Monthly Archives: July 2017

No Mortgage Insurance Options

  Most people still follow the 20% down rule so you do not have to pay mortgage insurance.  First time buyers are rarely in a position to put down 20% so they have few options.  No one wants to pay mortgage insurance.  So what are your options?  You can do Lender Paid Mortgage Insurance but this usually comes with a higher interest rate so the mortgage insurance cost is hidden.  I am happy to say I have spoken with Founder of MN Capital Home Mortgage, Michael TenEyck, and I way happen to hear there are so true no mortgage insurance options available.

TenEyck says MN Capital originates no mortgage insurance home mortgages with loan amounts to $1.25 million with 5% down for purchase transactions.  TenEyck went on to say this program is also available to rate & term and cash-out refinances as well.  This program utilizes a first and second combo mortgage.  There are some limitations to the refinance options but they are not as limited as you would think.  Contact MN Capital directly for the refinance details. MN Capital Home mortgage is based in Orange County California company and can be reached at http://www.mn-capital.com or 800-961-6123.

This no mortgage insurance options along with the revised automated underwriting changes as of July 29th should make home mortgages easier to obtain for home buyers.  Fannie Mae rolled out the DU 10 upgrade on July 29th.

 

Stay Tuned…

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The Future of Home Mortgage

Home mortgages and the underwriting process continues to evolve and not always in the best interest of consumers. Credit reports will soon no longer show tax liens and judgments but that does not remove them from the equation of obtaining a home mortgage. Currently the Investors’ I have spoken with have no answer on how to address the lien issue. So a new service is about to be born and at the cost of consumers. How has AMC’s benefited consumers in terms of cost?

The individual home mortgage banker or broker will always be a key part of originating any home mortgage. A computer cannot always explain the proper documentation needed to resolve underwriting issues. I am sure we all fully understand income add backs and who has not experienced “conditions supplied illicit additional conditions.” Us as professionals have found that Lender “A” is OK with income but has an issue with property type and Lender “B” is good with property type but does not like the income. Now put yourself in a position of a consumer dealing with a computer generated response and how frustrated you would be.

This lack of personal interaction has me questioning just how successful the automated process will actually be. In simple terms, the automated process currently, does require the consumer to work at a fortune 500 company and bank with a major bank. I am sure this process will improve but small business is the backbone of the American work force so full automation is a future technology that might be “rocketing out” a little early. I guess time will tell.

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Hello All

Hello, I wanted to talk a minute and let everyone know I will once again begin posting.  I have personally gone through some life changes that has had me sidelined for awhile.  I have historically been a person that never got sick but have developed something call achalasia.  It has been a difficult road with too many test procedure to count and three major surgeries.  I have also had two kids graduate high school and one is now in the Army and the other is in college.  I have also help build the company I work at into a direct home mortgage lender that originates in seven states and has four offices.  So I have been busy.  I have always wanted to continue to post as this is a way to talk from a neutral point of view so it is time to get posting.  Yes there will always be those that disagree with me and I encourage them to email me to discuss their view point.  Some of what is new;

  • Credit Reports will no longer show lien and judgements.
  • DU 10 rolls out July 29th and this is the beginning of the automated loan process.
  • Second Mortgages have returned to the market in a big way.
  • 95% LTV with no MI with loan amounts to $625,000 are once again available.
  • Multiple assistance programs are now available.
  • MCC & EEM mortgage options.

This just touches the surface of what is now available and there is more to come.

Stay Tuned…

 

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