UPDATE : August 23, 2008 --  Cash Out Mortgages - FHA loans vs Conventional loans - Part 1   FHA has a "cash-out" and a "no cash-out" refinance. There is are few major advantages when applying for a FHA cash-out refinance than possibly doing a conventional cash-out refinance.  All scenarios are for primary residences only.       FHA CASH-OUT   CONVENTIONAL CASH-OUT Up to 95% of the value of your home  -- 95% LTV Up to 90% of the value of your home  --  90% LTV No hits on pricing on cash-out ¾ of a point hit up to 90% cash-out Monthly mortgage insurance is .50% of loan amt Monthly mortgage insurance is .52% of loan amt Subordinate financing may take place & can exceed the CLTV of 90%. CLTV = total combination of 2 loans divided by the value of your home. A 1st & 2nd mortgage. The CLTV ... 08/09/2007

 This seems to be a growing problem within the mortgage industry. Mortgage closings that don't close on time. What kills me are the excuses that lenders use when giving the bad news, usually last minute. Key disclaimer, yes, things do happen that are not of anyones control at times. But what is the percentage between these that are delayed by the inevitable and those because the lender fumbled the deal.Inside information : For those that don't know the mortgage process, I will give you an outline below soon. But here is some startling information. Most lenders need at least 48 hours prior to closing in order to do a closing package. Sure, there are those occasions that it can be done in 12 hours, but for rushed emergencies.  Outline :  Loan officer interviews client. Loan officer then t... 08/08/2007

I want to share with you on how mortgages work, how they are sold on the secondary market, and the reason why some of these companies are closing their doors. We have seen some major changes in the lending industry, more so than ever before. What we need to do is to stay positive, focused, and move forward. But at the same time, explain to the consumer what is happening in the market today, educating everyone on the ins and outs of what a mortgage is and how it works.Just a few days ago, Kurt Jackson gave us some insight on what happened to American Home Mortgage. And then Bob Mitchell gave us a better look and understanding on the Secondary Marketing and how this could have affected American Home Mortgage and other companies like it. What I want to explain here is how these loans are d... 08/07/2007

 "I want your business! Why won't you give me a try?  I promise to do a good job. We should give each other a chance to work with each other because we are both on Active Rain." This seems to be the theme as of lately, 'asking for business'. I am not here to knock the way people ask for business, but I just wanted to give my .02.I have read 3 different posts this week all written by loan officers talking about referrals. The problem is not so much asking for the business, but expecting it just because you are a part of AR or another networking group. I have belonged to several different types of networking groups in my lifetime. Just because you are part of a group doesn't mean that you give everyone a chance in that group. You just can't possibly mesh with everyone. Nor would I feel c... 08/05/2007

 Do you want to sound like the savor to your clients when they are buying their house? How about talking to a loan officer that not only educates their clients, but who educates the realtor. I wrote a post the other day called Curiosity is killing this cat...... what about you? for members only. I mentioned to Katrina that you can have clients settle at the beginning of the month so there isn't such a log jam at the end of the month. Then David Kucic and Missy Caulk both chimed in asking how this can be done and if I could explain this to them. Well, please deposit $5 into my PayPal account and I would have no problem.Seriously though, it's such an easy thing to explain and to follow. Missy was very curious because she just had a client that was suppose to have settled the last day of t... 08/04/2007

 Foreclosure can be such a scary word at times. It has become an epidemic in recent years and sometimes it just can't be helped. There are many circumstances that can put you behind the eight ball that have put fear in many Americans. One thing that you can't allow to happen is not to face the truth. The fear of foreclosure, especially when it starts to happen to you can take a toll on you, your family, affect your work, and anything else that you hold true to yourself. Never, never be afraid to ask for help. It's human nature to think that you can try and take care of something yourself, especially because you don't want others to know. This doesn't make you a bad person, things happen. But why risk losing it all just because of pride at first.Below, I am going to share some thoughts a... 08/03/2007

 Are you seriously shopping for a house?  It doesn't matter if you have done this before or even if you are a first time homebuyer. If you have bought before, don't think it's the same way as once before. The market changes every day. Mortgage programs can change at the blink of an eye. First time home buyers, just because your friend or family member had an easy time when they bought their house doesn't mean that it could be as easy and or simple as their purchase. The number one rule of advice, try and get a referral of a good loan officer before you head out into that jungle. You want someone that is going to take the time to educate you while giving you options and not someone that is worried about their own pockets. Make the effort to obtain a pre-approval.    What is a pre-approva... 08/01/2007

