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Wednesday, 14 April 2010

Testimonial from Mike

I had a great experience working with Tim Arroyo! I did my research through other larger, popular firms, such as Met Life Home Loans and Wells Fargo, but after several calls to other companies I was not as confidant with them as I was with American Heritage Lending. It was fast, locked at a great rate, and Tim was extremely helpful in explaining everything until I was 100″% sure that I wanted to move forward. They did anything and everything to get my business and to keep it; and that’s what they have done. I was pleased and I would definitely recommend them to anyone. Thanks for everything guys! Keep up the good work!

Satisfied Customer,

Mike Maroshek

Thursday, 1 April 2010

Am I really skipping a payment?

Am I really skipping a payment?

If you’ve ever refinanced chances are you were promised the opportunity of skipping a payment. Most Loan Originators promise the opportunity of skipping a payment as a fringe benefit to the FHA refinance. The truth is you’re not really skipping a payment. Yes, you don’t have to write a check, go online, or physically make a payment at your bank, but this doesn’t mean you’re skipping a payment and avoiding the payment all together.

You may feel like you’re skipping a payment but the secret is, your payment is made in the payoff of your existing FHA loan.

What does it mean that your payment is included in the FHA payoff? In order to answer that question, we must understand how interest is calculated on your FHA mortgage.
First, it’s important to know that mortgage lenders collect interest in ARREARS – which means they collect interest at the end of the month rather than the beginning. When you make your FHA payment that is due on July 1st, you are paying all interest due for the month of June. When you refinance your FHA mortgage, the payoff figure will include 30 days of interest, even if you’ve never missed a payment. This is because interest is collected by the FHA lender at the end of the month or in ARREARS.
Next you need to know that FHA unfairly charges you for a MONTH OF INTEREST AT THE 1ST OF EACH MONTH rather than charging you per diem interest. What does this mean exactly? It means if you were to win the lottery and decide to pay off your FHA loan on the 3rd of the month, you would still be charged the remaining days in the month even though the FHA loan was paid off on the 3rd. If there was 31 days in the month, you would pay interest on the remaining 28 days. Why do they do this? FHA has promised a full month of interest on the 1st of each month to the investors who buy FHA securities, unfair BUT legal.
This is why American Heritage Lending will only close an FHA Streamline at the end of the month. Most the time we can complete the FHA Streamline earlier in the month but this would cause you to pay DOUBLE interest.
Lastly, it’s important to know that all lenders collect interest in advance when funding a new loan. This is typically referred to as PREPAID INTEREST OR INTEREST IN ADVANCE. When your new FHA loan funds, you begin paying interest to the new FHA lender beginning on that day.

Here’s a real life example:

Your new FHA loan funds on January 30th (TO AVOID DOUBLE INTEREST) – your new FHA lender will collect 2 days of PREPAID INTEREST at closing. There is no February payment because they’ve collected it at closing. February’s interest will then be due March 1st(IN ARREARS). This is when you will make your “first payment”.

So, the illusion is that you “SKIPPED” February’s payment. But, we all know now that the February payment for January’s interest was paid at closing when the old loan was paid off. The next Loan Originator who promises you a skipped payment is not a professional!

-Justin Smith

Testimonial from Curtis and Rhonda

I was very sceptical at first when I responded to the ad that I received. You never know who you are dealing with. I was glad to see that I was dealing with a company in my home state of California and when I talked to Tim Arroyo he was very patient in answering all my questions and sending me information quickly and responding to all my calls. By the time I finished the process I was very happy with the outcome and I will not hesitate in using them again for my mortgage financing needs. Thank You very much for the professionalism and customer service.

Curtis & Rhonda Allen

Testimonial from Patricia

I had a great experience working with American Heritage Lending for my mortgage refinance. They followed up and updated me on every step of the process to meet the dates, and helped me with any questions I had. I have nothing to complain, experience was very positive and I would work with them again in the future.

Thanks a lot Tim.


Testimonial from Sandra

Dear Justin,

I just wanted to say thank you so much for all your help with refinancing my home, not just once but twice. Your professionalism, efficiency and kindness have made this chaotic process more realistic and feasible.

Being inexperienced with the whole practice of buying and refinancing a home, not to mention all the jargon that goes along with it, could have made this procedure more stressing than it actually was and I truly appreciate the time you took out of your busy schedule to answer all my questions, because I know I had many, and explain everything to me. It was very heartening to know that I could call at anytime and you would greet me with kindness and a smile in your voice, always willing to take the time to make sure I was comfortable with everything that was happening with my case.

I never thought I would encounter so many obstacles and last minute glitches to refinancing my home but your expertise and knowledge has helped me overcome each challenge smoothly and precisely.

Justin I don’t think there are enough words to truly express how much my family and I appreciate all your help. Your accountability, follow through, solid work ethic, patience and understanding are certainly a breath of fresh air and very important to me and people like me. For that reason, thank you very much. I will miss talking to you virtually every other day!


Sandra Washington

Testimonial from Michael

It was a painless experience, very efficient process without any hidden surprises. Great result in the end with a great interest rate.