South Florida Mortgage Lady

Alex Romano Performs at the Patio Bar in Deerfield Beach

Cheryl Hale - South Florida Mortgage Lady (Boca Raton Mortgage Broker) — Sun, 11 Oct 2009 09:57:20 -0500

Nothing beats listening to some great live music while soaking up the ocean view and moonlight. Last night I had the pleasure of listening to Alex Romano and Kirk Green perform at the Patio Bar on the ocean in Deerfield Beach.

The Howard Johnson Patio Bar and Grill is located just north of Hillsboro on AIA just across from the Deefield Beach pier.

From soulful jazz to get off your feet and dance music, the crowd enjoyed the show until 11PM.

During their break, Alex and Kirk mingled with the crowd and I had the opportunity to chat with them for a few minutes. Alex has a website that has many samples of her talent. In addition, you can do a search for her on You Tube and find dozens of songs.

The duo plays gigs throughout the tri county area and are also available for private events. Take a look at Alex's website for more information and some samples of her talented singing at ARMusicFusion

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If I want a Lower Rate, do I Have to Refinance??

Cheryl Hale - South Florida Mortgage Lady (Boca Raton Mortgage Broker) — Sat, 03 Oct 2009 07:06:33 -0500

No, you do not need to refinance to get a lower interest rate. You might be able to qualify for the Home Affordabe Modification program. If qualified, you lender may lower your rate by modifying your mortgage.

The first thing you should do is go to your lender's website. They should have a section regarding how to get assistance if you are having difficulty making your mortgage payments, or something similar. This is where you can find out if they participate in the Home Affordable Modification program. If so, you can find out if you qualify. If this information is not on your lender's website, you can go to the Government website http://makinghomeaffordable.gov/refinance_eligibility.html for more information.

Basically, in order to qualify, your current mortgage payment ( principal, interest, taxes, insurance and HOA fees) must be more that 31% of your gross monthly income. ( Gross income is your pay before taxes and other deductions are subtracted).For example, if you make $60,000 a year, your monthly gross income is $5000. 31% of that figure is $1550. If your current mortgage payment is more than this, then you could qualify for the program.

The income of whomever is on the note is the income that is used to qualify you. If you are married, but you are the only one on the note, you do not need to disclose your spouse's income.
There is a calculator on the government site that you can use to see if you would be qualfied for the program.
If it looks like you are qualified, contact your lender's loss mitigation department and tell them you want to apply for the program. Be prepared with some basic financial information - have paystubs handy so you can discuss your gross income, and a list of your monthly household expenses.

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Foreclosure is Not the Only Option if You Can't Make Your Mortgage Payments

Cheryl Hale - South Florida Mortgage Lady (Boca Raton Mortgage Broker) — Wed, 16 Jan 2008 11:59:03 -0600

This post was inspired by a comment from Alex regarding my post Borrowers Don't Wait for the Well to Run Dry. That post discusses some changes in mortgage underwriting guidelines and how it is getting more difficult for borrowers to qualify for a mortgage.

"Well it is sure the trends show that it is going to harder for the consumers to cover the requirements but what happens with those who didn't make their payments. Those who failed at a certain point. They loose their home?"

Alex,

You are correct about the trends. Lenders are being much more cautious.

You've asked an excellent question that I am sure is on the mind of many homeowners these days. Based on what I am seeing and hearing, lenders are willing to try to work something out with those who have become delinquent...a foreclosure is very costly for the lender. AND bad for everyone all the way around. The lender prefers to avoid this option. As long as the borrower can demonstrate an ability to repay, the lender may do one of the following:

-Reduce the interest rate for a few years
-Allow the borrower to "skip" a few months of payments to get caught up (the "missed" payments are added to the balance of the loan, effectively extending the mortgage term a few months)
-Extend the term of the mortgage from 30 to 40 years
-Freeze the rate on an adjustable mortgage when the rate has increased to the point that the borrower cannot afford the payment.
-The FHA Secure loan is another option..borrowers who have fallen behind due to an adjustable rate increase may qualify to refinance into a lower fixed rate program to reduce their monthly payment. If you have a 2nd mortgage or HELOC, and owe more than the property is worth, you may still be able to refinance. FHA will allow for subordination of the 2nd lien.

-A short sale is another option. If you own more than your home is worth and you can prove hardship, you may be able to sell your home and start fresh. A short sale is less damaging to your credit report than a foreclosure. If you want to explore this option, be sure to work with a realtor who is experienced with short sales. This can be a time consuming, tricky process.

There is also some proposed legislation that may provide some relief in the form of reduced interest rates to make monthly payments more manageable.

Options are there. It is very important for a borrower who has gotten behind to contact their lender to see what can be done. They should also contact a mortgage professional to see if they qualify for a refinance to reduce the monthly payments. Folks are giving up before they explore their options.

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Need Hard Money in Florida - land

Cheryl Hale - South Florida Mortgage Lady (Boca Raton Mortgage Broker) — Mon, 14 Jan 2008 11:34:49 -0600

Looking for a hard equity lender who will loan on land only in Florida. Property is zoned agricultural. Looking for 50% LTV. 2 parcels - one is 10 acres and the other is 12 acres. Borrower says property is valued at 41K per acre.

Any ideas?

