrowers qualify for a home loan — are still allowed. However, the borrower must be qualified to meet the highest possible payment within the first five years. In other words, you cannot qualify for an adjustable mortgage with very low initial payments that will increase substantially in two to three years unless you are in a position to pay those higher payments now. Further restrictions limit mortgage terms to no more than 30 years and the total cost of points and fees to 3 percent of the loan (for loans of $100,000 or more.) The law also prohibits lenders from providing financial incentives to loan officers for steering customers into high-interest loans or large loans that they cannot afford to repay.

In addition to lending guidelines, the new CFPB regulations contain stricter rules regarding the mortgage banking industry’s obligation to keep consumers informed about the status of their loans. Mortgage servicer’s must now send monthly statements, credit payments on the first day they are received and notify borrowers when their payments are 36 days past-due. Additionally, banks cannot begin foreclosure proceedings until at least 120 days after the last payment was received. Homeowners who file a completed application for assistance and are working with the bank to avoid foreclosure are also protected under the new law.

Undoubtedly, the mortgage banking industry’s response to the new regulations will be some initial belt-tightening, Nevertheless, according to Keith Gumbinger, spokesperson for the country’s largest publisher of consumer loan information, HSH.com, “…everybody has been preparing for the change for months.” The new law simply codifies much of what the industry already has put in place. What’s more, the protections it affords consumers…while they come too late for the many thousands of families who lost their homes…ensure that future home loan transactions are open, honest and above board.

Benchmark & Boot Campaign Give Military Veteran a Mortgage-Free House

by bmadmin

Last night, Benchmark partnered with Boot Campaign and Military Warriors Support Foundation to give away one mortgage-free home to an injured veteran of the Afghanistan war during the Rock of Ages Military Appreciation Night.

Over 150 military veterans, retirees, active duty, and special guests were treated to a night at the Rock of Ages musical and a “Rockin” afterparty at BB King’s in Manhattan, NY.

Right after the show ended Sgt. Jon Moldovan was brought on stage and received a mortgage-free home from the Military Warriors Support Foundation. Moldovan, a former paratrooper and veteran of the Afghanistan war, was critically injured by shrapnel during a battle with the Taliban in 2007 and awarded the Purple Heart.

Rock of Ages cast members even stopped by BB King for the afterparty where two live bands – Almost Famous and Completely Unchained – performed for the crowd.

What an honor to be part of this event and show appreciation for the men and women of our military!