Mortgage Loan Officer Compensation after April 1st 2011
Posted On: March 22nd, 2011 by James Posted In: Government Actions • Mortgage Programs
Big changes coming in a few weeks… Seismic changes, in fact (for this mortgage broker and blogger). Many of you have heard about so called “sweeping financial reforms” for a while now, and guess what — residential mortgages are going to be included in these reforms in the name of consumer protection. I can’t decide if it is going to be a big deal for mortgage borrowers, but it really might, and if it does influence the market significantly, I can’t imagine any other result for borrowers than a more expensive loan: higher rates and higher fees. The main thing that is changing is the nature in which I will be compensated for originating mortgages starting April 1st, 2011. Up until now, my compensation was very simple: every time a new mortgage is identified and funded, a single fee is created. Now, my company (that provides all manner of support and guidance) and I split this fee. But here is another fact about my current compensation: my fee is NEGOTIABLE for my clients. Continue Reading – Mortgage Loan Officer Compensation after April 1st 2011
What is the best way to pay your mortgage?
Posted On: March 10th, 2011 by James Posted In: Financial Health • Mortgage Programs • Mortgages
So now you’ve got a mortgage. What is the best way to pay it? Should you make extra payments? What about bi-weekly payment programs? Should you sign up for auto pay directly with your mortgage lender? There are lots of choices to make, and you’ve got to make the one that you can live with. One thing that I recommend to all of my clients is to be sure that they stay consistent with their payment plan. New homeowners can sometimes get into the trap of waiting until the 15th of the month to pay because “that’s when they want it.” Its just a dangerous habit to get into, in my opinion. My advice is to make the full mortgage payment no later than the 5th of the month. I also think that signing up for direct auto pay with the mortgage lender may not be the best approach, either. The way I suggest my clients set their payments up is with a scheduled bill pay “push” from their checking accounts. This is different than the auto pay ACH “pull” from the mortgage lender, and I think it gives you more control over your cash flow. Continue Reading – What is the best way to pay your mortgage?
Potential Jumbo Refinancing Candidates
Posted On: January 28th, 2011 by James Posted In: Financial Health • Mortgage Programs • Mortgage Rates • Mortgages • Portland Real Estate • Refinancing
So, if you pay attention to this blog, you know that interest rates have popped up from their mind-boggling lows in early November. Mortgage Refinances still make a ton of sense for many, but some are waiting for a return to the glory of those heady days… and I believe they will continue to wait for a long long time. However, there are two types of borrowers that I believe will still benefit GREATLY from a refinance:
- Those who tried to refinance and couldn’t qualify due to an appraisal issue.
- Those who currently have a Jumbo mortgage and think that Jumbo rates haven’t improved enough to warrant starting the process. Continue Reading – Potential Jumbo Refinancing Candidates
Mortgage Rate Volatility and the End of the Refinance Boom
Posted On: December 2nd, 2010 by James Posted In: FHA Mortgage • Financial Health • Government Actions • Mortgage Rates • Mortgages • Refinancing
Kind of feels like an epic hangover. The low low rate party that seemed like it would never end, has come to a decidedly abrupt change in direction. The sunlight is streaming into the windows, our clothes are all wrinkled, and there are spilled drinks and confetti everywhere. We’ve seen a handful of days in the bond market this month that have been extremely precipitous in speed and size of the deterioration. Since April of 2010, every time I have locked a loan it has been a bittersweet and slightly regrettable experience. Of course every loan must be locked at some point in the process, but it was a strange new frustration to see rates improve so steadily and relentlessly. We would lock and fund, and then within a day or so rates would just get better. I got in the habit of floating everyone for as long as possible to capture as much of the improvement as we could. Continue Reading – Mortgage Rate Volatility and the End of the Refinance Boom
First Time Home Buyer Programs in Portland, Oregon
Posted On: November 2nd, 2010 by James Posted In: FHA Mortgage • Financial Health • Government Actions • Local Interest • Mortgage Programs • Mortgages • Portland Real Estate
I was recently made aware of an OLD program called the “MCC” (Mortgage Credit Certificate). The MCC Program is a special benefit for the first time home buyers in the Portland, OR market. If you are a first time home buyer (defined by not having owned a home in the previous 3 tax years) AND you qualify for the income threshold* AND are purchasing a home in the city of Portland, OR the MCC program can provide a significant discount to the cost of your mortgage.
*INCOME REQUIREMENTS TO QUALIFY:
- Families of 1-2 must make less than $71,200/year
- Families of 3 or more must make less than $81,880/year
Here is how it works:
Continue Reading – First Time Home Buyer Programs in Portland, Oregon
