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8,380 Points

Name: Mike Smith
Company: Fair Housing Resource Center
E-mail: Contact Mike Smith (Fair Housing Resource Center)
Cell Phone: (916) 813-4003
Fax: (916) 788-1002
Description: Certified Mortgage Planner (CMPS): 14 yrs experience & over $356,000,000 in loan fundings. My advice leads to higher net worth: For more info: mortgageplanner@247refi.com or 916-813-4003 cell

About myself, family, business model:

Hi there!

First off: Thank you for visiting my blog.

Facts about me:

4 children - committed to their future
14 years experience funding over $356,000,000 in mortgage volume since 1994.
Life has taught me that more often than not the greatest joys in life do not cost you a dime: One of my most treasured things to do is watch my 6 year old play on the playground each morning before school!

Here is how my expertise benefits you as my client:

I am a subscriber to the mortgage market guide: http://www.mortgagemarketguide.com/bondquotes/index.html

So how the heck does this help you?

Lenders watch the 30 year fixed mortgage bonds trade daily. The current benchmark is the Fannie Mae 6% mortgage bond (not the 10 year Treasury bond).
Lenders watch its movement and when it moves they do, by raising the price {i.e. the points you pay} for the current mortgage bond trading out in the markets.
Within about 20 minutes of a major move, lenders then re-price and send out new rate sheets to the mortgage brokers.

How I save you money:

Since I too watch this, coupled with being a mortgage banker, I can move ahead of the re-price and lock my clients in within seconds saving them money from the re-price.
For example, if the mortgage bond is trading at 6.125% at "par" {meaning no cost and no "rebate") and our benchmark 30 yr fixed Fannie Mae bond is off by 25 basis points, this means the lenders are now taking a 25% hit off the posted pricing.
So they will send out a new rate sheet that would show the 6.125% price at .25% points.
On a $300,000 loan that is an additional $750 in costs to the borrower.

Question:

Would you rather keep this $750 or pay the mortgage company??

4 questions your mortgage broker had better know:

First of all...Congrats on being an informed consumer.

I expect you to shop. I understand it; I embrace it!

But if the person you are talking to cannot answer these questions, run don't walk to one who can!

Questions your broker must know:

#1: What are mortgage rates based on?

#2: What is the next economic report that could affect rates?

#3: When the FED changes rates, what does that mean to mortgage rates?

#4: Do you have access to instant live bond quotes?

Yes ....I know the answers to all these.

But you need to call and ask me so you know yourself!

Changes in FHA; ARE YOU READY?

Effective 10-01-08 there will be no more "seller assisted" gift funds for FHA.
Effective 01-01-09 FHA will require a 3.5% down payment.
Are you positioned to succeed based on this information as a consumer or a Realtor?

For most transactions, this means that the FHA buyer will need to come up with $5000, $6,000 or more to buy a home.

Here are some helpful hints if you are buying FHA:

Parents & family members can still gift the 3.5%
Parents can get the money from a credit card to gift to their children.
You can still claim "cash-on-hand" up to $3,000 as sourced funds
The seller can give you a loan against an asset (including the home}
Monthly Savings Plan: You can start saving today for your down payment at the rate of total new payment (say $1500) - current rent payment (say $900) = $600 a month savings. in 6-9 mos you are ready!
You can borrow against a 401(k) or IRA
You can borrow against your whole life insurance policy (often at 3%)
You can use sweat equity. I can show you how!
A family member can gift you sweat equity on the property you are buying
You can trade an asset with the seller
You could take a second job to save for the down payment
Not to mention: tax refunds, garage sales, wedding gifts, family savings clubs, even a loan (in comparison to a gift) from Mom & Dad!
There is also Ebay and pawn shops to get the money!

Other options:

Housing Rescue Act of 2008: You can borrow up to 10% of sales price up to $7500 from your 2008 tax refund in the form of a 0% interest loan paid back at $500 a year which can be used for your down payment.
CalHFA with CHDAP, ECTP or HICAP down payment assistance
National Homebuyer Fund - secured second mortgage to close with a first mortgage
USDA 100% financing with No MI for rural areas
CalPERS: 100% financing as a 95% with a 5% secured retirement loan
CalSTRS: 80% mortgage with a 17% second mortgage secured by the Teachers Retirement System to help a fellow teacher
VA: Veterans Administration: 100% with no MI for veterans {even manufactured homes}
City, County, State, Federal Down Payment Assistance

Question:

With all these changes, don't you owe it to yourself to enlist the services of a professional mortgage banker who will guide you, mentor you and help you purchase the home of your dreams with the best financing available to you?

In the old days I used to sit with my clients and we would go over strategy on how they would get their home. They would tell me they could afford a $1200 payment yet they were only paying $600 for rent. So I would tell them to sock away $600 and they would say "we can't afford it!" I would then ask "so how can you afford this new $1200 payment." They would curse me under their breathes but they saved the money!

But at the end of the journey, some 10 mos or even a year + when they had the money saved, the profound sense of personal pride watching a family buy their home and put down $5,000, $6,000 was something I sincerely found very inspirational and moving.

I look forward to that type of relationship with you as well.

Somewhere.....mortgage professionals got away from what we always used to do:

Counsel, inform, educate, and in some case light a fire under the butts of my clients to get them to where we both know they want to be! {lol :)}

Good luck & God bless!

Mike ****916-813-4003

Certified Mortgage Planner

Fair Housing Resource Center