Lake County Mortgage and Local Happenings (Eustis, Mt. Dora, Tavares, Leesburg)

Part 2 - Financing a Home in Eustis, Florida

Knightlines Mortgage Services, LLC — Mon, 13 Jul 2009 23:31:18 -0500

As we discussed in Part 1 of the Buying a Home in Eustis, Florida, there are many options that a potential home owner has when looking for a home in the Eustis area. And like the real estate, a home owner has several mortgage programs to shop for.

Each mortgage loan that is available to Eustis borrowers has its own unique set of guidelines and characteristics. In general though, they have the same basic ground rules: must have a job, must have credit (Good to Excellent), and must be able to afford the mortgage payment.

It is from these main ground rules that lenders and programs deviate into the individual programs that are offered. ( To avoid a long, drawn out post, we will cover the individual programs in more detail in separate posts.) Here is basic list and summary of the programs that are available to potential mortgage loan borrowers: Read more.

Part 1 - Buying a Home in Eustis, Florida

Knightlines Mortgage Services, LLC — Tue, 07 Jul 2009 22:59:56 -0500

Whether you are moving to Eustis, Florida to become a new resident or are an existing resident, here are some things that you should know when purchasing your new home. This will be a several part topic covering: real estate, mortgage, insurance, business, and local flavor.

In this first part, we are going to be covering the real estate side of buying a home. The first thing that one should consider when purchasing their new home is where in Eustis they want to live: in a community, in the country, in town, near downtown, etc. There is, despite the cities perceived small size, a large diversity in real estate locations.

The city even has elevations to chose from despite the misconception of Florida being flat. You can opt for a home at the top of a hill looking out over a lake, or you can have a home at the bottom of the hill on the lake. These are all possible locations that one can find when shopping for their new home.

Besides location, pricing has a large range. Some homes can be purchased for less than... read more.

SHIP goes FHOP and leaves in its wake $8000

Knightlines Mortgage Services, LLC — Tue, 07 Jul 2009 22:55:48 -0500

July 1, 2009 marked the new fiscal year for SHIP (State Housing Initiative Program), a state funded down payment assistance program for low-level income home buyers. However, this year the $161 million grant used to fund this program has been cut to $30 million to fund the Florida Homebuyer Opportunity Program (FHOP).

The $30 million is split amongst the counties of Florida. Each county then distributes the money based on city/area. In most areas, this will mean that less than 10 first time homebuyers in any given city/area will receive an advance on their $8000 tax credit to use towards the purchase of a new home today.

If you are one of the lucky few to get the $8000 advance to use towards down payment, mortgage loan closing costs, or pre-pays associated with the purchase, here is what you need to know: Read more here.

Damn, You're Young...

Knightlines Mortgage Services, LLC — Tue, 09 Jun 2009 11:07:06 -0500

I am stealing that line from Neil Cavuto of Fox Business Network

In a recent broadcast of Fox News, Cavuto mentioned how someone asked him about mortgage rates. The person was hesitant to buy a new house because mortgage rates went back up. Cavuto asked him what he was going to do... wait to see if they go back down was the response.

Cavuto, in his off tangent thinking, begins to share how "Damn" young this guy is. But his answer to the potential home buyer was "5.25% is pretty good." Then he proceeded to tell the young man to "Shut up."

Why did Cavuto tell him to shut up? The answer is pretty simple. "5.25% is pretty good." Remember when mortgage rates were double digits. Remember when prime was over 20%. Remember when...

Most people, if they think hard enough, will remember those days. Now, doesn't 5.25% or even 5.75% sound "pretty good." Yes, it does. And yes, 4.75% sounds better. Unfortunately, those days are in the past, and soon you will be saying I remember when rates were 4.75%. For those of you who waited to see if rates would go any lower, are now going to say, I remember when rates were 4.75%, but all I got was a 5.75% rate. But you know what? That is still "pretty good" compared to what it could be.

So what is the moral of this story? It is shut up about the rates. They are going to be what they are. It is only a matter of how long does a borrower want to wait to lock in their rate. 4.75% is gone. 5%+ is in. It is still a "pretty good" rate.

