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No, the closing costs will exceed your savings and that rate may not even be an option given the size of your mortgage.  Some closing costs are fixed amounts and smaller loan amounts often result in longer breakeven period. Your not paying a whole lot of interest anymore in mortgage terms and if you would like to pay event less, make extra payments to your principal.

With 10% down, you'll need  to either pay PMI or obtain a 2nd mortgage for 10% of the pruchase price in order to avoid the PMI. Nowadays, PMI is typically cheaper than the two mortgage structure and paying one time upfront PMI (single premim MI), rather than monthly, is often the most cost effective option.

You can certainly check with the institution that you bank with and I recommend checking with 2-3 lenders total. You may want to consider speaking an independent company that focuses only on residential mortgages. Typically these companies will have a wider universe of products and might be more service oriented as mortgages are all they do.  I would gather the companies through recommendations from your financial advisor and other homeowners that you are friendly with that have conveyed good experiences with their lender.

Down payment guidelines are looser on VA loans in that you can finance 100% of the property. VA itself has a different set of guidelines than conventional loans, including of course, eligibility restrictions to your service.  Debt to income requirements can be tricky dependng on your individual scenario.  Bottom line is that VA is a good option if you qualify. check out va.gov to find approved lenders like myself.

Don't get discouraged. Inventory levels tend to pick up going into the spring and more should come online soon.  With regard to the downpayment, financing will be more expensive with less than 20% down, but that can be offset by the fact that rates MAY be higher one year  from now.  I would continue looking, but don't necessarily compromise and buy a home just because rates are low as that is only one factor that should affect your decision.

Check with your servicer as they are the best option usually for a modification. FHA may be an option if you are willing to bring cash to closing, which actually has a decent return on investment in many cases in that it effectuates a lower rate and a significant return on your money.

The mailers are pulling public data and showing you savings based on the lower rate without usually accounting for the higher MIP that your broker is alluding to, so there is probably not much opportunity for you there.  

From a financing standpoint, a  20% down payment is only important to the extent that it allows  you to avoid mortgage insurance. Most home purchases in this region occur with less than 20% down and if buying makes sense over renting after running the numbers even with a down payment less than 20%, then you should look closely at it.  Obviously mortgage affordabiliy is also a function of your income.  In terms of financial security, it really depends on your other assets outside of the home.

Some jumbo lenders go as high as 85% loan to value with a equity line piggyback structure. However, if you mean you are underwater in terms of having zero equity, then there really are not any refi options without paying down your loan on a jumbo.

80% of the salary as it is indicative of your income moving forward

Don't put down more than 25%. You'll want to remain liquid, particularly when owning multiple properties. Money is cheap, so if the cash flow works, limit the down payment and diversify your asset base.

We just hosted our 5th Annual Spring Housing Briefing and the data pointed to more inventory coming on in the spring as it always does. People often sell and buy as school is coming to an end and before it starts back up again. Check out GMU's Center for Regional Analysis for some great housing data. 

Retirees are predisposed to not having a mortgage as they worry about cash flow after working. My feeling is that you never know when you will need the cash, so take a mortgage for 80% of the home value, get a tax break on the interest and keep your cash separated from the house. You can always use it to subisdize the mortgage payments if needed. If you put the money all down and have no loan and then need cash later, you'll be stuck with a reverse mortgage, which is very expensive and you will then be paying someone else to borrow your OWN money back.

In our region, most lenders are licensed in all 3 jurisdictions. Check the homepages of their website to check which states they are licensed to lend.  

Sure. Once you have 20% equity, you could refinance to a conventional loan without mortgage insurance 

Many servicers use electronic records, so the original may no longer exist. The paid in full note is good and you should also ask for a copy of the "release,"  which would have been sent to the courthouse for recording and should have then been returned to you.  You can also send copies of those items to the county to remove the lender from your tax bill.

