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Mike Smith, MBA, MPM's Advice

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Mike Smith, MBA, MPM wrote:

HR 3221 - Great for Buyers between April 8, 2008 and July 1, 2009

Response
Have a great night... Thanks for reminding me.  Sometimes I get excited.
August 11 2008
(0)
HR 3221 - Great for Buyers between April 8, 2008 and July 1, 2009
Housing & Economic Recovery Act of 2008:$7500 tax credit from Federal Govt for all qualifed first time homebuyers purchasing between 4-08-08 & 07-01-09.Income limits: $150,000 married: $75,000 single but gets phased out if income is higher15 year loan at 0% interest where you get the cash up-front.You pay back the $7,500 over 15 years at $500 per year: interest free.Not all information you hear is negative. The bottom line is that you dont' want to follow the herd.People get rich in this country because they don't follow conventional wisdom.  I believe buying a home right now is a great time for many and here is one more reason why. 
August 11 2008
(2)

HR 3221 - Great for Buyers between April 8, 2008 and July 1, 2009

Response
ok sorry about that.I thought it was good news for homebuyers. :)
August 11 2008
(0)
HR 3221 - Great for Buyers between April 8, 2008 and July 1, 2009
Housing & Economic Recovery Act of 2008:$7500 tax credit from Federal Govt for all qualifed first time homebuyers purchasing between 4-08-08 & 07-01-09. Income limits: $150,000 married: $75,000 single but gets phased out if income is higher15 year loan at 0% interest where you get the cash up-front.You pay back the $7,500 over 15 years at $500 per year: interest free.Not all information you hear is negative.  The bottom line is that you dont' want to follow the herd.People get rich in this country because they don't follow conventional wisdom.  You want to buy on the day when the newsis particularly negative. Now is that time....However this news is hardly negative. For more info, view my contact information. Cheers!
August 11 2008
(0)

HALL OF SHAME VII.......

Response
http://www.zillow.com/mortgage/LenderQuoteDetail.htm?qid=X1-ZQz1j9sjcofith_94p2b OMG what a deal here fellas . . . . . .5/1 ARM Interest only with a lifetime cap of 9.95%??  Margin of 2.50%??Whatever happened to 5/2/5 with 2.25% margin?  Did "AA" paper suddently mix it up?hahahaha
June 04 2008
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Does a foreclosure affect your current job?

Response
Ice ...once you are hired you are probably ok.   I mean do you do your job well?  Are you a hard working and well respected person in the workplace?  If you are well liked and do a good job = no problem.  If you are in a union and get fired = so what.  That can't fire you for facing a financial hardship yet showing up day after day to try to improve the situation.  The bottom line is character and trying to resolve the situation. "Fear is my counselor, not my jailor." Good luck!
May 29 2008
(0)

To Pay Or Not To Pay... That is the question...

Response
I support No discount points and charge 1% loan origination in my state.  Most of my clients have no problem with the customary 1% to get a market par rate.  However it is always a case by case: Today for example the spread in my state between what I charge (par +1% hopefully) and the no points is very tight and seems to support the no point position.  However, every day is different and normally there is a slight greater spread than .25% in rate for 1%. So let's examine: Option #1:   $300,000 5.875% @1% originationOption #2:   $300,000 6.125% @0% origination (1.25% ysp today) Cost = $3000 option #1Cost = $0 option #2 right??? Cost of interest over life of loan:Option #1=$338,860Option #2=$356,219 Payment difference:Option #1: $1,774.61Option #2: $1,822.83So......$3000 / $48.22 per month savings = 5.18 years.In this example based on my pricing today I say if my client intends to keep the investment asset (live there) longer than 5.18 years take the lower rate.  If not, take no points.  However there is a pychological appeal to the under 6% mental barrier.  Happy hunting!Mike
May 29 2008
(1)

need advice on current loan

Response
Chevmeister. . . I am not sure what state you are in; however, in CA Arnold has negotiated with Wells, Countrywide and I think about 8 total lenders as part of President Bush's fiscal stimulas package passed in February that may help you.  Essentially is you are current on your mortgage and the increase due to the reset will result in you not being able to make your payments and you VOICE that to Countrywide, they should agree as per the terms of the fiscal stimulas package to keep the rate fixed for five years as it stands before the reset.  So I would call call call Countrywide and see what you can get done.  It is not a traditional loan modification but a more progressive forebearance agreement that are the norm in CA due to the high level of bank owed and short sales.  Good luck!
May 29 2008
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Rates on the rise. . .Why?

Response
Yep lakers won and go California.  For all you haters who cant charge points, it is ok.  No hate here.   & yes Jenn in CA we get to charge points......ohhhhh scary. Pretty customary.Here is the deal whatever the fee structure, don't you agree it is essentially the same?  I mean lets say I quote 5.875% and I charge a point on a $300,000 deal?  ok $3000 commissionYou charge what 6.25% at (1.25% ysp) and make $3750.  Is the client really better off over 300 years with your higher priced deal????  You said in another thread . "Who needs that crap?" Well perhaps there is a little thing called break even analysis on the cost of those crappy points vs. your higher priced loan.   Think about....I am sure you will agree :) (lol) The point is all my loans have points; in fact I will give you a couple right now:Charge what you are worthClose on timeBe honestDon't be afraid to passBut you all know all this because there is no way you are possibly reading yesterday's paper trying to advise your clients?   Or are you??
May 29 2008
(1)

Rates on the rise. . .Why?

Response
I did :) I still see the same investor at 5.875% at end of biz today at par on a 21 day lock:email me Salem and I will pass website along to you.
May 29 2008
(0)