Oh, and to put this into monetary terms, a $150,000 mortgage at 4.5% over 30 years has a payment of $706. The same mortgage at 5.25% has a payment of $828. That is roughly $36 per .25% increase to the rate. That breaks down to just over $1 per day per .25% increase to the rate. Can you afford an extra $1 per day to go to your mortgage if rates went up .25% tomorrow. If the answer is "No," then you need to do something today. If the answer is "Yes," then can you afford a full 1% increase (or $4/day)?

Each day you spend watching the rates go up is just another dollar that you could have been saving.

If you want to watch the Cavuto news clip, click here.

The Buyer, The Realtor, and The Perfect Home

Knightlines Mortgage Services, LLC — Thu, 07 May 2009 15:46:01 -0500

Realtor: Here it is!!!

Buyer: Where?

Realtor: There.

Buyer: What, behind the 4 bed, 3 bath, 2 car garage brand new home?

Realtor: It is the 4 bed, 3 bath, 2 car garage brand new home.

Buyer: Silly, Realtor.

Realtor: What?

Buyer: You got me all worked up.

Realtor: Well, that is no ordinary home.

Buyer: Oh?

Realtor: That is the cheapest, newest, never-lived in, best deal in the area home you will ever set your eyes on.

Buyer: That is a shack at best. Maybe a shed in today’s market. Move on to the next house. I hope it is more in line with what I expect, or I am going to find another Realtor that can get me what I want.

Realtor: I am warning you, but do you listen to me? Oh, no, you know it all, don’t you?

Buyer: Shut up and show me the next house.

Realtor: There is no other house… this is the best house.

Buyer: Well, how much do they want for it?

Realtor: $200,000

Buyer: Let me consult with my other half. Here is our offer on moving forward: First, they must accept our first and only offer. If they don’t, their loss. Then they must drop the price $30,000. No less, but possibly more. $30,000 is the number. Not $20,000 unless they are counting up to $30,000. $40,000 will be better and $50,000 will be best. But no less than $30,000 off the price.

Realtor: Are you serious?

Buyer: Take it or leave it.

Realtor: Okay, I will put the offer in then, but I have my reservations. Have you at least been pre-approved for the mortgage?

Buyer: No, I am waiting for interest rates to reach 4% like the media says it is going to do.

To Be Continued…

(This is an adaptation of Monty Python and the Holy Grail. Any humorous events portrayed in this post are based upon REAL events as expressed from several Realtors that I have met.)

Mortgage Rates Projected to Hit 5 Year High This Week

Knightlines Mortgage Services, LLC — Mon, 27 Apr 2009 07:12:09 -0500

This week it is projected that mortgage rates will reach a 5 year record high. Thanks to declining markets, credit lending guidelines tightening down, banks going out of business or merging to avoid bankruptcy, and many other economic factors, potential homeowners will now be facing an even more difficult time in trying to qualify for a new home due to the sharp an sudden increase in mortgage loan interest rates.

Just last week, mortgage loan rates were in the 4-5% range. But by the end of this week, mortgage rates could be as high as 7-8%. Those people who were waiting for the right time to buy have missed that ship, as it set sail last week. The great deals of low priced houses and low rates, may never be seen again in our life time. Those who jumped on the golden opportunity have the potential of turning their gold into platinum, while those who procrastinated will struggle to even purchase cardboard box big enough to cover them from head to toe.

But in all this bad news, there is good news!!! What you have already read has not happened yet. Rates are still at all time lows. They are still in 4-5% range. There are still some 100% mortgage financing programs out there. Banks are still lending money. And homes are still being purchased at great prices. Don’t wait till the title becomes a reality.

Call your realtor today to find a deal, I mean home, that is right for you. And call us today, to get your financing in place and your rate locked in before they really do go back up. Time is not on your side

The following has been added after the initial posting due to some confussion about what they read (or did not read).

*** And just in case you did not fully understand, RATES are not at 7-8%. I have no idea when they will go up to 7-8%. Could they go up to 7-8%? YES!!! Could it be next week? I highly doubt it, but who really knows? I just wanted you to think about the future in that your hopes of things getting better and then you buy, could go the other direction.

