MORTGAGE LOAN CHANGES IN POUNDS AND INCHES - 10/28/11 02:41 PM
MORTGAGE LOAN CHANGES IN POUNDS AND INCHES
 
I just closed a mortgage loan for a couple with whom I've worked in the past on financing their home. The last time we did a mortgage loan together was in 2009 before all the new "rules" of the Federal Reserve and Dodd Frank came to be.
The borrower has occupied his home for seven years. He and his wife both have 20 years plus in their careers. The equity in the home is more than 20%. They have plenty of assets. Their debt ratio is about 15%. Credit scores in the … (3 comments)

NEW HOME AFFORDABLE REFINANCE PROGRAM CHANGES (HARP) - 10/26/11 06:31 PM
The Federal Finance Agency along with Fannie and Freddie announced changes to the existing HARP - Home Affordable Refinance Program. Essentially, here are the changes.
Eliminating certain risk based pricing adjustments and lowering fees for other borrowers. 
Currently when a borrower refinances to a 15 year note,  a lot of the loan level price adjustments do not apply. I'm not sure how this will change to encourage more borrowers to refinance to shorter terms, but there is some discussion of that.
The key to encouraging shorter term mortgages is, naturally, they pay down quicker, build equity quicker and fewer borrowers are underwater.
A … (0 comments)

WAITING FOR A LOWER INTEREST RATE! - 10/19/11 02:31 PM
WAITING FOR A LOWER INTEREST RATE! 
I am amazed each and every day to learn that someone I speak with is waiting for a lower interest rate before they refinance.
I just spoke with someone with an adjustable rate due to change in December. He wonders if the rates are going to get better.
Maybe because I am in the business, I don't know, but I have a hard time understanding the mentality of waiting for a lower interest rate these days.
I have one borrower who refi'ed about 2 years ago for a 5.375% fixed 30 year rate. At the … (0 comments)