The Dodd-Frank Act includes a provision that a borrower must show an ability-to-repay a mortgage to qualify. It seems silly that a law had to be passed with this provision in it as you would think someone would not make a loan unless they knew it was going to be paid back. Nevertheless, this law...
Tag: California
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WHAT ARE FANNIE MAE AND FREDDIE MAC?
You may have heard of Fannie Mae and Freddie Mac. What are they, and how do they affect mortgages? Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation) are Government Sponsored Enterprises (GSE). They are quasi-governmental entities that were established to enhance the flow of credit in the housing industry....
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PROMISSORY NOTE
You may hear your lender ask about the Note, or if you reviewed the Note. The Note, in this sense, is not a musical score, or something written on a post-it; it is the Promissory Note entered into between the lender and the borrower. It provides that the lender will lend a certain sum to...
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WHY AN INVERTED YIELD CURVE IS GOOD FOR FINANCING CRE
The black economic cloud that is typically associated with an inverted yield curve does indeed have a silver lining. The correlating chart shows the U.S. Treasury rates for Jan. 2, 2018, the blue normal curve, and Aug. 13, 2019, the red inverted curve. The inverted portion of the curve doesn’t turn positive vs. the 20-day...
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PREFERRED LENDERS
Many real estate companies have preferred lenders to whom they encourage their agents to refer. This preferential status can be misleading. In many instances, these lenders are “preferred” because they pay a fee to the real estate company, or the real estate company enters into a joint venture with the lender. These “pay to play”...
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COMMODITIZATION OF MORTGAGES
All you have to do is push a button and get a mortgage? If so, what kind of mortgage are you getting? Is it the right mortgage for you? Does it matter? There is a definite trend in the media to commoditize mortgages. That is, to try to influence you that you don’t need to...
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LOAN AMORTIZATION: WHAT DOES THIS MEAN?
Mortgage loans are typically amortized over 30 years. What does this mean? A borrower will pay a combination of principal and interest payments over a 30 year term. The interest is front loaded, so for approximately the first ½ of the loan term, the borrower is paying more interest than principal. Loans typically do not...
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“LE” LOAN ESTIMATE
The Loan Estimate (“LE”) is the document provided to you by the lender within 3 days of the application date. The application date is the date the lender is provided the following: • Property address • Property value • Name of borrower • Social security number to pull credit • Income • Loan amount Once...
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YOU SHOULD BE WORKING WITH A MORTGAGE BROKER
For today’s post, see this link written by Mat Ishbia, the President and CEO of United Wholesale Mortgage: https://bit.ly/2yvtFZZ If you are looking for a mortgage, you should be working with a mortgage broker. We are mortgage brokers licensed in Arizona and California and can help you. We offer a variety of product services, ask...
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SO MUCH NEWS, BUT SO LITTLE CHANGES
We’ve endured the endless bombarding of “up-to-the–minute” news, “news-alerts”, and “this just in” for what seems like, dare I say, forever! And this doesn’t even include the onslaughts to those of you who stay glued to your hand-held devices for the never-ending tweets and hashtags. And the hot topics of the days gone by...