A customer sent me an email asking when is it a good time to buy. Instead of re-writing the contents here is the email I sent to him.
Reverse Mortgage Loan Facts
A reverse mortgage loan is simply another type of mortgage…with a couple of great features. The best one?
You don’t have to make monthly payments!
You can pay any amount, any time, if you choose, with no penalty but…the choice … Read the rest
Help For Home Buyers
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
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 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
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
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
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
How To Compute Blended Rate: The real cost of all money borrowed
A person called me today concerned that the Fed Discount, Prime Rate, etc will be rising and is considering a refinance. I computed for him the cost of ALL money that he has borrowed and this is the formula to … Read the rest
Mortgage Interest Deduction Going Away?
The Mortgage Bankers Association (MBA) has defended the tax deduction for mortgage interest against any and all challenges. Yesterday, in the National Mortgage News, it was reported that David Stevens, head of the MBA, indicated that the agency might not … Read the rest
First-Time Homebuyer Assistance Programs
There are legitimate zero-down programs for first-time homebuyers that have been around for many years. Those never were, nor ever will be, poorly thought out and/or designed to put people in homes they might not be able to afford. These … Read the rest