Martin Wareing's Discussions

No need to pull you credit..  It is/was good, so just do what got you there and pay your bills.  The absence of PMI in your payment is "usually" replaced with a high Principal & Interest Payment.  BofA's deal may not be as "cheap" as the marketing of it.  PMI is deductible now and likely ot remain, but I'm telling you that the higher mortgage rate (BofA)'s will remain forever and PMI can be cancelled and/or will fall off after time on its own (around 10-11 years). The BofA P&I payment will remain the same for the life of the loan.  Just remember, there is no free lunch.  This will be a photo finish horse race as BofA simply took (and will be comensated for) the insurance portion of the loan.  My advice...  Negotiate a sales price with Seller paying or contributing a portion of costs (3% sales price); get your best ZERO POINT Loan with minimal junk fees...  get PMI and work like a trojan to get it removed or canceled.  That will be your cheapest financial deal, I promise and I'm not doing your loan. Good luck.

Onepaw, The fees listed by Andrew are "junk" as we call them with the possible exception of the Notary (as it may not be connected to the Lender/Broker in any way).  We use "junk to identify any fees to get through a Broker/Lender in our world.  Every Lender has some type of fees that are at least put into the cost equation when quoting a rate, even Andrew's company. You name a Lender and they all have some type of fee structure. We(mtg folks)  even consider Flood and Credit as "junk" although they are actual expenses in real life and small.  Bottom line.. 6% with 1 point and between the Broker and Lender is market, but higher market and since you have excellent credit, how hard is it to spell your name and hit submit to DO (FNMA U/W Engine).  !/2 the JUNK FEES are from the END LENDER and are probably coming regardless to you..  The glaring fee (junk) is the processing.. The Broker is grossing over $7,000 in gross pay.... why do they need another $595(stacking fees) to type in your name.  I have a feeling there is better and a slight bit better priced good LO out there.  I would think...  6% 0-1/2 point total..remove the Processing.  Still $5K in pay for a loan that is easy.  Sad to see, but mortgage and RE world for that matter is loaded with JUNK.. The hopes are that you will simply stare and talk about the rate.

DY, You are correcto about the point being moot now more than ever..We have vanilla and uh vanilla.  If you step out of line.... bang..  The subtle differences with FNMA/FHLMC are microscopic at best and also means it is an "exception" in a contract and not the rule.  Exceptions are so slight to me that I really don't bother with them. There isn't a Lender or Correspondent that is happy to be that if they were designated that during the last 2 years as all, "A" and every other typ of lender has a vault full of garbage.  If an "exception" type loan is locked in and delivered in time just like that of anyone else, it's all good.  There is no magic anywhere for any of us.  Here in FL, "Steroid Brokers" who used a credit line and were Correspondents or Lenders are trying to revert back like a bad condo conversion as they all found out the additional .375% gross SRP is/was not worht the risk and all found out that Funding loans has its drawbacks.  If we all simply loan money to people who pay it back... we wouldn't be where we are.

AA is correct.  The market (Bond) changes potentially daily and sometimes more often.. for better or worse  (sounds like wedding vows).  I personally despise junk fees from the Broker AND the LENDER.  IF that quote is within the last day or 2, you are getting nickeled and dimed, but your definition of nickels and dimes are thousands of dollars. You should be able to get a GFE with your credit situation with TOTAL JUNK FEES less than $900... That includes all of the kitchen sink items Andrew pointed out + credit/flood cert.  Ridiculous that people hide behind this S***.  NO to FHA,  You don't need and FHA loan.  Conventional loans were built for people like you.  It gets even more complicated with the Governments MIP  (Government Insurance).  You were originally thinking BofA to avoid all MI.  I think your highly touted guy is on the "top side of fair" as far a costs.  Your LOAN IS EASY... It would take me less time to get your app and approval/conditions than my typing here.  Tell "Broker Bob" to cut out the $595 at a minimum and if you are locking today... get 1/2 point removed from the costs OR take 6.125% without points. That way you save the other point...  so, for .125% in rate, you keep almost $4,000 in your pocket at closing.  Does that help?  Do you have the home under contract?

Get Rivalling GFEs on same day from the 2... Try to either set the rate or costs to compare the 2 equally.  No to pulling credit by either until you have made a decision.  Keep doing what you and your scores will rise and more importantly stay at 720 or above as FNMA has a slight "spank" fee (.50% in points pricing ot any Broker or BofA) for credit scores at 719 and below, but that was already priced in the quote when you got it from Broker Bob and BofA. Leave BofA alone until you are ready...  You are worthy.. you know that already,  you are just not ready yet.  Get a Good Real Estate Agent and not one that tries to be a mortgage guy..  They are realtors so tell them to be great at 1 thing.. RE and then you'll find a great LO.  Negotiate price and terms...If you get some type of seller concession, it will ease any liquidity concerns you had previously.  Find a great LO who is open and unafraid to tell you anything you want to know about your home loan.  Sad to think you are left in the dark by some with the largest purchase of your life presently.  You are on top of it, but leave your inquiries alone.. I'll help you in any way, but you are well on your way.

