Mortgage Advice

Investigate Your Lender!

Terri Ewing Mortgage Advice (Mortgage Insider Media) — Tue, 06 Oct 2009 08:16:06 -0500

My blogging partner, Rob K. Blake, has been busy writing and posting a number of mortgage company reviews on our outside website, The Mortgage Insiders.

It is surprising how few mortgage consumers even do the slightest investingation of potential mortgage companies. Rob makes it easy to investigate a lender in that each review has BBB ratings, contact info, and complaint records, as well as his opinion of the company.

Rob also put up a Squido Lens on mortgage reviews so check that out too... a take the poll he set up!

Check them out at the links below...

M&I Bank - Home Lending Solutions Mortgage Review

AmTrust Bank Mortgage Review

MetLife Home Loans Review

EverHome Mortgage Review

Regions Mortgage Review

Fifth Third Mortgage Review

Dovenmuehle Mortgage Review

BB&T Mortgage Review

US Bank Home Mortgage Review

Ashwood Financial Review

Fieldstone Mortgage Company Review

Alternative Home Financing Review

Aegis Mortgage Review

Bayview Financial LP Review

Capital City Mortgage Review

TD Bank Mortgage Review

Capital Mortgage Services Review

New York Community Bank Review

Celink Mortgage Review

Trustco Bank Mortgage Review

Pinnacle National Bank Mortgage Review

Central Pacific Mortgage Review

CFIC Home Mortgage Review

Beneficial Savings Bank Mortgage Review

S&T Bank Mortgage Review

Comerica Bank Mortgage Review

IBERIABANK Mortgage Review

Conseco Mortgage Review

The Provident Bank Mortgage Review

Credit Suisse First Boston Mortgage Review

CF Bancorp Mortgage Review

Conti Mortgage Review

M&T Bank Mortgage Review

CTX Mortgage Review

Bank of Hawaii Mortgage Review

Decision One Mortgage Review

Where does your mortgage payment go every month?

Terri Ewing Mortgage Advice (Mortgage Insider Media) — Mon, 28 Sep 2009 17:52:31 -0500

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.

Refinancing Stress

Terri Ewing Mortgage Advice (Mortgage Insider Media) — Tue, 22 Sep 2009 14:21:02 -0500

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.

What mortgage documents should you keep?

Terri Ewing Mortgage Advice (Mortgage Insider Media) — Wed, 16 Sep 2009 16:00:32 -0500

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.

Taylor Bean & Whitaker Shut Down - Servicing Transfers Angers Borrowers

Terri Ewing Mortgage Advice (Mortgage Insider Media) — Thu, 03 Sep 2009 17:22:31 -0500

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

Mortgage Approvals More Dependant On Credit Scores

Terri Ewing Mortgage Advice (Mortgage Insider Media) — Thu, 03 Sep 2009 17:10:43 -0500

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?

Mortgage Review Shows TARP Bank Not Modifying Loans

Terri Ewing Mortgage Advice (Mortgage Insider Media) — Thu, 03 Sep 2009 17:02:18 -0500

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

Costs for title get a bad rap.

Terri Ewing Mortgage Advice (Mortgage Insider Media) — Tue, 01 Sep 2009 15:13:43 -0500

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.

Loan App Blues

Terri Ewing Mortgage Advice (Mortgage Insider Media) — Thu, 27 Aug 2009 16:52:37 -0500

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!

Mortgage Company Ratings - Learn All About Mortgage Companies Before You Apply

Terri Ewing Mortgage Advice (Mortgage Insider Media) — Wed, 26 Aug 2009 18:54:24 -0500

On my "outside" mortgage website, we have a number of mortgage company ratings and reviews...

So if you want our opinion plus the opinion of actual customers, just click on the links below...

Lending Tree Mortgage Review, Lenox Financial, Eloan Mortgage, Ditech Mortgage, Countrywide Loans, CitiMortgage Review, Washington Mutual mortgage Wells Fargo Mortgage, Downey Savings and Loan Review, NVR Mortgage - Ryan Homes Review, ABN AMRO Mortgage Group Review, Lennar - Universal American Mortgage (UAMC) Review, Accredited Home Lenders Review, Amerisave Mortgage Review, Lowermybills.com Mortgage Review, Taylor Bean & Whitaker Mortgage Review, Quicken Loans Review , Impac Mortgage Holdings Inc Review,SunTrust Mortgage Review, Chase Manhattan Mortgage Review, Bank of America Mortgage Review, Wachovia Mortgage Review,

Know a little something about a mortgage company before you apply...read those ratings and reviews.