Mortgage Broker or Bank - Which should(n’t) you use

Knightlines Mortgage Services, LLC — Thu, 09 Apr 2009 06:13:41 -0500

I often get asked, “Why should I use a mortgage broker versus going to my local bank or going through the internet?“ The latter part of the question is the easy one to answer. Unless it is a major well-known company, you are taking a big risk. Yes, I am in a way hurting myself by making that comment because Knightlines is not a major well-known company on the national level, but that has also never been our goal. In our local market, we are well-known. The risk you run is that you are giving out all your personal information (social security, bank accounts, etc.) to an unknown.

I can go on about the internet, but this post is going to focus more on the difference between broker and banker (Please note that I am not saying mortgage banker because that is a separate issue). The way I always relate the two is like this: A mortgage broker offers his/her rates at wholesale, and the bank offers its rates at retail. And then I go on… Read More.

HomePath And 100% Guarantee

Knightlines Mortgage Services, LLC — Sat, 14 Mar 2009 14:39:30 -0500

HomePath by Fannie Mae takes on 100% Guaranteed by USDA. Both of these programs are offered by Knightlines Mortgage Services, LLC of Lake County, Florida. And both are going strong to help spark home purchases across Florida.

Before we compare these two programs, we are first going to disclose the following: Despite USDA being out of money, Knightlines has funding sources that are still able to close and fund the USDA Guarantee Loans with all the benefits of the loan.

HomePath	100% Guarantee
Offered by Fannie Mae	Offered and Backed by USDA
Up to 97% Financing	Up to 100% Financing
Up to 6% Concessions Towards Closing Costs	Read More

Barack's Housing Plan Tackles Mortgage Payments Through Interest Rates, And Leaves Taxes And Insurance On The Sidelines

Knightlines Mortgage Services, LLC — Sun, 22 Feb 2009 10:03:13 -0600

There has been much talk these last couple of days about President Obama’s $75 Billion Homeowner Affordability and Stability Plan. The plan has several keys features to it that are designed to help current homeowners that are current on their mortgage payments to take advantage of today’s rates and possibly re-structure their loans without having to miss a payment to qualify.

Here are some of the key points:

Allow homeowners that are currently 80% or greater in debt to the value of their home to refinance through Fannie Mae or Freddie Mac
Lower monthly payments by reducing the interest rate to where the payments represent 38% of their total monthly income. In addition, the plan would match dollar-for-dollar any monthly savings from the interest payments bringing the effective ratio to closer to 31%.
In addition to lowering rates, lenders may reduce the principal loan amount down.
Lenders and servicers will paid incentives to do these modifications before a homeowner misses a payment.
Establish consistent guidelines across the board for Fannie Mae and Freddie Mac on all modifications.
Rebuild confidence in the two mortgage giants and increase their portfolio limits.

Now, there are some draw backs to this plan. Some are addressed and some are not. The first draw back being that the low interest that one gets today under the modification will only last for 5 Years. After the initial term is up, the interest rate will be slowly raised back up to the original rate. The problem with this is that home values could continue to decline or not increase enough to where the homeowner can refinance. The other issue is that the job market could still be a huge factor to where they cannot afford the increased payments again.

Another issue it that of Mortgage Insurance. This is the insurance that lenders require a borrower to pay for any loan that is greater than 80% the value of the home. With the current plan, some homeowners could have new modified loans that are at 105% . There is no mention in the plan that mortgage insurance be waived. Now, they did say that the monthly mortgage payment must be below 38%. Typically, this means PITI(MI) - Principal, Interest, Taxes, Insurance, Mortgage Insurance. So maybe they are factoring that in, but what happens in 5 years. Now they start raising the rate again back to its original rate, but this time your payment might have MI added into it. This could cause huge payment shock to homeowners, which is what really got us to where we are today.

And then there is the double whammy issue of taxes and insurance. Many areas that have the highest foreclosure rates also saw the highest increase in taxes and insurance. The spike in these payments (which are often part of the monthly mortgage payment - PITI) created payment shock for home buyers often after the first year when property taxes were re-assessed. This plan does nothing to address these issues. States can continue their practice of charging and collecting property taxes without regard to decreasing property values if they choose. And insurance companies can continue to increase their annual premiums. The plan proposal should really include these two key factors that helped lead homeowners into their current situation.