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New Group - Learn Mortgages and AUS

Cheryl Hale - South Florida Mortgage Lady (Boca Raton Mortgage Broker) — Tue, 08 Jan 2008 15:32:12 -0600

Randy Bolton has started a new group - Learn Mortgages and AUS

Here's the purpose of the group as proposed by founder Randy Bolton:

"Welcome to our educational group. Here we attempt to teach you the mortgage business. Starting with how to take a loan application, then, input a loan into an Automated Underwriting System, to finally closing the deal and receiving a paycheck. "

Stop by and see his introductory post - he made a list of some topics to contribute to.

Please join us by contributing your wisdom and experience. And for any of you with questions, don't be afraid to post them!

Realtors, this would be good for you if you want to learn about mortgage basics and more.

Let me know if the links don't work - I was having trouble with the cut and paste.

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FICO to Roll Out New Credit Scoring Model - FICO 08

Cheryl Hale - South Florida Mortgage Lady (Boca Raton Mortgage Broker) — Mon, 07 Jan 2008 18:53:29 -0600

As reported by Mortgage News Daily, FICO is planning on releasing it's new credit scoring product sooner than planned. FICO states that this new system will help reduce default rates on mortgages and other consumer loans.

The key points:

Consumers will not be hit as hard for an occasional, or one time missed payment provided the rest of their bills are paid in a timely manner.

As a consumer and mortgage broker, I like this one. While I don't advocate that making late payments is a good thing, once in while, someone with otherwise good credit could miss a payment for some odd reason. With the current model, this could lower their score considerably. I once did a refinance , and during the loan process, the borrower accidentally missed a payment on a Home Depot card...the account had been paid on time for 99 months. The score dropped 60 points since the delinquency was recent, and when the lender re-pulled the credit, they no longer qualified for the loan.

Another item that will be addressed is the authorized user. In the past, someone with an account in good standing could add an authorized user (spouse or child, for example) and that would almost immediately boost the score of the authorized user.

Apparently, there was a practice of folks adding authorized users for a fee, so borrowers could increase their credit scores. Not withstanding the moral implications of this, these folks are able to charge a fee for their "service". Little risk to them as the new "authorized user" never had access to the account or account number.After the deed was done, they could remove the borrower from the account, and add another one..for a fee, of course. Lenders became concerned about this a while ago, and would not consider those tradelines in evaluating a loan approval. Bottom line is, if you want to build your credit, you're going to have to do it on your own.
However...."The new version of FICO has prompted anger over the elimination of the authorized user category claiming that it will unduly penalize women who are more likely to have that status on their husbands' card than vice versa."

Another item: Those with a mix of revolving and installment debt will have a higher score than those with revolving debt only. So it can show you can manage a car payment and credit debt, your score will be higher

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Why is my Loan Taking so Long to Close???

Cheryl Hale - South Florida Mortgage Lady (Boca Raton Mortgage Broker) — Sun, 06 Jan 2008 07:27:54 -0600

As a mortgage broker, I work with a lot of first time homebuyers. The loan process is sometimes scary and intimidating. It really doesn't need to be that way, however you do need to be prepared to provide certain information so the lender can determine if you can pay the loan back.

A purchase that I am working on is consuming a lot of my time and energy, so I've decided to write this "letter" to hopefully educate and inform first time buyers and anyone else who may not be familiar with the mortgage loan process.

Dear Borrower:

As a mortgage broker, I pride myself in getting loans closed as quickly as I can. I'm good at what I do, but I also rely on a team to help me. That team can include an appraiser, a Realtor, a processor, an underwriter and YOU. Everyone on the team relies on the others to do their job correctly.

That's right - you are part of the team too. And your job is to provide me with the documentation I request in a timely manner. If you do that, you loan is going to close quickly. If not, your file is not going anywhere.

You are wondering why it's been a month and your loan hasn't closed...let's see..what could be the problem? ..

The pay stubs you gave me are from July, not December or January. It's taken me 2 weeks to get current pay stubs from you. If I submit your loan with outdated documents, the underwriter is going to put your file at the bottom of the pile. You told me you had a 401K, so I asked for verification. Another week goes by..OK, I think you get my drift.

You're upset that I am "asking for so much stuff" that you're going to have to take time off work.

I am asking you for the things I know the underwriter will require. The underwriter needs to justify approving your loan. If you were loaning someone a few hundred thousand dollars, wouldn't you want to be assured you would get paid back?

If you are prepared with the documentation you will need , your loan process will go very quickly and smoothly.

Here's a list of documentation you will need to provide to your mortgage professional:

1 month's worth of current pay stubs
W2's for the past 2 years
2 years tax returns if you are self employed
2 months of current bank statements..all pages
Current statements for any other assets such as a 401K or mutual fund.
2 years of complete employment history and a phone number for the HR department or a supervisor who can verify your employment.
Letter of explanation for any derogatory items on your credit report. Something very short and to the point, you don't have to write a novel.
For a purchase, a copy of the sales contract signed by all parties
A copy of your driver's license and social security card

It seems like a lot, but this is what your mortgage professional needs so they can submit your file to an underwriter for approval. Providing these things with the file makes the underwriter very happy and that means a faster closing for you!

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Stop Foreclosure with a Reverse Mortgage

Cheryl Hale - South Florida Mortgage Lady (Boca Raton Mortgage Broker) — Sat, 29 Dec 2007 08:42:37 -0600

If you are age 62 or over, and are having trouble making your mortgage payments, you may want to consider a reverse mortgage as a way out.

The proceeds from a reverse mortgage can be used to pay off the current lender, allowing you to stay in your home and never have another mortgage payment. My post on reverse mortgage basics will give you some information on how a reverse mortgage works.

