Today’s post is written by Michael Green, Commercial Loan Originator for Counsel Mortgage Group, LLC. Banks could be slipping into old bad habits. Last year, as interest rates fell, banks started to loosen underwriting standards reminiscent of the last cycle—the kinds of missteps that ultimately led to the great recession. This includes high loan-to-value...
Author: john (John Rapasky)
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NO DISCRIMINATION IN LENDING
As we honor Martin Luther King Jr. today and his fight for civil rights, we want to let you know that, when it comes to lending, there is no discrimination. The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status,...
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FINANCING AND PLANNED COMMUNITIES
When you finance a condo, there are specific rules the condominium association must meet. Here is the link to the article we wrote on these rules: /category/condominiums/ However, there are many properties that you may know as a patio home, townhome, or even a single family residence, but because of the way the land was...
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SELF-EMPLOYMENT AND LOAN QUALIFICATION
After the mortgage crisis, there was a perception that self-employed individuals could not get loans; this was plain wrong. If you were self-employed, you could get a loan but the lenders looked at your net income, not your gross income to qualify; the same holds true today. However, if you write off all of your...
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CREATIVE FINANCING: COMPETING OFFERS
Delayed financing may be your answer if you are trying to purchase a home with competing offers. You can pay cash for the home, but don’t want to, and would rather finance the home; however, if you presented an offer with financing, you may get beat out for the home. Delayed financing allows you to...
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ARE YOU REALLY WORKING WITH MORTGAGE BROKER?
There is a movement in residential mortgage lending back to mortgage brokerage. The word is getting out that mortgage brokers have access to many different wholesale lenders and can offer wholesale rates and costs. However, I have noticed a trend of loan originators who are calling themselves mortgage brokers, but they are not mortgage brokers....
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BUY NOW, OR WAIT UNTIL LATER?
The loan limits for 2020 are higher than in 2019. If you choose to buy now, you could have more purchasing power than later in the year. You will qualify at the current lower rate, which could result in a higher loan amount than if you waited and rates increased. Contact us and we can...
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BUYING DOWN RATES
Let’s say you are looking to buy a $350,000 home with 20% down for a loan amount of $280,000. You want a 30-year fixed mortgage, and assume the rate is 4.25%; the principal and interest payment would be $1,377.43. If you paid a point, assume the rate would be 3.875% and the payment is $1,316.66....
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LOW INTEREST RATES SPUR MORE REFINANCING ACTIVITY
Today’s post is written by Michael Green, Commercial Loan Originator for Counsel Mortgage Group, LLC. Even more favorable rates have unleashed a fresh wave of refinancing activity during H2-19. Borrowers have been enjoying a low interest rate environment for some time. Yet the Fed’s last 3 rate cuts in H2-19 have stoked a surge...
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2020 Loan Limits
The loan limits for 2020 are higher than in 2019. Here are the loan limits by loan product: Conventional – $510,400 VA – $510,400 FHA – $331,760 (Maricopa County, other counties may differ) USDA – $251,862 These limits mean that to qualify for the above loan product, the loan amount cannot exceed the limit. Loans...