Can someone tell me if a umb broker can be of help to me. we have a 7.6 % mtg on our home with an arm for 2 years that will be up in july.with adj.every 6 months.after that. we need a new mtg.Our mtg. was with a subprimelender. Our debt to income ratio we were told was the cause.The mtg. is for 355,000.with interest only pmts. of 2252.000 at 7.6%.We have another mtg. of 94,000 on a house trailer in the fla. keys on the water. Its a fixed rate @8%.pmts. of 965.00 month.We have this rented out for the past 4 months for 1100.00 a mo. We have the 94,000 mtg. for 6 years and the 355,000 mtg. for 7 years.We have 40,000.dollars in credit card debt. we have 55,000 dollars in two airplane loans. We make 105,000 dollars yearly and then my husband makes an extra 50,000 dollars a yr.fixing airplanes and doing annuals on planes.We have 30 day late pays on both airplane loans(2 to 3 a yr.)for the past 4 years. we have 30 day late pay on one charge card(1or2 a yr.x 2 yrs.)Our cars are paid for and the rest of our debt is living expenses.We up until 1 month ago rented the airplanes out to a flight school but because of high ins.costs we are trying to sell the 2 planes.Our other problem is that we get lots of deductions on the airplanes and some on the rental house making us get good tax returns but not actually showing that we made all that much on the side business(50,000 yr.) Is there any hope of us getting a fixed rate mtg. or even a 5 yr. arm which would help us in 5 years to get our credit cleaned up.

Yes you can refinance into a 5/1 or 5/6 arm. 5/1 is a little better. What is your FICO score? If you dont know I keep trying to give out a free credit report. No one is taking me up on it. You want it. Little Credit Counseling, Little Advice, and BAM!! get you a kickbutt rate!

How long do you plan on staying in the property?
Do you think you will refinance in a couple of years?
Some more questions of thought.

Based on what you've posted, I found rates between 6.125% and 6.25% on a 5 year ARM assuming your credit score is not below 580. We ignore non-mortgage late payments.

thanks for answering my post. I got a free credit report the other day. My fico score was 628,everything on mine was perfect except husbands airplane loans which are in both our names.these showed the 30 day late pays. there is a $12,000.fee for paying the 2 yr. interest only loan off early. The 2 yrs. is up I think in June with the 6 month adjustments starting in july of this year.We plan on staying in the house for at least another 10-15 years.I sent for my husbands fico score havent gotten it yet. But its probably about the same as mine.Is it unreal for us to think about a fixed rate out there in mortgage heaven with a decent rate??? and without paying points. Also the 5/1 you talked about-how does that work is it gonna be inteest only again,I dont want that.

I would suggest an MTA @ 1.95% SIVA (stated income verified assets), need 6 months reseves. Need LOX's for lates. Monthly P&I would be $1,303. Appreciation would consume any and all deferred interest in your market. This will free up additional cash allowing you to clear up some of your debt while still gaining equity.

Its not interest only. Let me know if you want something in writing.

I honestly (based off her credit score and DTI) don't think she should take on a fully amortized payment at this time. She needs to get some of her debt paid down. Her back end DTI is already above conventional standards, from the way it sounds.

T0 AZLENDER, please explain what MTA stands for what does lox's for lates mean.What would the terms of this MTA loan be?How do I figure how much I would need for 6 months of reserves. Do you have offices in Fla.

Yes, I have offices in Florida. MTA (Monthly Treasury Average), it's one of a few indecies averaged over 12 months which makes it much more stable. There are also COFI (Cost of Funds Index), COSI (Cost of Savings Index) and LIBOR (London Interbank of Rates, not to be confused with the 1 or 3mo). LOX is a letter of explanation.

This is how it works, you have to look at this as two seperate loans rolled in to one. We'll start with the first:

1) Minimum monthly payment: Based off a rate of 1.95% @ $355,000 = a P&I of $1,303.29, this payment is fixed for the first year and has a cap on the amount it can change annually of 7.5% of the payment itself. Meaning if your payment is $100 per month, the most it can increase the following year is to $107.50 and so on and so forth.

Part 2:
Now in the background we have your rate indexing each month. Let's say we use the COFI index, which this month is at 3.347%, this changes minimally monthly because it is averaged over 12 months unlike your standard treasury indecies tied to the 3/1, 5/1, 7/1, etc.

Now we add your margin which is set for the life of the loan. Lets say your margin is set at 2.45%. Starting month two, we add the index + margin = FIR (fully indexed rate) in this case would be 5.797%.

2) The fully indexed rate of 5.797% applies to your folowing payment options:

Payment opt. 2: Interest Only
Payment opt. 3: Fully amortized 15 year fixed
Payment opt. 4: Fully amortized 30 year fixed

This is where rapid equity gains come in to play if you can afford the payments. Obviously you cannot get a 30 year fixed rate with a 720 FICO as low as your FIR on this loan.

Now we have deferred interest of 3.847% should you choose to make the minimum monthly payment only. Keep in mind you are able to choose which payment you would like to pay and when. You are not obligated to stick with one. Appreciation rates in Florida are #2 in the country right now, right behind Arizona. This will take care of all deferred interest and you will actually gain minimal equity by making the minimum monthly payment.

Alan Greenspan implemented and utilizes this loan on his residence. It's a very, very good loan when used properly.

Now lets look at the overall picture:

Payment opt1: Min. Payment (based off 1.95%) = $1,303.29
Payment opt2: Interest Only (based off FIR) = $1,714.95
Payment opt3: 30 Fixed (based off FIR) = $2082.30
Payment opt4: 15 Fixed (based off FIR) = $2,956.90

This is not a loan you will want to keep more than 5 years as it will recast. This would be geared to help you right now in the way of freeing up additional cashflow to pay down your debt and re-establish your credit.

Ask your self this: Would you cash out the equity in your home and use it all to buy stock in one company? Thats EXACTLY what you are doing when you take out a loan that eats away your equity while you pray that the value goes up to offset the negative amortization.

If you've opened a newspaper or browsed the internet in the past 4 months you'll see that the over heated markets on the coasts have cooled considerably. You could easily end up owing more than you home is worth. The first wave of foreclosures is already coming in out in CA and I'm getting calls from Florida as well. Guess where? North Miami and West Palm Beach. Your home is only worth as much as a BUYER will BUY it for no matter how much YOU think its worth.