Investigate your options with a reverse mortgage as soon as possible. Once your mortgage is in default, interest, attorney and other fees add up quickly, making the payoff amount several thousand dollars higher.

In order to use a reverse mortgage to prevent foreclosure, you will need to have a decent amount of equity in your home. With a reverse mortgage, you are eligible for a benefit amount of anywhere from 60-80% or so of the appraised property value. The older you are, the more $$ you will be eligible for.

Use this reverse mortgage calculator to see what you may qualify for. Remember, reverse mortgages do not have income or credit score requirements for qualification.

If the reverse mortgage calculator shows that you do not qualify for enough money to pay off your mortgage, speak with a mortgage professional anyhow. Lenders prefer to avoid foreclosure...the process is very expensive for them. It may be possible that your mortgage professional will be able to negotiate with the lender to accept a payoff that is less than the loan balance due.

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South Florida Mortgage Lady is a mortgage broker in Boca Raton, Florida. She works with an FHA approved mortgage company, and has completed many reverse mortgage transactions.
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Positive for 2008

Cheryl Hale - South Florida Mortgage Lady (Boca Raton Mortgage Broker) — Thu, 27 Dec 2007 17:21:29 -0600

The positive things I have to look forward to in 2008:

Moving near the beach :) I've been talking about this for a few years, and now I am actually going to do it!! I have my villa for sale, and I am positive that it will sell, even here in the south Florida market.
Making more friends here on Active Rain
Celebrating my next birthday in February...it's a new decade, and it's a doozy lol am I am looking forward to this new chapter in my life
Another season of no hurricanes
Seeing my friend Laura's baby Grace learn to walk
Continuing the daily positive affirmations that keep me focused
Generating lots of new business and helping people achieve their homeownership dreams and financial goals

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Mortgage Pro Week in Review--12/17/07 through12/23/07

Cheryl Hale - South Florida Mortgage Lady (Boca Raton Mortgage Broker) — Mon, 24 Dec 2007 13:50:55 -0600

I was honored when Jeff Belonger asked me to write this review. The holidays are near,and everyone is so busy, yet so many of you continued your dedication with quality posts. I'm glad to have the opportunity to do this review because without it, I would have missed out on some great posts to share with you. It was difficult to narrow the choices, but I gave it my best shot. I hope they inform, enlighten and inspire you.

Having been born and raised in Detroit, I rephrased a car slogan that popped into my mind which seemed to provide a good analogy to start off this Mortgage Pro Week in Review:

This ain't your daddy's automobile....this is what drives the mortgage industry today:

In a world not too long ago a pre approval letter meant what it said. Almost anyone could get a loan. The old model pre approval letter worked. Not so today. In true Active Rain style, Scott McKay generates lots of feedback from the pro's regarding this in his post DO NOT ACCEPT PRE APPROVAL LETTERS

Joe Adams further expands on this topic with his 2 cents in his post What is my Pre Approval letter worth??? Seeing how guidelines keep changing, how can we make everyone feel comfortable that a pre approval is worth the paper it is written on and that the deal will close?

Bottom line is we all want a deal that will close and that keeps getting harder to predict. The old models that we used no longer fit the bill. Those of us in the driver's seat have to be brighter, tougher and better engineered than before.

And speaking of getting deals closed...let's take a look at what goes on behind the scenes, on the assembly line so to speak. The people who work so hard and get so little credit for the final product. This could make some interesting reality TV...

Ken Cook gives us an entertaining glimpse into a day in the life of a head underwriter who just happens to be his wife... Dear Head Underwriter, Here Is Your Lump Of Coal, Signed ~ Santa

I bet Ken's wife would appreciate a loan package submitted the way Rey "Steak Dinner" Gallegos describes in his meaty post about other behind the scenes events that can impact the loan process ...no room for the kiddies - this playground is for professionals only...What To Expect From Your Mortgage Transaction

Try packaging a loan for underwriting with some of these issues to deal with...Matt Blum dishes up some very real and sometimes humorous statements made by would be borrowers...and generates some interesting comments along the way in his post Things not to tell Your Licensed Mortgage Professionals...

And last but not least in the behind the scenes category, I found this gem by new member Tana Hunt - her first post describing a hectic day spent overcoming hurdle after hurdle to make a closing happen. ..Christmastime Tana may be new to Active Rain. but she's a seasoned pro.

The professionals who know their stuff, communicate, adapt new strategies, and go the extra mile are going to be the one's who will not only survive, but thrive in the future in our industry.

Moving to the future - a couple of insightful posts provide food for thought as we continue to adjust and adapt to new models:

Chris Pollinger provides us with an insider's view on thoughts and predictions from some major industry players...is wholesale slowly and sneakily going away??? The Death of the Mortgage Broker . Bookmark this one and let's see if these guys are right.

Moving into territory that isn't often discussed, Mike Jones comments on how escalating housing prices in China can have implications for us here in the States... Housing Prices Up 10% in 70 Major Markets. This Could Be a Problem. Will China have to swallow the same bitter pill that we have???

Speaking of pills, Jeff Belonger offers up a prescription here Do you want that ultimate pill to relieve all mortgage related problems?

Off to the hybrids...

Being an animal lover, I can't resist the opportunity to focus on this one...I'm sure this is happening not just in CA, but all over the country...humans are not the only victims of foreclosure. Catherine Meyers tugs on the heart strings with this post...The unintended victims of foreclosure: THE PETS

This post isn't mortgage related, but I wanted to mention it because it's the holiday season. In the spirit of giving, let's remember those who give so much and are so far away from home and family this time of the year. Take a couple of minutes to send a thank you email postcard to our troops. The postcards were designed by school children from across the country. Ernie Cabrera tells you how in this post Support Our Troops - Let's Say Thanks!

