Good Morning!
I wanted to spotlight a Jumbo product we have.
It's full doc only (you have to prove your income via traditional means).
Up to $3,000,000 at 70% loan to value ratio.
Up to $2,000,000 at 80% loan to value ratio.
Up to $1,000,000 at 90% loan to value ratio.
Rates in the 2's are possible on this loan with good credit.
30 year fixed only.
If you or someone you know needs help with a Jumbo loan - please give us a call or shoot us an email.
Thanks for reading!
Brett
Good Morning!
One of the most important things you will have to do when you apply for a loan is to show that you have the money for the down payment.
This is called sourcing in the mortgage industry.
For instance, the down payment on an FHA loan is 3.5%. If the seller is paying your closing costs – you will still have to pay your 3.5% down payment.
You can have this money in your checking account or savings account now. You can borrow it from your retirement account. …You can even get the down payment as a gift.
…but, it’s crucial that we are able to show where it’s coming from.
I can tell you that cash is a problem when it comes to sourcing your down payment. You will need to put it in the bank and leave it for 60 days before we can use it.
If you aren’t sure where your down payment is coming from – find out now. …before you apply for a loan.
That’s it for today!
Have a good day! …and thanks for reading.
Brett
Good Morning!
If you are self employed, and need to get a mortgage to purchase a house, but don't show a lot of income on your tax returns - here's an option for you...
I wanted to spotlight one of our Alt Doc programs: Alternate Documentation loans are loans that allow you to use alternative documentation to prove your income. That is, other than the traditional Tax Returns, or W-2’s and Pay stubs.
Bank statement loans
Very simply we take the aggregate deposits of your bank statements (can be personal or business) and use this for your income.
Variables of Bank Statement loans:
The reason we offer multiple options for months is that sometimes a 12 month average won’t work as good for the borrower as one month.
We offer down payments as low as 10% on owner occupied bank statement programs.
We also offer multiple ways of calculating deposits, which is very helpful if there are issues with one calculation method.
Rates on these programs are usually only modestly higher than normal conforming rates.
That's it for today!
Thanks for reading!
Brett
Good Morning!
If you have a conventional loan, and your loan to value ratio is over 80% – you will be paying monthly mortgage insurance to the lender.
No one likes paying monthly mortgage insurance. It’s extra money added to your payment every month, and it doesn't help pay down the balance of the loan.
If you want a conventional loan and your LTV is over 80%, but don’t want to pay monthly mortgage insurance here are two ways to avoid this…
1) One would be Lender Paid Mortgage Insurance. We pay the MI for you. The rate generally is .25 to .375 higher, but there is no monthly mortgage insurance.
2) Get a piggy pack loan. This is where we make two loans for you. …A first mortgage at 80%, and a second mortgage at 15%. This way you just put down 5%, and there is no monthly mortgage insurance payment.
That’s it for today!
I hope you have a great day!
Thanks for reading!
Brett
Good Morning!
The Fed is to meet later today. Keep in mind, the Fed doesn't set mortgage rates. The Fed's policy rate applies to overnight loans between large financial institutions.
However, if they announce a change to their mortgage backed bond buying policy - that could affect mortgage rates.
Right now the Fed is buying a lot of bonds. For instance, if they announce they will continue to buy bonds at the current rate, or buy more bonds mortgage rates will drop.
We'll see what they do, and I'll let you know.
That's it for today!
Have a great day!
Brett
Good Morning!
I try to write about this topic at least every year or two, because it's important...
My job as a loan officer allows me to have a unique perspective into people’s lives.
I can see how much money people make, and how much money they have in the bank.
I do loans for people who make less than $20,000 a year, and I do loans for people who make well over $450,000 a year.
…It doesn’t matter if you make a lot of money, or very little money – there is a common problem that I see again and again…
…Very little to no savings.
This isn’t true in every case, but I see it very often.
People tend to spend what they make.
…even the borrowers I have who make a lot of money don’t tend to save their money.
My advice to you?… Pay yourself first.
Open a savings account, and before you pay any other bills – pay yourself first. …pay it just like it was a car payment or an electric bill.
…Make it a percentage (10%) of your total income.
Pay it every month. …it will build up faster than you think.
There is a special comfort that you will gain when you see that you have a comfortable cushion in the bank.
…I want that feeling for you.
This feeling of comfort will percolate into other areas of your life – less fights about money – less stress at work – happy mom and dad makes for happy kids, etc.
That’s it for today!
Have a good day today! …and thanks for reading.
Brett
Good Morning!
If you’re rate shopping for a mortgage – here are some guidelines for you to keep in mind…
1) Get a Loan Estimate (LE). There’s always a relationship between fees / points / and rate. …You won’t know what that relationship is unless you look at a LE. (A low rate is great, but if you are paying points to get it – it may not be so great after all.)
2) When looking at the LE – focus on the mortgage fees. These are the only fees the loan officer really knows at the time he/she is creating the LE. They will just be estimating the title fees, insurance, and taxes.
3) Pay attention to the date on the LE – or rate quote. The rate market changes daily. You have to compare apples to apples. …To compare two rates generated 1 week apart is a waste of time. The rate that appears higher may actually be priced more competitively than the lower rate – depending on when the quote was generated.
That’s it for today!
Have a great Thursday! …and thanks for reading.
Brett
Good Morning!
I hope you had a great holiday weekend!
I wanted to let you know we are getting more Jumbo products back.
Once Covid hit the Jumbo market went away. You just couldn't get a Jumbo loan.
Now the product options are starting to come back. So, if you have a Jumbo loan and would like to look at a possible refi - give us a call or shoot us an email and let us take a look at that for you.
That's it for today!
Thanks for reading!
Brett
Good Morning!
I've written about this before, but I see it every day, and wanted to remind you...
Remember, from a loan perspective it’s very difficult to get a loan if you are currently in Forbearance, and the loan is behind.
Lenders will insist the loan be brought current, and removed from Forbearance before they will give you a loan.
Rates are low right now – a very good time to lock in to a low rate!
That’s it for today.
Thanks for reading!
Brett