Don't forget to read all the "Comments" below the reviews to get opinions of actual customers!

Need To Find A Local Mortgage Broker?

Terri Ewing Mortgage Advice (Mortgage Insider Media) — Wed, 26 Aug 2009 13:49:16 -0500

We recently built a mortgage directory for consumers to find local mortgage brokers by State. So if you are looking for a local mortgage broker simply click on the states below. If you are a mortgage broker and want to add your listing...click here.

Servicing Companies Under Fire - How Is Yours Doing?

Terri Ewing Mortgage Advice (Mortgage Insider Media) — Wed, 26 Aug 2009 13:42:35 -0500

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.

Will the stated loans ever come back?

Terri Ewing Mortgage Advice (Mortgage Insider Media) — Mon, 03 Aug 2009 16:46:58 -0500

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.

Advice on picking an agent

Terri Ewing Mortgage Advice (Mortgage Insider Media) — Tue, 07 Jul 2009 16:14:16 -0500

When the market turns around, people are going to need real estate help again. I think this time we are going to be a little more discerning when it comes to who we trust in this real estate and mortgage industry...I hope anyway.

And sites like this can really make a difference it finding and interviewing a good agent. Too many people rely on friends and family for referrals and agents. That can be a disaster. If you use a friend for an agent and they mess up, there goes your new house and your friendship.

How much do you have to put down for an investor loan?

Terri Ewing Mortgage Advice (Mortgage Insider Media) — Mon, 08 Jun 2009 15:53:03 -0500

We get the question on quite often on what exactly is needed for an investor mortgage. The guidelines have definitely changed this year. For example, the down payment used to be only 10%. Now, you have to put down 15%. There are also changes to the mortgage reserves requirement.

And some lenders are even going a step further than that. Even though the requirement from Fannie Mae is 15% down, they require 20% down. The reserve requirements have also changed. Check out my post and read all about the new rules for an investment mortgage.

How important are debt ratios when getting a mortgage?

Terri Ewing Mortgage Advice (Mortgage Insider Media) — Tue, 02 Jun 2009 15:43:41 -0500

Before automated underwriting, ratios had hard and fast rules for how high the ratio could go. If you went past that ratio, your loan was denied no matter what how great the rest of your application was.

Mortgage qualifying is done with a computer now so there is not always a cap on ratios. If other parts of your loan are excellent like credit scores, loan to value, or assets, the computer will still approve your loan with the higher ratios.

I wrote a post on my blog about how mortgage ratios are calculated and the difference between what you can afford and what the computer says you can afford. I also have an example where the ability to get approved with higher ratios can actually help you.

What is really important when determining the value of your home?

Terri Ewing Mortgage Advice (Mortgage Insider Media) — Mon, 01 Jun 2009 10:49:21 -0500

So many people get wrapped up in their home and theirs alone when trying to figure out their property value. I wrote a post on the mistakes people make on their appraised value.

When you decide to refinance, the first thing the loan officer or broker asks is “what do you think your house is worth”? The whole deal depends on it. So these are some tips you can use to be ready to answer the question about your loan to value. Check it out.

When you refi, why is your loan balance higher than what is on your statement?

Terri Ewing Mortgage Advice (Mortgage Insider Media) — Fri, 29 May 2009 16:19:38 -0500

A mortgage payoff is different than the balance. When you refinance, you have to add extra interest to the balance to get a payoff amount. I used to get this question all the time when folks went over their loan application.

I wrote a post on how payoffs are calculated. If the loan officer or broker did not add any extra interest to the payoff amount on the loan application, get ready to modify your new loan amount.

A good rule of thumb is to add a PITI monthly amount to your loan balance and that will get you close to your actual payoff amount.

What happens when you paid a deposit for an appraisal and you do not close?