There are many more issues surrounding this plan, some good and some bad. In the end, we all hope that this plan will be the one to stop our current housing and mortgage industries decline. If it cannot stop it, then may it at least stall the decline enough to where confidence has a chance to catch up.

To read more about the plan, visit the homeowner affordability and stabilit plan fact sheet.

Where my reward for paying my mortgage?

Knightlines Mortgage Services, LLC — Fri, 20 Feb 2009 19:05:26 -0600

Dear Mortgage Lender, Congress, and President Obama,

In the past year, the USA has spent almost $2,ooo,ooo,ooo.oo (two trillion) that we know of to bailout businesses (banks, cars, etc.) and individuals that cannot pay their debts.

In the most recent stimulus package, first time home buyers get a tax credit. What do non-first time home buyers get? Squat! People facing bankruptcy have a judge on their side to help them keep their homes by re-structuring their mortgage. What do people that pay their debts on time get? Squat! Big business just have to put their hands out and say we need money to stay open. What do small businesses that are the true core of the American economy get? Squat!

Well, I cannot speak for the rest of my law abiding, tax paying, on-time debt paying, fellow Americans, but I can speak for myself. I am tired of being the good guy and getting squatted on. Here is my stimulus package proposal to you for me as a reward for doing things the right way:

1) Mortgage lender - I want you to lock my rate into a 30 year fixed mortgage at 4.0% and recast my mortgage on a new principal balance that is 10% less than the current balance. Why? Because you are already dropping rates, re-amortizing, and doing principal reductions for those that cannot pay their mortgage. At least you know that I can afford the new payments and will pay them. Oh, and if you do not do this, then I will be the next person in line to stop paying my mortgage and then you will have to do it. And yes, my wife and I are struggling each month to make ends meet, but we do it.

2) Congress and President Obama - I want a tax credit read more:

100%+ Financing Available to Eustis, FL Home Buyers

Knightlines Mortgage Services, LLC — Sun, 15 Feb 2009 17:31:33 -0600

Eustis, FL (32726 and 32736 zip codes) is eligible for the government backed USDA Guaranteed Rural Development home loan program. Potential homeowners can finance their new home at 100%. However, they can get a 102% loan to cover the 2% USDA loan fee. And if the appraised value is greater than the purchase price, most if not all of the closing costs can be financed into the new loan provided the closing costs do not exceed the difference between the purchase price and appraised value.

Home prices are down. Mortgage rates are down. Now, is the time to buy.

Call Knightlines today at (352) 308-7219 to get your financing reserved, or click here to apply online.

4% Mortgage Rates for Lake County, Florida

Knightlines Mortgage Services, LLC — Tue, 03 Feb 2009 13:24:43 -0600

Homeowners and prospective homeowners of Eustis, Mount Dora, and Tavares, Florida could see, as early as next week, rates on 30 Year Fixed Rate mortgages in the 4% range. This move could come about as a result of a push by Republican lawmakers to include this provision in President Obama’s $900 Billion stimulus package.

The strategy has two main objectives to help stimulate the economy. The first being to stop the falling housing market. By dropping rates below already historic low rates, prospective homeowners may jump on them to buy matching historic low housing prices. The second would stimulate consumer spending. Existing homeowners will be able to refinance (provided they are not already upside-down), thus lowering their monthly obligations.

The provision is aimed towards Fannie Mae and Freddie Mac, not FHA. Hope for Homeowners... click here to read more.

Hope for Banks, Not Homeowners

Knightlines Mortgage Services, LLC — Sun, 01 Feb 2009 11:04:42 -0600

Residents of the Golden Triangle (Mt Dora, Eustis, and Tavares) of Florida will be losing more than "Hope" if they choose to act on the government's newest mortgage bailout program that HUD introduced through FHA last year. The "Hope for Homeowners" (H4H) was designed to help homeowners keep their homes by renegotiating a lower mortgage payment through this unique refinancing program.

FHA (Free?! Ha, Assumetheposition) will refinance your home based on the current appraised value. They will only lend up to 96.5% of the appraised value. Yes, the lender will assume a loss on the difference between the current, existing mortgage and the new one. (Note: I said assume.) With the new, lower mortgage principal balance, a homeowner will have lower monthly payments that they should now be able to afford.

