mortgages: What is a Piggyback Loan ... and How Does it Work?
- 01/02/15 05:35 AM
What is a Piggyback Loan ... and How Does it Work?
Definition and Purpose of a Piggyback Loan: To reduce the amount of the first loan amount, used in addition to a Borrower's own funds (Down Payment).
Advantages of Using a Piggyback Loan: The Piggyback is typically used to reduce the first loan amount to an 80% level, so as to eliminate the cost of Mortgage Insurance, or to conform to certain programs' requirements of a 20% Down Payment.
A Piggyback Loan can also reduce loan amounts of first mortgages down below a Jumbo … (8 comments)
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mortgages: How Is the Mortgage Process Like and Differ From a Roller Coaster?
- 12/12/14 03:53 AM
How Is the Mortgage Process Like and Differ From a Roller Coaster?
Going through today's Mortgage Process can be much like being on a racing roller coaster. The similarities and parallels between the two are endless.
Examples: Both have highs. Both have lows.
At times, each has uphill climbs that seem incredibly slow. Still at others, both can seem white-knuckle fast. And to an extent, the entire experience ... the success and enjoyment of both roller coaster ride and Mortgage Process ... are determined by the choices of the individual entering it.
How's That? … (40 comments)
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mortgages: More Good News for High-End Well-Qualified Buyers
- 11/21/14 03:19 AM
More Good News for High-End Well-Qualified Buyers
JUMBO Loans, and the advantageous interest rates they have been enjoying, have been in the news quite often over the past few months.
These loans have continued to be a good bargain in comparison to the past, due to the current rate climate and Lenders' appetites for making high-end, high-performance loans to well-qualified Borrowers.
Great! But for American Portfolio Mortgage Corp. customers, existing or new, the news just got even better. Why?
Generally, loans above 80% of the Sales Price/Appraised Value … (10 comments)
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mortgages: Why Bank Statements and Verification of Funds Are So Important to Mortgage Underwriters
- 11/11/14 01:58 AM
Why Bank Statements and Verification of Funds Are So Important to Mortgage Underwriters
One topic ... one direction provided during the Mortgage Process that seems to baffle and frustrate my prospective home buyers during their Mortgage Process, surrounds the sourcing and documenting of Down Payment and Closing Cost Funds.
When I touch upon this portion of the Process I often hear the comment, "it shouldn't matter where the money comes from" from my Borrowers. There also seems to be a mindset that their Earnest Money is something other than an initial portion of the Down Payment funds.
Well, … (53 comments)
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mortgages: Gene Mundt, Mortgage Lender's "Mortgage, Real Estate, & Credit News!" - November 5, 2014
- 11/05/14 02:06 AM
Did you have snow at your house this last weekend? Don't know about you, but I'm not ready for it, at least mentally. But yet, clocks were turned back, we ushered in the month of November, and dragged our winter coats out of the closet over the last week. So ready or not, here comes winter and the upcoming Holidays! Below you will find some activities, suggestions, tips, projects, and a recipe to help you prepare and manage the cold weather months to come. Enjoy! All The Important Things You Need To Know … (8 comments)
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mortgages: How to Make Your First Mortgage Payment
- 10/31/14 05:11 AM
How to Make Your First Mortgage Payment
Inside Mortgage Finance News reported on October 28, 2014 ...
"Total mortgage-related complaints filed by borrowers with the Consumer Financial Protection Bureau fell again in the third quarter of 2014 – the fifth drop in the last six quarters, according to figures compiled by Inside the CFPB.
Data contained in the CFPB’s consumer complaint database show that such consumer gripes fell 17.6 percent in the third quarter of the year, and are now down 23.6 percent from the same period in 2013."
It's also been documented … (13 comments)
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mortgages: The Hidden Truths Within Bankruptcy Filings
- 10/20/14 10:38 AM
The Hidden Truths Within Bankruptcy Filings
We've arrived at an unique point in the world of home buying and financing. It comes on the heels of several years of financial hardships, unprecedented foreclosures, and job losses.
These challenges faced have often lead to the filing of Bankruptcy. What's been contained, or included, in these Bankruptcy filings, are referred to as "Schedules".
First of all, let's understand the "layers" and the timelines involved in a Bankruptcy.
First, there is a: Filing Date.