Terri Ewing Mortgage Advice (Mortgage Insider Media) — Thu, 28 May 2009 13:08:11 -0500

I wrote a post on mortgage appraisal deposits because I think everyone is confused as to who really owns the appraisal. Most mortgage companies charge a deposit for an appraisal. But, what happens if you don't close?

You would think you could just get the appraisal, since you paid for it, and take it elsewhere. Not the case. There is a whole process to getting the appraisal and in the end, there is no guarantee you will even get it. Read my post to find out how this really works.

Who do you trust for mortgage information?

Terri Ewing Mortgage Advice (Mortgage Insider Media) — Wed, 27 May 2009 15:33:42 -0500

I wrote a post on mortgage tips after doing a little research on the information other websites had. Needless to say I was not impressed.

Not only was the information behind the times…it was just plain wrong. The mortgage business is confusing as it is and then you have these big and many times government websites giving people the wrong information. No wonder people are skeptical when getting a mortgage.

Also, read our post on 30 year mortgage rates. Learn how to track rates using the 10 year.

How do you find out what the rate is for a VA?

Terri Ewing Mortgage Advice (Mortgage Insider Media) — Mon, 11 May 2009 15:42:01 -0500

VA and FHA are both fall under the government mortgage umbrella. VA mortgage rates are priced with FHA but do come with a small discount of .250%. It is hard these days to post rates. If you are looking for today's mortgage rates and you want them to be accurate, you will have to give a mortgage company some information. You probably won't get some random rate advertised.

Also, remember you still have to do you research when getting a VA loan. They just insure the loan, they don't guarantee you will get a good deal.

Thanks!

Is there that big a difference between a bank and a broker?

Terri Ewing Mortgage Advice (Mortgage Insider Media) — Sun, 10 May 2009 12:24:32 -0500

Bank mortgage rates are already inflated when they reach the salesperson. An increase in rate means extra profit for the bank. However, you will never see how much the bank makes by doing that because they do not have to disclose that to you.

The mortgage broker can also increase your rate. When the broker increases your rate, they do have to disclose the extra profit. That is the big difference between and bank and broker.

So, the bank and broker both have the ability to increase your rate for extra profit above and beyond the origination fee. But, the broker is the only one that has to disclose that and the broker is also the only one you can negotiate with to get the rate you want without the extra markup.

Thanks!

Are you protected with a government mortgage?

Terri Ewing Mortgage Advice (Mortgage Insider Media) — Thu, 07 May 2009 15:12:39 -0500

We get this question quite often. It usually starts with someone asking us because they had someone tell them an FHA loan is protected by the government. So, all the bad stuff that happens in the conventional world like bait and switch and yield spread premium overcharging apparently does not happen with FHA.

Nothing could be further from the truth. FHA and VA are different but they don’t get originated differently. Everything you have to watch on conventional, you also have to watch on government loans. One difference is FHA rates are a little higher than conventional. That hasn’t always been the case depending on the market but FHA rates today are about a quarter higher.

The more you know the better you are and the better deal you will get no matter what loan you end up with.

Thanks!

Should you pay a fee to lock your loan?

Terri Ewing Mortgage Advice (Mortgage Insider Media) — Tue, 05 May 2009 14:41:39 -0500

Some mortgage companies require a fee when you lock. However, that is more like a deposit. The wholesale lender who actually locks your loan does not charge a fee to lock a normal loan closing anywhere from 15 to 45 days.

So, if you pay that fee it went to the mortgage company themselves. They figure if you pay a fee that sometimes can be up to $600, you will be less likely to walk away from the deal. Some of the biggest mortgage companies out there use this tactic.

Read my post I wrote today on the rate lock. You shouldn’t pay for something the mortgage company can do for free.

Thanks!

How far have mortgage rates come in the last 3 years?

Terri Ewing Mortgage Advice (Mortgage Insider Media) — Mon, 04 May 2009 15:31:43 -0500

Rates are 2 points lower today then they were 3 years ago. It seems like that was forever ago. So you can see why everyone is looking at refinancing right now.

However, I think people tend to get wrapped up in trying to time the market and hit the rate bottom. So they drive themselves crazy checking rates everyday and if they move up at all, they get discouraged and their refi sits on the shelf.

My advice is put this market in perspective. Home mortgage rates history says you are doing fine even if you didn’t hit the so called bottom.

Thanks!