Nick Pakulla Mortgage Lender Loan Officer in Maryland (MD), the District of Columbia (DC), and Virginia (VA)

Nick Pakulla – A Top 1% Mortgage Originator in America for 2012

Fri, 15 Mar 2013 10:10:23 -0700

In the 2013 edition of Mortgage Executive Magazine, Nick Pakulla was named one of the Top 1% Mortgage Originators in America for 2012. Nick is a Loan Officer at First Place Bank at the Rockville, Maryland office.

Mortgage Executive Magazine compiled the most comprehensive list of The Nation’s Top 1% of Mortgage Originators. The minimum eligibility criteria are a total “personal” production of at least $30 million in 2012. Mortgage Executive Magazine seeks to recognize and celebrate the service, dedication, and hard work that leading mortgage professionals put into serving their clients during the home loan process.

The Rockville, Maryland office is pleased that Nick is being recognized as a Top Originator in America due to his hard work and dedication to providing customers with excellent service.

Conact Nick Pakulla at 301-585-7283 or find him online at www.nickhomeloan.com.

Nick Pakulla / Loan Officer / NMLS# 728211 / First Place Bank Mortgage - A Division of Talmer Bancorp / 15400 Calhoun Drive, Rockville MD 20855 / 301.585.7283 / http://www.nickhomeloan.com

Click Here to Apply Now at my Bank Website

Call Me Direct: 301.585.RATE (7283)

*Mortgage rates in my blog posts may be outdated, please contact me for a current rate quote!

Maryland Mortgage rates are still historically very low!

Fri, 15 Mar 2013 07:33:10 -0700

The stock market has had a tremendous start to 2013 reaching all-time record highs erasing losses from the 2008 crash and is continuing to set new record highs almost every day so far in March! With an improving economic climate usually comes higher mortgage rates, but historically Maryland mortgage rates are still at all time lows, the ability to lock in a 30 year fixed mortgage rate below 4% is historically amazing.

Reproduced with the permission of Mortgage-X.com

The chart above shows rates from 1963, beginning around 6%, topping out at 15% in 1982, and currently showing rates below 4%. Media will portray Maryland mortgage rates today at one of their highest points since spring of last year, while this is true, don’t let it dissuade you from deciding to purchase this spring!

The expectation from many Realtors in the Maryland area is that this spring will be one of the busiest and best since the downturn in 2008, home prices have already shown 7.3% gains nationally for 2012. Rates increasing from 3.625% to a still low, but reasonable 5.00% would increase a $400,000 mortgage payment by $323 per month! A 10% increase in home prices would impact a similar $500,000 home’s payment by about $200 per month! There is still time to get in on the ground floor this spring!

Remember – monthly FHA mortgage insurance premiums will increase by 10bps for case numbers ordered on or after April 1^st. (This means buyers must be under contract and in process prior to April 1 to avoid the increase). Please contact me for more information or for a full bank approval letter specific to your situation.

Nick Pakulla / Loan Officer / NMLS# 728211 / First Place Bank Mortgage - A Division of Talmer Bancorp / 15400 Calhoun Drive, Rockville MD 20855 / 301.585.7283 / http://www.nickhomeloan.com

Click Here to Apply Now at my Bank Website

Call Me Direct: 301.585.RATE (7283)

*Mortgage rates in my blog posts may be outdated, please contact me for a current rate quote!

Some More increases for FHA mortgage insurance premiums Rockville MD

Thu, 31 Jan 2013 16:15:13 -0800

In a press release yesterday HUD confirmed several pending changes that will go in effect to help bolster FHA’s capital reserves. The changes will make FHA more expensive for borrowers who are still considering purchasing using FHA, especially in places like Rockville, MD or Arlington, VA:

Changes to Mortgage Insurance Premiums:
1. FHA will increase its annual mortgage insurance premium (MIP) for most new mortgages by 10 basis points or by 0.10 percent (this will now go from 1.25% to 1.35%). FHA will increase premiums on jumbo mortgages ($625,500 or larger) by 5 basis points or 0.05 percent
2. FHA will also require most new FHA borrowers to continue paying annual premiums for the life of their mortgage loan. Currently, FHA cancels required MIP on loans when the outstanding principal balance reached 78 percent of the original principal balance
Raising Down Payment on Loans above $625,500
1. Through a Federal Register Notice to be published in the next several days, FHA will announce a proposed increased down payment requirement for mortgages with original principal balances above $625,500. The minimum down payment for these mortgages will increase from 3.5 to 5 percent - note this will only affect FHA loans areas with a limit above $625,500 such as Arlington VA, Rockville MD, and Bethesda MD.

FHA Commissioner Carol Galante: “These are essential and appropriate measures to manage and protect FHA’s single-family insurance programs” said Galante. “In addition to protecting the MMI Fund, these changes will encourage the return of private capital to the housing market, and make sure FHA remains a vital source of affordable and sustainable mortgage financing for future generations of American homebuyers.” Full article: http://goo.gl/m5082

FHA will announce the official effective dates soon via updated mortgagee letters. We highly recommend clients with good credit consider conventional 5% down, as there is no upfront mortgage insurance (FHA is currently at 1.75% upfront) and the premiums are less than half of FHA. If you are considering an FHA mortgage, now would be a good time to act to avoid the impending increases! Please let me know if you have any questions.

Nick Pakulla / Loan Officer / NMLS# 728211 / First Place Bank Mortgage - A Division of Talmer Bancorp / 15400 Calhoun Drive, Rockville MD 20855 / 301.585.7283 / http://www.nickhomeloan.com

Click Here to Apply Now at my Bank Website

Call Me Direct: 301.585.RATE (7283)

*Mortgage rates in my blog posts may be outdated, please contact me for a current rate quote!

Fiscal Cliff and the Mortgage Interest Deduction Rockville MD

Sun, 25 Nov 2012 16:49:23 -0800

For any buyers who are hesitant about purchasing with all of the recent talks about the fiscal cliff, I thought I would provide some insight into what completely losing the mortgage interest deduction would mean for home ownership.

Some of the mortgage related tax topics on the table right now are:

Cap mortgage interest deduction at a $500,000 mortgage, limit the deduction to primary residences
Limit the deduction to no more than $25,000 worth of mortgage interest
Eliminating the deductions for taxpayers earning $250,000 or more
Cap all deductions at $35,000

While all of these could severely impact housing at a time of recovery, the bottom line is that even with losing all of the housing related deductions, the fundamentals behind buying still beat renting (especially at a time when mortgage rates are at all time lows!)

Let’s compare a scenario of the costs of owning with no tax benefits vs. renting: A $700,000 home in Rockville with 20% down kept for 10 years.

Own:

P/I = $2,515, Taxes = $650, Home Insurance = $100. Total payment = $3,265
Interest paid over 10 years = $175,000
Total taxes over 10 years = $78,000, Home Insurance over 10 years = $12,000
Home Repairs over 10 years (assuming $4,000 per year) = $40,000
3% closing costs on purchase, 7% closing costs on sale = $70,000 closing costs
Total costs over 10 years = $375,000

Rent:

Fixed rent of $3,500 over the 10 year period = $420,000
Renter’s insurance of $50 per month = $6,000
$140,000 in savings earning guaranteed 1% interest = $13,000 earnings
Total net costs over 10 years = $413,000

Difference: $38,000. At the most basic level, buying wins, even without the mortgage interest deduction!

Add in home price appreciation of just 1% per year (home is now worth $765,000 – a $65,000 gain) and increasing rents of just 1% per year (total rent now costs $440,000 – an additional $20,000 expense) and the numbers become even more apparent. Buying now beats renting without any tax advantages by $118,000.

While I am by no means suggesting that now is a time for the mortgage interest deductions to be altered, I am however suggesting that there is no reason to wait to purchase, as purchasing still has significant upside potential, and in it’s most basic level still saves money over renting.

Hope everyone had a Happy Thanksgiving!

