For those of you that have 3% first mortgages there is no way you should ever refinance those loan unless you have no other options. Well I am happy to say that borrowers do have options as Brokers are structuring second mortgages again. With Brokers now offering this product again the cost of these product will be reduced for borrower’s. This is a great option for borrowers is several ways, such as college tuition or unexpected expenses. This option also allows for the 80/10/10 to return. This will help those borrower’s in areas with low conforming and/or FHA loan limits. Only the stronger broker shops will offer second mortgages. You may need to call a few before you find a broker that can structure a second mortgage.
When looking for a new home mortgage have to ever felt like you know more than the Loan Officer you are speaking to? Well sadly,in most cases, in my opinion you do. It seems that with todays limited loan programs if you deal with a retail Loan Officer they offer limited mortgage products. For example, I recently spoke with a borrower that decided to go with their bank as the borrower felt their bank would give them the best deal. A few months passed by and the borrower called me to ask a few questions about their new loan. After speaking with the borrower the Lender did not offer the proper mortgage program for the borrower’s scenario. The bank Loan Officer put the borrower into a loan program that the bank offered. The final outcome was the borrower is paying .375% more in rate than I offered. The borrower got confused due to the bank Loan Officer stating that because my company is a Direct Lender that we could not deliver on the quoted rate. That statement could not be any further from the truth.
The bank Loan Officer works for one of the big four banks and is newly out of college. Needless to say he has limited experience and simply in this case of the borrower heard what the borrower wanted to hear. All loans today are done as per the QM regulations and follow Fannie Mae and/or Freddie Mac guidelines. Even the big four banks structure loans in this fashion as they will eventually sell the loans in the future to most likely Fannie Mae, Freddie Mac or Wall Street. Bank Loan Officer’s are still not required to obtain a BRE and NMLS license, as a broker Loan Officer is, as the banks stat that they will train their Loan Officers as per the DOC guidelines. So let me ask you this, If you only offer a limited line of mortgage product and you are going to train your Loan Officers to sell your products are you going to take the time to train your people on products that you do not sell? Well the simple answer is no. Always make sure you get a Mortgage Broker or Mortgage Banker rate quote when looking for a new home loan. Brokers know all of the mortgage programs and can structure loans in the property mortgage program’s to maximize your personal scenario.
The mortgage guidelines seem to be increasingly tighter and tighter. I am happy to inform you that there is a Home Improvement mortgage program that frankly I was unaware of. I recently sat down with Michael TenEyck, the broker of MN Capital, Inc. TenEyck informed me of a program that offer reasonable rates and terms and uses completed values which allows for higher loan amounts. The higher values help those of us that have limited personal funds to contribute to their home projects. Contact MN Capital at firstname.lastname@example.org or online at http://www.cash-outmortgage.com for details.