brokers insight: Gift Money As A Source of Down Payment On Your Los Angeles Real Estate Purchase
- 05/20/08 09:09 PM
The fact is, it can be tough coming up with enough money for a down payment! Say you needed 10%... 10% of $400,000 is a whopping $40,000! Calculation:$400,000 Purchase Price x 10% = $40,000 (required down payment excluding closing costs) You've only managed to save $25,000 but you're ready to own; you're paying too much on taxes every year so the mortgage write-off would serve you well and the monthly payments are affordable. What do you do? Lucky for you your parents really want to help and they've agreed to give you the difference for the down payment and closing costs...this … (10 comments)
brokers insight: [When the Consumer Says] "I didn't know..."
- 05/14/08 07:12 PM
I had a pre-payment penalty I had an adjustable rate mortgage, (or worse yet) I had a negative amortization (Neg. Am) loan I had to pay my taxes separately. I thought they were included in my monthly payment (an impound account) My closing costs were rolled into the new loan balance I had the option for lender-paid mortgage insurance I could Lock-In my rate during the application process I could use Gift Money as a source for down-payment I have three different credit scores (Equifax, Experian and Transunion) [Note: what am I missing from the list? Care to add anything on … (14 comments)
brokers insight: Mortgage Insurance Q & A...
- 01/27/08 06:04 AM
Here are two articles that you may reference for questions on: Mortgage Insurance & Tax Deductibility Main Points: Tax Deductibility applies to mortgages closed in 2007The annual household income cannot exceed $100,000This is temporary. The current legislation must be extended to remain in effect for 2008 and beyondYou must itemize deductions in order to qualifyCanceling Mortgage Insurance As a borrower, you can opt to incur a higher mortgage interest rate in lieu of paying mortgage insurance; typically between .4 - .675% higher than the qualifying interest rate.
brokers insight: A wise man once said...
- 01/26/08 07:35 AM
..."If you think working with a professional is expensive, wait till you see how much an amateur will cost you!" -- Brian B. So I'll ask you, Have you heard from your Loan Officer since your last refinance or purchase? Does your Mortgage Plan or lack thereof have you saying, I Woulda, Coulda, Shoulda... … (4 comments)
brokers insight: Facing Foreclosure?
- 12/16/07 01:37 AM
If I'm a homeowner facing foreclosure, understandably I would feel like the world is closing in on me. Creditors are calling, the electric bill is due and I can barely cover my phone bill and have enough to buy a carton of milk. How do you expect for me to pay for my mortgage? Eventually you reach a tipping point...a point of desperation and you look anywhere for help! But be careful who/where you turn to for help. Watch the following video by Freddie Mac...
brokers insight: "Should I Use A Home Equity Loan to Pay Off My Debt?"
- 12/14/07 01:24 PM
Question of the Week: Should I use a Home Equity Loan to pay off my debt? Here's a quick exercise in determining whether this move makes financial sense... You'll need a sheet of paper (or two), a pen (or pencil), a calculator (if you don't have one, it's basic math anyway), and the invoices/stubs for your monthly bills (if you pay them online, log onto your bank's website and print your set of monthly bills and the payments due). The Exercise: Go through each of your bills and write a list that includes the name of the card, … (5 comments)
brokers insight: That Damn Option ARM
- 12/05/07 02:33 PM
I've experienced this scenario one too many times...Borrower: Mr. Bueno I'd like to refinance out of my current loan. You hear all the news today about low 6% and I'm holding 7.5%. So you must understand, something doesn't quite fit. Or am I missing something here? Me: Well mam... Borrower: But wait there's more. My payment has gone up $10,000. Oookk...I see!I'll explain briefly & without getting into too many details regarding the loan particulars...the borrower will incur a pre-payment penalty; on a $400,000 loan amount that's (6 months interest on 80% of the loan amount) $12,000. The $12,000 doesn't include additional … (4 comments)
brokers insight: "My home isn't selling...I want to cancel my listing!"
- 12/01/07 10:25 PM
"I've had my house listed for (7) seven damn freakin' months now!!! My 'so-called' Realtor put a sign in the yard and I haven't seen him/her since. I call and I call but it all goes straight to voice-mail! After this long of having it Listed you'd think the sign on the left would look like the sign on the right!I want out of this Listing...what can I do?" Tracey Thomas (CA Realtor & Broker Associate) from BlogCalabasas.com shares her insights with us in an article titled: Insanity: Doing the Same Thing Over and Over and Expecting Different Results! And … (8 comments)
brokers insight: "Who should I work with? A Broker or a Banker?"
- 11/19/07 08:31 PM
In this series of posts outlining the mortgage application process while pointing out potential pitfalls, I said that I would answer some basic questions for you. Questions such as:
"Where do I start?""Should I go with a Banker or a Broker?" Well, in our previous article, The Mortgage Application Process: getting a mortgage the right way!, we said that we would teach you how to "Select the Right Loan Professional." But before we go there, let's give you some answers to the ever-so-popular "Broker v. Banker Debate." But I warn you, this debate can be a long-winded debate! We … (8 comments)
brokers insight: The Mortgage Application Process
- 11/17/07 10:06 PM
If you recall our previous post, WHAT'S YOUR RATE?, then you're aware of the pitfalls surrounding the mortgage application process. Surely as you get started, you'll have several questions. Questions such as: “How do I get started?”“Where do I start?”“Should I go with a Banker or a Broker?”“Can I shop around? How do I know I’m getting the best rate?” These are all questions that I’m going to answer for you. But first and foremost, there is something that you must do… Get your paperwork in order! For the sake of explanation, let’s use an analogy… Applying for a mortgage … (5 comments)
brokers insight: I Want A Mortgage...what's your rate?
- 11/15/07 07:32 PM
When you turn on the flicker and all you hear is market doom and gloom and our continuing credit crisis, it's because the originator on the receiving end of this question responded by saying:
"What do you want it to be?"
And low and behold you were SOLD a rate! You called Lender after Lender...the scenario played out something like this: SCENARIO #1Borrower: "What's your rate?" Honest Lender #1: "Well Mr. Shopper, rates are based on a variety of factors: credit score, income... [CLICK! Mr. Shopper just hung up!]SCENARIO #2Borrower: "What's your rate?"Honest Lender #2: "Today's 30-Year Fixed Rate Mortgage … (28 comments)
brokers insight: Buying A Home With Your Significant Other, Before You Get Married? Watch This Video!
- 11/03/07 06:06 PM
Are you a boyfriend/girlfriend, fiance/fiancee, or in a similar relationship with a significant other and First Time Home Buyers? You have a rental lease ready to expire in December of 2007 and you decide that it's time to buy a place of your own. You're through paying someone else's mortgage and you want the tax benefit of owning your own home. I mean heck, you both have a wealthy combined income. However, and this is not to be negative, as an unmarried couple there are a lot of financial and legal issues to be considered should the relationship end. Unfortunately, … (8 comments)
I work for Diverse Solutions, Inc. a real estate technology firm based in Irvine, CA. We offer Mapping IDX Solutions and a WordPress IDX Plugin to make real estate agents more successful. Overall, I'm passionate about marketing and technology for the real estate industry!
The fact is, it can be tough coming up with enough money for a down payment!;)
;)
