Chip Fernandez on LinkedIn: Here's a list of companies that MAY allow mortgage "porting". Bank of… | 14 comments (2024)

Does the Consumer Financial Protection Bureau want to put the kibbosh on mortgage discount points? What are mortgage discount points and how are they used? We'll explain.Mortgage discount points are prepaid interest you buy upfront to lower your interest rate. Each point costs 1% of the loan amount and typically reduces the rate by 0.125% to 0.25%. In other words, to reduce your interest rate from 6.5% to 6.0% for a $300,000 loan, you'll pay ~$6,000 at closing. Is it worth it? After all, your annual savings are only about $1,500 in this example.It's complicated. They can be good if you plan to stay in your home for a long time but you may be overpaying if you might be able to refinance to a 1% lower rate only a year later. You also need to factor in the additional closing costs associated with refinance and there isn't even a guarantee that you will be in a position to qualify for a new loan in the future. In some cases, borrowers need the discount points in order to qualify for their first mortgage. On the flip side, who is paying the discount points and did they do so with a grounded strategy? It's this last question that the CFPB is likely focused on as discriminatory practices could be involved.https://lnkd.in/eJ3yT7wt

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This is a complicated topic. I paid points to lock in 2-2.25% rates on my properties at the height of the refinance frenzy. I knew with certainty that I would not be refinancing again and wouldn't sell the home any time soon (I'll rent before I will sell).For first time homebuyers, it would be very easy for someone to convince the borrower that they could save themselves tens of thousands of dollars through the life of the loan if they just buydown their rate. The problem is, the "tens of thousands of dollars" could be much lower depending on what happens with rates, work/life events, etc.There are also a lot of reasons why buy-downs will happen: 1.) its the only rate offered by investors; 2.) the borrower needs to buy-down to get their DTI into qualifying territory. I'm sure there are more.Importantly, I don't see why lenders would have an incentive to push people buy down their rates. They are paid the same amount for the loan in the secondary market and, it would delay their chances of working with that consumer on a refinance when rates do fall. I am not the secondary markets expert (that my partner Jeff Juliane and many other people in my LinkedIn network are) so I am open to input from the experts...

How many of us dream of living without a mortgage? I certainly do, especially now that interest rates have gone up. Imagine all the money we could save on interest and spend on things like vacations or investments. Let's be real: not many of us can afford to buy a house without a mortgage. For most of us, it means dealing with mortgage payments for 25 or 30 years. But what if I told you there's a simple change you can make to pay off your mortgage almost five years earlier? Sounds appealing, right? Well, it is! By switching from monthly payments to bi-weekly accelerated payments, you can significantly shorten the time it takes to pay off your mortgage. And that's just one trick!If you are intrigued, check out the article below for more information. And always, feel free to reach out if you have any questions or want to discuss how this change could benefit your situation.

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Many Canadians homeowners will face the challenge of renewing their mortgage this year. The challenging part is because, odds are, it will be at a much higher rate than their previous term. This means mortgage payments are going up (and in some cases, considerably 🥲) This week we discuss options at mortgage renewal and dispell many of the myths that exist when switching your mortgage lender.More below 👇 https://lnkd.in/gsnD7a_r#getdeeded #mortgage #mortgagerenewal #canadianrealestate

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It was a pleasure to visit with Connie Kim with HousingWire last week. Obviously, the high rate environment isn't ideal for affordability. This is causing hesitation for buyers to get fully pre-approved waiting on rates to drop.For the buyers that do get pre-approved, they'll be in pole position to submit offers quickly when rates do improve. Even with high rates, there are many ways to create affordability in the marketplace. My advice? Call your loan officer before the spring market heats up! Get insights and plan properly to see if this is your year to become a homeowner.

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How mortgage shoppers can weave their way through the credit-score mazehttps://lnkd.in/dZDegdNU Rob McListerNavigating credit scores for a mortgage can be confusing. This article breaks down how lenders assess your creditworthiness.At Credit Achievers Today, we demystify the mortgage approval process. Our credit coaches:- Do a full review of your credit report- Create plans to boost your credit score- Advise which mortgage lenders and loans may suit you- Negotiate with lenders on your behalfWe optimize your credit profile and financing options, so you can get approved for the best mortgage or loan for your needs.Want expert guidance on preparing your credit for a mortgage? Book a consultation today:https://lnkd.in/gAkVnRW5#mortgage #realestate #creditscore #loans

This raises an interesting question about whether a mortgage lender can choose NOT to renew a client's mortgage. Although I don't see a lender doing this, unless there is delinquency or some other violation of the mortgage terms originally agreed to, I CAN see a lender offering mortgage clients they don't wish to keep on their books a "less attractive renewal rate" perhaps to incentivize them to look elsewhere.

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Can I Get a Reverse Mortgage With Bad Credit?👉When you have bad credit, it’s easy to think you won’t qualify for any loans or financial assistance without improving your score. With bad credit, you need financial help to get you out of your situation. While poor credit can limit your options, if you’re a senior homeowner, you’ve got a great option at your disposalareverse mortgage home equity conversion loan (HECM).👉The good news is that the HECM reverse mortgage is NOT based on any certain credit scores. In fact, having NO credit score is okay. Since you’ll be getting paid rather than the other way around, your credit score is not the best indicator of whether a reverse mortgage is right for you.👉Is There a Minimum Credit Score for a Reverse Mortgage?There is no set minimum credit score that can tell you if applying for a reverse mortgage is worth your time. However, this can also be a benefit, as it means that no one is denied right away solely based on a number.👉Also, remember that reverse mortgages don’t take credit into account in the same way as lenders would in most other situations. As long as you can prove you can manage your home related payments, your exact credit score is unimportant. When applying for your reverse mortgage, a provider will complete a credit check as part of their financial assessment. The financial assessment checks for any barriers in your payment history that might affect your ability to keep up with your end of the loan. ✅ If you would like to learn more about reverse mortgages or if you would like a free consultation and proposal, please contact me directly. ✅Here at New American Funding Reverse Mortgage I can assist those in Washington, Oregon, Texas and California states to find a solution to your financial needs. I will help you move from opinion to knowledge, and then from knowledge to understanding so you can be confident that the solution you choose will be an educated one!New American Funding Reverse MortgageCharles ButlerReverse Loan ConsultantNMLS# 2262315#retirementplanning #reversemortgages #homeequitylineofcredit #hecm #washingtonrealestate #texasrealestate #financialadvisors #moneytips #howmoneyworks #oregonrealestate Charles Butler #heloc #financialfreedom #credit #homerefiance #trending #Financialplanning https://lnkd.in/gwzzZgnG

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There are several strategic avenues that homeowners can explore to work towards paying off their mortgage early.Ready for your new payment plan, approved by mortgage and finance experts? Here are some of their best tips for paying off your mortgage faster: https://bit.ly/44rKYZE