As with anything, there is a catch. First, you have to qualify for the H4H mortgage program. But I am not going to cover the qualifications. The second catch is the lender's assumed loss. (You honestly did not think the bank was just going to walk away from all that money they were supposed to make off of you and let you get away with it... did you?)

Here is where the bank makes up for its assumed loss. The philosophy behind this program is called "shared equity." Put quite simply, any equity that you make through appreciation from the time of the refinance to the time of sale is split between you and the bank. And if you are thanking that share means 50/50, you are sadly mistaken. Here is a link to HUD/FHA talking about the H4H program. Notice that it quickly talks about the "shared equity," but never mentions the splits. Probably because if it did, no one would really do it.

Here are the splits:

1st Year - Bank gets 100% of the equity (Yep, they are getting 3.5% equity right off the bat because they only lent to you 96.5% of the appraised value.)
2nd Year - Bank get 90%
3rd Year - 80%
4th Year - 70%
5th Year - 60%
After 5th Year - 50%

Now you can see that the bank is not going to really loose any money. Oh, one more thing... the bank is going to make you pay almost 3 points (3%) of the loan amount to take out mortgage insurance. That is insurance that the bank will receive in case you default on your mortgage... AGAIN. Who is really losing out on this deal? Sure the homeowner gets to keep their house, but at what cost... losing equity?

I would rather give up my house through a short sale or walk away and let it go to the bank. Then I would rent for a year or two, so I can save up some money and re-build my shot credit. After 1-2 years, I would go house hunting again, use the money I saved up, and buy a new home. Or I would go USDA (100% financing), and save my money for a rainy day. In this case, I get to keep 100% of my equity from that point forward. With H4H, I am only getting 10-20% of the equity from my home with a maximum of 50% should I choose to stay there for over 5 years.

Moral of the story: sometimes we have to do the opposite of what we are taught to do or want to do, so we can better ourselves in the future.

The Watched Pot Never Boils

Knightlines Mortgage Services, LLC — Tue, 27 Jan 2009 11:23:53 -0600

We have all heard the saying: “A watched pot never boils.” What does this saying imply? Simply stated, it means that if one is anticipating an event, then time seems to slow down or drag.

The real estate and mortgage industry have become that pot. Consumers are just sitting there waiting for the pot to boil again. Things appear to be dragging along. “Is it ever going to pick back up?” Blah, blah, blah… Over time (the extended, dragged out perceived time), negativity rears its ugly head to add to the fact that a boiling point does not exist when watched.

Eventually, the negativity and the realization that the watched pot does not boil begins to take its effect, and we walk away. It is during this point, time picks back up and we get caught back up to what is going on while we where time warped into slow motion. Everything is fast paced again. We begin to lose track of time, only to realize that “Oops, I forgot about the pot.” You come back to a boiling pot. If we waited too long to tend back to the pot, we may need to add water because we let the water evaporate too much and have to start the process over because that newly added water has to reach its boiling point.

Our boiling point is here folks… some of you have walked away and lost track of what is going on. Others of you have stared at that pot so long, that you have become hypnotized to see the pot as still not boiling. Unfortunately, for some of you, you missed the opportune time to throw the noodles into the pot and make the most of a full boiling pot where water is not needed to be added. Mortgage rates hit an all time low a couple weeks ago and housing prices were still down. There is still plenty of water in the pot for you to make something good. Don’t wait for the water to get any lower, because you will have to wait for the new water to boil or worst yet, hope there is water to even put in the pot.

Oh, and in the future, you can always throw your noodles in the pot before the pot boils. Eventually, the pot will boil and something will let you know that your noodles are done. That thing might be the sound of water boiling over or it might just be your fire alarm going off. Either way, you are still able to make something out of the boiling pot… Realtors and Mortgage Professionals can be your warning to get back to the pot, but the only way this will happen is if you let them know you want to get started.

So, it is up to you… you can either sit there and continue staring at the pot that will never boil, or you can throw your noodles in, let your Realtor and Mortgage Professional know that you are ready, and them take care of the rest until your pot begins to boil and then you can finish what you started.

Excuse me, Mr/Ms Realtor, that is none of your business.

Knightlines Mortgage Services, LLC — Mon, 19 Jan 2009 10:52:32 -0600

Is it just me or did this Realtor step over the line?

