801010: What's a Piggyback Mortgage? - 06/23/19 07:47 AM
What's a Piggyback Mortgage?
 
As if!  As if mortgages weren't complex enough, now you're going to tell me there's such a thing as TWO mortgages stacked on top of each other --- just to buy the same home you could otherwise get with one mortgage?  Are you a glutton for punishment?
 
OK, calm down.  You're correct about the part that adding a second, or "piggyback," mortgage might add complexity, but you're not quite right about the fact that our buyer could have just as easily killed the proverbial financing bird with one stone/loan.  Often, when we suggest borrower consider secondary financing, aka a piggyback loan, … (15 comments)

801010: Using RSU Income to Qualify for a Jumbo Mortgage - 09/01/18 08:15 PM
Using RSU Income to Qualify for a Jumbo Mortgage
 
Way back in 1997, Jeff Bezos set forth his bold business plan for Amazon, with proviso #9 reading:  "We will hire and retain the best people and we will not pay them with cash."  Wait.  What???
 
So I guess it's no longer any secret that many technology professionals are compensated with Restricted Stock Units, also known as “RSUs.”  And here at the epicenter of the high tech world, namely the Silicon Valley and San Francisco Bay Area, we see a lot of paystubs and verification of employment forms (“VOE”) that include base pay, bonus income and … (0 comments)

801010: 10% Down Jumbo Mortgage with No PMI - 05/27/18 08:28 PM
10% Down Jumbo Mortgage with No PMI
 
With the Federal Reserve Open Market Committee poised in June of 2018 to increase in the rates that impact home equity lines of credit ("HELOCs"), home buyers who have traditionally used "piggyback" or "80-10-10" solutions to purchase a home with less than a 20% down payment may have second thoughts.  Not about buying the house, per se, but about a HELOC rate that could approach 7% --- with future adjustments possible as well.  When Prime Rate was in the mid-3% range, most 80/10/10 loans had very palatable start rates but after a decade of seeing … (1 comments)

801010: Niche Jumbo Mortgage in California - 02/28/18 07:37 AM
Niche Jumbo Mortgage in California
 
Not all mortgage scenarios in California --- and especially in the high-cost areas we often see in the San Francisco Bay Area, Silicon Valley and in the greater Los Angeles environs --- fit squarely in "the box."  "The Box" is the narrow definition of what it takes to qualify these days, and for a jumbo mortgage that falls outside of the parameters of a conforming or "government," loan, such as FHA or VA.  When you find yourself outside and looking in, sometimes the best solution is a "niche" mortgage program. 
 
Now if visions of subprime loans and sky-high rates … (1 comments)

801010: Toxic is Trending! - 02/06/18 07:07 AM
Toxic is Trending!
 
A brief review at recent environmental headlines says it all:
 
January 31, 2018:  President Mulling Major Cuts to Clean Energy Research (Washington Post)
January 15, 2018:  EPA Loosens Regulations on Toxic Air Pollution (EPA)
January 10, 2018:  Climate Change Websites Censored Under President (Envirodatagov.org)
.....
October 9, 2017:  EPA Poised to Scrap Clean Power Plan (New York Times)
 
The list goes on and on.  So I thought I'd get on the bandwagon and talk a little trash about how toxic loan features, as designated by the Dodd-Frank Wall Street Financial Reform Act, are making a totally terrific, trending comeback in the world of jumbo mortgage … (2 comments)

801010: 20% Down? Ain't That a Shame... - 10/28/17 06:48 AM
20% Down? Ain't That a Shame...
 
Last week, with the passing of Fats Domino, we lost a rock 'n' roll legend and pioneer.
 
But nearly every week we (me and my team and you, as real estate agents with your teams) lose transactions simply because of the unquestioned and untested myth that every buyer needs to bring in at least a 20% down payment, especially here in California where many of our home prices require loans that exceed the conventional and FHA loan limits.  In addition to simply not recognizing that many great programs exist in order to accommodate a 10% down payment on a … (4 comments)

801010: Unlocking a HELOC Mystery - 09/26/17 06:58 AM
Unlocking a HELOC Mystery
 
If you could create a client-facing "tip sheet" for your business, a simple punch list of things to do and not-to-do, what would be on that list?  You know, the items that always seem to fly under the radar of public knowledge and wisdom, but the ones that frequently undermine the best-of-intentioned customers?  I'm sure all of us have this wealth of "insider knowledge" that we'd love to share with the public and, as a result, save them from the misery and inconvenience of being counted among the unfortunate and unsuspecting.
 
High on my list would be an explanation of … (3 comments)

801010: A Primer on Prime Rate - 08/28/17 08:22 PM
A Primer on Prime Rate
 
When we hear talk of the Federal Open Market Committee (FOMC) adjusting interest rates, there is one index in the mortgage environment that we know will be impacted, even when 30-year fixed rate loans may not see any change to their pricing. This rate is known as Prime Rate and it is the index that is used for most home equity lines of credit, or HELOCs.
 