*** Please consult your tax advisor for any tax information specific to your scenario

Nick Pakulla / Loan Officer / NMLS# 728211 / First Place Bank Mortgage - A Division of Talmer Bancorp / 15400 Calhoun Drive, Rockville MD 20855 / 301.585.7283 / http://www.nickhomeloan.com

Click Here to Apply Now at my Bank Website

Call Me Direct: 301.585.RATE (7283)

*Mortgage rates in my blog posts may be outdated, please contact me for a current rate quote!

Rockville mortgage rates are down to new Record Lows!

Sat, 07 Jul 2012 08:08:55 -0700

Rockville Maryland mortgage rates fell to new all time lows yesterday. On Friday July 6th a weaker than expected Employment Situation Report the stock market tanked and Rockville Md mortgage rates dropped to new record lows. For example, best execution 30 year fixed mortgage rates are in the 3.5% to 3.625% range (APR 3.58 – 3.69%). This is historic!

The turmoil in Europe and uncertainty in the US Economy is keeping downward pressure on bond and mortgage-backed security pricing, thus rates are staying very low. But I think the driving force in the new all-time low mortgage rates is due to increased expectation that the Fed will initiate more quantitative easing that will add even more demand to the bond market.

Bottom line, mortgage rates in Rockville MD are at their lowest point in history, it is a great time to consider purchasing or buying. Please feel free to contact me for a rate quote.

Nick Pakulla / Loan Officer / NMLS# 728211 / First Place Bank Mortgage - A Division of Talmer Bancorp / 15400 Calhoun Drive, Rockville MD 20855 / 301.585.7283 / http://www.nickhomeloan.com

Click Here to Apply Now at my Bank Website

Call Me Direct: 301.585.RATE (7283)

*Mortgage rates in my blog posts may be outdated, please contact me for a current rate quote!

Is it better to buy FHA now or wait until we have more downpayment?

Sat, 30 Jun 2012 05:36:54 -0700

I recently replied to a question on Zillow about whether someone should buy now with a very little down payment using an FHA mortgage, or whether it made he more sense to wait until they had more money saved up for a larger down payment. This is a very interest scenario to run, especially with Rockville Maryland mortgage rates near all-time lows! Below is my analysis:

There are a lot of complexities and assumptions you are making when deciding to wait a few years, especially in our uncertain economic times. The most significant of your assumptions likely would be guessing where would interest rates be in a few years? No one really knows the answer, best case they are the same or slightly better, worst case is anyone's guess, maybe 6%'s? Throw in home prices possibly increasing, and now actually looks like a pretty good time to buy.

Let's look at some numbers if you were to buy now what your options would be. FHA has recently become extremely expensive, especially if your loan amount is above $625,500, but you can get in with as little as 3.5% down.

FHA Base Loan amount of $675,000, 1.75% upfront mortgage insurance ($11,812) 3.75% interest rate = P/I = $3,180, plus MIP of $840 per month (not tax deductible) = $4,020.

The other option would be to use a second mortgage product and keep your first below $625,500 loan amount. The caveat here is that you would need 10% down. To keep the math the same, let's assume $675,000 financed in this scenario also. To avoid MI altogether, we would setup a 1st mortgage at $600,000 @ 3.99% = $2,861 plus our second mortgage of $512 gets you total to $3,373 per month (fully tax deductible). You can pay off the second with no pre-payment penalty.

If rates jump to the mid 5%'s, lets just say 5.5% you would be looking at about $600+ more per month in interest payments which is significant of money over the life of the loan. $600 x 12 = $7,200 per year.

If home prices go up 5% over the next 2 years, your $700,000 home now costs $35,000 more.

As far as determining where things will be in 2 years with regards to home prices and where interest rates would be is impossible to know for sure. If you compare what you’re paying in rent to your mortgage payment with tax benefits, I think you’ll find that now is a good time to buy!

Nick Pakulla / Loan Officer / NMLS# 728211 / First Place Bank Mortgage - A Division of Talmer Bancorp / 15400 Calhoun Drive, Rockville MD 20855 / 301.585.7283 / http://www.nickhomeloan.com

Click Here to Apply Now at my Bank Website

Call Me Direct: 301.585.RATE (7283)

*Mortgage rates in my blog posts may be outdated, please contact me for a current rate quote!

Ways we can help your buyers gain the competitive edge!

Wed, 23 May 2012 13:06:28 -0700

Hope the spring market is treating you well!

With the active real estate market kicking into full gear our Community Bank can give your buyers the edge! We offer the ability to close a loan in as little as 2 weeks and also offer second mortgage products that buyers can use to go non-contingent on their next home purchase. These features were featured in the Washington Post real estate section this past weekend.

Below are a few excerpts from the article:

The Washington Post, “Handling our hot market” Saturday, May 12, 2012, page(s) E1, E3

Regarding purchasing while retaining an existing home vs. selling first and then purchasing a new home: “We run the numbers both ways up front for pretty much anyone,” said Nick Pakulla, loan officer with First Place Bank in Rockville. In the current hot real estate market, “there’s no magic bullet anymore,” he added. “The most important thing any good lender would do is make sure you can qualify for the new mortgage non-contingent.”

One financing option that First Place Bank has found increasingly popular for buyers who qualify is to temporarily secure a second mortgage on the new home that they can then pay off when they sell the first home. “We’ve had a number of borrowers who don’t even make a first payment and most keep it for only a couple of months,” said Pakulla. However, even this solution has what amounts to a major hurdle for many: “You have to have at least 10 percent down on the new home and there are more strict qualification requirements with regards to income and reserves,” said Pakulla.

Negotiate shorter contingencies, including the home inspection, home appraisal and financing. Have a clear conversation with your lender about exactly how long it will take to secure financing and talk to your realty agent to determine potential closing dates. The lender’s cooperation is crucial.

“Legally we can close in eight days,” said Pakulla. In this competitive market, offering to close in a hurry can make buyers more attractive. “That’s definitely a good strategy people can use,” he said. The shortest closing Pakulla has done recently was just 10 days. If you can close in under a month or less than two weeks, make sure your agent includes a cover letter with your offer letting the seller know this.

You can read it directly:

http://www.washingtonpost.com/realestate/how-to-buy-a-house-in-dcs-sellers-market/2012/05/10/gIQAYvNCIU_story.html

Mortgage rates continue near all-time lows! Please keep us in mind for any buyers that can use some of our bank’s unique abilities.

Nick Pakulla / Loan Officer / NMLS# 728211 / First Place Bank Mortgage - A Division of Talmer Bancorp / 15400 Calhoun Drive, Rockville MD 20855 / 301.585.7283 / http://www.nickhomeloan.com

Click Here to Apply Now at my Bank Website

Call Me Direct: 301.585.RATE (7283)

*Mortgage rates in my blog posts may be outdated, please contact me for a current rate quote!

Alternatives to FHA - 5% down conventional and 80/10/10 in VA, DC, and Rockville MD

Fri, 30 Mar 2012 14:05:39 -0700

FHA has announced several changes in the past few weeks leading to increases in the required mortgage insurance premiums making FHA much more expensive. This will significantly impact areas such as Bethesda and Rockville MD.

There are some very good alternatives that our Rockville Community Bank offers. For loans below 417k we offer a 5% down conventional option, and for loans above the high-balance loan limits ($625,500 – DC metro area, $494,500 Baltimore metro area) we offer our 80/10/10 second mortgage option.

With the recent increase in mortgage rates and impending FHA increases it will be important to ensure that all options are considered to find out what makes the most sense. Below are two examples of way we can help save Rockville Maryland borrowers a significant amount of money with a small increase in down payment.

FHA vs. 5% down Conventional, $400,000 financed:

FHA

1.75% (effective after April 6) upfront mortgage insurance = $7,000 rolled into the mortgage
$407,000 @ 3.875% = $1,914, Plus new FHA MIP (effective after April 6) = $400
Total monthly = $2,314

5% Conventional with monthly MI

$400,000 @ 3.99% = $1,907, Plus Monthly MI = $197
Total monthly = $2,104

5% down conventional represents a savings of $210 per month, plus $7,000 savings from upfront MI or $17,600 over 5 years!