Let me give you the background. I have a client that is good friends with one of my friends. He and his fiancee are looking to purchase a new home. When my friend found out that he was trying to get a mortgage and that no one was returning his phones call over the holidays, he immediately put him in touch with me. Within a couple hours, I had him pre-approved.

The home they wanted to buy was bank owned, but 2 owners prior belonged to his grandmother. They wanted to get the property back into the family. Unfortunately, someone snapped it up while they were calling other mortgage companies before finding me.

Now, I will give my client credit in that he asks a lot of questions. It shows that he wants to make sure that he understands what is going on. Last night, I got another email from him asking more questions. It is not so much the questions that sent me over the edge, but who he was asking the questions for... his REALTOR!!!

Now correct me if I am wrong, but when it comes to financing of a home, the only questions that a Realtor should ask are: "Are you approved?", "How much are you approved for?", and "Do you have an approval letter?"

This Realtor ask the following questions: "Is your loan FHA or conventional (FNMA)?", "Are there any points on the mortgage that I am charging?", and "How much are you really approved for?" I am sorry, but that is none of your (please, I beg you to use a strong descriptive word here) business, Mr/Ms Realtor. What concern is it to you what program I have determined best suits my client based on the information they provided to me that you have not seen? What is it to you how much money I am making on this deal? I am not having my client questions your "points." And what do you mean by "really approved for?" They are approved for the purchase of the home that they are interested in purchasing from you. Could they be approved for more? Possibly, but they want the home you have already showed them which they are currently approved for.

Here is my concern that I addressed to my client. I advised him to be very careful if he chooses to move forward with this Realtor because (s)he may have ulterior motives in that (s)he also is mortgage person (note that I did not call this person a professional) or has an in-house mortgage company where (s)he will get a kickback for the deal. I believe in full disclosure, that is why I have already given my client a GFE, TIL, disclosures, and a full explanation of YSP and how they can choose to use the YSP (note that I did not say how I will opt to use the YSP for my betterment). I have nothing to hide from my client, so I did answer the questions that the Realtor was asking.

But this is just one story of what happened this weekend. Here is another brief story: My client is wanting to purchase her first home. I have been working with her to get her financed. The Realtor that she was using in her limited mortgage knowledge (here business card said Realtor on one side and loan officer on the other) kept telling her that there is no way she will ever get approved. The Realtor successfully convinced my client over the weekend that she should rent because there is no way that she will get approved. (Yes, she kept telling her everyday that she will not get approved.) The Realtor would rather make a little money off a rental, than wait for the approval to make a large commission. Well, late last night my lender sent me the pre-approval. Yes, last night on a Sunday. I immediately emailed my client the terms of the loan which were very favorable (5% rate fixed for 30 years and minimal down payment). This morning, I get an email back from her telling me that she rented a place on Saturday. I bet that Realtor is pissed knowing that her greed cost her several thousands of dollars and that her client is not fuming mad for convincing her to go with the rental when she could have her own home.

Moral of these stories: REALTORS stay out of our (mortgage professionals) business. The industry is hard enough with all the changes that are going on that we do not need you interfering with our clients to make things worse. We are the mortgage professionals, you are the Realtor. It is our job to get your buyer financed, not yours.

Lender Gone Wild

Knightlines Mortgage Services, LLC — Tue, 13 Jan 2009 23:08:27 -0600

Somewhere behind locked doors where the motif is best described as a late 70’s disco club, there sits a handful of banking executives studying the success of one of the few industries that continue to survive the current downward trends in our economy. That is right, I am talking polished brass poles and scantly dressed women. It comes down to making money off the bare essentials of what God has given us.

Okay… not really, but one lender has adopted the philosophy of offering only the bare essentials of the mortgage industry. And I am one to admit that lending needed to tighten up, but tightening up so much that things begin to fall off seems a bit ludicrous. Perhaps, they are going back to the old adage of “If it isn’t broke, don’t fix it.” So if we broke it, what do we need to do to fix it? Or more appropriately, when did we break, and how far back do we need to go to fix it?

