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
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
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, 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
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
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
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
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
Obviously this transaction is before the Dodd Frank Legislation. A Realtor brought me a 2 paragraph real estate transaction and the one page is the only page he gave me. I told him that the bank would not accept the … Read the rest
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
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
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
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
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