Do I Actually Have Clients?

February 28, 2008 by Leave a Comment

Welcome

I just received this question from a Mortgage Porter reader:

"I’m looking for licensed, local quotes to refinance my house. My ARM is ending and I’ve been entertaining quotes from contractors to redo my kitchen this Spring. Do you actually have clients or just an advice website?"

I’m really glad she asked this question.  Mortgage Porter is web-blog where I dish out my 2 cents on the mortgage industry and what ever advice I may have.   You may notice that I do not have any advertisements on this blog as many other blogs do.  It’s tempting…but I’ve steered clear of google ads and offers from various vendors.

My sole source of income is the origination of mortgages for those I assist with their financial plans.  My clients are the fine folks who with residential property anywhere in Washington State.  If your property is outside of Washington, I cannot provide your mortgage (I’m only licensed for Washington) however, I will try to find a Mortgage Professional who can assist you.

A majority of my clients are either returning clients whom I’ve helped before, referred to me from past clients or professionals (real estate agents, CPAs, CFPs, etc.) and I also have clients who read Mortgage Porter and decide they would like me to help them with their mortgage needs too!   I do not "cold call" or buy leads.

I am a Licensed Loan Originator (510-LO-32047) with DFI and hold a CMPS (Certified Mortgage Planning Specialist) designation.

Sorry, too late for a quick answer:  Yes, I do have a mortgage practice and I welcome new clients.  You don’t even need to refi or to be buying a home to be my client.  I am "adopting clients" who have been abandoned by their loan originator as well. 

Thanks for asking!

Filed Under: Mortgage

Second Mortgages and “Low Down” Mortgages

February 28, 2008 by Leave a Comment

SunTrust Bank, one of the lenders we work with, is joining the ranks of other lenders who are eliminating or shelving their second mortgage products, including their combos where they have the first and second mortgage (such as an 80/10/10).  Where we once had several options for second mortgages and HELOCs, we are down to just a few. [Read more…]

Filed Under: Mortgage Rates & Market Updates

Qualify a Loan Originator with this One Simple Question

February 27, 2008 by Leave a Comment

How do you track mortgage rates?

If the person who will potentially helping you obtain a mortgage answers:

“I get rate sheets in the morning and later if they change during the day.”

Run!  Anyone who is gauging interest rates by when lenders issue new rate sheets is behind the market.  The rates have all ready adjusted.

“I watch CNBC (or something along those lines) and keep tabs on how the 10 Year Note is performing.”

Wrong again.  Mortgage interest rates are not based on the 10 year note.  However you will hear the media and other professionals incorrectly state this is what rates are based on.  If you or your loan originator are tracking the 10 year based on when to lock, it will cost you.

The correct answer:

“I keep a close eye on mortgage backed securities.  I am committed to my mortgage practice and this is why I subscribe to a service (such as Mortgage Market Guide) which allows me to do so.”

Now here’s my question for you:

If you are working with a Loan Originator who is not dedicated to their practice enough to subscribe to a service that allows them to track mortgage backed securities or (even worse) who does not know or care to track what influences mortgage rates: WHY?

Filed Under: Interest Rates, Mortgage

Bait and Switch Mortgage Rate Advertisements

February 26, 2008 by 4 Comments

EDITORS NOTE: Please notice this post is from February 2008! Wachovia is gone, 5.5% isn’t a great rate “right now” and I no longer publish rates at Rain City Guide or weekly here at Mortgage Porter. It simply takes too much time. I’m happy to provide your personal rate quote for your home located in Washington.  10/16/11.

Nommag72008

Bait and switch is when a consumer is offered something tempting (bait) that is no longer available and then they are offered something else (switch).   I see this over and over again when lenders of all types promote rates in main steam media such as the radio, print ads, bill boards, television…you get the picture.

[Read more…]

Filed Under: Interest Rates, Predatory Lending, Rant

Skip Two Mortgage Payments when You Refi!

