One of the things I’m seeing a lot of these days is blanket advice on bridge loans. A bridge loan is a loan that you take out with the explicit intention of having it be short term. The most common situation is a loan against property A, which you own but plan to sell, so …
Category Archives: Mortgages
Reserves for Real Estate Loans
Thanks again for the terrific posts. I’ve learned more about mortgages in the past two months than I ever dreamed I might. I am looking to buy my first home soon, and have myself in a good credit position to do so. My credit score is over 800 and I have no back-end debt – …
Mortgage and Real Estate Red Flags
This is intended as one of those occasional posts that gets expanded and reposted from time to time. This list is not exhaustive, although over time it is intended to become closer. If you have one, send it to me (dm at) Any of these is sufficient reason, all by itself, not to do business …
Relying Upon Reputation: There Are No Silver Bullets
On a regular basis, I get emails that ask me what I think of a particular company. When I check out public forums, I see questions about particular companies every time. “What do you think of X Realty, or Y Mortgage?” Reputation has a certain value of course, but in my experience, these people are …
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Option ARMs and Cash Flow
One of the standard arguments I hear about negative amortization and Option ARM loans is that they “give the client the option to make a smaller payment if they need to.” This so-called “Pick A Pay” benefit is a real benefit, but it’s an expensive benefit, one that the client will pay for many times …
What if Your Partner Refuses to Pay Their Share of a Loan or Mortgage (or Won’t Pay on Time)?
what happens if partner refuses to pay his half of the mortgage? The lender will hold you each responsible for payment in full. That’s the long and the short of it. You both agreed to the loan contract, and if it’s not paid in full there will be all of the consequences: Hits to your …
Is a VA Loan a Good Deal?
Veterans Administration, or VA loans, are government guaranteed loans available to veterans and active duty members of the armed services, that enable them to purchase homes for not money down. In fact, VA loans go up to 103 percent of purchase price to allow for some closing costs as well. VA loans are a unique …
“I’ll Pay For Your Appraisal” From a Loan Provider
This is one of those commercial gambits I keep seeing that has nothing intrinsically wrong with it, and yet it is most often a tactic employed by the more costly loan providers. In short, sharks and scam artists. The basic come-on is this: Loan provider offers to pay for your appraisal if you do the …
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How Soon After You Purchase A Home Can You Refinance?
Legally, immediately. With that said, there are economic reasons why it may not be a good idea for you to refinance. If you have a prepayment penalty, you’re going to have to save a lot of money to make it worth paying that penalty. Suppose you have a rate of 7 percent, and an penalty …
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Cash Back From The Seller to the Buyer in Real Estate Sales
Yesterday I dealt with a very disturbing phone call from a would be client. He was very happy with the way I found bargain properties, and wanted me to find him such a property. All very well and good. But he said that a condition of the transaction had to be that he would receive …
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