Switch from ARM to Fixed - the next innovation in home financing - 04/30/07 07:46 PM
WaMu has a new mortgage loan out that seems to make a lot of sense. Here is the jist of it from CNN Money:
But if they decide to stay in town longer, they can switch the terms of their variable-rate Mortgage Plus loan to a fixed rate.
See full article here.
I'm curious how they may be trying to make this work. I consulted in the mortgage-servicing sector for almost a year a few years ago, so I can't quite understand how the loans would get sold in the back end? I guess you just price the loan with … (4 comments)
|
Get organized, or be vaporized! Secrets from a Guru - 04/30/07 07:05 PM
“Where did I put that phone number? Arrrgh… it was just here yesterday.”
“It’s seven pm and I haven’t called any of my prospects, where did the day go? Dang it!”
“Another baseball game dad, you missed another baseball game? You said you’d be there!!!”
Have you or anyone you know ever said or, thought any of these thoughts? Sometimes spending time to just get organized solves a lot of problems. However, it’s a catch 22 isn’t it? Where do you get the time to be organized when you’re so disorganized?
As most of you know I work with professionals in … (2 comments)
|
Credit bureaus making money off your name - take action now! - 04/27/07 01:08 PM
Having credit checked is an important and necessary step in the home buying process. But very few people realize that each time their credit is checked, the “inquiry data” that the credit bureaus (Equifax, TransUnion, Innovis or Experian) have on file have now become a commodity.
This information is being sold by the credit bureaus to other lenders…and also to companies that sell and resell the same names and personal information. That’s right – the credit bureaus have found a way to increase their revenues at your expense….and without your permission. These “inquiry leads” include name, address, phone numbers (including unlisted), … (3 comments)
|
Option ARM, Pick-A-Pay, Flexible Mortgage: Learn the Truth! - 04/25/07 11:11 PM
Consumers’ appetite for low payment mortgage programs continues to be strong. Exacerbating the demand for low payment mortgages has been skyrocketing home values. Home prices have risen considerably during the past few years. As you can imagine despite historically low interest rates, housing has become less affordable. To counter this problem many lenders offer Option ARM's.
The recent sub-prime meltdown has forced a lot of lenders to scale back on their aggressive pick a pay programs. However, the option ARM is still around. In fact I was just asked by a borrower today for details on our Option ARM.
A major … (0 comments)
|
A Church in Gilbert Arizona: Two Rivers - 04/24/07 01:13 PM
There are many churches in the Gilbert (Arizona) area. In fact a quick open ended search on USAChurch.com gave 23 listings. This listing didn't even include the LDS churches. I would image there are plenty of other churches that are not listed in the directory system for one reason or another. If I were to make a rough estimate I would say there has to be at least 100 churches in this area (43 square miles).
If you are new to Gilbert (Arizona) or have been thinking about attending a place of worship, where do you start? The local magazines always carry a listing … (4 comments)
|
Zillow under fire from Realtors - 04/20/07 06:07 PM
Brian Brady has a really interesting post on the recent “cease and desist” order from the Arizona Board of Appraisers. Read it here. I wrote a brief note on it here. Of course the Blogosphere has been buzzing the past week on this topic.
Brian makes a very good point:
Confident Realtors and lenders know that you, the consumer, have a brain and intend to use it while you pay us the fees we earn. Many of us feel we’re worth what you pay us. I just hope you do.
I couldn’t have said it any better. The Internet has … (6 comments)
|
Discrimination in Real Estate - 04/20/07 01:12 PM
I don’t know how many of you are aware but April is Fair Housing Month. The Department of Housing and Urban Development released its Annual Report on Fair Housing earlier this month. According to this years report, agencies that monitor discrimination received 10,328 complaints last year. This is a record number and is nearly twice the number received in 1998! There were 9,254 complaints in 2005.
Considering the sheer volume of real estate transactions this is a pretty small number. However, HUD believes many complaints go unreported as people do not know where or how to file a complaint. It should be … (5 comments)
|
Mortgage Lender: Broker or Banker? - 04/19/07 02:15 PM
"I am looking for a mortgage lender in Phoenix" said the prospect over the phone. He was referred by a friend and I had been expecting his call all week. He said they were moving to the Phoenix area from the Midwest. We started talking about the type of loan he was interested in and the types of mortgage loans he had used in the past. In the course of the conversation I told him that I was a mortgage broker in the Phoenix area and that I help people obtain mortgage loans best suitable for their long term financial success. … (2 comments)
|
How my business has flourished through Business Networking - 04/18/07 06:19 PM
My wife and I have belonged to a chapter of a business networking group for over two years. This group has accounted for almost 35% of total business volume during this time. This group has provided us a structured environment for the development and exchange of quality business referrals. These are not cold leads, but warm referrals. There is a very clear distinction and a very important one.
