In an attempt to debunk some of the slanders that are floating around out there, this article is an itemization of how lenders and brokers make money on loans. The first method is obvious: Origination or discount points charged to the consumer. This is money that the person getting the loan is paying, or someone …
Category Archives: Mortgages
Lender Discrimination and Shopping for a Home Loan
Minorities get higher rates. They add that the fact minorities are more likely to borrow from institutions specializing in high-priced loans could mean they are being steered to such lenders or that some lenders are unwilling or unable to serve minority neighborhoods. This is called redlining. It is illegal. HUD really gets their panties in …
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Mortgage Loans: The Tradeoff between Rate and Cost
The question every good loan officer hates the most is “What is your lowest rate?” First off, everybody doesn’t get the same choices. As I’ve said before, somebody who can prove they make enough money, has a history of paying their debt, and offers the lender a situation where there’s 30 percent equity (or more) …
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Asset and Income Rentals
I found this article by Ken Harney in the Sunday paper. WASHINGTON – Call it funny money for the housing boom: Now you don’t need actual cash in the bank to buy a house. All you need is somebody who says you’ve got money in the bank. Need a hundred grand on deposit to convince …
Saving Money by Being Realistic About Your Mortgage
If you haven’t heard about the thirty year fixed rate mortgage, welcome to planet earth and I hope we can be friends. The thirty year fixed rate loan seems to be the holy grail of all mortgages. It’s what everyone wants, and what they’re calling about when they call me to talk about refinancing a …
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Mortgage and Housing Market Virtues
The scope of the problems that exist in the United States Mortgage market are huge. Enormously, mind-bogglingly, “How Big Is Space?” type huge. Yet, the problems are almost entirely on a retail level, when one provider works with one consumer. The system works, and it works extremely well. Consider: Most consumers in Europe or any …
What can I do to Qualify for a House or Mortage?
There are a fair number of specific helpful suggestions to make in helping you purchase a home. All of them revolve around the loan. Let’s face it, the loan is far and away the most hypothetical and uncertain part about most real estate transactions. If there is a non-loan related problem, chances are that you …
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Salesgoodspeakian to English
It may not come as a shock to you, but loan officers, along with many other salesfolk, speak a different language than the rest of the population. What will probably annoy you, however, is the number of times they’ll say something that sounds like a phrase out of English, but really is from Salesgoodspeakian, a …
Housing and Urban Development Form 1 (HUD-1)
I have mentioned this form several times in the past as the only form in the entire mortgage process which is actually required to be accurate. Whoever your provider is, this is the one form they cannot play games with. This article is goes over the form line by line, referencing previous entries. The top …
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What You Should do at Closing
I’ve said upon more than one occasion that the factors at closing are all in the loan provider’s favor. The typical consumer has no leverage to get the loan provider to play it straight at closing, and actually deliver what they said they would back when you signed the application. Many people never notice that …