FHA vs. 10% down 80/10/10, $650,000 financed:

FHA

1.75% (effective after April 6) upfront mortgage insurance = $11,375 rolled into the mortgage
$661,375 @ 4.00% = $3,157, Plus new FHA MIP (effective after June 8) = $785
Total monthly = $3,942

10% Conventional with First Place Bank Second Mortgage

$577,000 @ 4.375% = $2,881, Plus $73,000 Second Mortgage = $498
Total monthly = $3,379

10% down 80/10/10 represents a savings of $563 per month, plus $11,375 savings from upfront MI or $45,155 over 5 years!

You can view the full mortgagee letter with all the details here - FHA MIP Changes 2012. As always we are available via phone or email to answer any questions you might have. Have a great day!

Nick Pakulla / Loan Officer / NMLS# 728211 / First Place Bank Mortgage - A Division of Talmer Bancorp / 15400 Calhoun Drive, Rockville MD 20855 / 301.585.7283 / http://www.nickhomeloan.com

Click Here to Apply Now at my Bank Website

Call Me Direct: 301.585.RATE (7283)

*Mortgage rates in my blog posts may be outdated, please contact me for a current rate quote!

Proposed Changes for FHA Mortgage Insurance - Rockville MD Mortgage

Wed, 29 Feb 2012 11:40:49 -0800

Yesterday FHA announced an increase in Mortgage Insurance premiums (the 4^th time in 3 years) beginning on April 1, 2012. This will have a big impact for locations like Rockville MD, or Bethesda MD. Also, FHA posted a notice in the Federal Register last week regarding the implementation of a decrease in the maximum closing cost assistance from sellers (right now maximums are at 6%).

The Mortgage Insurance Premium Changes, planned for April 1:

FHA upfront mortgage insurance will increase from 1.00% (now), up to 1.75% April 1.
FHA annual mortgage insurance will increase from 1.15% (now), up to 1.25% April 1.
FHA mortgages above $625,500 will be subject to an additional 0.25% annual mortgage insurance fee, or 1.5% April 1.

Proposed Closing Cost Credit Changes, implemented in the near future after comment period:

FHA is proposing that the closing costs be limited to the greater of $6,000 or 3% of the sales price.
FHA is also proposing to narrow the definition of acceptable concessions. FHA proposes to eliminate payment supplements offered by sellers, such as a year’s worth of homeowner association fees, as they are viewed by HUD as inducements to purchase.
Comments on this proposal can be made at http://www.regulations.gov

Anyone planning on obtaining a FHA mortgage in Rockville or Bethesda MD and who is on the fence about buying may find this important information to know so they can get in before the changes. Remember our bank’s 80/10/10 financing or 5% down conventional products offer alternatives to FHA.

Please note: This information is subject to change by the FHA. It is based on an initial FHA announcement made February 27, 2012. It's unofficial until FHA releases a mortgagee letter.

Nick Pakulla / Loan Officer / NMLS# 728211 / First Place Bank Mortgage - A Division of Talmer Bancorp / 15400 Calhoun Drive, Rockville MD 20855 / 301.585.7283 / http://www.nickhomeloan.com

Click Here to Apply Now at my Bank Website

Call Me Direct: 301.585.RATE (7283)

*Mortgage rates in my blog posts may be outdated, please contact me for a current rate quote!

Mortgage Industry Update / Time to get pre-approved! Rockville Mortgage

Tue, 21 Feb 2012 08:44:54 -0800

There are some very positive signs in the economy are emerging and Fed policies are keeping Rockville MD mortgage rates near historic lows.

We strongly encourage spring buyers to get fully-approved now to avoid missing out on “the one.” Without having an approval letter buyers could risk missing out on their dream home, or at the minimum be under high-stress to gather and send the required approval documentation last minute. Our bank approvals are good for up to 1 year, there is no cost or obligation, and approvals can be turned around in 1 hour.

Mortgage News Headlines of Interest:

US Jobless Claims fall to 4-year low, consumer confidence up, Bloomberg: http://buswk.co/wQBtva
Mortgage delinquencies hit 3-year low, Wall Street Journal: http://on.wsj.com/x4QdRs
Standardization proposed for monthly Mortgage Statements by CFPB, New York Times: http://nyti.ms/yuaEuN
$25 Billion Mortgage settlement deal FAQ (not to be confused with the HARP refinance program), Bankrate: http://bit.ly/xCfRF4
Murmurs that FHA Mortgage Insurance Premiums will be increasing again this year, Reuters: http://reut.rs/AcpNUH

Our Community Bank is here to support you and your buyers, with our ability to close loans in 2 weeks, 10% down second trust products above the loan limits, and 5% no monthly mortgage insurance products we are ready to get you and your buyers to settlement on time with ease.

As always, we are accessible anytime to go over payments, closing costs, and issue approval letters at any time. 301-585-RATE (7283). I hope you had a great holiday weekend!

Nick Pakulla / Loan Officer / NMLS# 728211 / First Place Bank Mortgage - A Division of Talmer Bancorp / 15400 Calhoun Drive, Rockville MD 20855 / 301.585.7283 / http://www.nickhomeloan.com

Click Here to Apply Now at my Bank Website

Call Me Direct: 301.585.RATE (7283)

*Mortgage rates in my blog posts may be outdated, please contact me for a current rate quote!

Maryland Mortgage Loan Limit Summary / Seller Closing Cost Credit Summary

Fri, 20 Jan 2012 16:48:36 -0800

Happy New Year! Hope you had a great Holiday and were able to enjoy time with your family.

As the 2012 spring market is getting started off with pre-approvals and buyer inquiries, there were several changes (and re-changes) near the end of 2011 that may have led to some confusion and will likely impact your buyers. Below is a current recap of loan limits, minimum down payments, and maximum seller contributions for all loan options available.

Mortgage rates continue to stay at all time lows! Let’s make 2012 the best year yet!

Location Loan Limit Min. Down Payment Max. Closing Concessions

Below 417,000 Conventional:

Baltimore $417,000 5% 3%

DC $417,000 5% 3%

Investment $417,000 20% 2%

Above 417,000 High-Balance Conventional:

Baltimore $494,500 10% 6%

DC $625,500 10% 6%

Investment - 35% 2%

10% Down Jumbo ** Using First Place Bank Specific Second Mortgage Product:

Baltimore $900,000 10% 6%

DC $1,100,000 10% 6%

FHA Loans:

Baltimore $560,000 3.5% 6%

DC $729,750 3.5% 6%

VA:

Howard $478,400 0% ~4%

Baltimore $494,500 0% ~4%

DC $625,500 0% ~4%

*VA is now very specific per county, please consult the VA County loan limit site: http://www.benefits.va.gov/homeloans/loan_limits.asp

** borrowers can purchase above the VA loan limits by putting down 25% of the difference of the maximum loan limit and the sales price.

Nick Pakulla / Loan Officer / NMLS# 728211 / First Place Bank Mortgage - A Division of Talmer Bancorp / 15400 Calhoun Drive, Rockville MD 20855 / 301.585.7283 / http://www.nickhomeloan.com

Click Here to Apply Now at my Bank Website

Call Me Direct: 301.585.RATE (7283)

*Mortgage rates in my blog posts may be outdated, please contact me for a current rate quote!

FHA Loan Limits and VA funding fees Update November 2011

Mon, 28 Nov 2011 16:24:46 -0800

FHA Updates Loan Limits as of November 18, 2011

On November 18, 2011, the President signed into law H.R. 2112, Consolidated and Further Continuing Appropriations Act 2012 (HR2112). Section 238 of HR 2112 re-establishes the FHA loan limit at the higher of the dollar limit in Section 203(b)(2) or the dollar limit prescribed in Section 202 of the Economic Stimulus Act of 2008 for Forward mortgages.

Therefore, effective for all Forward mortgages with a case number assigned on, or after, November 18, 2011 through December 31, 2011, the loan limits referenced in Mortgagee letter 10-40 shall be in effect.

The Department will be issuing a Mortgagee Letter by mid-next week that will include more detailed guidance and applicable updated loan limit tables for 2012. We expect supporting system changes to be completed within that same time frame.

VA Funding Fees Revert Back to pre-change levels

FUNDING FEE UPDATE AS OF NOVEMBER 22, 2011: On November 21, 2011, the President signed H.R. 674. Section 265 of the law raises funding fees to the pre-November 18, 2011 levels. The fees specified in Section 265 are valid through September 30, 2016.

