Thinking the Federal Reserve will cut interest rates, or raise interest rates, may not be advisable. Here are some pertinent comments from an economist: Read the rest of this entry »
GetLoans.com Blog
Interest Rates, 3% or 15%?
March 24th, 2010
Everybody likes to offer an opinion on where the stock market is headed next, or where interest rates are headed, among many other things. So I’ll jump into the fray and offer my opinion as well. I think Read the rest of this entry »
Cash Out Refinance
March 21st, 2010
Cash out refinancing, where you borrow above what you owe on your existing mortgage, is many times a better way to go than getting an equity line. Equity lines are usually adjustable rate mortgages based on Prime Rate, which is currently very low. But: Read the rest of this entry »
Debt-To-Income Ratios…Does Anyone Care?
March 16th, 2010
It seems we are still in a banking environment where no one cares about debt-to-income ratios (DTI), which is astonishing. Isn’t this one of the things that got us in trouble in the first place? Read the rest of this entry »
Underwriters Know How To Use Google?
March 11th, 2010
After 24 years in the mortgage business I have seen every mortgage scam, and been approached about every way to cut a corner, get a better deal, or pull one over on an underwriter.
But guess what? Underwriter’s know how to use Google now! It took a while, but they figured it out. Why does this matter? Well it only matters to the cheaters and corner cutters. If you are always honest in your loan application, don’t read any further (unless you want to be entertained). Read the rest of this entry »
Refinance To An Interest Only Loan?
March 7th, 2010
I always felt like an “Interest Only” loan (where you pay no principal and are only making the interest payments on the loan) was like taking your house and putting it on a credit card. I was never a big fan of these loans, and as a result never did many because clients always sensed my unease, and ended up going to the competition who talked these loans up as a great way to “get in the market.”
I thought the Interest Only loan has been put to bed, and no one was doing them anymore. I did not think any client wanted them, nor did I think many banks offered them. But, I was surprised when an old client of mine said he was approached by a lender to refinance from his fixed rate mortgage to an Interest Only loan. Huh? Read the rest of this entry »
Would A Dress Store Do A 1.5% Off Sale?
March 4th, 2010
I saw a house recently that was priced at $659,000. This house had been on the market for 60 days, with no offers, at $659,000. I noticed that they did a price reduction of $10,000 to $649,000 after they were on the market for 60 days. And this begs the question, “is a ’1.5% OFF SALE’ going to draw buyers into the store?”
I believe a $10,000 price reduction is a slap in the face to the marketplace, to potential buyers, and to logic. If the house was not worth $659,000, guess what, it ain’t worth $649,000! Read the rest of this entry »
Refinance From A Conventional Loan To An FHA Loan? Why??
March 1st, 2010
I have heard more and more clients tell me that some nameless, faceless mortgage people or “friends” have told them they should refinance from a Conventional loan to an FHA loan. Huh? Usually the smart advice giver is giving the advice because they know the client has had a hard time getting a sufficient appraisal to refinance as a Conventional loan, and that FHA requires much less equity.
Wow, I am surprised that such incredibly expensive advice is still being passed out.
Here is why I find that advice silly, Read the rest of this entry »