Typically, when you make a large principal payment on your loan, the monthly payment remains the same, but the term of the loan shortens. However, if you wish to lower the monthly payment instead of shortening the term, ask the lender if they allow a recast. A recast is where a large principal...
Author: john (John Rapasky)
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TEMPORARY BUYDOWNS V PERMANENT BUYDOWNS
With higher interest rates, we’re getting questions regarding “buying down” the rate. Some people want to do a 2-1 buydown. What is this? How does this work? Is this the same as permanently buying down the rate for the life of the loan? A 2-1 buydown is an example of a temporary buydown. In...
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WHAT IS UNDERWRITING?
What is underwriting? Underwriting is the process of reviewing the loan package to determine whether it meets the established criteria to approve the loan. An underwriter reviews the loan package, including, the loan application, tax returns, paystubs, bank statements, retirement account statements, contract (if a purchase), title insurance, and appraisal to determine...
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ARE YOU CONSIDERING A BRIDGE LOAN?
If you have a lot of equity in your home, and want to purchase a new home before selling your current home, you may want to consider a bridge loan. A bridge loan allows you to leverage the equity in your current home to make a down payment on the new home, without selling...
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ANOTHER LENDER TO WHOM WE CAN BROKER – PACRES WHOLESALE
As a mortgage broker, we can broker loans to many different lenders. Here we feature Pac Res. PacRes is a full service lender, and offers a variety of financing options. They offer conventional financing through Fannie Mae and Freddie Mac, jumbo products, asset depletion, and bank statement loans, to name a few. An asset depletion...
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MORTGAGE BANKING ADVERTISEMENTS
You may hear many mortgage bankers advertise they have in-house underwriting and fund their own loans which gives them an advantage in getting your loan approved and funded. FAKE NEWS. Bankers promote these services as something special, but, it is not special to have your loan underwritten and funded on time. This should be...
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ON-LINE LENDING
On-line lending tends to emphasize on closing a loan quickly and making the process automated; this approach implies that counseling to find the right mortgage is not necessary, and leaves the choice of finding the right mortgage to the customer. This approach, however, may not work for the following sample of customers who may...
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ARE YOU CONSIDERING AN EARLY PAY-OFF?
Some loans may have a pre-payment penalty in the event you pay off the loan early. You probably won’t see these on conventional or government residential loans, but you may see them on other residential loan products and on commercial loans; the penalty is a certain percentage of the loan amount. Example: You...
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ARE YOU LOOKING FOR A COMMERCIAL REAL ESTATE LOAN?
Are you looking for a commercial real estate loan? Do you own a business, or are looking to get qualified for a business loan to purchase or refinance real estate? Are you confused as to whether to get an SBA loan or conventional financing? We can help you with these decisions. We broker...
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ANOTHER LENDER TO WHOM WE CAN BROKER – FIRST NATIONAL BANK OF AMERICA
As a mortgage broker, we can broker loans to many different lenders. Here we feature First National Bank of America. They offer vacant land loans, which can be hard to find today. They also lend on both single-wide and double-wide manufactured homes. Here is another example of a lender that offers loans that...