The Feds have already said that they will raise interest rates again which further reduces the amount people can afford to borrow. High end markets take the biggest hit because there are already a small number of people can afford them. Greenspan warned against 'exotic' mortgage products identifying the 'MTA' or 'Option ARM' in particular. Here is the link to his quote. Washington Post article and another on the same subject MSN article

Thank you Aaron for your input on MTA's I was already confused,Cant we just get a nice,normal 30 yr. loan with a fixed rate. Yesterday I called my subprime lender Novastar Mtg. to see what they could do to keep my business. they said if the house would appraise for 600,000 dollars and they paid off all of our 40,000.charge card debt plus we purchased three orig.pts.(all this to get debt to income ratio below 60%) the new loan would be 442,000. payoff on orig. loan would be 358,000. It would be a 7.05% fixed rate 30 yr. loan .for about 3600. a month. Of the 84,000 diff. It was broken down like this as I can remember from a phone conversation-358,000 payoff,22,000 for 3 pts.and closing costs,$3660.00 f0r 6 mo.of escrow prepays,47,000 of credit card and loan debt. when I add these up and subtract from the new 442,000 loan there is an additional 11,334.dollars of which she couldnt explain talked about some kind of fla.tax and that she would fax me the good faith monday,so I could understand. She said there was no longer a penalty to refinance as of april closing. She would not use my husbands side income of 50,000 dollars being it was a dba acct. with the business name and my husbands name. she did not take into consideration that the FLA.Keys house was rented out with a lease of $1100.mo.to cover that mtg.pmt. of 964.00.Does this sound like the best we can do through anyone. I dont think the house is gonna appraise at 600,000 with the market changing here in Fla. maybe a year ago but I bet its gonna be 525-550,000dollars.So thats gonna affect things too. I dont want to pay for numerous appraisals either. she also said theres no reason for the 5/1 arm as its the same rate as she was getting me with the 30yr.fixed and I wouldnt have to refi. in 5 yrs. please tell me what any of you experts have to say.

Aaron,

You assume she only pays the minimum payment for the time she has the loan. Bottom line, 30 year fixed rate on an MTA, COFI or COSI still blows away what she has been quoted by Novastar. BTW, your link didn't work. I don't put much faith in speculation.

I was simply offering her a way out to free up additional cash flow, clean up her credit and get rid of some of her debt.

As I stated above: I honestly (based off her credit score and DTI) don't think she should take on a fully amortized payment at this time. She needs to get some of her debt paid down. Her back end DTI is already above conventional standards, from the way it sounds.

U.S. 10-year Treasury notes posted their biggest weekly gain since December as slower-than-expected inflation spurred traders to scale back bets for how high the Federal Reserve will raise interest rates this year.

Traders drove down yields from last week's peak of 4.8 percent, the highest since before the Fed began raising borrowing costs in June 2004, as they grew less certain the central bank will lift its benchmark rate to 5 percent from 4.5 percent now. Fed policy makers next meet to decide rates on March 27 and 28.

Yep, the sky is falling huh Aaron? :sarcasm:

http://www.ofheo.gov/media/pdf/4q05hpi.pdf

Here are your links. http://www.msnbc.msn.com/id/8574006/

and

http://www.washingtonpost.com/wp-dyn/content/article/2005/06/09/AR2005060900661.html

I've got a 30 year fixed and a 40 year fixed that beats the pants off the fully indexed rate of an MTA.

Novastar, Ameriquest, Ditech, etc. will all quote you a product based off your home appraising and some ridiculous value. Then when the appraisal comes back at the 'real' value, they call and say 'Oh sorry, you cant get that rate because the appraisal came in lower' Now that they found out your thinking of refinancing, you've been turned over to their client retention department where they call you nearly everyday to make sure you dont go somewhere else.

If I spoke to a mortgage company that couldnt explain an $11,000 discrepancy and wouldn't accept DBA income AND wouldnt figure in rental income, I would be really nervous about giving them my business.

Just take it slow, ask lots of questions and get everything in writing from whatever lender you choose.

Those aren't very reliable sources as they sway to the "Left's" doom and gloom approach.

You have a 30 year fixed that beats the pants off 5.797%? I call BS. Not to mention you were quoting 6.25% on an 5/1 ARM...yikes! Provident & Interfirst have the best 30 year fixed rates out there right now. With a 628 FICO (assuming that is her mid), O/O, SFR, Primary, FULL DOC (which it doesn't sound like is even an option at this point), Cash Out, FL prop., 80LTV or below is 5.875% paying .375%(Interfirst) & 5.999% paying .375%(Provident). C'mon man you are supposed to be a professional. I'm now under mortgage Banker/Broker license status and have 431 lenders. Do you know what that means or do I have to spell that out for you as well? It means I get above industry standard pricing incentives.

I do however agree with the rest of your post regarding Novastar.

Another option would be to start her off on a slightly higher start rate to cut down on the deferred interest. Keep in mind I'm not saying keep the loan, but keep it long enough to get your financial situation straightened out.

Aaron you are completely missing the point here. SHE CAN'T AFFORD A FIXED RATE.

this is complete garbage. there is not a negative ammortization loan out there that has fixed rates anywhere near it.

this quote above is entirely incorrect. please disregard, as this is not true. your payments on the ammortized 15 and 30 year ARE NOT FIXED.

this is a growing problem i have with some of my loan officers who sell this type of loan as a fixed loan, and then the client later calls my bank and shouts predatory lending as they were told it's a fixed loan.

lemme say it again. ignore the above. the loan has nothing to do with being fixed.

Aaron, I wish you were in Fla.,I'd trust you for my loan. Can you name any decent mtg. companies to try in our area. Also should i call a broker to shop around for a loan for me??? My time is getting short, the novastar lady said the old loan goes up to 10.5% on the first 6 mo. adj.in june. Any other advice appreciated.And I already knew that she was gonna use the gimmick that the appraisal came in lower.Cause people in my area are probably getting 525-550,000.

Aaron, I wish you were in Fla.,I'd trust you for my loan. Can you name any decent mtg. companies to try in our area. Also should i call a broker to shop around for a loan for me??? My time is getting short, the novastar lady said the old loan goes up to 10.5% on the first 6 mo. adj.in june. Any other advice appreciated.And I already knew that she was gonna use the gimmick that the appraisal came in lower.Cause people in my area are probably getting 525-550,000.

The FIR (means FULLY INDEXED RATE) This changes monthly according to the index it's tied to, but has remained lower than conventional and applies to the:

-Interest Only payment
-Fully Amortized 30 year Fixed Payment
-Fully Amortized 15 Year Fixed Payment

The start rate fixed for the first year of 1.2% applies to the:

-Minimum Monthly Payment

The difference between the start rate and the fully indexed rate is what is called deferred interest.