I've attended various networking events around town through the years and these events are very time consuming and not as rewarding. I have found business this way, but it was not structured enough and I … (5 comments)
|
Business closes after 1,400 years! - 04/17/07 10:35 PM
I just saw this story on Businessweek’s website and had to share:
The world's oldest continuously operating family business ended its impressive run last year. Japanese temple builder Kongo Gumi, in operation under the founders' descendants since 578, succumbed to excess debt and an unfavorable business climate in 2006.
That means this family business started in 578AD. Can you imagine your business surviving 1,400 years. Think of all the things that have happened the past 1,400 years or so. Wow. From the Crusades, to the invention of the printing press, not to mention the BEGINING of the Dark Ages. Islam was … (6 comments)
|
Foreclosure looming, now what? - 04/17/07 02:27 PM
My wife talked to a "near-client" the other day. She is a "near-client" because we looked at her re-finance application last year and advised her NOT to re-finance her loan or, get a second loan. We told her she couldn't afford it and the situation with home valuation had not stabilized. We warned her that if she did a 100% cash-out there was a good chance she could be up side down in the near term.
Sadly we found out, she rejected our advice and went to a different lender who happily did a 100% cash-out for her. Now she's upside … (3 comments)
|
Value of having mentors in your career - 04/17/07 12:50 PM
"You should have a mentor." or, "You should have goals." or "You should have a business plan." All very good advice received with eagerness but for the most part very rarely taken!
Fresh out of college I joined a technology manufacturing company in the Midwest. A few months into the job I was told by a few people that it would be good to have a mentor. They said I should find someone whom I can look up to, ask questions and learn from. I knew there were a few people in my office who could be mentors for me. I … (5 comments)
|
CTX Mortgage Company in Mesa - 04/16/07 07:56 PM
Aimee has been with CTX Mortgage Company since 2004 whereas Shailesh, the Arizona Mortgage Guru, joined CTX in 2005. Both of them work as a mortgage solutions team at CTX Mortgage in Mesa, AZ. They each have almost 4 years of experience in the industry.
Shortly after re-locating to Arizona in 2004 Aimee searched long and hard for the right mortgage company to work with. Having been with smaller brokers and mid-size lenders in the past, she was keen on finding the right balance between small size feel and large scale infrastructure support. She found this with CTX.CTX Mortgage Company is … (1 comments)
|
Home Loan Expert in Arizona - 04/16/07 01:55 PM
We are home loan experts serving the Greater Phoenix area and are available to help you with the most important financial decision of your life. This site is here to help you make an informed, educated and financially sound decision regarding your mortgage loan. Whether you are a first time home buyer, someone wanting to refinance for a better rate, do a cash-out refinance or, relocating to the Phoenix area (Gilbert, Mesa, Chandler, Tempe, Scottsdale area), I can help you find the best home loan. Read what my past clients have to say..
Today we will focus on the First Time Buyer
Purchasing … (0 comments)
|
Using the full power of Google search - 04/16/07 12:04 PM
I know a lot has been said on this forum about SEO. However, let me ask you this: do you know how to utilize the full potential of the Google search functions when YOU are searching for something? Do you know how to conduct exact searches? How about using the search box to do simple math? Did you know that simply adding common words like "population of" will result in a Q&A type result for your search? Knowing these features can save you lots of time. Let me elaborate on some of the features I use to get relevant information fast and easy!
Optimizing … (5 comments)
|
Mortgage Insurance vs. Second Loan - 04/13/07 11:24 PM
I attended a presentation today on Mortgage Insurance. The presenter was pretty excited since she believed MI would be making a strong comeback this year. She gave several reasons for this, one of them being the fact that MI is now tax deductible.
I challenged her on the tax deductibility part since the provision only allows tax deductibility for 2007 and for individuals with less than $100,000 annual income. While the income part may cover most people, the fact that it is only available for loans taken in 2007 is cause for worry. However, the presenter strongly felt that this would be … (2 comments)
|
FHA Kiddie Condo Program and College Tuition - 04/12/07 02:12 PM
As we approach the end of the school year a good way to gain some buyers is to talk to parents with children going to college. Talk to them about the FHA Kiddie Condo Program. This is where the child can own a condo near campus, charge roommates rent, and potentially pay off almost $45,000 in college debt when the graduate.
The FHA allows non-occupant co-borrowers. This means parents can purchase a condo using their credit and their income but not live there. This isn't a second home and not an investment. That is important to understand because the interest rate is … (4 comments)
|
What drives Real Estate? - 04/10/07 06:39 PM
I just saw this story on the Phoenix Business Journal website. It says that Phoenix ranked 55th out of the top 200 metro areas of Forbe's list of the Best Places for Careers and Business. The story says that the main reason for this nosedive is rising home prices in the area.
