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Mortgage Interest Rates: Thinking "Beyond" Outside The Box

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Mortgage and Lending with Mortgage Interest Rates

Yes, we all get caught up in looking at the end result low mortgage interest rates and don't realize there are a few ways to achieve the end results.  I do this on occasion, forgetting that a borrower may want a lower mortgage interest rate than the typical 30 year fixed mortgage interest rate and would consider a shorter term fixed loan.  Shorter term fixed loans come with Especially in this "New" mortgage marketplace, where we as professionals see the rates as being low, when the borrower thinks the 30 year rate we quote them is high.

Consumers are not aware of all the mortgage loan options that are being offered.  In an effort to not confuse them, we sometimes cut ourselves short and forget that there is more than one way to achieve the end results.

Same thing happens when the contract is being negotiated or when the borrower suddenly realizes their dream home is slipping away because the lender declined them.  Most people close up shop and go another direction, when we could get creative and offer something like the " seller rate buy down" or the seller carrying the second or the seller paying for a mortgage insurance policy premium.  These kind of actions or "thinking beyond outside the box" save a sale from going south.

Lots to think about!

Newport Beach California Home loans

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    Patty Rowan

   California Mortgage Banker/Broker/Orange County  

     949 689 4465

     Newport Beach, Ca 92660

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Mark Taylor Mortgages
and for 1st Time Buyers, Move Up Buyers & Investors - Scottsdale, AZ
602-361-0707 #MarkTaylor #Awesomerates NMLS#207897

Great point however in our area if i did promote a 5 or 7 year option they would string me up with some areas taking an estimated 15-20 years to come back to afore seen levels of appreciation buyers are nervous with the market still continuing to fall and HUD foreclosures continuing to ride.  The point is you are right consumers should be given all the options and they can then make the choice!

Apr 19, 2011 01:17 PM
John Saari
Worcester, MA
"The Mortgage Buddy"

Great post. There is so much more to out business than finding the lowest yr fixed rate.

Apr 19, 2011 01:21 PM
Patty Rowan
Mortgage Interest Rates - Newport Beach, CA
Mortgage Interest Rates, Mortgage loans, Low Interest Rates,

Yes, I understand that consumers in different geographic regions would have some reservations about listening to a mortgage professional present a short term option for their biggest investment they will ever make. 

In some cases rightfully so. The consumer may be on the verge of retiring and with today's qualifying guidelines for a mortgage it could be detrimental if they were to take a short term fixed rate loan, today and have to or need to refinance at the end of the short fixed rate period. 

In "thinking beyond outside of the box", the option in a purchase transaction to think to negotiate a seller contribution to pay for some or all the closing costs or to pay for the rate to be bought down in order for the buyer to qualify is a great thing. 

 

Apr 20, 2011 06:30 AM
Nick Krehnke 425-202-5655
Barrett Financial Group - Seattle, WA
"Your Trusted Expert Friend in the Home Loan Biz"

A lot of people who have arms that are adjusting right now want to keep them because the rate is dropping! Adjustable doesn't mean 'goes up' it just mean it changes..and sometimes down.
A fully indexed FHA 5/1 arm today would be at 2.3%!

Apr 26, 2011 07:29 AM
Anonymous
Patty Rowan

Nick,

Mortgage interest rates are still low and people fail to realize that there are different ways of qualifying, they are stuck on one old fashion way of handling their business or mortgages.

Have you seen the "Asset Depletion" loan programs?  They are great because you can use liquid assets of the borrowers savings to help qualify in the event the tax returns of the borrower show less income than what is needed to qualify.

Here is the other important aspect to the loan, less than 2 years in business for themselves is acceptable!!  How about that??

Good stuff!  

Apr 27, 2011 06:51 AM
#5
Nick Krehnke 425-202-5655
Barrett Financial Group - Seattle, WA
"Your Trusted Expert Friend in the Home Loan Biz"

Patty, 

I've seen the asset loans with WaFed and Artice Capital.

Here is some SERIOUS out of the box!:

I did a loan that had 3 people on title ex hubby, ex wife and son #1, but the loans were in son #2 name and he quit claimed off title years ago AND had mortgage lates in the last 12 months. Son1 and Dad wanted to buy the house mom did not and a refi was out of the question due to the mortgage lates. 

I did it as a purchase with mom as seller and dad and son1 as buyer. Did a 100% USDA, no money out of pocket and no excise tax charges. I had to provide 5 years chain of title to show the son2 was originally on title so it wasn't treated as a cash out refi, and quit claim deed from years ago to negate any excise tax. dad and mom had to amend divorce decree to get his interest out of separate property and quit claim him off the other property as USDA wont let you have 2 homes within commute distance.

When all said and done, it was $0 down under 5% 30 year fixed no clsign costs and no excise tax. Son2 got his cash fromn the transaction and paid off his student loans, etc. TOTAL pain in the butt, but it got CLOSED :)

Apr 27, 2011 10:47 AM