Every person getting a mortgage should take a look at where the payment actually goes.  How much goes to paying down the principal and how much goes to interest?

The first time you look at an amortization schedule, you are shocked.  Almost all of your payment goes toward interest in the early part of the loan.  I think if you see that you will be more motivated to scrounge up some extra money to pay down that principal.

We have a Total Monthly Payment & Amortization Schedule Calculator you can play around with and see how much you can save and how much equity you can build by paying a little extra principal each month.

I like to write about things I heard from clients when I originated and processed loans.  I figure if many of my clients had these questions or fears, then there are others out there with the same questions and fears.

One of the things that totally freaked out some clients doing a cash out refinance was the right of rescission.  They didn't know or didn't remember that their cash would not be available on the day of closing.

When they found out they had to wait 3 days they were beside themselves.  Some had negotiated a tax lien or other debt to be paid with the proceeds on the closing day.  So we had to scramble to get it done early.  And then there was just the look of sheer disappointment on the others who thought they were walking away with the cash that day.

Remember you won't get your cash at closing because just like any other refinance, you have to wait the 3 days.

Check out our post titled Cash Out Refinance Nitty Gritty.

That sounds like an obvious question right?  You get copies when you close or you should anyway.  You always keep important documents or you should anyway but what happens to them?

I couldn't tell you what happens to them but all I know is in talking with clients over the years, they have no idea where any of their paperwork is.

Always keep every piece of paper from every mortgage you have or ever will have.  Make it a point to find a special place for all these documents today.

Many people don't have even their current mortgage documents (which is terrifying) so chances are they don't keep the ones they get when they pay a mortgage off.

Keep your Deed of Reconveyance, or Satisfaction of Mortgage and your HUD1 settlement statement from either the sale or refinance.

Mistakes can happen when lenders record things at the county so keep everything.

In the last week of August, Taylor Bean & Whitaker was shut down and all those borrowers had their servicing transferred to CENLAR - Central Loan Administration & Reporting.  This unannounced and overnight shift put all those borrowers in a massive amount of anxiety and confusion.  We haveseen a huge spike in comments on both of our reviews of both companies.

Reader comments include a ton of helpful information as more information is released.

If you had a loan with TB&W or got a letter in the mail tranferring your loan to CENLAR...you should read both of these posts.

CENLAR Servicing Review

Taylor Bean & Whitaker Mortgage Review

In today's "scared" underwriting world, it appears companies are hanging their hat more on credit scores than ever before.  Given this, understanding your mortgage credit score and how it effects your chances for mortgage approval is imperative.

Click over and read my fairly length post on our mortgage advice blog...

Mortgage Credit Score: How Important Is It?

My partner just posted a new mortgage company review of National City Mortgage which has a huge retail operation and an even bigger mortgage servicing portfolio.  This company recently made a Treasury Department list of companies that they called "to slow to modify".  The government created a loan modification program to help foreclosure victims, but many of the companies who were expected to help, simply aren't.

To add insult to injury, National City Servicing's parent bank received $7.6 Billion in TARP money!

Outrageous...click over and read...

National City Mortgage Review

When I used to process and originate mortgages, I ran into people who balked at all the refinance costs on the good faith estimate.  And one they were fit to be tied and angry about was the title insurance fee.

They know they paid for the title policy when they bought and now here it is again when they go to refinance.  They think they are being charges twice for something they only need once.  I am always shocked and saddened that because of the bad reputation the mortgage business has even legitimate fees are thought of as junk.  We have a post on the importance of title insurance every time you get a mortgage.

I remember before I got into the mortgage industry signing the paperwork was a little stressful.  My answer to that stress was to just sign my name and try not to look at the massive amount of numbers and boxes and words and hope for the best.

Luckily, nothing really bad ever happened to me but I do not recommend this option.  Most people these days take a mortgage application over the phone or online.  Then, they get the application paperwork in the mail. 

But looking at that document they wonder if they are signing their life away.  So, I wrote a post on the main things to check on the app.  These are the things other than loan amount and interest rate you need to check for errors because that can cause problems down the line.

Thanks!

Servicing companies are at the eye of the foreclosure hurricane right now...so my partner wrote a number of mortage reviews on mortgage servicing companies.

Many of the reviews have sometimes 100's of customer comments giving readers the low down on who is doing loan mods to help foreclosure victims...and who in NOT...read them by clicking the links below...

Wilshire Credit Corporation Review, HSBC Mortgage Services Review, PHH Mortgage Services Review, EMC Mortgage Corporation Review, Specialized Loan Servicing Review, Select Portfolio Servicing Review, Ocwen Loan Servicing Review, Litton Loan Servicing Review, HomEq Servicing Review, Central Loan Administration & Reporting (CENLAR) Review, Carrington Mortgage Services Review,Bayview Loan Servicing LLC Review, First Franklin Loan Services Review, Green Tree Servicing Review, Aurora Loan Services Review, America's Servicing Company Review, Option One Mortgage - American Home Mortgage Servicing Review CitiFinancial Review, Saxon Mortgage Services Review.

Oh yes they will be back.  And hopefully they will be used correctly.  There is nothing wrong with the stated income mortgage.  For those self employed people writing off most of their income so they don't have to pay it all to uncle sam, this is (or was) their only option.  That is one of the perks of being self employed...the tax savings.

Of the self employed loans we did, the borrowers were financially responsible, had excellent credit, and had been self employed for years.  The chance of them not paying was slim and none.  However, that was not the norm out there. 

Here comes the borrower who does not have a down payment, has horrible credit, and does not make enough money for their "dream house". 

Just make up your income until you can qualify for the house you want.  Or use stated income to buy investment properties you are flipping.  Sounds like a plan.

I do believe these loans will be back.  And this time they will be used by actual self employed people who need them.