Carol - Aaron should be licensed in Florida I would imagine. Most of us are licensed in multiple states.

Nico, I recommend reading the "Book of Home Finance", this should help you out greatly.It will help you learn the basics....Mortgage 101 if you will. I give this to all my new loan officers. It's downloadable. Here's the link: http://www.originationpro.com/cgi-bin/SoftCart.100.exe/scstore/p-BK-000.html?E+scstore+ACTNINDX, write that down.

AZ, I think i went waaaay over your head.
i'm aware of what a fully indexed rate is. fully indexed, is COMPLETELY different than fixed.

i can't understand how anyone besides a borrower could confuse the two.

please, provide some source of information on where options 3 and 4 on a neg am loan are "fixed" for any point in time. if you can provide ANY source where options 3 and 4 are FIXED, then i'll take back everything i said.

start digging, and we'll see who the "moron" is.

by the way, my bank is hiring too. however, i don't they they'd take anyone who thinks that "fully indexed" and "fixed" is the same thing. good luck to you though.

I dont need to dig. You of all people should know that on an option arm, the rate indexes monthly. Following me? The FIR on an option arm is Fixed for that month until it indexes again the next month, then it is fixed at the new FIR the following month, follow the trend here? You can't acyually mean I would say it was fixed for the life of the loan had your READ the detailed description I laid out. I will re-post just for you Nico. I know you're a little slow, so take your time.

Yes, I have offices in Florida. MTA (Monthly Treasury Average), it's one of a few indecies averaged over 12 months which makes it much more stable. There are also COFI (Cost of Funds Index), COSI (Cost of Savings Index) and LIBOR (London Interbank of Rates, not to be confused with the 1 or 3mo).

This is how it works, you have to look at this as two seperate loans rolled in to one. We'll start with the first:

1) Minimum monthly payment: Based off a rate of 1.95% @ $355,000 = a P&I of $1,303.29, this payment is fixed for the first year and has a cap on the amount it can change annually of 7.5% of the payment itself. Meaning if your payment is $100 per month, the most it can increase the following year is to $107.50 and so on and so forth.

Part 2:
Now in the background we have your rate indexing each month. Let's say we use the COFI index, which this month is at 3.347%, this changes minimally monthly because it is averaged over 12 months unlike your standard treasury indecies tied to the 3/1, 5/1, 7/1, etc.

Now we add your margin which is set for the life of the loan. Lets say your margin is set at 2.45%. Starting month two, we add the index + margin = FIR (fully indexed rate) in this case would be 5.797%.

2) The fully indexed rate of 5.797% applies to your folowing payment options:

Payment opt. 2: Interest Only
Payment opt. 3: Fully amortized 15 year fixed
Payment opt. 4: Fully amortized 30 year fixed

This is where rapid equity gains come in to play if you can afford the payments. Obviously you cannot get a 30 year fixed rate with a 720 FICO as low as your FIR on this loan.

Now we have deferred interest of 3.847% should you choose to make the minimum monthly payment only. Keep in mind you are able to choose which payment you would like to pay and when. You are not obligated to stick with one. Appreciation rates in Florida are #2 in the country right now, right behind Arizona. This will take care of all deferred interest and you will actually gain minimal equity by making the minimum monthly payment.

Alan Greenspan implemented and utilizes this loan on his residence. It's a very, very good loan when used properly.

Now lets look at the overall picture:

Payment opt1: Min. Payment (based off 1.95%) = $1,303.29
Payment opt2: Interest Only (based off FIR) = $1,714.95
Payment opt3: 30 Fixed (based off FIR) = $2082.30
Payment opt4: 15 Fixed (based off FIR) = $2,956.90

This is not a loan you will want to keep more than 5 years as it will recast. This would be geared to help you right now in the way of freeing up additional cashflow to pay down your debt and re-establish your credit.

hahahahahaha. alright let me see if i can follow your logic. if a loan adjusts every single month, but is fixed for 30 day periods, that's a fixed loan? are you smoking crack?

so when a client calls you and says "i want a fixed rate" you give em a monthly adjustable because it's fixed for a month at a time? so then what's an adjustable rate then? with your logic, even a loan that adjusts every day would be a "fixed rate" since the rate is fixed for 24-hour periods. jesus, this is ridiculous. i really can't believe you actually practice in the real estate field with those ethics.

i'm suprised you haven't been hauled into court yet. i guess if you think like that, it's only a matter of time before you're standing tall in front of the real estate commission and maybe even a superior court judge.

people, and borrowers mostly, please take note of the above and be aware that that is EXACTLY how loan misrepresentation takes place. a loan officer of all people, calling a MONTHLY adjustable a fixed rate loan because it's fixed for a month at a time. please.

i think you spoke for yourself there AZLender. hell, i don't need to say anymore. i think it's pretty obvious by now what kind of business you do.

Let me break it down a little easier for you:

There are 4 payment options on a Option ARM:

1) The minimum payment (based off the initial start rate)
2) Interest Only payment (based on the FIR, which is fixed for that month)
3) 30 Year Fixed Payment (based on the FIR, which is fixed for that month)
4) 15 year Fixed payment (based on the FIR, which is fixed for that month)

Dude you are really out there. Think I'm way over your head. How long have you been in this business? I never once said it was a fixed rate loan. It's called an Option "ARM".

Nevermind, you are hopeless.

oh, you didn't? well what's this?

i double dare you to make a flier and send it out with that on it and see how fast the real estate commission yanks you up for an inquiry.

The FIR (means FULLY INDEXED RATE) This changes monthly according to the index it's tied to, but has remained lower than conventional and applies to the:

-Interest Only payment
-Fully Amortized 30 year Fixed Payment
-Fully Amortized 15 Year Fixed Payment

now you're gearing more towards the right track. i got no problem when you explain it like that.

but that's not what you said at the start. you said "30 yr fixed payment". i honestly think that you don't mislead people, but you use words when you don't know the meaning. you think that "fixed" and "ammortized" mean the same thing. not knowing that difference can mean life or death in this industry.

do me a favor though, next time someone tries to correct you and you realize you're wrong, just admit that wasn't what you meant and move on. why the game of trying to warp your words around and act like we're the ones who are reading it wrong?

loan officers.....