If you have a HELOC on your property then it very likely will use Prime to set its base rate, with the addition or subtraction of a margin. Prime Rate itself currently … (1 comments)

801010: 80 10 10 Loan in California - 06/22/17 07:12 AM
80 10 10 Loan in California
 
It has been said that the Golden Gate Bridge is one of the most photographed tourist attractions in the world.  But before you get out your selfie stick and entertain visions of relocating to California, especially to the San Francisco Bay Area, know that the median home prices here in the middle of  201 tend to hover over one million dollars --- sometime by more than just a little.
 
It stands to reason that not all otherwise eligible buyers will have a full 20% down payment saved when they attempt to buy a home here in our … (2 comments)

801010: Can You Add Remodeling Costs to a Mortgage? - 03/27/17 07:43 AM
Can You Add Remodeling Costs to a Mortgage?
 
One home buyer niche I know extremely well is 10% down payment jumbo mortgage financing.  We have a good number of prospective homeowners in California, especially here in the San Francisco Bay Area, who earn strong income, who have an excellent credit profile but who just do not yet have the full 20% down payment saved for home prices that are, compared to the rest of the country, very high.  These buyers have certainly not failed and they are not out of luck either.  Once they understand just how competitive an 80/10/10 or other … (12 comments)

801010: Sigmund Freud & Low Down Payment Jumbo Mortgages - 01/07/17 08:42 PM
Sigmund Freud & Low Down Payment Jumbo Mortgages
 
In psychology, projection is a form of defense in which unwanted feelings are displaced onto another person, where they then appear as a threat from the external world.  Now in a minute, I am going to ask you to relax and tell me a little bit about how you feel about down payments.  Specifically those that equal less than 20% of a home's purchase price.  We'll analyze if you're projecting your own beliefs, right or wrong, onto reality. 
 
Just for a little background, in mortgage lending, we are not immune from projection.  This happens all the … (4 comments)

801010: Work Visa. Go Buy a Home With It. - 08/14/16 09:19 AM
Work Visa.  Go Buy a Home With It.
 
One of the many benefits of living and working in California’s San Francisco Bay Area (which includes the nine counties of San Francisco, Marin, Sonoma, Napa, Alameda, Contra Costa, San Mateo, Santa Clara and Solano) is that we have a very vibrant employment environment. Indeed, the cutting edge high-tech, biotech, finance and other industries here attract the world’s best and brightest. But what happens when these same employees, who may not yet be US citizens or even permanent resident aliens (“green card”
holders), seek to purchase a home? Can a non-permanent resident alien --- someone … (4 comments)

801010: Jumbo Mortgages with 10% Down (80-10-10) - 12/10/15 10:49 PM
Jumbo Mortgages with 10% Down (80-10-10) 
 
In just a few days and post the mad scramble of the holidays, it will be a New Year.  Yet here in the San Francisco Bay Area, even in late 2015, I encounter real estate professionals who, calling to vet a pre-approval letter I've written for a buyer, will say something to the affect of, "Uhhh, your buyer is only putting 10% down.  Can they even do that?"
 
Of course the answer is "Yes!"  But since some doubt still swirls around the topic, why don't we use the conclusion of this year to talk about a type … (2 comments)

801010: How Much Down Payment Do I Need to Buy a Home? - 11/21/14 10:43 PM
How Much Down Payment Do I Need to Buy a Home?
 
As kids, there are just some things we all learn while we’re growing up:
 
Never drink soda after you eat Pop Rocks. Cracking your knuckles will give you arthritis. You’ll catch a cold if you go outside without a jacket. It takes a 20% down payment in order to buy your first home.  
After having both a good laugh and some time to gain a little experience, we come to find out that things are not always as we believed when we were much younger.  However, in … (5 comments)

801010: 998 Edgewood Ave., Mill Valley, CA, 94941 w/ REX 12.5% Down Payment - 07/30/14 03:07 PM
998 Edgewood Ave., Mill Valley, CA, 94941 w/ REX 12.5% Down Payment Option
 
Using RPM Mortgage and REX Homebuyer, this home can be financed today as:
 
Purchase Price:  $1,949,000
REX Down Payment:  $243,625
Your Down Payment:  $243,625
Monthly P&I Payment:  $6362
 

 
Here are the terms for the scenario above:
 
Loan Amount:  $1,461,750
Loan Program:  7/1 ARM*
Interest Rate / APR:  3.250% / 3.145%
 
How can we help?
 
