Q&A: Why Can?t I Get a Straight Answer from the Loan Officer?
Monday, July 31st, 2006
One of the most popular questions Toby receives regards loan officers and all the questions they like to ask. The basic question will be our Q&A for this week.
Why can’t I get a straight answer on the rates from the lender I called? All I want to know is the rate and how much they charge.
What are mortgage brokers good for?
Monday, July 31st, 2006If you can find the best rate and mortgage on your own
then you probably don’t need a mortgage broker.How to find a mortgage broker.Ask friends.Search for local mortgage brokers on NAMB.org.Check for complaints on the company at your state’s banking department (find the website of your your state’s banking department at the Conference of State Bank Supervisors website at csbs.org). Also check the Better Business Bureau (bbb.org). Don’t pay application fees. You should pay appraisal fees (about $350) and credit report fees (about $20).Understand the fees and terms of your loan.Negotiate closing costs (known as the good-faith estimate). The national average on a $200,000 loan is 1.5% (not including taxes or your prorated portion of bank interest and insurance). If it is more then 1.5% you should ask your broker to lower it. After you agree to the costs, ask the broker to guarantee them through closing. How to pay a mortgage broker.Most brokers get part of your closing fees and a variable yield spread premium fee from the lender. The bank gives the broker a larger yield spread premium if the broker sells you a loan with higher interest or with features like a prepayment penalty. One why to avoid the conflict of interest is hiring an up-front mortgage broker that agrees to take a preset fee.
Foreclosures increase 58% in first half of 2007
Monday, July 31st, 2006The number of U.S. homes facing foreclosure increased 58% to 573,397 in the first six months of the 2007, according to RealtyTrac Inc. California, Florida, Texas, and Ohio had the highest number of foreclosure related notices. California had 104,572 foreclosure filings and notices which was the most in the nation. (Go To Article: Associated Press via msnbc.com)
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Ranked Cows Heading to the Playoffs!
Monday, July 31st, 2006
Delaware Cows have moved forward — in more ways than one.
PG Cross Checker, a product of Perfect Game, has named the Cows the 15th best team in collegiate summer baseball. A fine accomplishment considering they are the only Great Lakes Summer Collegiate Baseball League team included.
The Cows will look to carry their hot streak into the league playoffs on Wednesday at Ohio State’s Bill Davis Park. The Cows will play the Cincinnati Steam at 4 p.m. in the middle-game of the day’s games — with Lima and Southern Ohio starting at noon and Columbus and Grand Lake facing off at 7:30 p.m.
The many business models of discount brokers
Sunday, July 30th, 2006Discount brokers offers many business models that fall somewhere in between what you get from a full-commission real estate agent and For Sale By Owners (FSBO).
FSBO.com: $499.95 flat fee multiple listing service (MLS).HouseRebate.com: Rebates up to 1% and MLS listing.MLScountry.com: $399 flat fee MLS listing with no commissions in California.Redfin.com: MLS listings, lists “days on market” and price reductions that you normally only get from a full-commission broker.
To make things more complex what a discount broker is allowed to offer can vary by area. Some states have different rules about what a discount broker is allowed to offer. Some local MLS don’t allow listings from discount brokers.
Defaults forecast to peak in 2008
Sunday, July 30th, 2006Due to ARM resets and falling home prices defaults are forecast to peak in the summer of 2008, according to Moody’s Economy.com. Hard hit areas are expected to include California Central Valley, Florida, Nevada, New York, Arizona and the District of Columbia. (Go To Article: cnn.com)
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Getting Away to Ohio?s Amish Country
Sunday, July 30th, 2006
Technology is a wonderful thing, but sometimes it is fun to turn off the PDA, the cell phone, the laptop and all these other “life simplfying items” and getting away from it all.
How about if you lived like that on a daily basis?
Well you can get a taste for that in Ohio’s Amish Country. Holmes, Wayne, Tuscarawas, and Knox Counties provide the largest concentration of Amish and Mennonite outside of Germany. Holmes County is the “hub” of Amish Country but increased land prices as more “English” want to enjoy their way of life has forced the families into cheaper farming regions of Knox and Wayne Counties.
Alternatives to subprimes
Saturday, July 29th, 2006Where can a borrower with poor credit go for a mortgage without the high interest of a subprime? Federal Housing Administration (FHA)Veteran’s benefitCommunity Reinvestment Act (CRA) loan (census tract)
(Go To Article: cnn.com)
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FSBO gone wrong
Saturday, July 29th, 2006Alan Jacobson agreed to buy a house that was FSBO; however, he ran into some problems along the way. He created a website describing his problems at FSBOgonewrong.com. The National Association of Realtors (NAR) likes his website because they think it is evidence that it is better to use a real estate agent to buy a house. (Go To Article: sfgate.com)
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Prime borrowers have subprime problems
Saturday, July 29th, 2006Prime borrowers are starting to fall behind on payments like subprime borrowers.
Countrywide Financial, said their drop in profits was caused primarily by delinquencies of prime borrowers of “second-lien loans,” including home equity loans and home equity lines of credit.
Historically, mortgage delinquencies were caused by personal problems like a job loss but today many delinquencies are caused by high home prices that are unaffordable so borrowers took out bigger loans than they could afford.
(Go To Article: cnn.com)
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