I never geared toward the wrong track. It's the same thing I posted a few posts ago.

maybe you have. might be time to retire before you lose your license due to false advertising and bait and switch.

the worst thing you could possibly do in this business is assume that people understand what you're talking about. ESPECIALLY when it comes to sub prime borrowers, who for the most part are not very intelligent in the first place.

personally, i think it's a miracle you've lasted this long without getting yanked up by the DRE in your state.

You still have not READ the detailed post. It's blatently obvious.

You mean the 22 states.

obvious isn't good enough for real estate, pal.

things have to be spelled out or clients get confused, loan officers get nailed and banks get called into court.

read up on what happened to Fremont when they went to court about 2 years ago. look how it all started. assumptions.

You're right I should simplify for those who don't know how to comprehend what they are reading.

no, you should be more clear for yourself to protect your own behind. it's not me you gotta worry about, it's your client that sees where you wrote "30 yr fixed payment" and has a recast later on and decides to sue your broker and the lender that funded your loan.

for someone with so much experience, you seem pretty confident in the intelligence of your borrowers. that and how you call a neg am a "pay option arm" really makes me wonder. that term didn't come about till about 2-3 years ago when the speed dial kiddies hit the scene.

How could I have spelled it out any clearer? I hit every point. I mentioned the rate indexes every month to create the FIR and how we come to figure the FIR, I associated the FIR with the appropriate payment options, I explained the start rate, how it is fixed for the first year and has a 7.5% cap on the amount the minimum payment can change annually, I specified the recast in 5 years and I explained how deferred interest comes in to play.

I think it basically boils down to misinterpretation of conveyance, which often happens in emails and online chat sites, message boards etc. Look I have no problem with you and respect your input, however I think this whole thing could have been avoided had you read and understood where I was coming from.

oh. so written communication is never as detailed as spoken? hahaha. let's just make the GFE and the TIL a spoken script then, so we can be more clear. boy oh boy.

keep going. i want to hear more.

call me. Seriously. Numbers on my website.

Still haven't answered my question. How could I have spelled it out any clearer? I hit every point. I mentioned the rate indexes every month to create the FIR and how we come to figure the FIR, I associated the FIR with the appropriate payment options, I explained the start rate, how it is fixed for the first year and has a 7.5% cap on the amount the minimum payment can change annually, I specified the recast in 5 years and I explained how deferred interest comes in to play.

"oh. so written communication is never as detailed as spoken? hahaha. let's just make the GFE and the TIL a spoken script then, so we can be more clear. boy oh boy." by Nico


Yeah, great idea. Boy you just take it and run somewhere in left field with it don't you. It was very detailed and outlined all the specifics.

(Mis)Interpretation of conveyance lies within you. Which I am still trying to "help" you understand.

You rode the short bus, huh?

Now that I read this, sober....Nice YANK! Nico. Ya got me. Can't believe I fell for it.

Nico, where do you get off with that attitude of yours especially classifying subprime borrowers as not intelligent. We may get duped once in a while into a bad loan from unscrupulous lenders and brokers because this is not our forte. Thats why we hire brokers to do the understanding for us. also I never thought AZLENDER was offering fixed rate options.

Carol - I honestly don't think Nico works in the financial end of this business or if he does he's a newbie. I think he was just yankin' my chain.

Here is exactly what I would do if I were you. I would call a few brokers in your area and explain your situation in detail. Make sure they understand what your ultimate goal is (chances are they will ask anyway). Look through the yellow pages or ask your friends who they have used.

Carol,
With you Fico Score and situation. I would suggest a fixed rate. Although the MTA and Option Arm are great products it’s a product in which you are defiantly not seeking. Why? From the words you stated previously it just seems like you not ready to take a risk. MTA and option arms are high risk options because of the negative amortization. If you looking to stay in the home for 10+ years than I would maybe suggest what I call a 30 year Interest Only. Great product because its interest only for the first 10 years and than on the 11 year turns into a 30 year fix without any extra fee’s. With the market climbing north and expected to hit around 7.0 by the years end I would definitely say that the 30 year interest only is probably a great product for those not savvy risk takers but want the option of paying interest only one month and maybe the 30 year fix the next month. Just my opinion.

AZ- Good stuff on explaining the Option Arm seriously I think the only thing missing was recast.

No, I hit recast as well. I don't see rates climbing that high in all honesty. All indicators just recently have been pointing to an end to rate hikes. Ben Bernanke, Cathy Minehan of the Boston Fed and San Francisco Fed's Janet Yellen will speak today. Their speeches are the last before policy makers meet next week to discuss monetary policy.

As far as fixed rates are concerned the 10 year Treasury has seen a significant change for the better over the past couple days. You will see this get even better if they announce a predicted end to rate hikes.

AZ,

Sorry kinda skimmed through your announcments but I hope they turn. Seems like the new guy is really trying but not working. Yet, its the newspapers and "bubble" scare that is really making the turn on our market. It would be nice to see the southern affect again.

LOL! Yeah 'ol Ben is a tryin'!

well, i said "for the most part" so if you wanna put yourself into that category, then you're more than welcome to.

i'd say about 5% of sub prime borrowers out there are unlucky or maybe got tricked. 95% of them have proven irresponsibility when it comes to paying off the debt that they incur which in my opinion, shows some kind of intelligence issue since your credit score can affect so many things in this society.

by the way, with a 628 score, i don't think you got duped into anything. that's a sub prime credit score.

No it isn't Nico. You can get "A" paper rates (full doc) down to a 620.

Yep, you sure can..just apply right here: http://fantasylandmortgage.com

yeah ok... www.moairocks.com , seriously, how are you in this business?

I was looking at your website Aaron and under "value", last tab under "Why you need me", should say beat the pants "off" not of. Also have several dead links at the top of the page under the Testimonials link. I'd look in to that. I'd also look into changing the part about the only overhead you have is "printer ink". Sounds pretty shotty. You don't have licensing expenses, C/E (if under a DRE), office space, utilities, employee expenses, taxes, copier, toner, LOS update renewal, DU/LP, lead expenses, etc? Wow! How do you stay in business?

Id use some of that money not used on "printer ink" to hire a professional to help you out with your website.

Also, you are required by law to post your CFL or DRE License number on your website. Neither of which I could find through the State of California DRE or Corpoations Division. Are you engaging in unlicensed activity?

just because you can get Alt-A rates at a 620 score does not mean i don't think it's a sub prime credit score.

personally, i think if you have below a 680, something is seriously wrong with you. in all reality, the scores should be above 700.

'Alt-A' rates and 'Subprime rates' are subjective terms anyway that could be construed to mean anything.