First Time Use

< 5% down = 2.15%
5-10% down = 1.5%
10% or more = 1.25%

Second and Subsequent Use

< 5% down = 3.3%
5-10% down = 1.5%
10% or more = 1.25%

Nick Pakulla

First Place Bank

Loan Officer

15400 Calhoun Drive Suite 170

Rockville, MD 20855

Direct: 301.585.RATE (7283) | Cell: 443.956.8774 | Fax: 301.560.6303

NMLS# 728211

Email: NPakulla@fpfc.net

Apply now: http://www.firstplacebank.com/NickPakulla

Nick Pakulla / Loan Officer / NMLS# 728211 / First Place Bank Mortgage - A Division of Talmer Bancorp / 15400 Calhoun Drive, Rockville MD 20855 / 301.585.7283 / http://www.nickhomeloan.com

Click Here to Apply Now at my Bank Website

Call Me Direct: 301.585.RATE (7283)

*Mortgage rates in my blog posts may be outdated, please contact me for a current rate quote!

FHA loan limits increase! But not conventional

Fri, 18 Nov 2011 14:51:45 -0800

It was just announced today that a bill has been approved that will raise the FHA (FHA only) mortgage loan limit back to $729,750 for the DC area and $560,000 for the Baltimore metro area. Unfortunately, they did not raise the Fannie / Freddie conventional mortgage loan limit and they still remain at $625,500 and $494,500 respectively. Although the conventional limits are not raised, this will still help buyers who don’t have 10% down and are looking to buy above the conventional limits.

Below is the link to an article if you would like to read more about the change. Remember, for borrowers with 10% down our bank’s 2^nd Mortgage can bridge the gap between conforming and true jumbo, and will be much more cost effective than going FHA (see example below). Please call us with any questions. Thanks and Happy Friday!

http://www.bloomberg.com/news/2011-11-18/u-s-congress-votes-to-raise-top-limit-for-government-insured-mortgages.html

Example – FHA with 10% down vs. First Place Bank second mortgage:

$800,000 purchase with FHA 10% down:
$720,000 financed @ 4.25% = $3,542 per month
FHA MIP = $660 per month ($0 going towards principal / not tax deductible)
Total = $4,202

$800,000 purchase with First Place Bank Second Mortgage 10% down:
$625,500 first mortgage @ 4.25% = $3,077 per month
$94,500 second mortgage @ 7.25% = $645 per month (tax deductible and part of payment is going towards principal)
Total = $3,723 – much better option!

Thanks,
Nick

Nick Pakulla
First Place Bank
Loan Officer
15400 Calhoun Drive Suite 170
Rockville, MD 20855
Direct: 301.585.RATE (7283) | Cell: 443.956.8774 | Fax: 301.560.6303
NMLS# 728211
Email: NPakulla@fpfc.net
Apply now: http://www.firstplacebank.com/NickPakulla

Nick Pakulla / Loan Officer / NMLS# 728211 / First Place Bank Mortgage - A Division of Talmer Bancorp / 15400 Calhoun Drive, Rockville MD 20855 / 301.585.7283 / http://www.nickhomeloan.com

Click Here to Apply Now at my Bank Website

Call Me Direct: 301.585.RATE (7283)

*Mortgage rates in my blog posts may be outdated, please contact me for a current rate quote!

Haunting Rockville MD mortgage rates - will history repeat itself for the 3rd year in a row?

Mon, 31 Oct 2011 16:36:33 -0700

With Rockville MD mortgage rates still near all-time lows many buyers will have significantly higher payments and may qualify for less if they head back up (like they did last spring). Please pass the example below to your buyers to show how beneficial low interest rates are!

$417,000 borrowed
@4.125% = $2,020 per month
@5.125% = $2,270 per month – this is $90,000 in wasted interest paid over the life of the same $417,000 loan!
@5.125% a $2,020 principal and interest payment would equate to a mortgage of only $371,000! This means that in this example buyers today can finance $46,000 more for the same exact principal and interest payment due to low mortgage rates.

If you look at the chart above, for the past 2 years mortgage rates have been in the low 5%’s during spring…. Will history repeat itself again? Even scarier, look how quickly mortgage rates shot up from November 2010 to January 2011.

HAPPY HALLOWEEN!

***About First Place Bank

First Place Bank is an established community bank new to the MD/DC/VA market. With all the struggles of the “large banks” the community banking model has proven to be much more efficient. We still offer 80/10/10’s, in-office underwriting, and have a group of local bank approved appraisers (no 3^rd party appraisal system). My entire group made the move to First Place Bank after thirteen years at a large bank mainly because we believe in a higher level of service. We work with some of the best Realtors in the area and our goal is to create a new, higher standard in the mortgage business. All top Realtors should have a community bank option to rely on. Please consider us for your next buyer. Thank you.

Nick Pakulla / Loan Officer / NMLS# 728211 / First Place Bank Mortgage - A Division of Talmer Bancorp / 15400 Calhoun Drive, Rockville MD 20855 / 301.585.7283 / http://www.nickhomeloan.com

Click Here to Apply Now at my Bank Website

Call Me Direct: 301.585.RATE (7283)

*Mortgage rates in my blog posts may be outdated, please contact me for a current rate quote!

Mortgage Industry Update, Silver Spring and Bethesda MD

Fri, 21 Oct 2011 17:40:49 -0700

Some encouraging mortgage headlines that all point for positive signs for the housing market in the coming months for buyers in Silver Spring and Bethesda Maryland, DC, and Virginia:

For buyers across the country and locally here in Bethesda MD, monthly payments based on median home prices and mortgage rates are now lower than they’ve been in 40 years! Marketwatch.com http://bit.ly/o21FAN
There is beginning to be a reversal in the trend towards renting in the Washington area – landlords have raised rents an average of 3.7% per year since 2006, low mortgage rates and home prices are driving purchases for young professionals: Washington Post http://wapo.st/o7AyFa
Up to 2 million people are waiting to jump into the housing market in the next 2 years, and the typical American still places a high value on home ownership: http://bit.ly/peqpOz

In other news the Senate voted late last night to restore the high-balance loan limits ($729,750) through 2013 and the vote passed 60-38. This still needs to go to the House of Representatives, but will be positive for the DC Metro area, especially places like Bethesda and Silver Spring. Wall Street Journal http://on.wsj.com/pVnppa

Mortgage Rates continue to bounce near all time lows!

Have a great weekend! Keep us in mind for your next buyer, with our in-office operations and appraisal system our loan packages arrive to the title company days before settlement. 301-585-7283

Nick Pakulla / Loan Officer / NMLS# 728211 / First Place Bank Mortgage - A Division of Talmer Bancorp / 15400 Calhoun Drive, Rockville MD 20855 / 301.585.7283 / http://www.nickhomeloan.com

Click Here to Apply Now at my Bank Website

Call Me Direct: 301.585.RATE (7283)

*Mortgage rates in my blog posts may be outdated, please contact me for a current rate quote!

FHA, VA, and Conventional mortgage loan limits September / October 2011

Thu, 29 Sep 2011 19:12:21 -0700

September 30^th and October 1^st are important in our industry as several government loan limits are set to change:

Conventional Fannie Mae loan limits will be changing,
FHA mortgage loan limits will be changing, and
VA loan limits will not be changing yet, however, VA funding fees will be changing

Fannie Mae loan limits: https://www.efanniemae.com/sf/refmaterials/loanlimits/xls/loanlimref.xls

Use the above referenced table to check the Fannie Mae loan limits. Additionally, if your home purchase is affected by the loan limits going down utilize our bank’s second trust mortgage to allow you to purchase your home above the loan limits with as little as 10% down. See my 80/10/10 second mortgage blog post and an article in the Wall Street Journal referencing our bank

FHA:

FHA loan limits https://entp.hud.gov/idapp/html/hicostlook.cfm

The FHA loan limits will also generally follow the change in the Fannie loan limits, but you can search by state via the link above.