I don't offer construction loans and there are lenders that typically specialize in these types of loans. Generically speaking, the loan is based on the as completed value as you indicated and draws are released based on each stage of construction being completed. These are typically done in a first lien position with interest only payments during the construction period, after which time you would modify or refi the loan into a more permanent option. Some lenders offer "one time close" options, which is typically an ARM based loan product.

Yes, you can refianance at anytime as FHA loans don't have pre-pay penalties .  If it is a jumbo loan, you are still ok, but can only get a super conforming loan up to $625,500. Above that, it is a jumbo, but if you have 20% equity, you still won't need PMI.

They could do that, but they would take on additional exposure as equity lines are based on prime and nowadays typically come with a margin of 1 to 1.5%. I recognize that's better than the 6% they are paying now, but with 7 years left on the loan, it's certainly possible that prime plus it's margin could rise above their current 6% rate. Additionally, equity lines typically come with a penalty if paid in full or closed in the first 3 years. I agree that having a ready line of access to your home's equity is valuable and to the extent that this homeowner is ok with the rate risk, then the options is fine. Savings are really not that subtantial given the size of their current loan. 

With 20% down, conventional is your best option but if you go above $ 625,500, you will pay jumbo rates, which tend to be about .5% higher.  Get recommendations for lenders from other satisfied homebuyers, then interview about product, service, and turn times, and pricing.

If they are tax liens, then typically you would have to pay them ahead of closing. From a lending standpoint, it does not sit well with the lender to make loans against property to a borrower with a history of not paying their property taxes, which means that the lender would need to step in and outlay funds to avoid a tax sale.

Typically at least 25% down, though the citizenship status is the real hurdle there with diplomatic immunity usually being a non starter. Often, lenders follow a 2/2/2 rule, meaning 2 years U.S. credit history, 2 years residency in the U.S., and 2 years employment.

Depends on the specific title issue. You probably purchased an "owner's policy of title insurance" when you bought your home and may need to make a claim on that document. Often, it may just be an old unreleased lien against your home from the last refinance, in which case you can go back to your previous lender or settlement company to track down a release. 

Sequestration will hit our market harder than most.  I don't see big mortgage defaults coming, but the job market may slow with the decrease in governement spending, which could put downward pressure on home prices as it decreases the universe of buyers. We'll start seeing this in the next few months as the cuts ripple through and what happens 1-2 years out is really dependent on what happens with the current budget talks.

Of course you can call me at Apex Home Loans.  :) LendRight is another good site that will have good locally owned mortgage firms and the CMPS (Certified Mortgage Planning Specialist) Institute will list mortgage originators that are well versed in tax and financial planning issues affecting the mortgage as well.

 Lenders generally rely on the appraiser to point out any major deficiency's and the seller makes certain representations with regard to the quality and functionability of the home in the contract. 

This depends on numerous factors, the least of which is not your total asset diversification. Rental property can be a goood idea IF you have strong cash reserves, the proper insurance policies in place, and are doing a good job funding your retirement and possible future college expenses. You don't want to have all of your wealth in just the real estate category. Also remember that unlike buying a mutual fund, rental property is an "active" investment, requiring you to be on call often to fix problems. Run the numbers to make sure the rent will support the mortgage payment plus another 25% to account for vacancy, repairs, and improvements.  My experience with rental property investors is that those that do it casually without their eyes open often get hurt, whereas those that do it as a fulltime or second job and manage multiple properties tend to be more successful. 

I would not compromise on your "must haves,"  but remember that no house is absolutely perfect. Reset your expectations and find a home that will meet your needs for at least the next 5-7 years.

You may have heard, but real estate is all about location, so it really depends on where your home is and what is going on around you. It also depends on what you want to do and when you want to move. If you are happy and can afford the payments, don't worry about the fact that it is underwater.  If you are anxious to move, consider renting out your home and taking an incremental loss, which retains the possible long term upside of recovering your gains through appreciation down the road.