That is followed by a: Discharge Date, a date that's usually a few months after the Filing.
… (8 comments)
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mortgages: The Hidden Truths Within Bankruptcy Filings
- 10/20/14 03:48 AM
The Hidden Truths Within Bankruptcy Filings
We've arrived at an unique point in the world of home buying and financing. It comes on the heels of several years of financial hardships, unprecedented foreclosures, and job losses.
These challenges faced have often lead to the filing of Bankruptcy. What's been contained, or included, in these Bankruptcy filings, are referred to as "Schedules".
First of all, let's understand the "layers" and the timelines involved in a Bankruptcy.
First, there is a: Filing Date.
That is followed by a: Discharge Date, a date that's usually a few months after … (2 comments)
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mortgages: Gene Mundt, Mortgage Lender - "Mortgage, Real Estate, & Credit News!" October 7, 2014
- 10/07/14 06:48 AM
Below you'll find this week's news and info I thought you'd find of interest and use. Please remember to keep your questions and suggestions for future email blasts coming! I love hearing from you and your input is always greatly appreciated! 12 things you absolutely must do in Chicago this Fall ... Sure, the end of summer sucks. But fall isn’t a bad consolation prize, especially when it's jam-packed with these 12 epic things to do during the season fancy people call "autumn" and less-fancy Thrillist writers call "your last chance at … (18 comments)
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mortgages: Waiting Periods and Extenuating Circumstances After a Short Sale, Foreclosure, Bankruptcy
- 08/11/14 05:47 AM
Waiting Periods and Extenuating Circumstances After a Short Sale, Foreclosure, Bankruptcy
I wrote recently about Fannie Mae's announcement regarding the extension of the waiting period for those Buyers hoping to become Homeowners once again after having experienced a Short Sales (Pre-Foreclosures).
The waiting period is now extended out to 4 years ... regardless of Loan-to-Value considerations (or Down Payment percentages).
Naturally, there's been a wide range of reaction to Fannie Mae's announcement. There's also been many questions asked in regards to this change and my post. So, I'm addressing some those questions here.
I'm also featuring … (35 comments)
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mortgages: The Reasons to Contact a Mortgage Lender ASAP When Buying a Home
- 06/25/14 07:50 AM
The Reasons to Contact a Mortgage Lender ASAP When Buying a Home
The following are statistics reflecting American's current financial habits. They're provided by the National Financial Educators Council:
60% of adults don't budget/keep close track of their spending 41% of young adults, ages 18 to 21, fail to pay their bills on time every month 69% of parents admit to feeling less prepared to give their teens guidance on investing than they do about sex
I can tell you as a Mortgage Lender, that I'm not surprised by the numbers reported above. I see/talk to … (42 comments)
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mortgages: Downpayments: Sometimes It's Good to Find Out You're Wrong
- 06/23/14 09:01 AM
Downpayments: Sometimes It's Good to Find Out You're Wrong
A recent article featured in the MReport, (a mortgage industry news magazine) reported that a large percentage of young, first-time potential homebuyers believe they need a large downpayment to buy a home.
The article said that the average first-time homebuyer surveyed in a Zelman & Associates research study incorrectly believed that Mortgage Lenders demand minimum downpayments of 11% to 15% to be made in order to obtain financing to purchase a home.
Now this isn't the first time I've seen articles and stats of … (9 comments)
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mortgages: There ARE Alternatives to FHA Financing. Ask Me About the "Home Possible" Mortgage Option!
- 06/16/14 07:31 AM
There ARE Alternatives to FHA Financing Ask Me About the "Home Possible" Mortgage Option!
Although FHA perhaps remains the most reliable First-Time Homebuyer Program currently available, it may no longer be the only or best option for certain qualified Borrowers.
With the current costs of upfront Mortgage Insurance and the increased costs of Annual Mortgage Insurance, I have sought alternative options for my Borrowers in the Conventional Financing environment. I currently have a great option available for my clients.
The chart below shows how I (via APMC) have applied this program … (8 comments)
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mortgages: Gene Mundt's Mortgage News You Can Use - June 2nd, 2014
- 06/02/14 06:57 AM
Here's some info and articles I thought you'd find educational and beneficial now and for the future. Should you have questions, please contact me ... Are you possibly selling your home or moving sometime in the near future? The following article is full of helpful tips and suggestions for working with a moving company.