Also further down in the article it says that Phoenix is now in the top 10 for job growth. This is fantastic since in my estimation jobs is the key barometer that drives Real Estate.
What do you think drives Real Estate? I know states that have lots … (0 comments)
|
I got scammed - beware the "Beauty Pageant Scam" - 04/10/07 12:33 PM
A few months ago my wife received a phone call from a lady saying she was selling advertising space on a local pageant brochure. She said that she had received our name and number from a directory of professionals. She said that she was soliciting ads from local businesses. At the end of her presentation she said she wanted to come in and present her materials.
My wife works from home and I work from the office. My wife told this lady to visit us at the office and that I would be there to listen to her proposal. I penciled her … (9 comments)
|
Good credit marries bad credit - 04/09/07 01:25 PM
It's always a bit awkward. You've just pulled credit on the soon to be newly-wed and her credit is 720+ but he'd never qualify! They know they're a match made in heaven but for some reason their credit just doesn't jive. Most people do not think about credit scores when they're looking for potential matches. Even though this score can drastically determine the lifestyle and living standard they will enjoy. Of course dad's who are Loan Officers do think about credit scores of their daughters' potential mates, as the dad in the movie "Guess Who" does.
Why is this an issue you ask? Well if the … (3 comments)
|
Home Equity Management - 04/07/07 04:01 PM
"Using the equity in your to generate wealth". This has been a popular topic within mortgage circles the past few years. Spurred by the popular book "Missed Fortune 101" by Douglas Andrew many mortgage professionals are advising their clients on how to best manage the equity in their homes.
In addition to reading Missed Fortune I have attended several seminars to learn about this topic. I must admit that initially I was very resistant to this idea. However after thinking about the implications of these ideas I have come to the conclusion that this strategy can yield results for the right person within … (2 comments)
|
Predicting interest rates - 04/06/07 01:09 PM
If you're in the market for a loan and are interested in understanding how rates will be doing in the near future you need to look closely at the Economic calendar. Unemployment reports, FOMC Beige Book releases, Consumer Confidence etc. are some of the heavy hitters that moves the market. There are others.There is a way to read it though. Generally if a positive economic report rallies the stock market then bonds suffer and lose value, since investors move money from bonds (safer) to stocks (more rewarding). This transfer usually then increases the yield (rate) on bonds. The overall result is … (1 comments)
|
Revisiting the FHA loan - 04/04/07 08:45 PM
Now that subprime lenders are pulling back dramatically it is time to re-visit FHA loans. As recently as seven years ago (2000) FHA accounted for 14% of the mortgage market. This market share had dropped to below 3% by 2005. I do not have the numbers for 2006 but I am assuming that it dropped even further.
FHA almost blew it
I remember in the middle of 2006 I sat in a conference call listening to some speakers talk about the changes that were coming to the FHA. The powers to be at HUD had finally recognized the loss in market share and the way … (4 comments)
|
Pre-qual vs. pre-approval - know the difference! - 04/03/07 02:11 PM
I run Mortgage Education classes in the Phoenix area for real estate agents. Newer agents in my class usually ask me the difference between a pre-qual and a pre-approval. I recently saw this post by Randy L. Prothero and I was going to comment on it before I realized I really want to address this question in detail on this forum.
Pre-qualification is when the loan officer takes the basic asset, income and debt informationn and determines how much of a loan the borrower qualifies for. Often this can be a simple calculation on your financial calculator. The originator may or may not … (4 comments)
|
Do you stop making payments if your lender goes bankrupt? - 04/03/07 11:35 AM
Since New Financial Corp, the nations second largest subprime lender is officially in bankruptcy protection I am reminded of a question a friend had asked me a few weeks ago. He wanted to know if he would own his home outright if his lender went out of business. It was a very pointed question and I wonder how many of borrowers are thinking those same thoughts right now.
The answer to that question is no. You still have to continue making your payment. The reason being that the lender will eventually sell that loan to someone else. That new owner will have full rights … (8 comments)
|
Arizona mortgage regulation dies at Capitol - 04/02/07 02:51 PM
The Arizona Republic reported yesterday that legislation calling to license as many as 18,000 loan officers and mortgage originators never got a chance to be heard in the Senate. This bill had passed in the Arizona House.
Read full story here.
Here is the story about who tabled this bill and why.
It is rather strange that this should happen. Arizona was recently ranked #7 in mortgage fraud. The Arizona Republic broke a story earlier this year on "cash-back" real estate scams claiming it was very prevalent in the Phoenix market.
I think licensing loan officers is a great idea. There should also be … (0 comments)
|
Connect. Share. Learn.Welcome to ActiveRain, the #1 social community for real estate professionals.
;)
;)