Finally, this last mention has been featured, and I'm highlighting it because I think it provides a fitting conclusion to this week in review as we head into a new year...Ken Cook writes a post that reflects the voice and potential of the Active Rain community. Together Everyone Achieves More....Why Active Rain Can Save Real Estate

In closing, it has been a pleasure and a privilege to write the review this week. Wishing all of you Happy Holidays and health, happiness and success in the upcoming year.

The next 3 members :

•1. Jeff Belonger 12/24/07 through 12/30/07

•2. Jason Sardi 12/31/07 through 01/06/08

•3. Matthew Rosov 01/07/08 through 01/13/08

Mortgage blogs by loan officers Here is a list of Loan Officers. If you are not listed, please email Jeff Belonger to be added. This way the person doing the Mortgage Pro week in reviewc an try and find most mortgage related posts in one section. ActiveRain is growing rapidly and it is difficult to keep up.... If you think you have been ignored, you have not. This is open to all!!!

MORTGAGE PRO Week in Review A repository for the Mortgage Week in Review. Please don't hesitate in joining this group.

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Buy a Home in Boca Raton for Under 200K!!!

Cheryl Hale - South Florida Mortgage Lady (Boca Raton Mortgage Broker) — Wed, 12 Dec 2007 18:00:48 -0600

As a mortgage broker in Boca Raton, Florida, I often help homebuyers become pre-approved for a mortgage before they begin home shopping. Many of these borrowers are first time homebuyers.

Boca Raton has a bit of a "snobby" image. Many people think they need to be wealthy to afford a home in Boca Raton to take advantage of the wonderful amenities and the excellent school systems. But this is not the case.

We all know this is a buyers market today. To test my theory, I decided to do a search on Craigslist for homes for sale in Boca Raton under $200,000. My search resulted in 60 properties!!

Ok, so you won't get a mansion. What you will get is a 2BR villa or condo..a great starter home... perfect for a single person, couple or small family. And most of these homes are updated and remodeled...not fixer uppers. Some are on or very near the beach!!

Take a look at Craigslist, select Florida, then West PalmBeach, then Real Estate for sale. Use the search function to narrow your selection by price range and city. You'll be pleasantly surprised at what you will find.

I would not be doing my duty as a mortgage broker and partner with many Realtors if I did not advise you to get pre-approved before you begin shopping for a home. The mortgage market is changing daily. Find out first what type of loan you can qualify for and what you can afford before you begin shopping.

Here are links to posts you may want to read before you begin shopping for your home:

Reasons to Use a Local Mortgage Broker

Buy a Home with No Money Down

Conventional Mortgage Costs Increasing

Tips for Homebuyers in Palm Beach County

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Looking for Hard Money Lender in PA

Cheryl Hale - South Florida Mortgage Lady (Boca Raton Mortgage Broker) — Wed, 12 Dec 2007 15:13:30 -0600

SFH Owner Occupied Need 60% LTV

Thanks

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Borrowers, Don't Wait for the Well to Run Dry..Mortgage Money is Harder to Come By

Cheryl Hale - South Florida Mortgage Lady (Boca Raton Mortgage Broker) — Sat, 08 Dec 2007 22:36:48 -0600

Many Active Rainers have been discussing how the credit crunch is impacting borrowers...Jeff Belonger summed it up very nicely in his featured post today Will Conventional Loans be Just Like the Subprime Mess? He added links to several illuminating posts, so I won't repeat them here.

And now more fuel to the fire....

MGIC, one of the nation's largest mortgage insurance companies, announced plans to limit coverage and increase premiums for higher risk borrowers.

A few of the key points:

MGIC will no longer provide mortgage insurance for borrowers who have a FICO score of less than 575.
Coverage will be limited in states such as California and Florida, where markets have declined severely. The maximum loan to value they will insure will be 95%.
Increased monthly premium rates for layered risk = lower FICO scores combined with high loan to values. This will result in monthly payments becoming out of reach for many borrowers, as the mortgage insurance premium could cost a few hundred dollars per month, or even more.
Only stated loans for self employed borrowers will be insured. W2 employees will not be eligible. This will impact borrowers in states such as Nevada, and even Florida, where folks work jobs with the majority of income from tips.

Read the full article here: MGIC to Limit Coverage, Raise Prices on Riskier Loans

FHA is also proposing adding risk based adjustments to their mortgage insurance premiums. These proposed changes would be in effect in January 2008. For now, the premium is 1.5% of the loan amount in Upfront Mortgage Insurance Premium, and .5% of the loan amount divided into a monthly premium. regardless of the credit score.

For example, on a $300,000 loan, the upfront premium would be $4500 (added to and financed into the loan amount), and the monthly premium payment would be $125. That's one of the reasons FHA loans are so beneficial for qualified borrowers with lower credit scores. With a conventional loan, that mortgage premium for a borrower with a 575 FICO could easily be $300 per month or more. Tim Bradford reports the proposed changes in his post Proposed Change to FHA MIP...

Bottom line is, mortgage money continues to become harder to come by for all but those with strong credit scores. No one has a crystal ball to determine when the "bottom" will hit. However, homebuyers with less than perfect credit may not have the luxury of waiting for the bottom.