Does it come down to if you play with it too much, you will break it? Did lenders play with it too much to where it broke? Or have they merely stroked it to the point where it needs a break? This lender read more

A Letter to President Obama Regarding His Stimulus Package

Knightlines Mortgage Services, LLC — Mon, 05 Jan 2009 10:05:51 -0600

Dear President Obama,

While I am a citizen of the United States of America, I firmly believe in the principles of free trade and capitalism. These practices involve the market correcting itself without the influence or involvement of the government. However, I am willing to bend on these principles if you are willing to accept my proposal on how to spend the $1 TRILLION in your economic stimulus package.

Here are my terms:

1) Payoff every single mortgage (1st, 2nd, etc) on a primary residence for every single citizen in the US. The mortgage(s) must be under the current conforming loan limits. There are no other restrictions to this. I think that this is more than fair since you and your buddies influenced FNMA and the rest of the industry to write those laws and practices that have put us in today's financial crisis.

2) Any left over monies must be placed into safe investments (not controlled by the government) and used to increase the benefits of our armed forces. This is not limited to current active duty personnel, but also for veterans. Our troops are overseas dying, so we can forfeit our rights of capitalism that your administration is going see fit to ruin. The least we can do is give them something more for their families that are still stateside waiting for their loved ones to come home.

Now, let's look at what doing these two simple things will do for the American economy.

1) Paying off all mortgages under conforming loan limits for primary residences will:

Free up a majority of Americans monthly expenses. In many cases, Americans will stop living paycheck to paycheck. People can start investing again. Disposable income increases which increases spending. Spending means more demand. More demand means more supply. More supply means more work. More work means more money. More money means more spending. Do you see a cycle starting to form here, Mr. President?
With spending on the rise, these so called "Big Corporations" that you and your predecessor see fit to "Bail Out" will automatically be bailed out by doing what comes naturally under a capitalistic society. Survival of the fittest in a business sense. If they cannot succeed in a booming industry, then perhaps they should fail.
Bailing out "Big Corporations" does nothing for the average/common American. While the companies get fatter on our tax money, we Americans continue to suffer. Giving the monies to the grassroots of our country is the only way to go... Besides, doesn't one of our governing documents state "We, the People of the United States of America..." and not "We, the 'Big Corporations' of America?"
Also, with all the mortgages paid off, banks would have money again to lend. With the ability to lend again, mortgages outside the conforming limits might be able to refinanced at lower rates. This helps those that would still have mortgages. And let's not forget to mention that investments tied to mortgages will be improved due to the fact that bad mortgages do not dominate that market anymore.

2) You promised to pull our troops out which helped lead your victory to Presidency, but you neglected to say that you were bringing our troops "HOME." What you really meant to say was, "I am moving our troops to a new war front."

You got millions of families and loved ones excited that the war would soon be over and that everyone would be reunited. But that was a lie, nay a misrepresentation.
Money cannot buy happiness, but it can serve as retribution for your errors. You see if the average American does something wrong, he/she is sued by the person that was wronged. Settlement usually involves the wrongdoer paying money to the victim. In this case, we are finding you wrong and forcing you to pay out to those you victimized.

As you can see, this is a very simple plan. And it is one that millions of Americans will accept. Sure, the citizens that have mortgages greater than the cutoff limit will be upset. But remember, the needs of the many outway the wants of the few.

Sincerely,

Jason the Mortgage Broker

PS. My consulting fee should you implement this plan is 1% of the stimulus package.

An Option Mortgage With a A Twist

Knightlines Mortgage Services, LLC — Tue, 30 Dec 2008 20:26:40 -0600

Yes, I just said Option Mortgage… but I did not say Option ARM Mortgage.

I have talked to clients about this in the past and 9 times out of 10, my client has listened to my suggestion. And I am willing to bet that in today’s economic situation, they are thanking me a million times over.

So, what is this Option Mortgage? Quite simply it is a 15-year Fixed Rate Mortgage (FRM) with a 30-year FRM payment option. Whaaaaat? Whenever I have a client that wants a 15-year FRM, I suggest to them a 30-year FRM that has NO PRE-PAYMENT PENALTY and give them an amortization schedule with a 15 year payoff.

As of lately, the rate for a 15-year FRM... Read more.

Guaranteed Mortgage Financing

Knightlines Mortgage Services, LLC — Mon, 22 Sep 2008 23:05:48 -0500

When was the last time your bank guaranteed that you would be approved for a loan or a mortgage? If you were denied, did they work with you to get you to where you need to be to be approved? Or did they just send you a letter in the mail? If this applies to you, then you should know that we will get you approved.

