Many people are struggling to figure out the best way to draw funds from the increased equity in their home. If they refinanced a year or two ago, they do not want to lose their low interest rate. So, many are choosing to obtain a home equity line of credit (known as a heloc). However, they are surprised when they see the heloc rate. So, what is the best option? Do you refinance and lose your rate, or get a heloc? One factor to consider is the effective rate of the two loans. The effective rate is a weighted...
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ARE WE THERE YET?
This morning’s official pronouncement: First Republic Bank has been seized, and in a deal that has been cooking for the past several weeks, they’ve agreed to sell to JPMorgan. If you’re counting, this is the 3rd major US financial institution to fail in the last two months. Not a surprise. As I said, this has been quietly working since Silicon Valley Bank and Signature Bank both fell prey to poor management practices a few weeks ago. Our immediate concern is how this affects our ability to secure CRE financing. These incidents plus the meteoric rise in interest rates have...
May 1, 2023May 2, 2023
BILL TO STOP HARASSING PHONE CALLS AFTER YOUR CREDIT IS PULLED
As the Government Affairs Representative for the Arizona Association of Mortgage Professionals, I visited Washington DC to talk to members of Congress and their staff regarding the mortgage issues of the day. On this visit, we were trying to find additional sponsors for H.R. 2656, introduced by Rep. Ritchie Torres (D-NY), which would, among other things, amend the Fair Credit Reporting Act to prohibit the creation and sale of trigger leads. A trigger lead occurs when your credit is pulled. The notification of the credit pull is sold by credit reporting companies to various companies who then contact you...
April 26, 2023April 27, 2023
IS NOW A GOOD TIME TO BUY A HOME?
We get asked the following question quite a bit: Is now a good time to buy? There are more homes listed for sale today than there were a year ago. You may not need to get into a bidding war like last year to get a home. So, for a buyer, it seems to be a better time to buy a home. As there are more homes listed for sale, sellers are considering concessions towards closing costs and buydowns to the interest rate to lower your payment to entice you to purchase their home. So, even though the interest...
April 20, 2023April 21, 2023
AI RECOMMENDS WORKING WITH A MORTGAGE BROKER
Trending are Artificial Intelligence sites, such as Chat GPT, where you can find answers to various questions. We recently asked where we can find the best mortgage rates. See the screenshot below. Even AI knows it’s best to work with a mortgage broker. We are mortgage brokers licensed in Arizona, California, Hawaii, and Illinois, and can help you, intelligently, find the best mortgage for you. We work for you, not the lender. Counsel Mortgage Group®, LLC Licensed in Arizona, California, Hawaii and Illinois www.counselmortgage.com 480-502-1000 NMLS #178927 AZ MB #0909580 CA DBO #60DBO43873 HI-178927 IL MB.6761723 Copyright © 2023 Counsel...
April 14, 2023April 15, 2023
IS THERE MONEY TO LEND FOR CRE?
The CBRE Lending Momentum Index declined by 15% in Q4-22 from Q3 and 27% year-over-year. CBRE cited heightened market volatility amid higher interest rates. “The Federal Reserve’s commitment to reduce inflation with aggressive rate hikes continues to heighten market uncertainty, as borrowing costs increase and a lack of price discovery persists,” said. Rachel Vinson, CBRE President of Debt & Structured Finance, U.S. for Capital Markets. “While there is plenty of debt capital available waiting to deploy, fewer borrowers are willing to transact unless they have to.” (Bold by Counsel Mortgage.)
April 10, 2023April 12, 2023
ANOTHER LENDER TO WHOM WE CAN BROKER – PENNYMAC TPO
As a mortgage broker, we can broker to many different lenders. Here we feature Pennymac TPO. We have brokered conventional and government loans to them. They have a great process and support. These are important considerations when choosing a lender. We are in the people business, and it is important to have a support team who can respond and resolve any issues that may arise. They also have competitive rates and programs. Just another advantage of working with us, as we can shop lenders to find the best loan for you. John Rapasky Counsel Mortgage Group, LLC www.counselmortgage.com Licensed in...
April 6, 2023June 17, 2023
CONTACT COUNSEL MORTGAGE GROUP
Counsel Mortgage Group, LLC is a mortgage brokerage with the sole purpose of finding the right loan for you. We broker loans to wholesale lenders and pass on their rates and costs to you. If you or someone you know is in the market looking for a loan, give us a call and let us see what is available in the wholesale market. We offer a variety of products and services, ask us how we can assist you today.
April 3, 2023April 4, 2023
PRINCIPAL PAYMENTS ON LOANS
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 payment is made on the loan, and the lender re-amortizes the loan based on the lower loan amount over the remaining period of the loan, thereby lowering the monthly payment. Some servicers offer a recast, and some do not. If they do, they typically...
March 31, 2023April 1, 2023
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 a 2-1 buydown, the interest rate is 2% lower in the first year, and 1% lower in the second year. If today’s rate is 7%, then the first year the rate would be 5%, and the second year the rate would be 6%. The lender,...
March 27, 2023March 28, 2023