The mortgage broker’s role is to simplify the process for the home buyer. With the possibility now of rising interest rates a stark reality, existing mortgage holders will be keen to minimise the impact of higher standard variable mortgage rates.

Mortgage refinancing has become an extremely popular way for borrowers to save on their monthly repayments and to switch to more favourable terms with another lender. In making a home loan comparison, a borrower will look at a range of factors, including monthly repayments, but also the features and benefits of one product against another.

Mortgage refinancing is a competitive market and a borrower who does their homework can take advantage of the many offers in the marketplace. The best home loan for your needs today may not be the one you have at present.

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In many areas around the country people have been sitting on the sidelines think that things are going to go lower or rates are going to go lower or many other reasons that has postponed their purchase. But the fact is there has never any time in history has there been the perfect storm to purchase real estate. It does not matter if it’s a first home, replacement home or commercial real estate the numbers are all in alignment with the stars.

The First fact that makes it the best time!

Over the years interest rates have gone up and down there has been additional cost associated with making a purchase. Since the collapse of the mortgage and real estate markets since 2007 the changes that have been put in place have worked to make easier for people to save money when buying. The fact as to interest rates as of this writing interest rates are lower today than they were in 1956 at that time the rate was 6%. There were not options at that time like this is today. We did not have 15 year or 20 year payment terms. We also did not have adjustable rates and you could not get the seller to assist you with buying down the rate. Since today there are so many options available to a person who wants to purchase you can really set down a detailed plan of financing that will fit into your budget. Today you can receive a 30 year fixed rate loan as low as 4.50% which means that for every hundred thousand of mortgage amounts you would only pay $450.00 per month, plus taxes and insurance. Now think about this that is $450.00 per month for $100,000 home plus you would receive a tax credit for the interest paid over the cost of a year.

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If a home buyer goes it alone they do not know all of the aspects to look out for when looking at homes, titles, surveys and mortgage options and much more. The issues that can come up and numerous and they can end up costing the buyer more money in the long run. A buyer finds a home that they think they would love to live in they go to website such as Zillow.com just to name one that is out on the net. They look at comparisons; they look at the area along with schools and so on.

It is a good thing to do research on your own and have it to compare and look over to make your decision but this is just the beginning! Now that you have the data what do you do now how do you approach a seller? How you will know what to have in a contract that will protect you along the way and what can, you offer to the seller to make them want to take your offer.

Knowing all the details and sources comes from experience and having an expert to help you along the way can actually save you thousands of dollars in the long run. The other issues that come up that you would not even know about such as defects in title or how to negotiate repairs or credits. Just to name a few!

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It seems that a lot of home buyers and realtors are asking about the difference between a Mortgage “broker” and mortgage “banker”. I can point out some differences between the two of these because I have been on both sides of the fence. I know the differences between them, but please read on to see which one is much more beneficial in today’s market and for a long time to come.

Mortgage “Broker” – mortgage brokers are usually approved with many lenders (B of A, Wells Fargo, Home Savings of America, Chase, etc….) and go with the lender with the best price (loan rate) at that time. The benefits are the lowest rates available from shopping around with each lender. The entire loan process is outsourced, meaning they are handled by third party entities- this includes processing, underwriting, loan conditions, loan docs, funding, etc… which literally gives them little control over the loan process. You are basically at the lenders mercy on timeframes and your loan is a number amongst many loans in their pipeline. They typically have higher loan fees because of all the third parties involved in the process. (more…)

The problem is replacing the home will eat up all of the money that they have received from the sale of their home! Well it does not have to happen, there is a way to keep most of your profits and live in a home of your choice without having to pay cash.

First let’s look at the options

If you purchased your home 30 years ago you most likely paid a lot less then your neighbors in the area. So lets say you purchased your home for $100,000 which 20 years ago would have been a higher end home. Now we went through the years of tremendous appreciation and maybe you had the opportunity to sell your home in 2005 for $750,000 but, you decided that you would hold out for more. Then it hit; the devaluation period that started in late 2006 and in some areas of the country is still going on today. So now you are thinking you better sell before you lose any more money and not have any left to purchase a replacement home.

Determining today’s value

You paid $100,000 for your home 20 years ago; now take that 30k and calculate 4% per year compounded over 30 years this would be about what your home should be worth today. You have calculated the value you should be looking at a home worth around $220,000 in today’s real numbers based on 4% appreciation, or look at it this way 100% return on your home purchase. Remember forget about what you could have gotten back in the boom most if not all of the value at that time was false or inflated. Now you have a value that you can realistically rely on receiving today if you sell! So now what do you do to replace your home. Well what are the choices and what is the net that you will have to work with after all is said and done.

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How powerful would it be if as a Realtor or mortgage professional, you could tell when someone was thinking about purchasing a new home in your city? Or if another person is questioning something about the rate they got from the broker they are currently with? All of this type of information is invaluable to any mortgage professional or Realtor. These are hot hot hot leads, people that need your help right now! Well these same people are putting this information right out there on the internet for anyone to see; you just have to know where to look.

I will be the first to admit; at first I thought Twitter was stupid. In fact, I am still not 100% sold on it. I have found ways to make it work for me for my business, but why hundreds of thousands of regular people use it every day to announce to the world what they are doing at that particular moment in time really does not make sense to me. That being said, if people want to tell the world they need the service I provide and I know how to find them telling the world that, then that is a positive thing for my business. So without much further adieu; I introduce to you Tweet Grid. (more…)

Undertaking CeMAP training must be deemed an investment in future, as being in the mortgage trade can be a profitable profession choice for people. Yet if you don’t think to turn into a mortgage consultant but are planning a livelihood in the business, it will be hard to get into the industry with no CeMAP training. Those who are fascinated in making a career in this business or those who desire to modify careers consequently take the initial step of enrolling for this training.

A CeMAP aptitude is necessary in becoming a mortgage counselor. An individual who does not clear these exams can not turn into a mortgage counselor, proffering suggestion concerning mortgage packages or advising a lender. The qualification of this training augment a individual’s capability to get employed not just in the finance business but also in other business that necessitate a working understanding of mortgages. (more…)

There are certain realities in real estate that most homeowners and mortgage lenders never want to encounter. Short sale is one of the dreaded issues that both lenders and borrowers do not want to deal with for as long as they possibly can. Short sale is within a similar range with that of foreclosure and other forms of pending home loss, which is why it is never a welcomed concern.

What is short sale?

To know the effective ways of avoiding one, it is imperative to know exactly what it meant. It is defined as the culmination of the mortgage loan due to the inability of the borrower to pay for his loan or required monthly dues. It differs from foreclosure in a way that it has much lesser impact on the credit report of the borrower. Most of those who consider one deemed the market value of their property is worth lesser than the amount they need to pay for the mortgage. (more…)

“Going Beyond The Numbers”

Insiders Report:

A new report shows an increase in home sales along with a slight gain in prices. On the surface this is good news for Los Angeles, Ca homes for sale…but does this mean a solid recovery is on the horizon?

Probably not…and you need to look beyond the numbers to understand why.

Home sales in Los Angeles County and the rest of Southern California hit a three-year high in July and prices continued to firm up as buyers turned their focus to more expensive properties, a market tracker said Tuesday. (more…)