Can anyone(besides Nicolodeon) maybe goldenbear explain more about that 30 yr. fixed which u pay interest only 1st 10 yrs.then mtg. adj.to a fixed rate on the 11th year. How do they establish your rate for this type of loan-does the rate adj.on the 11th year depending on rates @ that time or is all spelled out when you 1st get the loan.

Say you have a start rate of 6.500%. You would pay interest only the first 10 years (you can also get a 15 year int. only period, FNMA), starting year 11 this would switch to a fully amortized loan. No change to your rate at conversion. However, you will see a significant increase in your monthly payment after the interest only period is up as it will fully amortize at that rate over 20 years.

If you want to figure your interest only payment, this is how you can calculate it yourself:

(Loan Amount) x (interest rate) divided by 12 = I/O payment

Nico & Aaron - It would not be Alt-A, we are not looking at 100% LTV/CLTV. You dont use Interfirst much do you?

Carol:

I am in Palm Beach Gardens and will gladly answer any questions you have. I will explain the good bad and ugly of any loan program you are interested in. I will not recommend a certain program until I see and hear your specific situation. I will tell you Novastar is certainly far from competitive when it comes to your situation. Feel free to contact me if you would like an honest opinion, no strings attached, no pressure on my part.

Greg Bates
561-296-2323

Greg,how many lenders does your company deal with??

AZLender, Interfirst isn't even on the map out here in Southern California.

i will however say, i am impressed how you seem to like to use a few lenders only. way better than the "i work with a network of 500 lenders to shop the best deal for you!"

great. so does my neighbor, and the guy on TV. what ever happened to setting yourself apart with service, honesty, knowledge and professionalism?

I didn't know they weren't out there.


"i will however say, i am impressed how you seem to like to use a few lenders only. way better than the "i work with a network of 500 lenders to shop the best deal for you!"

great. so does my neighbor, and the guy on TV. what ever happened to setting yourself apart with service, honesty, knowledge and professionalism?" Nico

I agree fully.I'm set up w/ 423 and probably only use 6-7 on a regular basis.

Carol- yes AZ hit the ball out of the park with that answer. Yes, no change in rate when the conversion happens. Just remember that you yourself will obtain a payment shock of a fully amortization of principle and interest [P&I] ( 30 year fix year 11-30) and not the option of either paying the interest only[I/O] or principle and interest (years of 0-10). Ex. 250K home at 6.5% P&I = $1600 I/O(Interest Only)=$1350. This is without taxes and insurance or also known as impounds. So from year 0-10 you can pay either the I/O or PI (30 year) and in year 11-30 you can only pay the PI. Have a few clients in this product and they are raving to there friends about it which has created more referrals or questions. Since rates are trying to rise!?! This is actually beneficial for the homeowners whom are staying in there home 7+ years. My opinion is that no matter how you use this the rate is still low enough to hold you for the next 5 years with a good low payment even if you decide to sell the home or refinance. Keep asking questions and I will keep answering to best of my knowledge but AZ will probably beat me..lol. Hopefully your on the right track and yes although there are 100 lender on my lender list I only use the ones that take care of my files the fastest because that makes happy customers.

Carol:

My company currently has about 30 A paper or Alt-A lenders and about 20 Subprime lenders. Of which a small percentage acutally get sent loans as they are there for specialty purposes. I would say that at any given time there are 6 or so that have a loan that I originated. Many more that I would sign up with but haven't found the need.

AZLenders response to the 30 yr fixed int. only is right on target.

Like I said, no pressure if you call just honest advice

goldenbear, so are you saying that if my new loan were 446,000, that for the 1st 10 yrs. at 6.5% I'd pay around 2600.00 plus my esccrows of 610.00 totaling about 3200.00 a mo. then yr. 11-30 paying the p/i with escrows would be about 3700.00 a mo. that would be fine with me considering that w int. only mtg. pmt. now of 2250.00 and chg. card (paying dbl. the min. now)totaling about 2000.00 a mo now. Once I paid everything off in the new loan it would still be less then Im paying now. the only thing I dont like is that novastar wants me to pay off all the chg. cards w the new loan. that puts my chg. cards paying back for 30 yrs.!!!!!talk aboutpaying through the nose. Im having a mtg. broker coming over mon. nite to see what he can do. Novastar said they pulled comps of our area at 600-650,000 for like homes. but now the papers she's faxed over went from 7.05%on the phone initial to 8.3% w a 8.672%apr. I was initially told that she had gotten my debt to inc. ratio down to 60 some%. this was a 30 yr. fixed as ment. earlier in another one of my posts. The new mtg. broker says he deals w novastar on a big basis as well as other sub-prime and reg lenders and probably could get better then that from them cause of the business his co. generates to them.

$446,000 Loan Amount

Years 1 - 10 (Interest Only Period):

Interest Payment of: $2,415.83 + $610 (impounds)= $3,025.83.

Starting year 11 (fully amortized period):

P&I (principal & interest) payment of: $3,325.26 + $610 (impounds)= PITI of: $3935.26

Novastar has a good point in consolidating your credit card debt as it becomes tax deductible. The broker is right. You are dealing directly with the retail division of Novastar, we as brokers deal with wholesale. We can offer better rates than the retail divisions of those same lenders because they offer us pricing incentives, for overall volume sent and due to the fact we as brokers comprise the majority of their business.

Here are my thoughts based upon the information you have provided.

You have a balance of $355,000 on your existing mortgage + $40,000 in credit card debt + 55,000 airplanes = $450,000. Let's assume your house appraises on the low end ($600,000) of what was mentioed above.

Here is what I would do: Cash Out to 80% LTV ($480,000)

-Pay off all your credit card debt ($40,000), it becomes tax deductible and will dramatically improve your credit score.

-Pay off the airplane's ($55,000)

-Pay down the principal on your investment property ($30,000), then refinance.

So, we have $355,000 (balance) + 40,000 (credit card debt) + $55,000 (airplanes)= $450,000, this leaves you with $30,000 which I would use to pay down the pricipal on your investment property to 67,000. Total loan amount= $480,000

This will gain you a number of things:

1) Greater tax deductions at the end of the year.

2) This will significantly lower your back end DTI (Debt to Income Ratio).

3) You will have more equity in your investment property and with the lower DTI and much better credit score, enable you to refinance at a much better rate. I suspect the reason your credit is the way it is, is (god can I say is one more time!) because of high balances on your credit cards. It's amazing how paying off credit card balances impacts your scores. If this broker uses Funding Suite as a CRA, have him run what's called a "what if", paying off your credit card debt and showing you how much your scores increase.

