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on Sat Feb 16 2019, 12:31 AM
Thanks for all the details and outlook on refinancing. The world of finance is changing every second, one cannot predict when the business goes into financial crisis, need immediate cash flow or requires refinancing. My brother was in a situation where he needed refinancing of his business, Prestige Capital Corporation www.prestigecapital.com was the commercial finance who supported him and provided him with the best of their services so that he would meet his current requirements. One can trust such corporations.
on Sat Feb 16 2019, 12:29 AM
Thanks for all the details and outlook on refinancing. The world of finance is changing every second, one cannot predict when the business goes into financial crisis, need immediate cash flow or requires refinancing. My brother was in a situation where he needed refinancing of his business, Prestige Capital Corporation ( https://www.prestigecapital.com/about-us/prestige-advantage/ ) was the commercial finance who supported him and provided him with the best of their services so that he would meet his current requirements. One can trust such corporations.
on Sat Feb 9 2019, 4:58 AM
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Larry Gray
Senior Mortgage Banker, Guarantee Mortgage
on Fri Feb 8 2019, 9:55 AM
I wanted to add...to an overly long, unedited comment already of course...that I do help with disabled seniors and will continue to. I believe so many Seniors have much experience and wisdom to share with their younger local citizens and are yet valuable to the community's richness and well being. It is been suggested (ooops, I mean has been suggested!) OK, I will remember to edit my next comment.
Larry Gray
Senior Mortgage Banker, Guarantee Mortgage
on Wed Feb 6 2019, 2:22 PM
It is been suggested in our high priced and high rent community that Seniors who are empty nesters could share their home with the right, well screened tenant (s). To some extent that is occurring as at least one agency in the area helps Senior homeowners match up with house share renters. Another good suggestion has been to allow homeowners a fast track to being able to add an apt. to the home, and there are homeowners who have taken advantage of that. Nonetheless, these efforts at producing more rentals, and hopefully more affordabiiity to the market, have barely put a dent in alleviating the situation of too low a number of housing units and high cost. One problem is that here in Ca. you have Proposition 13 keeping property tax payments extremely low compared to property taxes applied to more recent home purchases; that makes the decision for Seniors to sell more difficult. i wonder how many retiring baby boomers want to live somewhere else when their community has the best weather and their family resides nearby along with good cultural and social activities they plug into. Finally, at least in desirable areas people like to come for extended stays, there may be a number of Seniors able to take advantage of a strong "air b&b" marketplace. That certainly can help Seniors earn extra to remain in their home in retirement as well as limit the available long term rental stock, Hitting "senior status" myself and my wife just several years behind, we wonder where on earth do we want to live other than in a location fantastic weather, a Bay and an ocean nearby, and lots of great social and cultural activities available to us? In our area most if us agree we have to keep building affordable housing for Seniors and vital lower income residents. We hope some of those Seniors that move into affordable housing free up more homes for families to purchase.
on Mon Feb 4 2019, 11:44 AM
Life is like driving a car. If you keep looking in the rear view mirror, you will miss what’s ahead of you and you may crash. Don’t look back look ahead. There always boulders in our path…it is our choice to use it as a stumbling block or stepping stone! Always believe that you will ultimately succeed at whatever you do, and never forget the value of persistence, discipline and determination. Ghost helped me to restore my credit after several times I got ripped off trying to fix my credit and raise my score but I never gave up, but here I’m today a new home owner and about to set my own business rather than a second job, the year has be amazing a good start. Let Ghost help fix your credit and get you to your dreams. You can get started today by Contacting GHOSTVIRUS7890 at GMAIL dot COM (205) 418-0498
on Mon Feb 4 2019, 11:43 AM
Life is like driving a car. If you keep looking in the rear view mirror, you will miss what’s ahead of you and you may crash. Don’t look back look ahead. There always boulders in our path…it is our choice to use it as a stumbling block or stepping stone! Always believe that you will ultimately succeed at whatever you do, and never forget the value of persistence, discipline and determination. Ghost helped me to restore my credit after several times I got ripped off trying to fix my credit and raise my score but I never gave up, but here I’m today a new home owner and about to set my own business rather than a second job, the year has be amazing a good start. Let Ghost help fix your credit and get you to your dreams. You can get started today by Contacting GHOSTVIRUS7890@GMAIL.COM; (205) 418-0498
on Wed Jan 30 2019, 11:02 AM
thanks for sharing this sir jammu kashmirl
on Wed Jan 30 2019, 7:44 AM
Yes it is called "papering over". Instead of the obvious, make borrowers have more skin in the game, we keep looking for new ways to explain away the obvious.
Ted Rood
Home Mortgage Loan Advisor, First Bank
on Tue Jan 29 2019, 1:11 PM
I didn't write it!