VA:

VA Loan limits http://www.benefits.va.gov/homeloans/loan_limits.asp

The maximum guaranty for VA guaranteed loans closed October 1, 2011 through December 31, 2011 will remain unchanged. The Veterans’ Benefits Improvement Act of 2008 provided a temporary increase in VA loan limits for loans closed January 1, 2009 through December 31, 2011. Because of this legislation, VA loan limits will remain the same for the remainder of the calendar year. Please note that VA does not have a maximum loan amount. Loan limit refers to the maximum loan a lender could make and still receive a 25% guaranty from VA, assuming the veteran has full entitlement.

VA Funding Fee Changes

VA Funding fees going down: http://activerain.com/blogsview/2514838/va-funding-fee-changes-going-down-effective-october-1st

Nick Pakulla / Loan Officer / NMLS# 728211 / First Place Bank Mortgage - A Division of Talmer Bancorp / 15400 Calhoun Drive, Rockville MD 20855 / 301.585.7283 / http://www.nickhomeloan.com

Click Here to Apply Now at my Bank Website

Call Me Direct: 301.585.RATE (7283)

*Mortgage rates in my blog posts may be outdated, please contact me for a current rate quote!

Wall Street Journal article mentions First Place Bank's 80/10/10 to stay out of Jumbo

Thu, 29 Sep 2011 19:11:54 -0700

First Place Bank’s 80/10/10 loan program was recently mentioned in the Wall Street Journal Online as an example of a creative way to assist buyers (and sellers) above the lowering Fannie Mae county loan limits!

September 16, 2011, Will Expiring Loan Limits Kill My Sale? By June Fletcher. Link: http://on.wsj.com/rd289k

Q. My house is for sale for $878,000. I have already dropped the price three times, and can't afford to drop it any lower. I am very worried about the upcoming expiration of conforming loan limits, and what that will do to the pool of buyers that can get a mortgage to buy my house. Your thoughts? --Arlington, Va.

A. “… buyers could find a lender who will provide a piggyback loan that allows a lower down payment. Such lenders generally are community or niche banks that keep such loans in their own portfolios. For instance, in your area, First Place Bank is offering an 80/10/10 loan that requires a 10% minimum down payment. The bank makes a first loan up to the conventional limit in tandem with a second.”

Thank you for helping to spread the word!

Nick Pakulla / Loan Officer / NMLS# 728211 / First Place Bank Mortgage - A Division of Talmer Bancorp / 15400 Calhoun Drive, Rockville MD 20855 / 301.585.7283 / http://www.nickhomeloan.com

Click Here to Apply Now at my Bank Website

Call Me Direct: 301.585.RATE (7283)

*Mortgage rates in my blog posts may be outdated, please contact me for a current rate quote!

VA Funding Fee changes (going down) effective October 1st

Mon, 19 Sep 2011 12:41:25 -0700

VA announces a decrease to the VA funding fee effective October 1st. For the full notice you can find it at: http://www.benefits.va.gov/HOMELOANS/circulars/26_11_12.pdf

Purpose: This circular announces changes in funding fees for Department of Veterans Affairs (VA) loans closed on or after October 1, 2011.

Fee Changes

For loans closed on or after October 1, 2011, the fee for subsequent use loans with less than 5 percent downpayment and subsequent use regular refinance loans will be 2.8 percent for both active duty Servicemembers, Veterans, and persons qualifying based solely on service in the Reserves or National Guard. This change is due to passage of Public Law 112-26, Restoring GI Bill Fairness Act of 2011.

b.	Funding fees for loans other than subsequent use will also change for loans closed on or after October 1, 2011. These fee changes were already set to change based on previous legislation. The below table shows the upcoming changes.

c.	Funding fees for Interest Rate Reduction Refinancing Loans and Assumptions will not change. They will remain at .50 percent.

Possibility of Future Funding Fee Changes: Should Congress pass legislation making additional changes to the funding fee structure, VA will immediately publish a notice on our website and the VA Funding Fee Payment System (FFPS), and soon afterward, issue another Circular. Lenders should closely monitor our website and VA FFPS for information on funding fee changes.

4.	Rescission: This circular is automatically rescinded on October 1, 2012.

By Direction of the Under Secretary for Benefits

Michael J. Frueh
Acting Director, Loan Guaranty Service

Loan Fee Structure for Guaranteed Loans

First Time Use

Veteran

Reservist/National Guard

Down payment:

Less than 5 percent*:

–	October 1, 2004 until October 1, 2011

–	On or after October 1, 2011

At least 5 percent but less than 10 percent:

–	Before October 1, 2011

–	On or after October 1, 2011

10 percent or more:

–	Before October 1, 2011

–	On or after October 1, 2011

2.15%
1.40%

1.50%
0.75%

1.25%
0.50%

2.40%
1.65%

1.75%
1.00%

1.50%
0.75%

Second and Subsequent Use

Down payment:

Less than 5 percent*:

–	October 1, 2007 until October 1, 2011

–	October 1, 2011 until October 1, 2012

–	October 1, 2012 until October 1, 2013

–	On or after October 1, 2013

At least 5 percent but less than 10 percent

–	Before October 1, 2011

–	On or after October 1, 2011

10 percent or more

–	Before October 1, 2011

–	On or after October 1, 2011

Refinancing Loans: Interest rate reduction .5%

3.30%
2.80%
2.15%
1.25%

1.50%
0.75%

1.25%
0.50%

3.30%
2.80%
2.15%
1.25%

1.75%
1.00%

1.50%
0.75%

Nick Pakulla / Loan Officer / NMLS# 728211 / First Place Bank Mortgage - A Division of Talmer Bancorp / 15400 Calhoun Drive, Rockville MD 20855 / 301.585.7283 / http://www.nickhomeloan.com

Click Here to Apply Now at my Bank Website

Call Me Direct: 301.585.RATE (7283)

*Mortgage rates in my blog posts may be outdated, please contact me for a current rate quote!

Fannie Mae Loan Limits going down on September 30th 2011!

Tue, 23 Aug 2011 13:35:00 -0700

Just a reminder that the Fannie Mae loan limits are set to expire on Sept 30th and all loans must be settled on or before that date (the 30th is a Friday). Be cautious of the dates, we are hearing that some other lenders have already stopped taking new applications for loans above $625,500 in the DC Metro area and above $494,500 in the Baltimore Metro area (likely because their processing and underwriting departments are delayed). We keep everything in-office so if you are stuck on a file, we can help get it closed in as little as 2 weeks. We will be taking new applications up to about 2 weeks prior to the deadline to help with the fall out that will be coming from the big banks. As a Community Bank, the goal is to always help the local communities where we lend.

We already have a great solution in place for those of you that are affected by the loan limit changes. We are one of the only local banks that still do in-house second mortgages (we lend our own money) which will be used more as the Fannie Mae loan limits drop. Splitting the loans will become the product of choice for buyers that want to get the better conforming rates and are purchasing above the new limits. Taking the first mortgage down to $625,500 / $494,500 and then putting a second mortgage behind it (even up to $400,000 - $500,000) will be a great strategy for buyers that want to aggressively pre-pay the second. This will be great for buyers that get paid bonuses, commissions, only have 10% down, or need to use the second as a bridge loan to go non-contingent on the sale of their current home.