4) This will increase your residual income through your investment property.

5) This will dramatically improve your credit score.

Now that we have cleared up your debt and credit issues, you will be able to obtain much better rate and terms on your investment property.

This put's you at 6.375% on a 30 year fixed @ $480,000, $1,050 in closing costs, gives you:

Monthly P&I (Principal & Interest) of: $2,994.58

Monthly PITI (Principal & Interest including taxes and insurance) of: $3,604.58

az, is the reason your quoting that 6.375 interest rate because thats what Id probably get on a 30yr int. only loan.I dont understand because on a 30 yr. fixed the offer (from novastar) was 8.3%

No, that would be fully amortized. With your current credit score (stated in the initial post) and clearing up a good portion of your debt would enable a much better rate assuming we would be able to get an LP accept (Loan Prospector, Freddie Mac's automated underwriting engine). Freddie Mac is a lot more lenient than Fannie Mae.

Novastar is Sub-Prime and you are dealing with their retail division. Big Difference.

thank you so much for all the info AZ, Youve been very tolerant of my lack of knowledge in these areas. I'll let u know how it goes monday.

Copy and paste what I have outlined above and go over it with him and you are very welcome. If all else fails call me. I am licensed in Florida.

toight the new mtg. broker called and said that we need to sign an application fee with him because the lenders will just print out a generic loan without putting any time into researching it without this application fee . Y
ou know what It just doesnt feel right to me.its not the fee its the principal thats hard to swallow. I feel like IM dealing with a hungry broker not someone who's really looking out for my best interests. I think what I need is a well to do broker who does this for his name not for a few quick bucks. Is this what its all about? Again. its not about the fee its about the best I can get for my money, kinda like a lawyer!!!! Are there real people out there or am I dreaming in mtg. heaven.

No. You should not have to pay any sort of application fee. Your only out of pocket expense should be the appraisal. Walk away from that joker.

You know AZ its not the moneyI forget how much it was Probably 100.00 dollars or something. What I feel inside and correct me if I.m wrong,is that he wasnt planning on doing alot of shopping for me and if I wasnt desperate enough to take his loan proposals that at least he made 100.00 or whatever of his 2 hrs of paperwork.I feel slapped in the face. I need a donald trump broker!!!

Basically what it boils down to is he isn't confident enough in himself as a mortgage professional to retain your business, therefore he feels if he charges you $100 application fee you will be more likely to stay with him since you have already invested that money. As I said before, I am licensed in Florida and would be more than happy to help you, without all the BS.

AZ,can you E-mail me tomorrow, ???

Yes, I will. Email me, just put test in the subject line so I will have your email address. robert@morganfncl.com. I will do everything I can to help you.

I certainly would not pay a dime to anyone as an application fee. AZ is correct the only out of pocket expense you should pay is for the appraisal. I am sure AZ is quite competent, if you find that you would like some advice from someone local feel free to contact me.

Good Luck

I also agree you should never have to pay any lender an application fee. Sometimes you have to pay the appraisal out of pocket, but that is it. I have been reading AZ's posts for a while and I feel confident he will aslo do a great job. If he does not please be sure to come to this web site and blast him all over the place.

HAHA!! You're funny TN. I will do a great job for her and also do it for next to nothing as a courtesy. Sounds like she's had a rough go 'round.

Never deal with a lender who wants an "application fee". They want that commitment from you so that they can do the ol' bait n switcharoo on you. Find a new broker.

lenders don't ever need application fees. it's brokers who pull stuff like that.

Please update us on how your situation plays out, Carol.

AZ, so far we had our meeting the other nite. He works for WLG(world leadership group)I think there some kind of cult-just kidding!!! I looked them up on the internet, they seem to be pretty big.Please anyone give me info on them-unbiased of course.www.WorldleadershipGroup.com So heres the scoop. He spent 2 hrs. telling me why people should take all the equity that they can out of their houses,with the lowest rate ARM that they can get,then invest the Money they save in other option. Sounds kinda like what you all told me and of course we all know it takes a very diciplined person to accomplish this. I told him I wont pay any application fee. He stated that its his co. that demands this,and that we would talk about that when his people(someone else does the shopping)come back with some good faiths. Also WLG sells investements and the broker of course said he could set us up with that too.with the money we save. My husband laughed at that wen I told him(he wasnt home for the meeting)because he has his series 7 stock broker license and said any investments he would take care of himself. Next the broker wanted to know what kind of a loan I was mostly interested in. I could tell he was pushing 2 yr. ARMS. I told him to check on that 30 yr.fixed interest only 19 yr.then P/I 11th yr. on.and also 2yr,3yr. and 5yr. ARM's. Also I wanted to see what the best 30 yr. fixed he could do. By the way I just found out my husband made over 72,000 on his side jobs last yr.thats before our acct. gives us all our writeoffs. But the broker says he can use the income as long as we have documentation,(ck'ing acct.) which we have a bus. acct. that the cks are made out to and deposited,that and the 1100.00 monthly rental will be in our stated income. SO THE MEETING TOOK PLACE friday nite instead of mon. and I havent heard anything yet. Oh, novastar called me back. They had faxed me goodfaiths for 30 yr. fixed which were at 7.8 to 8.3 with anywhere from 1000. to 10,000 cash out that we didnt ask for. Also they incl. a 5 yr. arm which was the exact same int. rate pmt.etc. as one of the 30 yr. papers she sent me. So when she called she wanted to know how we liked the goodfaiths(which were not even broken down)And wanted to know if we were ready to send her our documents. I told her I was shopping around and the fact that someone else would say yes to using the business and rental incomes. She said for me to watch out because they (mortgage brokers) will tell you anything you wanted to hear to get your business. I said thats funny cause they all say the same about you!!!!Come on oviously no-ones gonna do this loan out of the kindness of their heart. Everyones just as hungry.I'll pay the fee I just want someone to do their job. And I'm not paying out 1 single appraisal fee till I see a loan I like.I know the value of my house. Also the novastar lady is now going to her boss to see if they can use the bus. and rental inc.she is gonna talk to the boss again-yeah. So thats about all -thank God we have till july 1st to shop around,although I know it takes swveral weeks to set up.

Ps I meant 10 yr int. only, 11th yr. on PI.stated in my post above

Carol:

World leadership group is the MLM of the mortgage industry. Many industry veterans see through their pitch (to people in the industry). They essentially pay overrides to recruit others to originate loans. It sounds like the LO that came to your home drank the kool aid. It is unfortunate that many in the industry resort to bad mouthing the competition in order to elevate themselves instead of just letting their own knowledge and ability to relay that to their clients stand for itself.