Ted Rood
Home Mortgage Loan Advisor, First Bank
on Thu Jan 24 2019, 3:57 PM
The most surprising thing here is that ARM rates are scarcely lower than fixed these days, only .25-.375% in most cases. I wrote a LOT of ARMs when they were .75% or more below fixed rates, but haven't seen any borrowers recently who opted for ARMs.
on Thu Jan 24 2019, 3:15 PM
see https://www.google.com/url?rct=j&sa=t&url=https://www.reuters.com/article/mt-insurance-settlement/mt-bank-settles-lawsuit-over-homeowners-forced-insurance-idUSL1N1ZN1ZX&ct=ga&cd=CAEYACoUMTU1MjIxNTM0ODY5Nzc1NDM3MjQyGjNiYjMzYzNiY2IyZTcyOTU6Y29tOmVuOlVT&usg=AFQjCNF_WgmA_trWGL_6S3pyA5UzqWroKw
on Wed Jan 23 2019, 4:48 PM
See the following link https://www.washingtonpost.com/us-policy/2019/01/23/why-its-problem-that-dirt-brooklyn-is-so-much-more-expensive-than-dirt-arkansas/?utm_term=.bdb501ef6b8d
on Tue Jan 22 2019, 5:07 PM
The issue is more severe. Consumers are being ripped off by the co-agreements servicers are making with insurance companies. They are charging the forced placed insurance much higher 3-4 times than potential losses dictate as an illegal profit sharing and filing falsified rates. A number of consumers have slogged it out and won. Eventually, these servicers-coinsurance agreements will bite all mortgage servicers and their principals in the backside especially through federal regulators and the frauds against state insurance regulators. MD servicers are violating laws when foreclosing on purchase money1st mortgages by not having a true and accurate appraisal of the property which differentiates land vs land + structures appraisals. I can't wait until this issue runs its course through the Maryland Court of Appeals.
Ted Rood
Home Mortgage Loan Advisor, First Bank
on Tue Jan 22 2019, 9:36 AM
"NAHB basis its estimates on the sum of the mortgage payment including escrows. This total cannot be more than 28 percent of monthly gross household income, the standard used in underwriting conventional mortgage loans" Fannie Mae and FHA allow front end ratios of up to 45%. That's a HUGE difference from 28%, rendering all conclusions based on the 28% number completely meaningless.
on Fri Jan 18 2019, 10:12 AM
To Ted, What else is erroneous? Thanks much. from a student.
Matthew Graham
Chief Operating Officer, Mortgage News Daily / MBS Live
on Wed Jan 9 2019, 6:58 PM
Yikes
Ted Rood
Home Mortgage Loan Advisor, First Bank
on Wed Jan 9 2019, 1:11 PM
Gotta love it when non-mortgage peeps crunch mortgage numbers. "NAHB basis its estimates on the sum of the mortgage payment including escrows. This total cannot be more than 28 percent of monthly gross household income" 28% is hardly the maximum front end debt ratio. NAHB needs to consult with actual mortgage lenders before their economists put out erroneous information like the projections presented here.
Ted Rood
Home Mortgage Loan Advisor, First Bank
on Wed Jan 9 2019, 11:38 AM
There's a lot of info to digest here. I agree that high-score borrowers are often more apt to refinance when rates drop, and less likely to when rates rise. Guess having good money management skills and high scores just go together!
Ted Rood
Home Mortgage Loan Advisor, First Bank
on Fri Jan 4 2019, 11:51 AM
This isn't surprising to me at all. I've had multiple clients inquire about refinancing, but the benefit just isn't there. Even doing a cash out can be questionable if you're raising the current rate substantially in a less than desperate situation.
Larry Gray
Senior Mortgage Banker, Guarantee Mortgage
on Wed Jan 2 2019, 2:34 PM
As a member of one of only two Veteran's Lions Clubs dedicated to assisting in various Veteran needs I am angered when I find out a Veteran has been taken advantage of thru high fees, greatly depleted equity in their home, and often little more cash out than cost. Requiring the recouping of all loan fees and cost within three years is an important step in minimizing costs to the Veteran. However, more lenders need to be taken to task for not sufficiently consulting the Veteran as to the negatives in refinancing to obtain cash from the equity in their home. I assume if the mortgage consultant has done their job correctly, the Veteran will have a full understanding of what options they may have and how each choice affects them. It is the job of a mortgage loan originator to originate loans, VA loans included, but both the client and themselves will benefit from a careful analysis of options. I have taken advantage of being able to have a VA loan before, and later entertained the idea of a nearly no fees equity line of credit for our needs, ultimately settling on paying cash from reserves.
on Sun Dec 30 2018, 12:27 AM
Good reply...I think on the last point, Bernanke, perhaps Obama's economic policy was so impotent the Fed was the growth. Then Trump comes in and instead of metering policy initiatives throws everything in the pot at the same time and probably caught everybody off guard over how well it worked...i.e., i's easy to take unemployment from 10 to 5% with a backdrop of ZIRP and a trillion a year in printing. It's really hard to go from 4.75 full employment to 3.75...you literally have to bring people back to work who had to desire to work formerly. Perhaps that's why the Fed is being so aggressive.