Check out my post on how to obtain a jumbo mortgage with 10% down: http://activerain.com/blogsview/2109479/how-to-get-a-jumbo-mortgage-with-a-10-low-down-payment-in-maryland-dc-or-virginia

State Name	County Name	New Limit After Oct 1	Temporary Limit Until Sept 30
DISTRICT OF COLUMBIA	DISTRICT OF COL, DC	$ 625,500	$ 729,750
MARYLAND	ALLEGANY, MD	$ 417,000	$ 417,000
MARYLAND	ANNE ARUNDEL, MD	$ 494,500	$ 560,000
MARYLAND	BALTIMORE, MD	$ 494,500	$ 560,000
MARYLAND	CALVERT, MD	$ 625,500	$ 729,750
MARYLAND	CAROLINE, MD	$ 417,000	$ 417,000
MARYLAND	CARROLL, MD	$ 494,500	$ 560,000
MARYLAND	CECIL, MD	$ 417,000	$ 420,000
MARYLAND	CHARLES, MD	$ 625,500	$ 729,750
MARYLAND	DORCHESTER, MD	$ 417,000	$ 417,000
MARYLAND	FREDERICK, MD	$ 625,500	$ 729,750
MARYLAND	GARRETT, MD	$ 417,000	$ 437,500
MARYLAND	HARFORD, MD	$ 494,500	$ 560,000
MARYLAND	HOWARD, MD	$ 494,500	$ 560,000
MARYLAND	KENT, MD	$ 417,000	$ 417,000
MARYLAND	MONTGOMERY, MD	$ 625,500	$ 729,750
MARYLAND	PRINCE GEORGE'S, MD	$ 625,500	$ 729,750
MARYLAND	QUEEN ANNE'S, MD	$ 494,500	$ 560,000
MARYLAND	ST. MARY'S, MD	$ 417,000	$ 417,000
MARYLAND	SOMERSET, MD	$ 417,000	$ 417,000
MARYLAND	TALBOT, MD	$ 417,000	$ 443,750
MARYLAND	WASHINGTON, MD	$ 417,000	$ 417,000
MARYLAND	WICOMICO, MD	$ 417,000	$ 417,000
MARYLAND	WORCESTER, MD	$ 417,000	$ 437,500
MARYLAND	BALTIMORE CITY, MD	$ 494,500	$ 560,000
VIRGINIA	ARLINGTON, VA	$ 625,500	$ 729,750
VIRGINIA	CLARKE, VA	$ 625,500	$ 729,750
VIRGINIA	CRAIG, VA	$ 417,000	$ 417,000
VIRGINIA	CULPEPER, VA	$ 417,000	$ 417,000
VIRGINIA	CUMBERLAND, VA	$ 535,900	$ 535,900
VIRGINIA	DICKENSON, VA	$ 417,000	$ 417,000
VIRGINIA	DINWIDDIE, VA	$ 535,900	$ 535,900
VIRGINIA	ESSEX, VA	$ 417,000	$ 417,000
VIRGINIA	FAIRFAX, VA	$ 625,500	$ 729,750
VIRGINIA	FAUQUIER, VA	$ 625,500	$ 729,750
VIRGINIA	LOUDOUN, VA	$ 625,500	$ 729,750
VIRGINIA	LOUISA, VA	$ 535,900	$ 535,900
VIRGINIA	LUNENBURG, VA	$ 417,000	$ 417,000
VIRGINIA	MADISON, VA	$ 417,000	$ 417,000
VIRGINIA	NELSON, VA	$ 437,000	$ 437,000
VIRGINIA	NEW KENT, VA	$ 535,900	$ 535,900
VIRGINIA	POWHATAN, VA	$ 535,900	$ 535,900
VIRGINIA	PRINCE EDWARD, VA	$ 417,000	$ 417,000
VIRGINIA	PRINCE GEORGE, VA	$ 535,900	$ 535,900
VIRGINIA	PRINCE WILLIAM, VA	$ 625,500	$ 729,750
VIRGINIA	SPOTSYLVANIA, VA	$ 625,500	$ 729,750
VIRGINIA	STAFFORD, VA	$ 625,500	$ 729,750
VIRGINIA	SURRY, VA	$ 458,850	$ 458,850
VIRGINIA	SUSSEX, VA	$ 535,900	$ 535,900
VIRGINIA	TAZEWELL, VA	$ 417,000	$ 417,000
VIRGINIA	WARREN, VA	$ 625,500	$ 729,750
VIRGINIA	YORK, VA	$ 458,850	$ 458,850
VIRGINIA	ALEXANDRIA, VA	$ 625,500	$ 729,750
VIRGINIA	BEDFORD IND, VA	$ 417,000	$ 417,000
VIRGINIA	BRISTOL, VA	$ 417,000	$ 417,000
VIRGINIA	BUENA VISTA, VA	$ 417,000	$ 417,000
VIRGINIA	CHARLOTTESVILLE, VA	$ 437,000	$ 437,000
VIRGINIA	CHESAPEAKE, VA	$ 458,850	$ 458,850
VIRGINIA	COLONIAL HEIGHT, VA	$ 535,900	$ 535,900
VIRGINIA	FAIRFAX IND, VA	$ 625,500	$ 729,750
VIRGINIA	FALLS CHURCH, VA	$ 625,500	$ 729,750
VIRGINIA	FRANKLIN IND, VA	$ 417,000	$ 417,000
VIRGINIA	FREDERICKSBURG, VA	$ 625,500	$ 729,750
VIRGINIA	GALAX, VA	$ 417,000	$ 417,000
VIRGINIA	HAMPTON, VA	$ 458,850	$ 458,850
VIRGINIA	HARRISONBURG, VA	$ 417,000	$ 417,000
VIRGINIA	HOPEWELL, VA	$ 535,900	$ 535,900
VIRGINIA	MANASSAS, VA	$ 625,500	$ 729,750
VIRGINIA	MANASSAS PARK, VA	$ 625,500	$ 729,750

Nick Pakulla / Loan Officer / NMLS# 728211 / First Place Bank Mortgage - A Division of Talmer Bancorp / 15400 Calhoun Drive, Rockville MD 20855 / 301.585.7283 / http://www.nickhomeloan.com

Click Here to Apply Now at my Bank Website

Call Me Direct: 301.585.RATE (7283)

*Mortgage rates in my blog posts may be outdated, please contact me for a current rate quote!

What is APR in Plain English Please, Maryland mortgage rates and apr

Fri, 15 Jul 2011 07:24:45 -0700

Mark Taylor gives an excellent overview of the seemingly confusing "APR." I agree, that it is generally a worthless metric when comparing lenders and loan options due to all of the room for interpretation and lack of timeline.

Personally I think APR should only take into account bank fees, rate, and points. (Currently the APR is made up of some Realtor fees, some title fees, some bank fees, but not others, etc.) Also, if used at all it should display the APR over several time periods, instead of assuming the loan is taken to term. Finally for an adjustable rate it should use the highest possible rate in the given time period...

Thanks Mark!

Via Mark Taylor FHA VA USDA HUD & Investor Loans (First Time Buyers Investors and move up buyers):

What Is Annual Percentage Rate (APR)?

is

More commonly called APR, Annual Percentage Rate is a government-mandated mortgage comparison tool. It measures the total cost of borrowing over the life of a loan into dollars-and-cents.

A loan’s APR is printed in the top-left corner of the Federal Truth-In-Lending Disclosure, as shown above. When quoting an interest rate, loan officers are required by law to disclose a loan’s APR, too.

APR is meant to simplify the process of choosing between two or more loans. The theory is that the loan with the lowest APR is the “best deal” for the applicant because the loan’s long-term costs are lowest. However, the loan with the lowest APR isn’t always best.

APR makes assumptions in its formula that can render it moot.

First, APR assumes you’ll pay your mortgage off at term, at never sooner. So, if your loan is a 15-year fixed rate, its APR is based on a full 15 year term. If you sell or refinance prior to Year 15, the math used to make your loan’s APR becomes instantly flawed and “wrong”.

Example: Let’s compare two identical loans in Arizona — one with discount points and a lower interest rate; and one without discount points and a higher mortgage rate. The loan with discount points will have a lower APR in most cases. However, if the homeowner sells or refinances within the first few years, the loan with the higher APR would have been the better option, in hindsight.

Second, APR can be “doctored” early in the loan process.

Because the APR formula accounts for third-party costs in a mortgage transaction, and third-party costs aren’t always known at the start of a loan, a bank can inadvertently understate them. This would make the APR appear lower than what it really is, and may mislead a consumer.

And, lastly, APR is particularly unhelpful for adjustable-rate loans. Because the APR calculation makes assumptions about how a loan will adjust during its 30-year term, if two lenders use a different set of assumptions, their APRs will differ — even if the loans are identical in every other way. The lender whose adjustments are most aggressively-low will present the lowest APR.

Summarized, APR is not the metric for comparing mortgages — it’s a metric. For relevant comparison points, talk to your loan officer.