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Understanding Settlement Charges and the Good Faith Estimate

Cheryl Hale - South Florida Mortgage Lady (Boca Raton Mortgage Broker) — Fri, 07 Dec 2007 12:52:47 -0600

As a mortgage broker in Boca Raton, Florida, I am often asked by mortgage "shoppers" to provide a Good Faith Estimate of settlement charges. I am proud to say that the Good Faith Estimates that I provide very closely match the settlement statement at closing. A Good Faith Estimate cannot be exact, because some settlement charges, such as prepaid interest, are calculated based on the number of days left in the month when the loan closes.
However, not all lenders provide accurate Good Faith Estimates. Some conveniently omit certain fees to make you think you are getting a better deal. With that in mind, I have decided to write a series of articles explaining the typical fees you can expect for a mortgage in the state of Florida.

Settlement charges are grouped into sections: lender fees, title related fees, government fees/taxes and prepaid charges. This article will focus on the lender fees. These are fees associated with the cost of processing and underwriting your loan.

Here is what you can expect to see:
Loan origination fee: this is how the loan officer or mortgage broker is compensated. This fee is split with the broker's company to cover their overhead costs.
Broker fee: same as above
if you see both a broker fee and a loan origination fee, this is just a sales tactic to break up the commission so it looks smaller.
Application fee: This is not a standard fee. Some companies do charge this fee to cover some expenses in case you decide to pull out of the loan for any reason. It is usually refunded at closing. If it is not refunded at closing, it is a junk fee in my opinion.
Administrative fee: This is usually another "junk" fee. Companies with very high overhead may charge this fee to cover expenses.
Processing fee: Covers the salary of the processor who submits your loan to the underwriter and handles the file through closing. A good processor is worth their weight in gold and is invaluable in navigating through the many glitches that can come up.
Underwriting fee: This is a 3rd party fee charged by the lender for underwriting your loan. Not a junk fee.
Yield Spread Premium: Commission paid to the originating company from the lender. this should be disclosed as a dollar amount or a specific percentage, not a range of 1-3%.(explaining how this works is another article -stay tuned.)
Appraisal fee: Fee paid to the appraiser for completing the appraisal.
Credit report fee: Fee that the mortgage company is charged for ordering your credit report.
Flood Cert fee: covers the cost of certifying whether or not your property is in a flood zone.
Tax Service fee: covers the cost of servicing your escrow account.

It's important to know that "third party" fees cannot be marked up. You may only be charged what the mortgage company paid for these services. If a credit report cost $9.90, you cannot be charged $25 for it.

Coming next: Prepaid Items.

If you would like a second opinion on a Good Faith Estimate you have received, I will be happy to review it for you with no cost or obligation. If I think you are getting a good deal, I will tell you so.

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Florida Mortgage Market and Rate Report

Cheryl Hale - South Florida Mortgage Lady (Boca Raton Mortgage Broker) — Fri, 30 Nov 2007 11:41:49 -0600

Looking to purchase a home in Florida? Here's what conforming interest rates are looking like today:

30 Year Fixed Rate - Conforming Mortgage Interest Rate - No Prepayment Penalty

Quotes below are based on the following: Owner Occupied purchase transaction, minimum 680 credit score, 20% down payment, minimum 2 months reserves and full documentation of income within guidelines. Maximum loan amount of $417,000. 30 day lock.

Example: Purchase price $250,000. $50,000 down payment

5.5% (APR 5.703%) - 1 point origination fee Principal and interest payment = $1135.58

5.75% (APR 5.8625) - 0 points Principal and Interest payment= $1167.15

This quote is for illustrative purposes only and does not a guarantee a lock or commitment of interest rate. Rates change daily.

Recently, Freddie Mac and Fannie Mae announced changes to the fees they will charge service providers for loans with higher risk. In particular, loans where the borrower is putting less than 30% down and has a FICO score under 680. Read more here: Conventional Mortgage Costs Will Be Increasing

Tips for Buyers in Palm Beach County

What's Involved in the Mortgage Application Process

How Much House Can You Afford?

For more information on available mortgage programs, please contact me.

South Florida Mortgage Lady

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Newbie or not so newbie?? Success Story

Cheryl Hale - South Florida Mortgage Lady (Boca Raton Mortgage Broker) — Tue, 27 Nov 2007 14:19:17 -0600

Not too long ago, I posted about how excited I was over my first bit of "Google Juice". Now I am happy to report that I have received a few leads as a result of my activity here on Active Rain. And this is after only a month of blogging.

While the hits to my blogs are not tremendous yet :), I am seeing more hits coming from search engines. So if you signed up and haven't been blogging, get out there and do it. If you post it, they will come.

Beside the leads, I've been also been in contact with some great and helpful folks here on AR. Katerina and Nestor Gasset may be working with someone I referred to them who may need to do a short sale inWellington. Nestor prepared a top notch package with up to date information on the market, especially as it pertained to short sales in that subdivision.

Matthew Blum," Mortgage Advice in South Florida" has been very supportive, and even gave me a suggestion for an update to an ad I posted on Craigslist...very commendable of him since we are both mortgage brokers in the same county!

And... the ad I posted on Craigslist was inspired by a post of Jeff Belonger's Do We Have an Epidemic on Our Hands - as I was writing my comment, I discovered the beginnings of the wording for my ad and a new post.

Ernie Cabrera was kind enough to search Localism and make some suggestions for me in response to my question about why I couldn't see my Localism posts.

Sylvia Williams stopped in to comment on my post asking about Reverse Mortgage Seminars and offered a great marketing idea.

