Interest-only mortgages are not just for luxury homebuyers with jumbo-sized home loans anymore! And while we do see the buyers and owners of higher-priced real estate favoring interest only loans because of their lower payments, have you ever wondered why everyone doesn't consider this mortgage program?
Is it due to the fact that most interest-only loans are ARM mortgages, like the 7/1 or 10/1 ARM?
Or is it simply due to homeowner psychology? After all, there is a large number of homeowners who just can't stand looking at their mortgage statements month after month and NOT seeing their … (2 comments)
No doubt about it, since 2022 got underway, mortgage rates have been on a stairway higher and that makes it harder for our buyers to qualify for a mortgage on one hand and even when they do qualify, it puts additional strain on their household budget on the other.
So how can buyers and owners keep their rate and payment as low as possible despite rising interest rates? In this short video, I cover three classic ways to "fight the Fed:"
Paying discount points. Choosing an ARM over a fixed rate loan. Considering an interest-only mortgage program. … (9 comments)
Qualifying. It's always harder than it looks, right? I've talked before about my erstwhile career as an Ironman triathlete and for those familiar with that sport, they'll confirm that qualifying for the race in Kona is way harder than they make it look on TV. I suppose it's the same with getting into certain colleges, but since I struggled to get out of high school, I'm going to let someone else blog about that...
No, today, we're going to talk about qualifying for a mortgage and specifically we're going to cover the payment that we lenders use … (1 comments)
It is no secret that the self-employed have their share of challenges when it comes to getting a home loan. And why wouldn't they? On one hand, their tax professionals spend hours maximizing their deductions and helping them "write off" every allowable expense and on the other hand, their mortgage loan advisor tells them they have to show more income in order to qualify.
The difference of intentions is like two trains moving in opposite directions...
Yet, there may be a solution for some of these borrowers. On both the purchase and refinance side, we have a jumbo mortgage program that … (1 comments)
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)
How to Rock an Interest-Only Mortgage!
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