Tap that bad boy while you can ~~~

 

Tap that bad boy while you can!

           The Washington Post had an article this weekend that suggested certain parts of the Washington / Baltimore Metro area could see a 50% drop in home value from 2006. Staggering if you ask me. So heres the deal. Your house was worth 700K three years ago. Now it is worth 575K. Trust me people, these are very real numbers. That difference of $125,000 could have been equity available to pull out of your house. That equity may no longer be available to tap. If the market is still heading south as many predict, whatever equity is left in your house should be converted to cash.

In the example above, many would say it is money they never had anyway. Just like a stock that hit 75 a share and then dropped to 50. Could be viewed as money that was never really there. I tend to view it as money lost. If the decision to sell that stock at 75 was made, then a true profit is turned. Sure it may go back to 75, but in how long? If you do not tap that 125K in equity that was once in your house, I contend you just lost $125,000. So here you go - the tip of the month  ~~ If you have equity in your house, consider tapping that bad boy for as much as you can get away with and stockpile it for it may be a long, long time until you see that equity again.

Sure the value of your property will go back up, but in how many years? How long will you have to wait to allow your house to pay you back??? Grab the dough while it can still be got! When the equity goes away, the ability to call on your home for help is gone. Think ahead of the curve.

DO NOT LET YOURSELF BECOME A STATISTIC!

Top 3 lenders as of June 2008

I run this post about every 3 or 4 months or so. It always seems to get many hits and responses. In this ever changing mortgage market we need to share all the resources we can. So here goes...

 

My top 3 choices as of this very moment:

 

1) - Sierra Pacific

2) - Cardinal Financial

3) - Flagstar

 

Now more than ever it is NOT price that I look for. The top heavy national lenders offer service that is abismal. I have found the regional and smaller players that seem to employ people who are compensated on performance rather than hire clock watchers are the ones I want to team up with. I have heard others talk about Amtrust being very good. I have yet to use them. I also hear people talk about Provident Funding. They were the price leader but not anymore.

Everyone offer up some names here.....  it will benefit us all ~~~~

Strapped, Locked and Loaded... are you prepared???

I have been away from AR for a bit and feel the need to get back in the swing again. Here goes ---

                                             

Strap on your seatbelts people as the next 6 - 12 months are going to be unlike any we have seen before. I often question people in professions in which I try to conclude beforehand whether they have been affected by  the overall state of economy or not. Boy have I been surprised.

Accross the lobby from my office is a walk in clinic. It is supposed to be an alternative to the ER but they also do typical general practice work. I have become friends with the Doc and we chat often. When I have a slow month I am curious to see how he has done. Many of his patients are "cash" clients. Recently, his cash business is non existentent. Insurance companies are getting harder and harder to collect full services from. Yep - this economy is hurting the Doc.

I picked up my shirts from the local cleaners last week. I ask the guy how is business. He tells me there are more clothes with high amounts due that are just left and never picked up than ever before. I guess people feel that their clothes are just not a priority when the mortgage is due.

I just recently purchased a new vehicle. Ok - it was a F 150 that I use to tow a trailer and nobody is buying trucks or SUV's at the moment. $10,000 off list price! 10K ---   Man that's a huge number ......

Every single day I am getting a new call at the office with the same message. I no longer want to own a company and be responsible for rent, payroll, etc.... I want to explore my options - What do you guys have to offer? These calls are from owners! These calls are from companies I wanted to emmulate! These calls are from people I respect more than most! These calls are from people with flat out desperation in their voice! These calls are not very fun to answer!

I see my buddy who runs probably one of the most well known home improvement shops around. This is not the typical home improvement chop shop. This is a place with a rock solid name that has been around for a long, long time. This is a  company I would buy from and would reccomend to all of you and not think twice. I did not even have to ask him how was business. The look on his face said it all. The look on his face made me go home and tell my wife that I was really worried about this guy. The look on his face was one I have seen too much lately. That look is a horrible look!

So here is my advice to you all ----  For the next 6 - 12 months, we all need to become friends. We need to work smarter and harder than ever. We can no longer take clients for granted. We must always be honest, regardless of the news. We need to form strong relationships with others in our profession and related professions. let's dig in and get through this mess together.

I encourage comments and critique to this post.

Lewis Poretz

President

Open Mortgage

Annapolis, Md

www.openmortgage.com

 

 

Application Fee anyone??

Man, those words just have a hard time coming from my mouth. But it sure seems as if it is starting to make more and more sense as deals are dropping beyond anyones control. Let me give a few examples.

1)

We take in a VA deal early last week. Client was a referral from a past customer. Great credit and rate was priced accordingly. They wanted to put down as little as possible. They were also VA eligible. Approvals were run, the deal was sold and a VA appraisal was ordered. We get a call yesterday that the Realtor has recommended they use the "in house" lender. They say that a VA loan is bad advice. They in turn sell the client a 80 / 20.   80 / 20????   Anyways -   the point of this is now we are stuck with a $400 appraisal bill.....

2)

I book a loan that is solid as a rock. Per the client, the value is a slam dunk. Per Zillow ( I know ) the value is way, way there. Per my appraiser the value is a slam dunk. Credit package is a one touch file awaiting appraisal review. Review comes in 90K lower. Deal still works but now the client has to pay mortgage insurance based on the decision of someone sitting at a desk 15 states away from the property. The client walks from the deal.