Lenn Harley was one of the first Active Rainers to comment on one of my posts, and recently drew attention to some comments I had made on her post California Subprime Borrowers May Get Relief...More Questions Than Answers

Sean Allen and Pilar Lorenzo gave me the first comment on my first post.

I hope I haven't left anyone out...thank you AR and Active Rainers. Newbies or even not so newbies, don't sit on the sidelines, get out there and blog!

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Don't Call Me if You Want the Cheapest Mortgage Broker

Cheryl Hale - South Florida Mortgage Lady (Boca Raton Mortgage Broker) — Sun, 25 Nov 2007 11:55:08 -0600

"No points, no fees, free appraisal, 2.25% rate fixed for 5 years..." I won't tell you any of those things. So maybe you'll move on to the mortgage broker who does. Yes, you want to be a savvy consumer, but you know the saying..."if it sounds too good to be true, it is"

Obtaining a mortgage is one of the biggest financial decisions you will make. And you are doing a disservice to yourself if you shop for a mortgage based upon misleading advertising. Because it all comes out in the wash. That "free appraisal" will cost you somewhere else.

Here's what you do. Find a mortgage broker, someone like me:) who will sit down with you for a half an hour or so and review your financial situation with you. Someone who will ask you about your financial goals:

When do you want to retire?
Do you have an emergency fund?
Would you like to become debt free?
Do you need money for kid's college expenses?

All of these things and more can factor into your mortgage decision, especially if you are refinancing.

If you are buying a home, I might tell you something you don't want to hear. Maybe you really can't afford the dream house you are looking at. Because 2.75% is not an actual interest rate..it's called a start rate..and yes, it is fixed for 5 years. And you have a nice, low payment. But your actual rate is more like 7.75%. So what happens to the difference in interest? It's called deferred interest, and it gets added to your principal balance. And your payment won't stay low forever. After all, that deferred interest still has to be paid.
This type of mortgage is not a bad tool when used in the proper situation. But it does not make sense for the average homebuyer.

So, if you really want the best deal, plan on spending some time consulting with a loan officer/mortgage broker. And by the way, calling someone and asking "what's your rate" does not qualify. You want a full consultation. And you want to be honest. Don't over inflate income, savings or bonuses. It's all going to be documented in the end, and you will just be making things more difficult if you're not honest upfront.

After the consultation, your mortgage person should review all the numbers with you...show you what your monthly payment will be, including your taxes and insurance. And, they should review the Good Faith Estimate with you. Including how much commission they will make. While there is no standard, since each loan is individual, a commission of 1-2% of the loan amount is in the ballpark. If the loan is a very difficult one that requires a lot more work, the commission may be higher.

Giving you a free appraisal doesn't make me a better mortgage broker. But analyzing your financial situation and making a recommendation for the mortgage program that works best for you is what makes me one of the better ones.

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Help! I Can't Find my Localism Posts

Cheryl Hale - South Florida Mortgage Lady (Boca Raton Mortgage Broker) — Sat, 24 Nov 2007 12:49:26 -0600

Hi all,

I've been on AR for about a month now and have received some wonderful ideas from this group. I've been posting on Localism for consumers, and must be doing something right because I am #4 in my county and #2 in my city for mortgage brokers.

However, when I do a search on localism and drill down to my state and county, I can't find my posts??

When I go back and look at my post, I can see that I have checked off the correct boxes (state, county,etc) for the localism post, but localism doesn't show up in my list of areas posted to?? For example, I might post to localism and some groups I feel the post is appropriate for. I see the groups listed at the bottom of my post, but not localism??

If I can't find them, how will the consumer??

Thanks in advance for any advice.

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Reduce your Property Insurance Bill in Florida..Free Windstorm Inspections

Cheryl Hale - South Florida Mortgage Lady (Boca Raton Mortgage Broker) — Sat, 24 Nov 2007 07:54:35 -0600

After Hurricane Wilma roared through Florida, I needed to have my roof replaced. I also added hurricane shutters. Then, my insurance company went out of business and I had to apply for new property insurance. As a condition of the application, a windstorm inspection was required. The cost was $150. Well worth it, because my insurance tab was reduced by $500 because of the improvements I had made.

Now, these windstorm inspections are free for Floria homeowners who have single family detached homes. If the inspection reveals that your home has better hurricane protection, you may be able to get a discount on your property insurance bill. If your home is not a single family home, you won't qualify for the free inspection. However, you can still contact one of the approved inspectors and have the inspection completed for a fee of $150.

Some of the things included in the inspection report will be:

An outline of things that can be done to your home to provide better hurricane protection

An estimate of the costs of those improvements

An estimate of insurance discounts that may be available.

In addition, grant funds up to $5000 are available for installing hurricane shutters and bracing of gable roof ends.

So if you've had your roof replaced, installed hurricane shutters or replaced your garage door, you may be eligible for a discount on your property insurance premium. Go ahead and schedule the inspection, it's free. And if you are thinking about making these improvements, get the inspection first so you have an idea of which improvements can give you the most bang for your buck. The state provides a list of approved inspectors as well as approved contractors.

To find how to schedule your inspection and see if you are eligible for grant funds, go to the state's website My Safe Florida Home or call the Hotline at 866-513-6764

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Beautiful Remodeled 2BR 2BA Villa in West Boca Raton-Reduced to $235,900

Cheryl Hale - South Florida Mortgage Lady (Boca Raton Mortgage Broker) — Tue, 20 Nov 2007 13:28:35 -0600

Lovely home in great area. Seller will assist with discount to financing.