Matthew Graham
Chief Operating Officer, Mortgage News Daily / MBS Live
on Wed Dec 26 2018, 9:24 AM
Mark, I agree with a lot of what you're saying, and was initially going to include the part about the Fed wanting to hike so they'd have something to cut for the next economic downturn. I can appreciate that it seems that they kept rates too low for too long, thus forcing an abrupt move higher, but that point is largely disarmed by two things. First, the Fed's hands were tied, to some extent, by the realities of global monetary policy. For a variety of reasons, it's harder for them to hike and normalize when Europe and Japan are doing the opposite. Second, the pace of this rate hike cycle is historically slow. In other words, this isn't the abrupt game of catch-up that it might feel like to those of us living through it. Also, I'd argue there's no way out of a massive debt bubble, period. It's the nature of an elected government spending taxpayer money. Sometimes it's worse than others, but it's always bad. As far as Trump serving as a catalyst for more aggressive removal of accommodation at the Fed is concerned, I wouldn't be surprised if there's some truth to this, but I think it has more to do with the nature of his policies. They were/are either destined to create growth and inflation (tax bill) or to accelerate the shift in the economic cycle (trade/protectionism). Either way, the Fed's play would be the same. In the first case, they'd be guarding against Trump's policies being "too much of a good thing" for the economy. In the second case, they'd be preparing for a global economic slowdown brought about by a potential trade war. Bottom line, I don't think "it's personal" for the Fed. As far as Bernanke criticism is concerned, I think the absence of runaway inflation in the past few years is either a testament to his brilliance or to the fact that Fed policies don't impact inflation as much as they're supposed to. History will ultimately decide.
Ted Rood
Home Mortgage Loan Advisor, First Bank
on Tue Dec 25 2018, 12:03 AM
Brilliant commentary, MG. Couldn't have said it better myself. ;)
on Mon Dec 24 2018, 3:00 PM
Good article. Makes a lot of sense. But, I think the Fed holds much more responsibility for this that most do. In fact, we got a precursor to this market hissy-fit on the 2013 "taper tantrum". Back then, Bernanke really wanted to reverse his Armageddon Fed perma-cut and trillion dollar per year QE policy before he left so his legacy wasn't only "helicopter Ben". In 2013, his last year, his plan was to raise rates meaning a rate hike "cycle" ahead to the markets. The markets wouldn't have it and instead of standing firm he relented and completely abandoned the idea of reversing his free money policies. This, while all transparency doctrine made it so the Fed had no verbal ammunition to talk markets off the cliff anymore. Historically, the Fed's ability to jawbone markets was as powerful as moving around rates. Bernanke trashed that ability. Then, Janet -- who never saw a zero percent rate she didn't love -- came in the market took off because it knew she would never raise rates. She didn't...never even mentioned it. As a result of Ben's and Janet's Perma-ZIRP, trillions on the Fed balance sheet it had no plans to run off and complete transparency to markets (not afraid they Fed will catch them off guard) all assets including stocks and real estate achieved valuations that made 2006 look safe and sane. But, behind the scenes the Fed knew after 7 YEARS of ZIRP, a balance sheet of $4.5 TRILLION and recessions that come every decade to be generous that they had no ammo for the next recession other than QE if they didn't start hiking quickly and steeply. They needed to get lift on the Fed Feds Rate to have something to offer the markets (rate cuts) before they start next-gen QE in the event of a recession or worse, another catalyst that came out of the blue and caught them at ZIRP with a massive balance sheet unable to expand. Talk about a market crash if that happened. Quite literally, the minute Trump comes in the new Fed began making up for all the rate hikes that should have occurred between 2013 and 2016 under Gentle Ben and ZIRPy Janet, which is a steep hill for stocks. For Trump's entire term so far, for every two steps forward Trump economic policy takes the Fed is knocking policy and the now the markets back "1.875" steps (to stick with mortgage nomenclature). The market is now discounting more rate hikes in 2019 and as a result is highly uncertain of future earnings. That has led to serious technical support...
