August 30th, 2014 | Credit Scores And The Relationship To Interest Rates Offered
Do you REALLY know the effect credit scores can have on the mortgage rate for which you can qualify? The highest credit score category is 740+, and the categories below are in 20 point drops, like 720-740, and down to 620-640 for Conventional Fannie Mae and Freddie Mac loans. If you are doing a loan for more than 15 years ( 20,25, or 30), a chart is used to determine how much extra costs are added to the rate, or closing costs if you would rather pay the extra fees. For example, a Borrower putting down 5% ( 95% LTV) and having a 740+ score would incur .250% extra, where as a Borrower witha 620-640 score would incur 3.250% extra added to the deal. On a $100,000 loan this would be $250 for the 740+ Borrower and $3250 for the 620-640 Borrower. If adsorbed into the rate instead of paying the difference in cash, this would result in a .500% rate increase for the loan. And IF the loan was a refinance and involve getting cash or paying off a 2nd mortgage, additional fees would be involved based on the credit score category....HENCE , it is so important to get your credit scores as high as possible, or to consider a shorter mortgage term. A good Mortgage Broker and Realtor can discuss options with you that can help you get the best deal possible. For fair treatment and education give us a call-Diversified Mortgage Brokers, Tel: 434-237-3143, Email: firstname.lastname@example.org, Web: www.diversifiedmortbrokers.com . WE EDUCATE & DELIVER!
August 16th, 2014 | Many Homeowners Still Need To Refinance
Want to refinance your mortgage while rates are low, and scared that your home will not appraise like it did when you purchased it, or did your last refinance? If you did your last loan before 5/31/09, you can still refinance, get excellent rates, and your home does not have to appraise like before. Many people are still sitting on 5%+ loans that should be taking advantage of refinancing to lower rates. Why would anyone not want to save on % and lower their payments? Give us a call-Diversified Mortgage Brokers, Tel: 434-237-3143, Email: email@example.com, Web: www.diversifiedmortbrokers.com . WE EDUCATE & DELIVER!
For Borrowers who are using Conventional loans and do NOT have 20% down or 20% equity, there is the need for mortgage insurance. But there are two choices and it depends on certain factors as to which is best for that Borrower.1) Traditional mortgage insurance is paid by the Borrower and the price for the mortgage insurance is based on: the loan size, zip code, credit score, and down payment or equity involved. Once 20% equity is built ( 80% of the appraisal or original purchase price), the mortgage insurance can be REQUESTED to be dropped, BUT it will automatically come off at 22% equity ( 78% of the appraisal or original purchase price). Lender paid mortgage insurance is paid by the Lender, and with that in mind the % rate for the loan is usually .25% more, therfore the principal & interest payment will be more for this option for the life of the loan. BUT yet this payment is still usually less than the starting payment of the traditional mortgage insurance option along with the principal & interest at the lower % rate. SO....... depending on the equity in the home when purchased, how quickly equity can be built, how long someone will be in the home and budget considerations may determine which option is really best for Borrowers. Do you want a lower payment NOW with Lender paid mortgage ins., OR an even lower payment once the equity is built up and the mortgage insurance payment can be dropped completely from the traditional method? A good Mortgage Broker and Realtor need to discuss these options with their clienst. FOR EXPERIENCE AND FAIR SERVICE CALL...DIVERSIFIED MORTGAGE BROKERS Tel: 434-237-3143, Email" firstname.lastname@example.org, Web: www.diversifiedmortbrokers.com. We EDUCATE and DELIVER!
July 25th, 2014 | What does your Mortgage Professional REALLY do for you?
Are you REALLY getting the A+ treatment from your Mortgage Professional: Are you kept abreast of changes in the industry? Do you offer the best rate for your clients? Are you kept informed every few days of the status during the loan process? Are you dealt with honestly or just told what you want to hear? Are there a variety of loan products including niche products to get your loans closed? Isn't it time to see what else is available? DIVERSIFIED MORTGAGE BROKERS WILL make a difference! Not just talkbut FACT! Give us a call and see. Tel: 434-237-3143, Email: email@example.com, Web: www.diversifiedmortbrokers.com BTW, the Fed is to meet soon and the bond buying program ends in Oct...so be on the lookout as they feel the economy is strong enough to support higher rates. ACT NOW and lock.
July 11th, 2014 | Borrower paid OR Lender paid compensation loans
Do you know the difference between Borrower paid or Lender paid compensation for mortgage loans? The Dodd Frank Act 4/6/2011 states that a Mortgage Broker must give the borrowers the option of these two ways to proceed with their loan: Borrower paid means that the Borrower will pay the Mortgage Broker fees, and Lender paid means that the Lender will pay the Broker fees. If Borrower paid, the Mortgage Broker and Borrower can negotiate what will be charged and if any other processing, application, etc. fees will be added.If this is a purchase and the Seller is paying closing costs, these costs can be used to help pay these fees. This type of compensation can effectively get the Borrower a lower % rate IF they are willing to pay the Broker, although many Borrowers do not wish to have to shell out this money ( this $ can be added into the loan if a refinance). If the Lender is paying the Broker, only the % compensation plan $, set up in advance with the Lender will be allowed with NO other ancillary costs, such as processing or application fees. This "Comp Plan" is set up w/ each Lender that the Broker uses for 90 days at a time and can not change during that time period, no matter the size of the loan. The rate the Borrower gets from the Lender depends on the comp. plan set up, as these broker fees are adsorbed into the Lender's rate. The Broker CAN have different % comp. plans set with the various Lenders. In THEORY, this helps the borrower to be able to shop to get the best deal ( the lower the comp. plan should equal the lower rate). Great THEORY, but ONLY IF the Borrower knows all this and will shop Mortgage Brokers for the best deal. This is why if a Realtor MUST direct a client to a Mortgage Broker, at least 3 should be offered so the client can shop and not just be led to the Realtor's buddy. If a Mortgage Broker quotes a rate to the client he/she is supposed to inform the Borrower what comp. plan they are quoting with the rate offered. Again, great theory IF the Mortgage Broker obeys the rules and discloses this info.........For UP FRONT AND FAIR REPRESENTAION AND EDUCATION please call Diversified Mortgage Brokers, Tel: 434-237-3143, Email: firstname.lastname@example.org, Web: www.diversifiedmortbrokers.com. LET US BEAT YOUR BEST DEAL!!!!!!!!!!!!!!!!!!!!!!!!
100 Copley Place, Suite D Lynchburg, Virginia 24502
Toll Free: 800-388-3561 | Phone: 434-237-3143 | Fax: 434-239-4852
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