Jason LaPaglia | Choice Realty | 954-254-5572

9732 Sunny Isle Circle, Boca Raton, FL

Beautifully remodeled 2BR 2BA villa in desirable West Boca neighborhood.

2 Bdrm Single Family House

offered at $245,900

Year Built	1985
Sq Footage	1,435
Bedrooms	2
Bathrooms	2 full, 0 partial
Floors	1
Parking	1 Car garage
Lot Size	Unspecified
HOA/Maint	$160 per month

DESCRIPTION

Spacious open floor plan with split bedrooms.
Remodeled kitchen with granite countertops and stainless steel appliances.
Large screened in tiled patio.
Freshly painted inside and out
Aluminum hurricane shutters
New roof 2006
New A/C 2004
Home warranty provided
Rainsoft water softener/filter

see additional photos below

PROPERTY FEATURES

Central A/C	Central heat	Walk-in closet
Hardwood floor	Tile floor	Living room
Dining room	Breakfast nook	Dishwasher
Refrigerator	Stove/Oven	Granite countertop
Stainless steel appliances	Attic	Washer
Dryer	Laundry area - inside	Balcony, Deck, or Patio
Yard

COMMUNITY FEATURES

Guest parking	Clubhouse	Swimming pool(s)
Sauna/Spa	Tennis court(s)	Lake
Playground

OTHER SPECIAL FEATURES

Pet friendly

ADDITIONAL PHOTOS

Seller contact info:

Jason LaPaglia

Choice Realty

954-254-5572

For sale by agent/broker

Equal Opportunity Housing

Posted: Nov 20, 2007, 9:02am PST

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World Savings Tightens up Guidelines on Foreign Investor Loans

Cheryl Hale - South Florida Mortgage Lady (Boca Raton Mortgage Broker) — Sun, 18 Nov 2007 18:32:46 -0600

There have been media reports about foreign investors finding properties in Florida attractive, yet these investors are waiting, like so many others, for the market to hit bottom so they can get even better deals. Well, I am wondering, will they be waiting too long???

World Savings has been one of our great go to lenders for Foreign National loans with LTV's up to 75% and no income or asset verification. I recently received a memo from our rep at World Savings regarding some issues they are having with Foreign National loans.

Here are the key points:

1 - "When a Foreign National is buying a new construction condo, especially in Dade county - please be aware we may not be able to offer the 75% LTV if the appraisal comes back displaying Marketability issues (high investor concentration, large amounts of units for sale on MLS, etc.). Please be aware that a counteroffer is likely if your foreign national borrower is purchasing a new construction condo in Florida due to these property issues.

2 - If a Foreign National is buying a property as a "For Sale By Owner" (FSBO) underwriting will be conditioning for asset verification regardless of what LTV. They will also be conditioning for Title work to be submitted earlier on in the transaction in order to make sure that there are no Lis Pendens/Foreclosure proceedings occurring. We have seen an increase in bail out loan submissions packaged as "Foreign National purchases" recently and these are loans that we are not interested in funding. Foreign nationals buying FSBO when the property is in foreclosure will not be approved. (note from Cheryl - nice try at creative financing lol)

3 -Due to the issues that we have been having and observing on New Construction Condos and PUD's, Appraisals will be conditioning for 50% sold and 25% closed within the project."

The lending landscape continues to change and adjust with market conditions. I know a lot of people fault those of us in the mortgage/real estate industry spreading the mantra that now is a good time to buy. They think we are feeding our own agendas because they believe the market has a long way to go before it bottoms out. I won't even go into issues with "timing" the market. The other thing to consider is... will these buyers be able to get approved for a mortgage when they finally decide to jump in?

For the cash borrower, or A paper borrower with a 700 FICO (who can document income and assets and provide a 20% down payment)... maybe not a problem. Everyone else should do their homework before they wait for the market to "bottom out".

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Conventional Mortgage Costs will be Increasing - Freddie Mac Bulletin

Cheryl Hale - South Florida Mortgage Lady (Boca Raton Mortgage Broker) — Fri, 16 Nov 2007 13:47:58 -0600

In their November 15 Bulletin, Freddie Mac announced new post settlement delivery fees effective March 1, 2008.

"Freddie Mac continually evaluates the mortgages that we purchase and the applicable delivery fees. In response to the continuing volatility and turmoil in the mortgage market, including the deteriorating performance of higher - risk mortgage products, we are expanding our use of risk-based pricing by adding fees on Indicator Score and loan-to-value ratio"

The fees will be charged to lenders when they sell their loans to Freddie Mac. Lenders will be likely to pass those costs on to borrowers, which in turn will make home loans more expensive. Since Freddie Mac and Fannie Mae operate on the pretty much the same wavelength, we should expect to see these changes across the board with regard to conforming loans.

15 year mortgages, FHA/VA loans and a few other programs will not be affected by these changes.

So, what does this mean for borrowers? Increased rates or fees if their FICO score is under 680 and they want a loan amount that is loan greater than 70% of the property value. For example, a borrower with a 679 score will pay an additional fee of .75% of the loan amount, or pay a higher rate to offset the fee.

For a loan amount of $300,000, this translates to a fee of $2250. If the borrower chooses the higher rate option, the scenario would look something like this:

Assuming someone qualifies for a 6.25% rate today, the rate under the revisions would increase to 6.5% if their FICO score is between 660 and 679. This would increase the payment by $49 per month. Or, to avoid the increase at all, the borrower would have to put 30% down - or $90,000 on a $300,000 home.