The reason Novastar faxed you an interest rate on the 5 yr arm the same as the 30 yr. fixed is because short term interest rates have gone up considerably while long term rates have only gone up marginally. In the past there was a much larger spread between and arm and a fixed rate loan product. Not anymore.

What the WLG broker was talking about when you referred to your husbands side income is what is called a bank statement loan. Understand that Novastar is one bank, in fact they are one that I send some loans to. They are certainly not the first choice for me as their rates are not as competitive as others that provide very similar loan programs. I wish you well in your search for the right loan for you. When talking with anyone in this industry trust but verify, if your gut tells you something isn't right then go with it but eventually you will need to find someone who you can trust. I would certainly follow up with AZlender as he has offered to help you and if you feel more comfortable with someone local feel free to call me or email me.

Regards,

Greg
561-296-2323
greg@commmunitymortgagefl.com

woops too many m's in community

greg@communitymortgagefl.com

I told you I'd do it for next to nothing. You never contacted me. Go with Greg. He seems to have a good head on his shoulders and he is in Florida. You are just having a hell of a time!

hello again,the broker from WLG contacted me at work today. He would not fax me over the good faith estimates unless I sign the application. Bottom line, its not the money its the principal. I asked him could he tell me how many GFE's he had. he had two quotes a 30 yr. fixed for 8.375,and a 3/1 fixed for 7.75. So I asked if he had chked on the 30yr.fixed for 10 yr. int. only. and he hemhawed around then said oh yeah it would be 8 1/4 0r 8 1/8th. really didnt think he chked. So I asked if he had chk'd the 5/1 and he said um that would be around 8 to 10%. I then asked how many lenders he had shopped with and he said 8. I told him w/o him showing me the gfe's that I couldnt make a commitement. He can't do it w/o the app. I told him Ive had 3 home and 6 diff. mtg's and everyone gave me gfe's before. His lenders wont take him serious unless he gives the app. to them. So I told him I,d shop around and get back w him. His response was I've put 8 hrs into this for you.Im gonna call Greg on my day off thursday.Am I wrong to think that maybe He didnt check around enough or do you think that he offered a decent deal.He said his appraisers said to base my house on 610,000-650,000. the loan would be 70% loan to value,and he wouldnt be worried if it came back less

Carol, I am licensed in Florida. If you want an honest 2nd opinion give me a call tomorrow at 888-611-3186 and I promise to give you a no BS quote.

well, something is a miss here. carol has had open information coming from brokers on this site that seem to be pretty competent and knowledgable, yet she continues to play around with MLMs and inexperienced LOs.

that makes greg, AZ, and now Wisconsin guy, all of whom seem to know what's going on, but all i see is posts about her talking to these other guys. come on. Novastar Retail and some MLM??

is this for entertainment value or what?

Nico,you should have stayed wherever you were. oviously you don't know what has been going on.I have been taking their advice and I think wht has been happening to me happens to alot of unsuspecting consumers. If you hadnt been so busy shooting your mouth off in the beginning you would have realized that from the beginning I wasnt here to solicit a broker online but to learn how to find a qualified one in my area. all I seemed to find so far on my end were people who were just shooting the breeze like yourself. AZ,and others have been very informative and I have been introduced to another broker in my area whom Im about to contact. Thank God you were not the only person available on this site for information,I find you arrogant and insulting and yourself the one seeking entertainment. Now why dont you leave this site alone and sign up on another one that wants to listen about how informative you are not. Thankyou again to everyone else who has given me info.and sorry that Nico has cast a shadow on the righteousness of the other brokers who really are on the top of everyones A list.

i've been here the whole time


you're right, i am shooting the breeze. that does not mean, however, that i don't know what i'm talking about. i'm a lot more qualified then you might think.


well, i'm always seeking entertainment, you're right about that. you might find me arrogant, but i tell the truth. i tell it hard and cold, so it hurts sometimes, but i don't misrepresent facts or sugarcoat my analysis in any way. if you're curious, i work for a wholesale division in a bank. mortgage brokers look to people like me when they have questions about loans (which they sure have a lot of), when they want someone from the bank to train their people, or when they simply don't understand how to package their files. it's my job to show them.

cast a shadow on righteousness? little melodramatic aren't we? sounds like something straight from Sunday school.

don't worry. i would never value the opinion of someone with a 620 FICO. no need to worry about that.

Carol,

Sort of funny but did you know that since you have been shopping this loan with all of us that the rates just went up! Meaning that you just shopped your way to another .25 higher in rate. Some other advice since you like talking to mortgage people and this thread has gone forever like a bad soap opera during the week.

NO MORE CREDIT PULLS!!!

I hate when I get a rate shopper who call me and I run there credit report and on the bottom was the inquires that states they shopped for the past two weeks. Bad stuff for you as a future client.

Anyways good thread hey I have my GFE in that stack. Carol can you fax me all the GFE’s that you get beside’s mine. Thanks

There is going to be another mid day pricing change (for the worse) today, I can feel it. The 10 year Treasury is down 7/32 to yield 4.81 right now.

Carol:

Go ahead and give me a call. Even though the delivery of some on this board leaves something to be desired the content of their messages are on target. I have worked with clients who have been in your situation. (Scared to death of making the wrong decision) And that fear has pushed them to end up going with the person who is great at sales and no so good at putting their clients best interest at heart. I believe that is what you are seeing with some of the above posts, anyone who has been in this industry from some time has seen it and, quite frankly it is frustrating on our end to see it happen. I truly believe you have a couple of people on this forum who are quite capable of getting what you want accomplished with no issues at all. Instead they see you come on here and go into detail about at least one (WLG) less than scrupulous broker who is just trying to make a fat commission off of you. Take a leap of faith and call or email, I can assure you you won't get "sold" something.

What you guys don't understand is that I havent been from one broker to another in the last 2 weeks. All Ive done is originally called Novastar thhe lender I had (one credit report) waited the week out for her to finally fax me the GFE's,told herto get lost ,then found someone a friend knew and tried him but he's the one who wanted a app. fee. So now I'm gonna call Greg . Thanks alot everyone, and by the way Nico you've been very entertaining!! I may have alow FICO score but your LOW SELF ESTEEM sure shows through(NICO-LODEON).

well, i always like to entertain. low self esteem? if you say so.

and then making fun of my name.... wow.... i really don't know what to say. been a very long time since i had a discussion with someone who made fun of my name because they couldn't hold up in a civilized argument.

you can't attack my knowledge, professionalism or my point of view, so you go after my name.... alright.....