17 years of doing this APR is always what causes the most acid reflux for borrowers:"Hey you quoted me a 5% rate on FHA but the APR is 6.125% what gives Mark?" After a lengthy explanation of a mortgage metric of little value, clients usually calm down but always seem to leave with a smidgen of mistrust on their faces.

Here is the best advise especially as Realtors® can no longer proffer an opinion or help comfort the client by walking them through the TIL and explaining APR as they used to do pre-licensing days!

Show your client the rate, the closing costs and their payment - if they are happy and the payment works for them they will be very happy. All my clients want to know when they leave my office is; what exactly do I have to come in with for down, what are my closing costs to the penny and what is my payment to the penny. Lets give them that every time keep it simple and less of the aggregate adjusted UFMIP toleranced TIL and REG Z calculations right?

To get your free approval please call 602-361-0707

Click on the links below to view my AWESOME websites!

Arizona Mortgage | VA Loans | HUD Loans | FHA Loans | USDA Loans | Arizona ShortSales

| Arizona Foreclosures | Arizona Credit Repair | Arizona Foreclosure Help | Facebook | Canadian Loans

Nick Pakulla / Loan Officer / NMLS# 728211 / First Place Bank Mortgage - A Division of Talmer Bancorp / 15400 Calhoun Drive, Rockville MD 20855 / 301.585.7283 / http://www.nickhomeloan.com

Click Here to Apply Now at my Bank Website

Call Me Direct: 301.585.RATE (7283)

*Mortgage rates in my blog posts may be outdated, please contact me for a current rate quote!

Banks vs Mortgage Brokers: Different types of maryland mortgage companies, broker, lender, banker

Sun, 10 Jul 2011 12:28:09 -0700

There are a few main types of institutions that provide mortgages, all have their pros and cons. For the average consumer purchasing a home it is my opinion that a small Community Bank is the best place to obtain a mortgage (and that is why I'm with First Place Bank). Below is an explanation of each of the types of mortgage lenders and my opinion on each.

Mortgage Bank (Large)

This is the Wells Fargo, Bank of America large banking institution type. These banks originate loans and hold them on their books or sell them in large pools to Fannie Mae, Freddie Mac, private investors, etc. All parts of the loan process stay within the company - origination, processing, underwriting, closing, and funding. These banks often follow the centralized approach, ie: where all underwriters are housed in the same location - which is different fromthe Loan Officer's location.

Cons:

With large mortgage banks Often when walking into your bank, or calling the 1800 number you may or may not be dealing with a skilled loan officer who is familiar with specifics in your local area, lending rules and regulations are different by state and by county. No one can be an expert in every state. This fact compiled with a centralized underwriting model where the loan officer has very little personal relationship with processing and underwriting staff can make "getting deals done" very difficult. From what I hear from the Realtor community and several "rescue" deals I have personally saved, it is common to have a settlement delayed at one of these larger institutions.

Pros:

Mortgage banks tend to have the ability to keep loans on their books, and therefore can offer unique loan portfolio loan programs (one that comes to mind is the 100% Doctor financing mortgage).

photo by ricardodiaz11

Credit Union

These can range in size from a small local operation to a national institution such as USAA, Pentagon Federal, etc. Credit unions are not for profit.

Cons:

Often when you call up a credit union for pre-approval you deal with whoever answers your call, there is not one specific person assigned to your case. In my experience the staff are not trained to analyze a borrowers information for an approval, they do not review documentation, and simply issue boiler plate approval letters. This is usually followed with major issues during the underwriting processes that are not brought up until last minute a few days before closing. (If you want to see for yourself check out USAA's reviews:
https://www.usaa.com/inet/pages/bank_loan_new_mortgage#reviewTab ** make sure you got to reviews and sort by date, the 1-star reviews are enough for anyone in my opinion to avoid these institutions)

Pros:

Credit unions often hold loans in their own portfolio and can sometimes lend when other banks cannot.

Mortgage Broker

Mortgage brokers can range in size, generally from someone operating out of their basement to very large companies. Mortgage brokers work independently and work with several wholesale lending institutions. Brokers originate the loans, but rely on the final lender to underwrite the file.

Cons:

Mortgage Brokers are relying on the wholesale institution for a large majority of the loan process. Personal relationship with the underwriting staff at several institutions is very difficult. There is a large lack of control over the loan process.

Pros:

Mortgage brokers may have access to unique loan programs offered by several lending institutions.

Correspondent Lender

A correspondent lender is similar to a type of broker, however, they fund the loans with their own lines of credit and after settlement immediately sell the loan to a wholesale investor. The correspondent is responsible for underwriting, processing, and closing the loan. Correspondents are very close to a small Community Bank in structure.

Cons:

Correspondents face one main concern, they cannot hold any loans on their books and face risk when underwriting every file. If several loans are required to be bought back by the end investor this can cause their ability to fund loans to be limited in the future. Therefore, the correspondent must follow very strict guidelines in order to prevent buy backs from occurring.

Pros:

Everything is controlled under one roof - underwriting, processing, and closing. Depending on the size this can be done in the same office, or for large correspondents they also follow a centralized approach similar to the big banks. Correspondent lenders may have access to unique loan programs as they generally work with several end investors.

Mortgage Bank / Community Bank (small)

Community Banks can vary in size from very small to regional, not all of them provide a high level of service with regards to their mortgage products. First Place Bank is a small Community Bank, and we have the ability to hold loans on our books and also sell to investors. All of the underwriting, processing, and closing is done under one roof - in the same office.

Cons:

The only con I can think of is that we may not have access to programs for borrowers who are completely outside of the box, ie: poor credit for example.

Pros:

This is the best of all of the lending options, big enough to hold loans on the books, offer unique portfolio products, and still small enough to work with other warehouse lenders as a correspondent. Everything is controlled under one roof - underwriting, processing, and closing - and this is all completed in-office. A personal relationship with underwriting and processing staff enables loans to always close on time. We have the ability to close loans in 2 weeks. Additionally, since we are a bank our bank has unique portfolio loan products, such as second mortgages, 80/10/10's, and bridge loans. Our appraisal process uses a local rotation of selected appraisers to ensure you receive a quality transaction throughout.

Yes I am biased, but in my opinion Community Banks, and ours in specific is one of the best mortgage operations in the Country. Ultimately, as a consumer you are concerned about getting a fair deal, and settling your new home on-time. You don't want to be stuck sleeping in a hotel room for a week because settlement was delayed. There is no excuse for a delayed settlement, and with our Community Banking model we are one of the only places to go to guarantee this does not happen. This is why we commonly get out closing packages out 1-2 weeks before settlement, while other lenders strive for the day before.

The quality of the Loan Officer or Broker also matters greatly. You could have a perfect bank / Broker but a bad Loan Officer and have a horrible experience, or the worst bank / Broker and a great Loan Officer and have a fantastic experience.... Bottom line, check with a few different types of lenders, get some recommendations, and see which one you feel most comfortable with, in my opinion for the highest level of service every time the choice is pretty clear.

Nick Pakulla / Loan Officer / NMLS# 728211 / First Place Bank Mortgage - A Division of Talmer Bancorp / 15400 Calhoun Drive, Rockville MD 20855 / 301.585.7283 / http://www.nickhomeloan.com

Click Here to Apply Now at my Bank Website

Call Me Direct: 301.585.RATE (7283)

*Mortgage rates in my blog posts may be outdated, please contact me for a current rate quote!

Bikes for the World at Whole Foods in Montgomery County this Saturday

Fri, 15 Apr 2011 14:34:56 -0700

This just in....On Saturday April 16, Bikes for the World will be collecting bikes at EIGHT Whole Foods Market locations in Montgomery County MD and Washington DC. That's eight locations in one day!

Come out to, be a part of, and make this an amazing event. There are many ways to get involved. First, the obvious one, bring your old bike and bike parts for donation. Drop them by any participating Whole Foods Market store (listed below) on April 16th from 11am - 3pm.

And because we're hoping that means tons of bikes, we need your help to do it.

For one thing, help get the word out beforehand. Please share with your neighborhood listserveor corporate intra-net.