 And who said you can't put the fun back into mortgages. Hit the fun button to the right and you might find out. ...... okay, so the button doesn't work. But isn't something that is confusing at first, can be fun, once you understand most of it? Well, that's what I would like to help you with by sharing some of these blogs.If you are shopping for a mortgage, what do you look for online? If you come across an article or a blog on a certain topic, do you read the whole thing? After half way down, do you go to something else, not knowing that you might have missed some good information? Mortgage Knowledge at its Best shared by Jeff Belonger.    I just wanted to share with you some great mortgage related blogs that I have found in the last month as I have searched the internet. Some of thes... 08/01/2007

 How do you handle your client when they come to you with a lender already? Do you ignore the fact? Do you try to ask them questions? Do you know what to ask? Do you call the lender? How do you know if they will be upfront with you. I know many of you have your own favorite loan officer(s) to go to. Should you have a loan officer outside of this so-called circle? Another trusted opinion? There are many of you as realtors that know some of the basics. Lenn Harley has a knack what to look for. She knows the difference between adjustable's vs fix rates. Bryant Tutas knows when there is fraud involved either between the offer sheet or the lender involved. And Randy Prothero knows when he comes across a pre-approval letter that doesn't look right. And I am sorry to have missed many other gre... 07/31/2007

 (please listen to the video while reading this)     Billy Joel --  Pressure(Just a FYI, the Embedding was disabled) Okay, so K.I.S.S. stands for Keep it Simple Stupid. But I personally think calling someone stupid is demeaning. But the KISS principle is very basic when it comes to writing and speaking about a certain topic. It's even a very simple process when it comes to running a business or being a leader.About a week ago I was asked by Rich Jacobson to be 1 of 5 judges for the ActiveRain Carnival of Content: Round 2 - Loan Officers/Mortgage Lenders. For a list of the posts, please go to this group. Carnival of Content - Loan Officers/Mortgage Lenders I was very honored to have been asked to participate in this contest. I did feel torn because I really wanted to participate and go u... 07/29/2007

First time homebuyer's, what a great way to get into your first home with little money out of pocket. And possibly little or no mortgage payments. If you aren't worried about living with your tenants, how about looking into a duplex, triplex, or a four-plex.  There are several types of loans that could get you into a multi-family home. But because of the changing market in the last 6 months to a year, the guidelines are much stricter when it comes to credit and money down. One type of mortgage program that is very forgivable in both down payment and credit is the FHA loan program.  What does FHA have to offer on these types of properties? Usually 2.25% down, not matter how many units. (1-4 units)Total of 3% out of your pocket is needed.You can get up to 6% seller help.No credit scores r... 07/26/2007

Maybe Dateline NBC should do an episode on mortgage advertising and the fine print at the bottom of the commercial. You know, the print that is small and doesn't last more than a few seconds. Yes, that fine print. I was inspired to write this because of a comment from Jeff Geoghan, who said that perhaps I should do a HBO series on "desperate loan officers."  Are you starting to see more TV advertising since the market has slowed down?  What does this mean sometimes. It can mean that some companies need more business. And who pays for these commercials?  The consumer does in one form or another.  I am seeing commercials from Countrywide, Bank of America, Di Tech (owned by GMAC)and local companies in my area. These commercials will use little marketing ploys just to get the phone to ring.... 07/25/2007

  There has been a lot of talk recently about the difference between a mortgage banker and a mortgage broker. This talk is not just from realtors and consumers, but those in the mortgage industry. And if it seems a little confusing at times to the actual loan officer, just imagine what it might seem like to the average realtor or even the consumer.There are 2 main differences with a 3rd that will be explained later on within this post. A Mortgage broker acts as an intermediary who sources mortgage loans on behalf of individuals or businesses. Traditionally, banks and other lending institutions have distributed their own products. (from Wikipedia) A mortgage banker is one who originates, sells, and services mortgages in the secondary mortgage market. Using their own funds to close a loan... 07/23/2007

