I talked with a client today that I had not seen in awhile. He mentioned that they might want to sell in the near future. He said they had re financed about a year ago or so and that the mortgage was getting ready to adjust. He is not alone. There are so many adjustables out there getting ready to adjust/explode. I can see now why lenders loved to do those subprime neg am loans and all those other FANCY ones that we have seen the last two years!! He let me look at the paper work on his loan to figure some things out for him. I noticed that the lender made approximately $13,500 dollar on his loans....Yes that's right $13,500+ WOW....

Now I am not saying the lender took him for a ride or anything but let's just say that that is no small bucket of cash alright! I started doing some simple math and saw the main reason that those fancy loans were SO popular the last 2-3 years. Take the above example and multiple by about 3-4 per month and you can see that some lenders were making between $40-50k a month!! Multiple that by 12 and you get $600k...Wow...

Granted that was on about a $400k loan and not all of them would be that big but it ALL makes sense now. Not to mention the prepayment penalty that the lender has of 3 years-owch.

So to sum it all up....get to a Realtor that you TRUST or better yet call the one that helped you and did an excellent job!!Then get to a lender that is reputable and that is a referral if you need help. Walking into any old office can be a expensive lesson not to mention it may cost you your home someday if you get the wrong loan-that you can not afford later!!

I still get things in the mail weekly about the $400k mortgage for  only $1200 per month....Folks if it sounds too good to be true...Well you know the rest.

Ready to see all the redding california real estate? http://inforedding.com

Regards,

Rick Goates