For another, come volunteer and help us make this event a huge success. We need people with and without mechanic experience--to hand out flyers on this collection and future ones,issue receipts, talk to people, accept bikes, process them for shipping, and transport and off-load them at our three storage facilities in Rockville, Springfield, and Lorton.

If you can roll a bike, you're HIRED! Just shoot us an email and we'll get you assigned to the best location. office(at)bikesfortheworld.org or 703.740.7856

Participating Store Locations:

       P Street - 1440 P Street NW DC
       Georgetown - 2323 Wisconsin Ave NW DC
       Tenleytown - 4530 Wisconsin Ave NW DC
       Friendship Heights - 4420 Willard Ave Chevy Chase MD
       Bethesda - 5269 River Road Bethesda MD
       Rockville - 11355 Woodglen Drive Rockville MD *NEW LOCATION*
       Kentlands - 316 Kentlands Blvd Gaithersburg MD
       Silver Spring - 833 Wayne Ave Silver Spring MD

When: April 16th 11am - 3pm
Contact: Nick: nickolombo(at)gmail.com or 301.461.5349

Why Whole Foods Market? Well, why Bikes for the World?!! Whole Foods Market supports the environment through its products, through efforts such as the Whole Planet Foundation, and through support to community groups promoting environmnental values and action. Bikes for the World is one such organization and is gratified to earn the confidence of a major grocery retailer to host this multi-site event.

In turn, Bikes for the World respects Whole Foods Market's approach and scale. In celebration of Earth Month, the two organizations have come together to raise the profile of Bikes for the World's program among Whole Foods Market's clientele and the public at large, joining forces to give our community a close, convenient location to recycle a bicycle.

Happy Earth Day and Earth Month to you!

Nick Pakulla / Loan Officer / NMLS# 728211 / First Place Bank Mortgage - A Division of Talmer Bancorp / 15400 Calhoun Drive, Rockville MD 20855 / 301.585.7283 / http://www.nickhomeloan.com

Click Here to Apply Now at my Bank Website

Call Me Direct: 301.585.RATE (7283)

*Mortgage rates in my blog posts may be outdated, please contact me for a current rate quote!

What you need to know - Could the pending government shut down affect housing? A Maryland Loan Officer's view

Thu, 07 Apr 2011 08:55:14 -0700

Could the pending government shut down affect housing?

The simple answer is yes. However, the depth of the impact will depend on the length of the shut down and what guidance is released. A short shut down will have a very minor impact, but a month long shut down would have significant impact. The last significant shut down occurred in 1995 for 5 days, followed by a 21 day shut down from December 1995 to January 1996.

There are 3 main types of loans and the government's role in each is different (FHA, VA, and Conventional). To keep it simple, the 2 loans that are guaranteed directly by the government are FHA and VA. The media is somewhat misleading as the government's direct role in these types of loans is now automated via the internet, pretty much until after settlement. So this allows banks who choose to do so to continue originating and closing these loans without any change in normal operating procedure - even if the government was shut down. However, some banks may take the stance that with a government shut down they don't want to hold take a risk that the government guarantee offered by VA and FHA. Personally, I think it will be business as usual if the shut down is short (~1 week).

During the 21 day shut down in 1995 HUD issued the following bulletin which basically allowed banks to continue issuing FHA loans without any of the items that normally require government interaction (all of these are now automated via the internet), HUD even waived their late fee for the transfer of the FHA upfront MIP.

Here are a few bullets of things that I think will be impacted no matter what during a government shutdown:

Veterns looking for VA loans may run into problems obtaining a certificate of eligibility if they are unable to obtain it through the web.
Tax Transcripts are required for every loan to go through underwriting, this process is normally automated via an online interface via a 3rd party and then to the IRS, but there is a large potential for problems here (this would impact all 3 types of loans).
Employment verification is also required on every file (this is usually a phone call to HR), however, verifying that status of borrowers with government jobs will be impossible.
Obtaining paystubs from government employees may be difficult.
Borrowers who haven't filed their 2010 taxes yet and are planning on using their tax refund to assist with down payment will likely have to delay purchasing or writing a contract a little longer.
Mortgage rates will likely be significantly impacted.

In summary, everything should basically be business as usual for a short shut down. Anything longer should still be OK assuming all of the computer systems are functioning properly OR each agency releases guidance on how to proceed. A long term shut down will have a noticeable impact.

Nick Pakulla / Loan Officer / NMLS# 728211 / First Place Bank Mortgage - A Division of Talmer Bancorp / 15400 Calhoun Drive, Rockville MD 20855 / 301.585.7283 / http://www.nickhomeloan.com

Click Here to Apply Now at my Bank Website

Call Me Direct: 301.585.RATE (7283)

*Mortgage rates in my blog posts may be outdated, please contact me for a current rate quote!

Beyond the Media - National Home Values and Affordability Maryland, DC, Virginia

Fri, 01 Apr 2011 11:00:21 -0700

Here is a fantastic snapshot view of how the housing market has been performing detailing historic home value appreciation over the past 10 years. While the recent recession has caused some short term problems, home ownership is still a great return on your investment according the the numbers. Clearly the Maryland, DC, and Virginia areas have had some of the highest appreciation in the Country.

While the housing market still faces many challenges, high unemployment, foreclosures and other distress sales are keeping negative pressure on prices. This of course is good news if you are looking to buy as low rates and lower prices have brought affordability to record levels.

How Affordable? -Since 1963, it has cost an average of approximately 43% of 'per capita' or individual income to finance the cost of a median priced home (20% down payment and prevailing 30 year fixed rate mortgage). Right now, it's only about half of that cost at approximately 22%.

Are you holding off on a purchase for fear that prices might fall further? - Chances are that some sellers might be thinking the same thing. If you're smart about it, you can use that as an advantage to strike the best possible deal on a home today for once sellers believe that prices have bottomed or are going back up, your advantage will be gone.

Rates are low today, who knows about tomorrow? - Gambling on the expectation of a lower price tomorrow at the risk of higher rates can cost much more in the long run than locking in a sure thing today. Ex. $200,000 30 Yr. fixed loan @ 5% = $1073/mo. today vs. $180,000 @ 7% = $1197 per month later.

Own, Rent or Borrow - One way or another, a home is something we all need every day. The numbers here tell the story and it's no secret that values have fallen, yet over time, that's not the case. As you can see by the chart, values over the last 10 years show very healthy appreciation. Can you say the same thing about stocks over the same period?

We don't get a history lesson in the news because the news is about the moment and the more dramatic the better. That's what sells advertising and that's how they get paid. For the rest of us, taking a rational, longer term view of things makes more sense. This is particularly true when it comes to a home, for this is something we are likely to own for many years rather than just moments.

Nick Pakulla / Loan Officer / NMLS# 728211 / First Place Bank Mortgage - A Division of Talmer Bancorp / 15400 Calhoun Drive, Rockville MD 20855 / 301.585.7283 / http://www.nickhomeloan.com

Click Here to Apply Now at my Bank Website

Call Me Direct: 301.585.RATE (7283)

*Mortgage rates in my blog posts may be outdated, please contact me for a current rate quote!

Cherry Blossom Festival Peak Bloom Period - One of the Perks of Living in Montgomery County!

Tue, 29 Mar 2011 08:54:27 -0700

Cherry Blossom Festival Peak Bloom Period - One of the Perks of Living in Montgomery County!

This year we decided that we would take a trip to visit the Cherry Blossoms. I have lived near DC my entire life, and never had the timing right to see the Cherry Blossoms in Peak bloom. I highly recommended the trip if you are in the DC area during the appropriate times.

Average Peak Bloom Date: April 4
2011 Peak Bloom Date Forecast: March 29 – April 1
2011 Blooming Period Forecast: March 26 – April 7*
http://www.nationalcherryblossomfestival.org/about/bloom-watch/

Nick Pakulla / Loan Officer / NMLS# 728211 / First Place Bank Mortgage - A Division of Talmer Bancorp / 15400 Calhoun Drive, Rockville MD 20855 / 301.585.7283 / http://www.nickhomeloan.com

Click Here to Apply Now at my Bank Website

Call Me Direct: 301.585.RATE (7283)

*Mortgage rates in my blog posts may be outdated, please contact me for a current rate quote!