   Bankruptcies can sometimes not be avoided, depending on what happens in your life. I am not here to judge you at all. My job is to help you understand your current position and to help you with any future considerations when it comes to your financing options. What I want to cover is if you have already gone through a Chapter 13 or 7 bankruptcy. So many people that did fall on hard times sometimes think that their lives are over with. This is not always the case, hence why you need to speak to a mortgage professional.  One option might be FHA financing. 2 FHA facts : (there a few times when a FHA loan can be secured less than the time mentioned below -Please speak to your loan officer about these)CH. 7 has to be 2 years old from date of discharge.CH. 13 has to be 1 year old with proo... 07/22/2007

  I guess I bleed red, white, and blue in so many ways. After 911, which was very devastating to so many of us, I think it was a wake up call to so many of us. Telling us that we are not safe on our own soil and that we need to make a stand to anyone that threatens us, our family's, and our homeland. I had the privilege of serving in the United States Army for 2 years, from '86 to '88. There was a part of me seriously thinking about going back after 911 and it's one thing I regret now, especially after they raised the enlistment age to 39. And that age has now been raised to 42, but under certain conditions. I am actually helping a retired 1st Sergeant and his wife purchasing their first home and just received a phone call from a cousin of mine in Wisconsin to help her with her refinan... 07/21/2007

As I get older, I have a philosophy that we should worry about ourselves and not what others do. I believe that if we are going to help others, that it's within our own communities and nothing more than going outside the United States. This doesn't always seem to happen and I could be here all day on this subject.What is scary is that we better pay attention to other countries out there. And I am not talking about their nuclear capabilities. I am talking about other countries and how they handle pollution. Not only does this affect them, but that it can affect us, here in the United States. And we are talking about 1,000 of miles away. What should we be afraid of? Dust Plumes.Dust Plumes are like sand storms. Basically dust that is layered with man-made sulfates, smog, carbon grit, indu... 07/20/2007

FHA allows for sellers to gift to the buyer part of the equity of the house that they are selling. This is called a gift of equity, but can only work between those that are relatives. This gift can be used for both the down payment and the closing costs. All other FHA guidelines apply to this type of purchase. ie. Credit qualifying and income.Keeping in mind again that this can only be done amongst relatives.  How is this achieved?  There are 2 ways for this to happen. And keep in mind that both the seller and buyer have to be a relative of each other.         1.  The 85% rule which is the easiest and quickest.  If I am the buyer, I could buy my sister's house but my loan amount can't exceed 85% of the value of the house. I would also be able to get the full 6% seller contribution from... 07/19/2007

 Some of us have our own ideas of fun. For some, a roller coaster could be lots of fun. For others, it could have been a scary experience or possibly one that we never tried. Why not?  Afraid?  Not a risk taker?  Mortgages....   it already sounds boring, doesn't it. So many topics written about mortgages; what a mortgage is, how to obtain a mortgage, and what kind of mortgage programs are there, can be found all over the internet. If you are shopping for a mortgage, what do you look for online? If you come across an article or a blog on a certain topic, do you read the whole thing? After half way down, do you go to something else, not knowing that you might have missed some good information? Gee, look, someone even tried having fun with algorithms. (but don't click and read, this is bo... 07/18/2007

Saving money is a great thing in any economy, right?  Don't you like to know about the little secrets of cutting corners? How would you like to save over $500 a month just because you improved your home with energy-efficient ideas. Are you part of the GREEN family now, because not only did you save money, improve your home, but because you are helping the environment? And did you know that this can be done without spending as little money out of pocket as possible.HUD states that Congress started a pilot program in 1992 demonstrating the use of energy efficient mortgages, known as EEMs. (Energy Efficient Mortgages)  FHA has adopted this into their financing options which allows a borrower to :save money monthlyincorporate the improvement costs into the mortgagethese improvements are ins... 07/17/2007

Hello Consumers,The time is now!  With so many mortgage products out there and the interest rates are still  below 7% with good credit, it's hard to resist. Don't let the media scare you so you miss out on some great buys. The housing market is running very slowly these days and houses that are for sale are sitting alot longer than 2 years ago. You can negotiate a great buy in today's market. The fact is, people have to live somewhere and sometimes they have to move. Their jobs may make them move or a divorce, death and any number of reasons. Also, some people can't purchase a home, so they have to rent, which is good for Investors. So, no matter how you look at it, real estate is always a good investment. Now, let's look at mortgages.If you're the conservative, safe no bet type, a 30 y... 07/15/2007