Larry Gray
Senior Mortgage Banker, Guarantee Mortgage
on Thu Dec 20 2018, 2:45 PM
That small margin of difference can be frustrating, though occasionally I see advertising for really low ARM rates/apr which no one I know can provide. However, advertising has always made us all have to reassure clients it is just advertising, and ultimately the reality of what people are actually getting with similar qualifications is on par with what we are providing. Or as i like to say, I can likely match or beat anyone's rate and apr! Oh, how I would love to go back to the days when one is almost always thought of as a trusted adviser and one's rate offerings were a bit lower than most major banks and that was enough for a client to accept you were doing well by them. There was no proliferation of internet advertising way back then! I welcome competitive loan estimates with a guarantee to lock in rate and pricing within the hour or day! If only that usually was the way comparisons were usually done.
Ted Rood
Home Mortgage Loan Advisor, First Bank
on Thu Dec 20 2018, 12:18 PM
I'm seeing a far smaller gap between ARM and fixed rates than previously. A flat yield curve tends to do that. When 7/1 rates were 75 bsp below fixed rates, it made sense to consider them. In most cases now, seems like the gap is .25%-.375%, which is far less of an incentive for many folks to consider ARMs.
Larry Gray
Senior Mortgage Banker, Guarantee Mortgage
on Wed Dec 19 2018, 2:47 PM
The investors who picked up so much stock in Fannie mae and Freddie mac at fire sale prices are obviously disappointed that the government is still taking the vast majority of the profits. I can see why anyone in the government is dragging their feet in creating any permanent change...why kill what currently seems to be a "cash cow' to maybe replace some of the lost revenue from recent tax reform? Ultimately, it seems like Congress is to play a large role in determining what to do about Fannie Mae and Freddie Mac. My prediction is that changes will continue to be put off much longer.
Matthew Graham
Chief Operating Officer, Mortgage News Daily / MBS Live
on Mon Dec 17 2018, 5:11 PM
The last 2 weeks of the year can be quite volatile. .25% in terms of POINTS isn't too terrible in exchange for peace of mind. That said, Wednesday is the big day, regardless. I'd make a game-plan with your originator for Wednesday, and keep in mind that lenders are often quicker to reprice on Fed days.
Ted Rood
Home Mortgage Loan Advisor, First Bank
on Tue Dec 11 2018, 4:20 PM
Hoping our slight pull-backs the last two days are just consolidation. Looks like resistance at 2.83 is going to be tough to breach.
on Tue Dec 4 2018, 1:08 PM
I too lost my home. I tried to modify for six years because they were charging me 6.5% interest rate from 2007 til I lost my home in 2018. Their excuse was that I was never late with my payments. Trouble was in order to make my mortgage payments I racked up credit card bills trying to maintain the home and be a caretaker to my husband suffering from dementia. We were living on social security and my small pension. When he died in December 2017, my income then went to half and I lost my home and my car and filed bankruptcy through many tears.
on Mon Dec 3 2018, 10:58 AM
thanks for this information as it is needed , selling a house is hard , you guys can try to check out brandonbuysdallas.com ,great point
on Mon Dec 3 2018, 9:19 AM
foreclosure will be delayed since houses will be destroyed check this blog out also https://www.forthomebuyers.com/blog/foreclosure-effects-in-fort-worth-tx/
Larry Gray
Senior Mortgage Banker, Guarantee Mortgage
on Wed Nov 28 2018, 3:50 PM
First time I ever heard buying your primary home as being part of a "Ponzi scheme", at least in terms of buying in high priced highly desirable areas. I have not read all of Hertz on the subject but assume from this column that is what he said. As far as my immediate geographic area which includes maybe 7 to 9 regions in the San Francisco Bay Area, we have seen significant drops in pricing at different periods in the past 50 years, but overall there is always a much higher increase in value. You may have bought an average Sunset district home in San Francisco for $40,000 in 1975 but today it is likely worth roughly $1,000,000 or so,. If history bears out, this will continue as long as the Bay Area continues to be a highly desirable place to live and work. On the other hand, someone once told me they sold their Colorado home for the same price they purchased it for 10 years previously...about 12 years ago. It is hard to time markets and obviously some areas bounce back from large drops in home values than others. In areas throughout the country that are not subjected to the periodic rapid and high increases in home prices...maybe people can buy at prices wherein they can still save money and maybe even eventually pay that home or the next upgrade in home off? Owning the primary home usually pays off if you keep it a long time even if having to eventually rent it out. Also, how many of we "LOs" have worked with clients who eventually own at least 5 or 6 properties? For all the headaches, owning investment properties generally provide good income and help build personal wealth.
on Wed Nov 21 2018, 10:34 AM
Best explanation I have heard regarding consolidation. Thank you for that!
on Tue Nov 20 2018, 8:34 AM
Can you show us map of areas people can buy homes with sweat equity?
 

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