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Help For Home Buyers

Business Card Joe Adamson

There’s no question that high home prices in Silicon Valley makes it difficult for first-time home buyers to purchase homes.   Difficult…but not necessarily impossible.  Recently (past year), qualification requirements have eased somewhat for many higher balance programs including the minimum … Read the rest

Net Tangible Benefit

Business Card Joe Adamson

Refinancing a mortgage must make sense…and by “make sense” I mean to the lender receiving the application. For refinance transactions, lenders require that the loan provide a documented “Net Tangible Benefit” to the client.

Lowering interest rate and/or payment, or … Read the rest

Regulated Honesty

Business Card Joe Adamson

Business regulations, including extensive ones governing financial services and lending industries, would be unnecessary if all business people operated honestly.

One of the regulations in RESPA (Real Estate Settlement and Procedures Act) addresses “kickbacks”. It’s illegal to pay commissions, referral … Read the rest

Credit Scores – How They Affect Mortgage Loan Cost

Business Card Joe Adamson

Credit, with debt-to-income ratio and equity, is a critical factor in determining mortgage loan approval.  And, for approved applicants, credit score plays a major role in determining loan costs.

For example; let’s assume a mortgage amount of $400,000, 80% of … Read the rest

Loan Qualification – Not a Mystery

Business Card Joe Adamson

Despite numerous regulatory changes, new disclosure requirements, and lending restrictions, the same basic loan qualification factors still apply.  Does a potential borrower earn enough to be able to make payments on all their monthly obligations?  Have they shown consistent willingness … Read the rest

Housing Inventory’s Affect on Home Prices

A recent article indicated that all-time low housing inventories and higher prices have hampered affordability both for first-time and move-up buyers.

Today’s low inventories began with the 2008 housing collapse. Foreclosures reached all-time highs and investors bought up foreclosed properties Read the rest

“What’s the Rate”

The question most often asked by mortgage applicants, is “What’s the rate”. But that’s not often their real concern. It’s understandable to think interest is key but it’s only a part of a transaction. The primary concern for most mortgage … Read the rest

More About Mortgage Math

math formula

Recently, I wrote about mortgage math and this article is another aspect of that math.

Over the years, I’ve observed that most people, but not all, know the approximate rate on their mortgage. They know because it’s usually their largest … Read the rest

FHA Rollback of the Rollback

As noted recently, Julian Castro, the HUD (Housing and Urban Development) Secretary, announced a rollback of the FHA (Federal Housing Authority)-required mortgage insurance premiums from .85% to .60%. The change was to be effective on January 27th. The … Read the rest

Mortgages…Math Is Important!

There is more math in the mortgage process than meets the eye and most borrowers, and even many loan officers, don’t understand all potential ramifications.  It’s important to work with someone who does in order for them to present the … Read the rest

Misconceptions about reverse mortgages

A lot of people who might benefit from a reverse mortgage have misconceptions about them.  Fact: a reverse mortgage is just like any other mortgage in regards to homeowner rights….with one exception.  Unlike a forward mortgage where, after a reasonable … Read the rest

Two Kinds of Mortgage Loan Officers

There are two kinds of mortgage loan agents….those who simply want to get paid and those who want to provide truly valuable assistance to their clients. There are other valid comparisons, but an agent’s core value determines the commitment to … Read the rest