8 Things to Know About Working with Movers ...
As always, if you've got questions or are in need of service, please give me a shout. I'll be happy to hear from you and help! … (8 comments)
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mortgages: How to Avoid Unwelcome Surprises When Buying a Chicago-Area Condominium or Townhome
- 05/16/14 02:21 AM
How to Avoid Unwelcome Surprises When Buying a Chicago-Area Condominium or Townhome
One issue that has cropped-up often throughout the time I've been a Mortgage Lender (and continues to do so routinely) surrounds the question ...
Is the property I'm purchasing really a Condominium ... or is it a Townhome?
Just last night, the question came up one more time. My client, who had been told they were purchasing a Townhome, is in fact buying a Condominium.
The Legal Description of the property proves it is a Condominium. The tax Permanent … (8 comments)
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mortgages: How to Dispute Credit Report Errors While in the Mortgage Process
- 05/06/14 12:19 PM
How to Dispute Credit Report Errors While in the Mortgage Process Veterans of the Mortgage Industry can remember a time when clients suffering errors or inaccuracies within their Credit Report, were typically advised to "dispute" those errors ...
But because of recent changes that have taken place in the Mortgage Industry's Automated Underwriting Systems (commonly referred to as AUS), the advice given to current mortgage clients may be quite different from that of the past. Today's advice ... and the suggestion as to the timing and direction of recourse, will be based on a variety of … (8 comments)
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mortgages: Dreaming of Owning a Home? Potential Move-Up Homebuyer? Don't Be Afraid!
- 04/28/14 05:45 AM
Dreaming of Owning a Home? Potential Move-Up Homebuyer?
Don't Be Afraid!
Two articles I read just this morning addressed the issue of potential home buyers' fears of rejection as they pertain to mortgage financing. Each article, also spoke about the many misconceptions the public has that contribute to their fears.
The statistics quoted in these articles (per a national consumer survey by loanDepot LLC) were somewhat distressing for me as a Mortgage Lender. The most alarming were:
Nearly half (46%) of prospective homebuyers have not pursued the financing they would need in order to buy … (29 comments)
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mortgages: What are the Requirements to Qualify for a Home Loan Today?
- 04/22/14 01:39 AM
What are the Requirements to Qualify for a Home Loan Today?
Frequently I hear the question ...
"What are the requirements to qualify for a home loan today"?
To answer that, I'm first going to list what are considered as foundation requirements for current mortgage loans. When I say "foundation", I mean that they are the basic requirements that must typically be met by those seeking financing.
The most basic and frequently seen requirements (the foundation of most mortgage approvals) are as follows:
Credit: Middle FICO Scores are used to determine eligibility. MOST standards are:
… (60 comments)
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mortgages: How Long is a Mortgage Pre-Approval Good For?
- 04/19/14 02:19 AM
John Meussner, Total Mortgage Services LLC, Costa Mesa, CA consistently offers solid mortgage advice via his blog here on ActiveRain. The post below is yet another great example of that fact.
John Meussner provides great examples and detailed information as to why Pre-Approvals have a "shelf life" and why clients, their agents, and other real estate professionals must take note of any expiration date (and possible fine print) noted on any Pre-Approval provided them.
Enjoy this well-written tutorial on Pre-Approvals ...
Gene
How Long is a Mortgage Pre-Approval Good For?
This is a pretty simple question, but as it is … (10 comments)
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mortgages: Just Like Your Underwear: Credit Needs to be Freshened-Up, Scrubbed, Updated, Fluffed & Changed
- 04/18/14 02:35 AM
Just Like Your Underwear:
Credit Needs to be Freshened-Up, Scrubbed,
Updated, Fluffed & Changed Everything needs to be "freshened up" once in a while. It needs to be given a trim. Updated. Fluffed. Scrubbed-up. Changed or re-arranged.
Credit is no different ...
But stop and think. When was the last time you took a good hard look at your credit situation, your credit cards, or Credit Report? Over a year? Two? More?
Truth is, what worked for you credit-wise in the past, may not be serving your overall financial good now ...
Interest … (15 comments)
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What is a Piggyback Loan ... and How Does it Work?
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