How can we say this? Well, here is how the program works. If when a borrower first applies for a home mortgage loan (refinance or purchase) and they are not approved (or bankable), we will begin our part of the program - The KMS Plan.

The KMS Plan: We will... read more.

Part 1: An Introduction to Commercial Mortgages

Knightlines Mortgage Services, LLC — Tue, 26 Aug 2008 23:53:05 -0500

When applying for a commercial mortgage, there are many financing options that are available. Just like with residential loans, commercial borrowers can choose between fixed rate or adjustable rate, construction or permanent, and even interest only or fully ammortized. However, it is not just that simple.

There are many factors that come into play that are similar to residential mortgages, yet different from them. Some of these items DSCR (or Debt Service Coverage Ratio), Rent Roll, Operating Expense, and read more...

The Holiday Inn Express & Suites in Tavares, Florida Raises the Bar.

Knightlines Mortgage Services, LLC — Thu, 07 Aug 2008 22:17:48 -0500

THE AUGUST $79 WEEKEND SPECIAL

Wow, the year has really gone by fast here at the Holiday Inn Express & Suites on the Scenic Dead River!

We have stayed very busy improving our product for our guests and visitors.

Just this month, we completed installing brand new carpet and padding in all of our guest rooms. In addition, all of our rooms are now equipped with brand-new Dove Quilt-Top Beds.

Our guests have been enjoying our weekly manager's reception on Tuesday nights, where we offer complimentary wine, beer, and appetizers in the evening for our guests. To read more about our specials, click here.

The Borrower's Prayer

Knightlines Mortgage Services, LLC — Tue, 29 Jul 2008 23:12:14 -0500

Our lender, whom which we owe.

Oh, how much we owe!

The bills will come,

The monies all gone, this mortgage we should not have had.

Forget this debt, as we forgot our payments,

Do not deliver us to the courts

Or send us into foreclosure.

We would sell, but the market is just not there.

For in the future, we will use Knightlines. This mortgage we would not have ’cause they do care.

Amen.

Do not let this be you saying this prayer because... read more

Yield Spread Premium - The Hidden Fee

Knightlines Mortgage Services, LLC — Tue, 22 Jul 2008 20:25:33 -0500

Just because you live in Eustis, Mount Dora, or Tavares, you are not immune to this mortgage financing fee that mortgage brokers and correspondent lenders almost always charge.

Yield Spread Premium (often referred to as YSP) is quite simply the opposite of buying down an interest rate. For example, if you want to buy down your interest, you can pay the bank/lender a point (1% of the loan amount) or more. Each point you pay is not a direct reduction of your rate by a percent. It is often 1 point buy down equals .25% reduction in interest rate. This differs from lender to lender. With YSP, you can increase your interest rate in exchange for the bank paying you points.

Why is this good? Read more here.

An Old Name, But A New Face

Knightlines Mortgage Services, LLC — Sun, 22 Jun 2008 20:02:17 -0500

Unlike Coca-Cola who decided to revamp itself back in the 1980's, Knightlines Mortgage Services, LLC of Lake County, Florida is leaving the recipe of its success alone. However, in a bold move Knightlines is updating its branding image.

While the logo remains a knight, the image has been transformed into a more regal and elegant symbol. No longer trapped in a box, the knight is now the central focus of an all encompassing sphere to elude to the company's wholeness and understanding of the mortgage industry, both commercial and residential.

To read more about our image change, click here.

Lake County Gets 100% Financing

Knightlines Mortgage Services, LLC — Sat, 21 Jun 2008 10:07:12 -0500

That’s right! 100% Financing still exists in Lake County, Florida. Despite all the obituaries about these mortgage programs, there is still one program that remains alive and well. This is all thanks to Lake County being USDA Grade A land… and I mean that literally.

The USDA 100% mortgage loans offer many benefits to potential home owners. The biggest being no down payment. Also, at the top of the list is the fact that there is no extra costs in your monthly payment in terms of mortgage insurance. Eh, what the heck? Here is a list of all the benefits a USDA loan has to offer:

Click here to read more.