No Niko it was'nt your name-It was your brain I was referring to with the Nicolodeon. That is a childrens show.And yes it's very easy for anyone on this site to attack your knowledge,professionalism??and point of view,as they have been doing all along. :p Why don't you post us your business as the others do? Is there a reason you dont??

#1, because i'm not looking for business.

#2, because my clients are not homeowners or home buyers. they are mortgage brokers and mortgage bankers. even if you knocked on my door and wanted a loan, i would tell you to go find a broker because i only deal in wholesale.

I sent carol a GFE based on an email I got from her with better terms than anything mentioned so far. That was two weeks ago, the deal could have been closed by now. I think she is probably a jokester with nothing better to do.

Sorry Aaron. but I never asked you for that gfe,and you e-mailed me a quote only of what int.rate you could get for me.I dont consider that a full gfe. Thankyou for your help I really have appreciated all of your help and I'm learning through you guys, including all of the comments made. I'm not a jokester,Im just trying to make an informed decision when this finally comes down. I have spoken by phone today with Greg(the truth the whole truth and nothing but the truth!)he IS in my area. We will see how it goes. If you-all can stand anymore of me I'll let you know how it goes. By the way Novastar called me back tonight and wants to fax over some new quotes. OH BOY,here we go.

you put yourself through the torture.

just do the loan with Greg, stop answering Novastar's calls, and then close your loan so we can go back to bashing each other and you can go back to doing whatever it is that you do, like lowering your credit score.

Goodbye Nico- :p

You are one of those customers that turns easy deals into a complete disaster.

ha. so now we have the final word. that's what i was thinkin from the beginning and got bashed for it.

sometimes if brokers are too hunry, they become blind and lose their own self respect in order to make a deal. i'm glad Aaron has finally come out with it and stood firm.

ya know only AZ and Greg were the only men in the beginning that said any thing worth while to me and they gave me good ADVICE.Aaron,and Nico its been fun but now were down to serious businwss and I don't have time for you any more.Sorry :p

uhhh... it's a public message board. not a workplace to do your transaction.

jesus, you sub prime borrowers get me every time with your assumptions. unreal.

Yeah, if I speak with someone more than twice and they cant decide what to do, I dump them right away. There are so many people out there who've over extended themselves with way more than they can afford, you can't waste one second on people that cant make up their mind. Those are the ones that usually end up with Novastar or Ditech anyway.

i agree 100%. working in wholesale, i see a lot of brokers get pushed around by their clients. the client gets on the phone and immediately bashes the broker into lowering their fees, finding a better monthly payment, or just plain monopolizing their time.

the "i'll find the best rate" thing out there really gets to me. what ever happened to quality? service? professionalism?

brokers have done it to themselves here. i say anyone out there who doesn't buy clothing at Wal Mart or drive a Kia knows that sometimes if you pay a little more, you get better quality and service. especially to these sub prime borrowers who are notorius for buying the Cadillac Escalade with no money down at 15%. then that same borrower who bought that car at a ridiculous price and a joke finance plan turns around and bullies a broker into a corner. "gimme this or else!!"

i hope brokers start pushing back one day and telling these people to take a walk. the borrower mindset now is "if you're lucky, i'll LET YOU give me a loan for half a million dollars". i would tell that borrower to call Ditech and leave me alone. i'm a professional. not Wal Mart.

I've really begun pushing towards working with investors and commercial lending. The level of knowledge and professionalism from those borrowers really makes you enjoy your work. Granted, its more work and typically takes twice as long to close but its nice to be a trusted advisor rather than an order taker.

that's exactly the reason i got out of residential retail. sure, i might get back in it one day, but it's too much of a nut house out there right now.

Wow. Arguing solves nothing. Watch those personal attacks guys.

628 should qualify for a Fannie or Freddy loan.

I do not think I saw mention of what happens after the 10yr interest only period expires. The balance is re-amortized to the remaining term of the note. So for example if you only pay interest then your payments would skyrocket after 10 years.

The Interest Only loan is a great option though. If you have a repair that is an emergency and you are low on funds then you could possibly have the cash available to do the repair by making an interest only payment. The trick is to pay the principle and interest payment as if you did not have an interest only loan. If you do the 30 yr fixed and strap yourself to the higher payment then you might have to use a credit card for that repair.

Payment options allow flexability. When times are tough you can cope better if you have options.

Monday has come and gone. How did it go Carol?

On a side note AZ I saw the info about AZ appreciation. What do you feel has caused this? Is it new construction?

In November of 2005 builders applied for and were granted 61,000 new build permits in Maricopa County alone, this compared to just over 31,000 for the entire year of 2005.

We are growing at a very fast rate. As it stands right now we are in a buyers market, so I don't necessarily think it was due to construction. In my opinion what it boiled down to was demand exceeded supply, in effect causing the prices to skyrocket.

All indicators are pointing to growth in to Tucson (from Phoenix). I think we are on the same path California was on 10+ years ago. I really do not see this bubble bursting anytime soon. Last year we surpassed Philadelphia to become the 4th largest city in the country.

Wow #4!

I would have never even imagined that. How is the weather in your area? Any rain ever lol?

Edit:

Easier way to get what I am looking for. Why does it seem to be such an attractive area to live?

LOL! Actually we wen't 140+ days with no rain. It rained once and no rain since. If you like sun and heat, this is the place to be. I call it hell on earth...

In response to your edit:

I would say it would be the weather.

I am re-visiting this topic to bring it up to the top.

Carol closed a loan with Greg4Mtgs and used a Freddy Mac program.

A learning experience for all. Always run DU/LP.

Greg

I went through her tax returns and got all assets that they held. It was actually a Fannie level 3. She had a rental property that was seasonal rental so I couldn't use the rents to offset the mortgage on the non owner property. It was about a 55 DTI and I used just wage income to verify instead of using the self employment income as well as it was declining income per the returns even though revenues went up. I couldn't agree more DU/LP on just about every loan. She elected the Timely Payment rewards and in 2 years it will be like getting a free refi and her rate will drop to what will likely be less than they will be if she were to have to refinance then. She was actually a very good client just afraid of making the wrong decision ie. getting taken to the cleaners by someone.

Very nice Greg! Way to be. Keep up the good work. Customer for life!

Du/LP is good stuff. I got a first time homebuyer, 68% DTI, 628 credit score with very little depth, and all gifted deposit and reserves approved with no level's!