MM, I just know the grass is only greener over the area with poop on it.. We all have/get the same stuff within eyelashes of one another. What we really do is a craft. Some are better than others, some are cheaper, etc.  I just call it like I see it and don't plan on stepping on anyone's toes, but if all h*** breaks loose, I have the truth as to how our overall business works on my side. How's all in MI?  You in the heart of FLAGSTAR and ABN aren't you?  How's your market holding up? 

AA, We are seeing small, large and gigantic Lenders and the likes destroyed and effectively out of business. A Correspondent is on the hook only until they run out of money repurchasing the garbage they booked, BK and go away to work at Home Depot like the countless on that website listed. Public companies like CFC, C, NCC and countless others are not even able to keep the doors open without capital..  Small "Punk" Brokers with a LOC to masquerade as a Correspondent Lender, hence the "Broker on Steroids" funny. Anyone who wrote bad loans should be punished. Brokers, Corr Lenders and Lenders alike.  I will be willing to place a friendly wager that your company Lender/Corr owns some loans on a repur agreement as I have yet to meet anyone in the indsutry (Lending & Corr) who hasn't gotten the "I want a refund" call.  I a a Broker, and no I'm not high and mighty and probably just very lucky, but I don't originate loans to lower-scored people, I don't make "exceptions" as I don't need them and I don't and never did put a client in a loan that went south.  This is about the company we keep and what we elect to do for a living.  Designations of lender or anything else really doesn't define who any of us are. Like I said earlier, if we didn't lend money (an much of it as new programs/exceptions, etc...)  we would not have had 2 things:  the unsustained rise and now the wreckage that will ripple much further than any care to think.  Subprime fallout has reached food prices...  sick, but true..

AA, No nerves hit here, but BEEP BEEP BEEP.. back up for a few seconds..  MM has a very valid argument that any Correspondent would/will fold like a used Subprime manilla folder if they were asked to back the truck up and buy their garbage.  Any and every LENDER and CORR LENDER is built on leverage and we are all deleveraging.  We have seen them collapse and go to Dubai and every other hole to survive. I am again going to guess your company has been spanked as well because we all have, even Buffets Bank. All the non FNMA product that was pushed onto the market was booked at much higher spreads, that's why it was everywhere and now the payers have to clean it up.  For the record,  there is not any "spread" in CONV business as any profitability is from MASSIVE VOLUME only...  1 faux pas in crummy U/W or 2ndary doesn't hedge correxctly and TIMBER!!!   Did we all forget who Capital Commerce was during the 2005 REFI run?  the spike month of JUN 2005-JUL 2005 and the whole company imploded...  $3bill/month of FNMA product and gone  no hedging in the market...  It happens time and time and we all have short memories. Wholesalers (real wholesalers who sold FNMA loans to WELLS only made about 40bp per loan for the wholesale channel.  Secondary takes their piece etc.  MM,  for FNMA, there is not a distinct advantage for Corr pricing wise, but I fully agree that the "phone officer" can lie about income as I have seen it all the time.  If I can get 101.3 at 6% for 30YR FIXED today, I don' think any competitor is getting 101.3 at 5.5% that's all.

Mike, I think Zill is doing well here and I too have a routine with it.. win-lose-or draw.  I repsond to a few quotes/day  (20 mile radius of my home) 720 + O/O or 2nd home only.  The others, they cna be done, but my reward is no fees.. And no, I'm not playing with numbers either.  The funny part is that I have been declined so beauty is in the eyes of the beholder, but I think this type of forum allows all of us the chance to meet/greet and shine if we choose to do so. I like answering some buyer inquiries and would love to offer some help insight in the RE section, but they are looking for some of the dumbest stuff and exceptions and just garbage..  I'll stick with the survivors from the Titanic (the ones in the lifeboat).  "Never give up Jack, Never Give Up", but Jack drowned anyway.  Wouldn;t it be more funny if we had the borrowers have to bid and show their worthiness to all of us instead of the way it is.  That wold be a riot.... "No.... I;m delcining to bid on you... 795 is not quite high enough..."  Keep rockin'  I like your style.

The broker is not an idiot.. he is a sneak..... that's what the subprime Broker that is still slithering around acts.  They have no n***, no class, and on and on and are part of the 80% dumba** group in our industry.  No worries, it is the same ratio in RE as well..  probably the same ratio in all lines of work for that matter.  We are in the mess we are because of the company we kept/keep.  What goes around comes around.