I keep getting hits for this, so people must want it explained. Loan Amortization is nothing more than the process of paying the loan off by regular payments over time. Leave it to the experts to come up with a fancy word for an everyday process, eh? A loan which is fully amortized (or fully …
Category Archives: Mortgages
Incorrect Legal Descriptions on a Trust Deed
“Trust Deed Incorrect Legal Description” There are all kinds of legal descriptions. Lot, Block and Map, or just Lot and Map, are probably the most common. Sectional portions (Portion A of Section B of Township C, Range D) are probably next most common, followed by “metes and bounds”, and often the two are mixed. Finally, …
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I’m Sorry, Did You Think Your Good Faith Estimate (Or Mortgage Loan Disclosure Statement) Meant Anything?
Somebody asked, “What are my legal options when there’s a change on a good faith estimate.” Short answer: Sign the documents or don’t. Same thing with a Mortgage Loan Disclosure Statement here in California. Neither one means anything binding; that’s why they call the one an estimate. Nonetheless, because there is a perception that they …
Loan Quote Guarantees
Because most loan providers will not guarantee their Federal Good Faith Estimates or California MLDS forms, I’ve been telling folks that the best suggestion (other than doing their loans myself, of course!) that I can give them is apply for a back up loan. But some mortgage loan providers will guarantee their quotes, and this …
Loan Documents – Contracts of Adhesion
Got a search for “mortgage closing documents do not sign changes.” Unfortunately for this person, the documents you get at closing are what legal folks call a contract of adhesion. This means you can either accept it, sign, and adhere to all the terms as presented, or you can walk away. Basically your choice is …
Loan Cosigners in Real Estate – A Lot of Risk For Not Much Gain
Every so often I get questions about loan cosigners. The main borrowers do not qualify on their own, so they get someone – most often mom and dad – to cosign. Now this is a different thing, or so I understand, in the other major credit areas – automobiles, rent, etcetera. But this is about …
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Some Free Loan Advice About Real Estate Transactions
Most days I get loan wholesalers coming into my office. I’m always happy to talk with them, providing they want to talk about what I want to talk about. They usually want to talk about this gimmick and that gimmick and the other gimmick. They feed me lines about service and fast turn around and …
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Power of Attorney for Real Estate Transactions
I got a search for how one spouse could sign while the other was out of town, and act on their behalf. Since both spouses usually need to sign real estate papers, this is a real concern. Actually, almost anybody you designate can sign for your real estate transaction, whether or you’re available. The usual …
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What Are Points On Mortgages and How Do They Work?
I got a search hit for that and, amazingly enough after 150+ articles, I’ve never dealt with this subject head on. So here goes. One point, either discount or origination, is one percent of the final loan amount. After all of the loan amounts and fees and what have you are added, for a loan …
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Dissecting the “Lending Game”
Right now lender X is offering me a loan that looks something like this: 80/20 No down paymentOn the /80: 6.5% FIXED interest for 30 years, interest-only payment option for 15 yearsOn the /20: 8.75% FIXED interest for 25 years (amortized to 30) 6-month lock for 1-point ($3800) refundable fee with float-down option My response: …