The impact is much greater with lower credit scores - up to 2% of the loan amount ($6000 on a 300K loan), or a rate increase of about .75% - almost a full percentage point! In this case, the monthly payment on a $300,000 mortgage would be $148 higher with the revision.

While most folks with a score under 620 won't qualify for conforming rates, some do if there are compensating factors such as higher income, significant assets/reserves and/or a larger down payment. If you're a buyer with a score under 620 and you're waiting for home prices to drop even further, think about this - the $300,000 home you are looking at today would have to decrease in value to $278,000 to offset the payment increase that would result with the changes going in to effect March 1st.

In addition, there will be reductions to maximum financing allowed in declining markets. Appraisers have to specify whether the property is in an increasing, stable, or declining market. If the property is determined to be in a declining market, the maximum loan to value allowed will be reduced by 5%.

These changes will be effective for all mortgages with settlement dates on or after March 1, 2008. Any would be buyers out there with scores lower than 680 should factor this into their decision making if they want to continue to wait for home prices to fall.

See the Freddie Mac Bulletin for details regarding all of the revisions.

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Reverse Mortgage Closing Costs

Cheryl Hale - South Florida Mortgage Lady (Boca Raton Mortgage Broker) — Wed, 14 Nov 2007 12:14:40 -0600

Reverse Mortgages involve many of the same closing costs that you would pay for a home purchase or a refinance.

Here is a breakdown of the typical closing costs for a reverse mortgage:

Origination fee

This covers the operating/overhead expenses for the lender. A portion of this is also paid to the loan originator.

Under the HECM (Home Equity Conversion Mortgage), which accounts for the majority of reverse mortgages, the origination fee is as follows:

2% of the lesser of the property's appraised value or the FHA maximum loan limit for your county. Here in Palm Beach County, Florida, the FHA max loan limit is $362,790. So if your home was appraised at $400,000, the origination fee would be 2% of $362,790 or $7256. The minimum origination fee is $2000.

Mortgage Insurance Premium

The mortgage insurance premium is calculated the same as the origination fee.

With a reverse mortgage, the lender recovers their principal, plus interest, when the home is sold or refinanced. The remaining value of the home goes to the homeowner or to his or her survivors. If the sales proceeds are not enough to pay off the loan, HUD will pay the lender the amount of the shortfall. The Federal Housing Administration, which is part of HUD, collects an insurance premium from all borrowers to provide this coverage.

Appraisal fee

The appraisal fee is typically $325-$350. This is the only fee that is paid "up front". The appraiser will expect to be paid at the time of the property inspection.

Other closing costs

Credit report fee (while credit score is not an issue, credit is checked to verify there are no federal liens which would need to be paid)

Title Insurance (.00575 X the loan amount)

Costs incurred by the title company for title searches and document preparation.

State tax stamps on deed (.0035 X the loan amount)

County tax stamps (.002 X the loan amount)

Recording fee - fee charged to record the mortgage with the County Recorder's office. This is usually about $150

Service fee set aside

The service fee is a monthly charge fee paid to the company that services the mortgage. This is deducted from the available loan proceeds to cover the projected costs of servicing the account, but is not an actual charge. The servicing fee is actually charged on a monthly basis in the range of $25-35 per month.

As you can see, closing costs can be quite steep.(These do not have to be paid out of pocket - they are deducted from the loan proceeds) So, if you will be living in the home less than 3-5 years, it usually does not make sense to consider a reverse mortgage.

For more information on reverse mortgages visit The South Florida Mortgage Lady

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You Can Do a Reverse Mortgage on A Manufactured/Mobile Home

Cheryl Hale - South Florida Mortgage Lady (Boca Raton Mortgage Broker) — Sun, 11 Nov 2007 10:44:07 -0600

I have come across a lot of questions lately regarding reverse mortgages and manufactured/mobile homes. Many people think these types of properties do not qualify. As a mortgage broker in South Florida, I have recently done several reverse mortgages for people living in manufactured/mobile homes. Reverse mortgages can be done on manufactured/mobile homes, but there are some conditions that apply.

Here's some information about what's needed to qualify for a reverse mortgage for these types of properties:

The home must have been built after 1976
The home must be permanently attached to a foundation
an appraisal will be needed- the cost is around $460 - more than a conventional appraisal
a structural engineering report must be completed cost abut $450. This must be completed to make sure the property meets HUD/FHA guidelines
The land the property sits on must be owned.

As with conventional reverse mortgages, the following also applies:

The borrower must be at least 62
The property must be a primary residence
Any current liens on the property must be paid with the proceeds of the reverse mortgage
Any outstanding Federal liens must be paid
Title to the home is always retained by the borrower.

Also, if you are a snowbird and live in Florida for 6 months of the year, and do not rent your property during your absence, you can still qualify for a reverse mortgage.

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Reverse Mortgage Seminars

Cheryl Hale - South Florida Mortgage Lady (Boca Raton Mortgage Broker) — Fri, 09 Nov 2007 11:35:30 -0600

Anyone out there having any luck with generating leads through Reverse Mortgage seminars? If so, are you willing to share your strategies.

I have been calling local senior centers, but haven't had much luck. I've spoken with some other Reverse Mortgage originators, and while they have some success, it seems like quite a bit of work compared to the return.

We have been having some success with doing mailers to residents of condo's where we have closed a reverse mortgage.

Your thoughts?

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