Property Info:  Sherrie Faber, 415-339-9200, sherrie@firstcaliforniarealty.com
Mortgage Pre-Approval:  Rob Spinosa, 415-367-5959, rspinosa@rpm-mtg.com
 
*Rates will only apply for the initial period.  The initial period for this program above is seven years.  The payment … (2 comments)

801010: MTG Fight Night: 80-10-10 vs. REX - 07/26/14 12:41 PM
MTG Fight Night:  80-10-10 vs. REX
 
The tale of the tape:
 
                        80-10-10 Piggyback Loan            vs.                  REX Homebuyer
$1,100,000          Purchase Price          $1,100,000
$110,000          Down Payment          $110,000
$625,500            First Mortgage            $880,000  
$364,000            Second Mortgage            $N/A   
$905,634         Balance @ Month 84       $748,393
$1,263,554    Value of Home @ Month 84      $1,263,554
$404,984          Total P&I Payments          $331,934
$358,190       Net Equity @ Month 84       $339,739
 
In the blue corner, purchasing a home worth $1,100,000 and hailing from Los Angeles, "The Pig" has a 10% down payment and will finance his purchase with an 80-10-10 loan.  His first mortgage is … (1 comments)

801010: 135 Marina Blvd., San Rafael, CA, 94901 Mortgage Options - 06/12/14 08:31 AM
135 Marina Blvd., San Rafael, CA, 94901 Mortgage Options
 
Using RPM Mortgage and REX Homebuyer, this home can be financed today as:
 
Purchase Price:  $1,499,000
REX Down Payment:  $149,900
Your Down Payment:  $149,900
Monthly P&I Payment:  $5219
 

 
Here are the terms for the scenario above:
 
Loan Amount:  $1,199,200
Loan Program:  7/1 ARM*
Interest Rate / APR:  3.250% / 3.154%
 
How can we help?
 
Property Info:  Robert Beadle, 415-464-3340, rhbeadle@coldwellbanker.com
Mortgage Pre-Approval:  Rob Spinosa, 415-367-5959, rspinosa@rpm-mtg.com
 
*Rates will only apply for the initial period.  The initial period for this program above is seven years.  The payment on a 7/1 ARM … (2 comments)

801010: 22 Frances Ave., Larkspur, CA, 94939 Mortgage Options - 06/12/14 07:55 AM
22 Frances Ave., Larkspur, CA, 94939 Mortgage Options
 
Using RPM Mortgage and REX Homebuyer, this home can be financed today as:
 
Purchase Price:  $1,499,000
REX Down Payment:  $149,900
Your Down Payment:  $149,900
Monthly P&I Payment:  $5219
 

 
Here are the terms for the scenario above:
 
Loan Amount:  $1,199,200
Loan Program:  7/1 ARM*
Interest Rate / APR:  3.250% / 3.154%
 
How can we help?
 
Property Info:  Yoko Kasai, 415-847-6519, yoko@frontporchrealtygroup.com
Mortgage Pre-Approval:  Rob Spinosa, 415-367-5959, rspinosa@rpm-mtg.com
 
*Rates will only apply for the initial period.  The initial period for this program above is seven years.  The payment on a 7/1 ARM adjusts … (1 comments)

801010: 39 Rosebank Ave., Kentfield, CA, 94904 Mortgage Options - 05/19/14 09:57 AM
39 Rosebank Ave., Kentfield, CA, 94904 Mortgage Options
 
Using RPM Mortgage and REX Homebuyer, this home can be financed today as:
 
Purchase Price:  $1,995,000
REX Down Payment:  $249,375
Your Down Payment:  $249,375
Monthly P&I Payment:  $6410
 

 
Here are the terms for the scenario above:
 
Loan Amount:  $1,496,250
Loan Program:  7/1 ARM*
Interest Rate / APR:  3.125% / 3.087%
 
How can we help?
 
Property Info:  Howard Wynn, 415-828-9966, hwynn@pacunion.com
Mortgage Pre-Approval:  Rob Spinosa, 415-367-5959, rspinosa@rpm-mtg.com
 
*Rates will only apply for the initial period.  The initial period for this program above is seven years.  The payment on … (1 comments)

801010: 80-10-10 Mortgage - 05/05/14 08:12 AM
80-10-10 Mortgage
 
I was born in 1970.
 
My grandmother would refer to the Frigidaire, or launder our filthy Dungarees.
 
A great day was "go to work day" with Dad in Manhattan.  There, we might Xerox our handprints and maybe even be allowed to get a Coke with lunch.
 
You get the idea.  I'm talking about genericide --- using a brand name in place of concept or thing. I see this happen all the time in the home finance business with 80-10-10 mortgages, also known as piggyback loans.  The short video below explains the basics and, I hope, addresses any confusion or misconceptions quickly and … (7 comments)

 
Rob Spinosa, Vice President of Mortgage Lending, Marin County (Guaranteed Rate, Marin County, CA) Rainmaker large

Rob Spinosa

Vice President of Mortgage Lending, Marin County

San Anselmo, CA

More about me…

Guaranteed Rate, Marin County, CA

Address: 324 Sir Francis Drake Blvd., San Anselmo, CA, 94960

Office: (415) 367-5959

Mobile: (415) 367-5959

Email Me

REX Homebuyer Participating Lender 80-10-10 Loans What Happens if My Appraisal Comes in Low? Can I Get a Cosigner on a Mortgage?


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