February 24, 2008 by 7 Comments

Skipping

The promise of not having to write a check for your mortgage payment for two months seems so tempting that many home owners chomp on the bit when a Loan Originator dangles that bait to lure in a refi candidate.  The truth is you’re not skipping anything. [Read more…]

Filed Under: Refinancing & Home Equity Tagged With: ,

Review Your ARM Before You Refi

February 20, 2008 by 1 Comment

There is a lot of media and mortgage hype about getting out of your dangerous adjustable rate mortgages.  Mortgage companies stand to benefit every time you refinance and the media thrives on drama.  I’m contacted often by consumers who are horrified of their adjustable rate mortgage–depending on your terms (margin and index) your ARM may be fine!

One of my clients, Scott, who I helped with a refinance almost five years ago just contacted me curious about refinancing out of his current ARM into a fixed rate.  He heard on the news that mortgage rates are low right now.   

Scott obtained a 5/1 ARM with a start rate of 3.75%.  His fixed period is over around July of this year and his caps are 5/2/5 with a 2.25 margin and the index is the 12 Month LIBOR.   His current balance is about $121,500.   

Scott expressed an interest in doing another 5/1 ARM.  He’s not sure how long he will retain this property.   Currently, I can offer the following (both refi’s have closing costs of $1900):

  • 5.25% at 1 point (APR 6.965%) with principal and interest of $717.  Should Scott decide to pay the point, it will take 3 years to break even on the cost.
  • 5.625% at 0 points (APR 7.018%) with principal and interest of $748.

He can also elect to not refinance his ARM and wait to see what the payment will adjust to in July.  He still has a few months to wait this this out, however, if his ARM were adjusting today, here is what his payment would look like:

1 Year LIBOR = 2.85% plus the margin of 2.25% = 5.10%.  Rounded to the nearest rate, the new rate for the next 12 months would be 5.125%.   Taking his current balance of $121,500 at 5.125% for 25 years (the remaining term) would create a principal payment of $719.15.  This is without refinancing or additional cost (out of pocket or equity) to Scott. 

If Scott is comfortable allowing his ARM to adjust and making his payment of $719.15 for the next 12 months, he should not refinance.   Some home owners are "up in arms" over their adjustable rate mortgages and if it’s something that’s going to cause to lose sleep, you may want to check out what your options are for refinancing out of the ARM.  Regardless of what you do, it’s crucial that you understand your mortgage, the terms and how it operates and what your options are.   

If you need help, ask your Mortgage Professional to review your Note with you.  If you need a new Mortgage Professional because they’ve either left the business or have forgotten about you, I’m happy to adopt your Washington State mortgage.

Filed Under: Mortgage Programs, Refinance

The Trigger Finger on Mortgage Interest Rates

February 19, 2008 by 1 Comment

TriggerfingerVolatile times with our economy are giving lenders an itchy trigger finger when it comes to issuing rate sheets.  Just today, one of the lenders we work with issued 4 different rate sheets with various price change.

Lenders are just simply jumping at the bit…if you look at them cross-eyed they will issue a new rate sheet. It makes for very interesting times for Loan Originators when you’re trying to lock in a rate that you have just told a borrower is available.   During a rate change, many bank systems will hold or freeze during the change and you have to wait until the change is complete before you can see how it will impact you.  Those few minutes are enough to drive you crazy and you’ll will either be a hero to your client or not after the rate change takes place.

These days, several rate changes are the norm and not the exception.   Consider this, based on the last 30 days with a conservative lender who only offered two rate changes today (vs. the four another lender did today):

  • Days of daily rate sheet without changes in last 30 days: 7
  • Days with two intra-day price changes for a specific day within the last 30 days: 10
  • Days of three intra-day price changes for a specific day within the last 30 days: 5

A lender with a trigger finger can work in your favor when rates are improving.  Even better, a Mortgage Professional who works with several resources, such as a mortgage broker or correspondent lender, may be in your very best interest.

More drama is on the slate for tomorrow for mortgage interest rates with the CPI being released…stay tuned!

Filed Under: Interest Rates

President’s Day

February 18, 2008 by Leave a Comment

Mortgage Master is closed today in observance of Presidents Day.   We will reopen for business as usual on Tuesday, February 19, 2008.

Filed Under: Current Affairs
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