3)

Client calls up and has a few bumps on their credit. Many of these derogs they can provide proof of satisfaction. On our dime, we do a rapid re score as our client is panicking they don't want to lose their dream home they want to offer a contract on. We bust out butts getting the score to where we can get an approve eligible. The client shops rate, after we raised the score of course, and takes their loan elsewhere.

 

These stories can go on and on. I am sure it has happened to everyone reading this at some point. It has   happened to me in the past. It is the cost of doing business. But now it seems like it is happening at a rate where it is effecting the bottom line.

I have NEVER been a fan of the junk fee. I have always sold against it. My typical loan is $595 processing and either YSP or bottom line rate and a point. So I am here to ask all you Rainers out there -   anyone considering an application fee? Maybe one that would be refunded at closing?

 All comments and suggestions greatly appreciated. This will benefit everyone......

 

Lead Generation Analysis Software anyone help??

Lead Generation analysis software anoyone???  

I am searching for a quality lead analysis software. I advertise on several different platforms and would like some high quality software that will allow me to make a good decision regarding on how to spend my advertising dollars.

Can anyone out there recommend anything to me? 

I have tried some different software I found on the net but did not like any of them.

I would like a user friendly program that can provide me data in simple form and in graph form that advises me on where my advertising dollars are working and where they are not.

All input would be helpful. I am certain if this post gains momentum we can all benefit from sharing this information.

 

Thanks to everyone in advance............

 

 

New Fannie Mae loan limits effective April 1

Fannie Mae has increased their loan limits by different amounts broken down by state and county.  select the link below for more details and breakdown by counties

View information about eligible areas and corresponding loan limits

 

important to realize the following --  

 

Purchase to 90% loan to value --  700+ credit score

Purchase to 80% loan to value -- 660+ score

Refinance rate / term to 75% loan to value -- 660+ score

Cash out Refinance -- NOT allowed 

 

second homes and investors - 60% loan to value  660+ score 

 

2 months reserves required - no mortgage lates in the past 12 months 

 

 View the Jumbo-Conforming Mortgages Product Matrix

 

 

 

 

 

 

change, change, change

 

Could we be in for a mortgage rate correction?

I was a believer. I kept a sharp eye out as the 10 yr inched down, down, down. i got anxious as we hit some bumps along the way. In my gut i felt as if the bond had to continue to fall. The Fed, our President and the entire banking industry could not let us down. I felt that a drop in interest rates was the only major stimulus that would help our economy. Get people buying houses and refinancing.

Well as I watch the bond this morning, I have no idea why, but I feel like we need to wave good bye to 5.5% 30 year fixed rates and see ya later to 15 years in the 4's. Not sure why, just a feeling. Sure hope I am wrong.

The message to this story - for all you potential refinance clients who have been sitting on the sidelines, get them rates while you can and do it soon!

swing and a miss ~ did you strike out?

Did you miss the 48 hour refi boom we had a few weeks past? Well........... if I could begin to tell you how many calls I am still receiving saying " I want that rate you sent out in your email "....

OK - here is the deal... In today's mortgage market, most investors have mortgage companies price out loans online, in real time. This means that the price that is out there today, say on Bankrate.com or any of the other quality mortgage rate sites, are never "real time" quotes. Maybe you can not classify advertising a rate as a loss leader, but rates change all day long with the market and that is a fact! . Just like when a stock broker quotes you a price on a stock, a mortgage quote is only as good as the next time you hit update price online.

If you are in the market to lower your interest rate, now more than ever you must find a mortgage professional you can trust. And just as a stock broker makes a buy or sell recommendation, a mortgage professional acts in the same manner. Was 4.875% fixed there last week? Of course it was.... but not for long ~~

 

For all that have jumbo rates - there may be some relief on the way. Part of the President's reform bill is calling for Fannie / Freddie to increase the conventional loan limit up to $730,000, depending on the area of the country you reside. Jumbo rates are typically 1.0% - 1.5% higher than conventional rates recently. This could be great news!! I will keep everyone posted.....

 

For all you potential first time home buyers out there - what are you waiting for??? In my entire mortgage career, there has never been a better time to buy a house. Rates are low. 100% financing options are available. Sellers are begging for offers. If you are a parent of a child just out of college, the opportunity to help set your kid up for an easier life is here.

top 3 mortgage wholesalers ---

After a brief vacation from AR I am back with many fresh ideas for future blogs.....

the refi's are heating up and many of the wholesalers who are left in the business are getting backlogged again....

if the fannie/freddie limits are raised to 700K + look out!!  it will surely be refi mania again...  thank god all those pizza delivery boys who jumped in the game the last go round are no longer in the biz.... hell ----  half the mortgage companies from the last go round are no longer in the biz.......

 

so here goes -  my top 3 picks for wholesale lenders as of Jan 29

 

1) - Flagstar -  simply the easiest website around, fast turn times....  competetive rates -  sometimes very good... sometimes not so good

 

2) -  Sierra Pacific -  new to our office but they seem to be very good so far..............

 

3) - Countrywide -   great rates, decent turn times, still cross my fingers every time I submit a loan to them

 

others i would consider -  provident, First Pacific ( Stearns ) , Citi ( they take forever ),  US Bank  ( i know they are anal like a bank but i heard they do deals others will not )

 

wholesalers that scare me ----  IndyMac ( they do not ever answer there phone and are closing branches ), Citi - they take forever!!   had a VA  IRRL that has been in 10 days and not looked at yet, Countrywide - just because they do, TB & W - the worst customer service.......

 

let's hear from all of you --   we need to stick together.....    anyone know who goes 100% on seconds????