Mortgage Market Update/Purchase and Refinance Mortgage info

[Tamalewagon]

Well we went and made a necessary move to stay in the most competitive pricing. Not only do we now have arguably the lowest pricing, we now have niche loans that weren't available to our clients before. Here are a few that might interest you:

-stated income for owner occupied, 2nd homes and investors...rates as low as 4.5%
-97% financing for condos with no HUD approval required
-home equity lines of credit to 90% combined loan to value
-buyers preapproved 1 day after a short sale - no waiting period 80% LTV max. FHA purchase loans are still available after a 3 year time frame from short sale closure.
-asset depletion to help qualify
-construction loans
-no seasoning for cash out
-no maximum acreage
-super jumbo to 10 million
-cash out refinances with 1X30 in past 12 months
-rehab loans using after repair value to qualify
-investor flips selling in less than 90 days
-title in LLC, LLP, Corp, Irrevocable or Blind Trust
-securities based funding - using securities, stocks, bonds, etc as collateral
-commercial loans
-stated income for apartments 5 units + office + mixed use and more
-rental income on current o/o property with NO landlord history
-rental income on current o/o property with NO minimum equity
-FHA with credit scores down to 580
-FHE DELRAP condo project approvals
-Manufactured home allowed

We are now Wenhe Mortgage powered by Priority Financial Network. We now have the option of rolling with a correspondent lender option or if we can't find a fit for the loan, we can still broker the loan to a wholesale lender. We now have loans to tailor to your every need. Give us a call at 619-255-3182 or email me at [email protected]. The website will be up shortly.

 

[Tamalewagon]

Check out all of our new products above. :thumbup:

 

[skifaster]

Are you able to lend for Arizona properties now?

 

[Tamalewagon]

Have to restart the process of getting licensed in AZ through the new property.

 

[Tamalewagon]

Are any past or present boating clients going to be out at Parker between July 27-Aug 1st? If so, I would like to meet you in person, buy you a few beers and shake your hand.

Let me know or shoot me a PM or email.

Scott

EDIT: we are staying at the Sandbar Resort...last beach site on the southern end of the campground.

 

[Tamalewagon]

http://wenhemortgageandr.loandiscovery.com

Take a look at our rates.

 

[Tamalewagon]

Rates just came down almost 1/2 percent. I'm updating the pricing now. Check out the rates at scottwenhe.com (don't input the www, just the scottwenhe.com in the browser).

 

[Wolskis]

Are you doing business in AZ yet?

 

[BMABITY]

Rates just came down almost 1/2 percent. I'm updating the pricing now. Check out the rates at scottwenhe.com (don't input the www, just the scottwenhe.com in the browser).

Heard tomorrows rates have a good chance of even being lower! Whats your take?

 

[Tamalewagon]

Are you doing business in AZ yet?

Unfortunately not yet.

Heard tomorrows rates have a good chance of even being lower! Whats your take?

I would tend to agree with you. Typically, rates are slow to correct but very quick to rise. I believe rates will continue their decline tomorrow. Should be interesting.

 

[jetboatmatt]

What's a high balance 30 year FHA interest rate going for?? I have PMI I want to get rid of and I think my house has enough equity now! But need to be around 4% or 4and an 8th!! Thanks for any info!!

 

[Tamalewagon]

FYI...we now have a product that allows up to 97% loan to value WITH NO MORTGAGE INSURANCE! :thumbup: :thumbup: :thumbup: This product is for purchase AND refinances!

scottwenhe.com

 

[lalhc]

I just sent you a PM

 

[Havasu Rehab]

FYI...we now have a product that allows up to 97% loan to value WITH NO MORTGAGE INSURANCE! :thumbup: :thumbup: :thumbup: This product is for purchase AND refinances!

scottwenhe.com

Awesome! I'm gonna have to get more info on this next time we speak. :thumbup:

 

[Tamalewagon]

Awesome! I'm gonna have to get more info on this next time we speak. :thumbup:

give me a shout!

 

[Tamalewagon]

6 Costly Mistakes Home Buyers Make


Home buyers can be at risk of making costly mistakes when preparing to buy the biggest purchase of their lives. By letting emotions cloud judgement, they can sometimes let a great property pass them by, or even worse, they can overpay for a home they decide to purchase.

If you are looking to buy a home, here are 6 common mistakes that buyers are making, and some tips for how to avoid them:


A buyer with a pre-approved mortgage will have a negotiating advantage.

1. Not getting pre-qualified for a mortgage.

Avoid wasting time shopping for homes in the wrong price range by getting pre-qualified with your lender. Getting pre-qualified will give you peace of mind when making an offer to purchase and will give your agent a negotiating edge by assuring the sellers that financing will not be an issue should they accept your offer. You can call me for a quick pre-qualification at 619-255-3182.

2. Not looking at the resale value of a home.

Buyers often believe that they are purchasing their last house! Statistics show however, that we move 4 or 5 times in a lifetime. Therefore, buying a home that is unique and which may not appeal to a wider range of buyers can be a problem when trying to sell in the future. This is an important point to discuss with your Realtor who will be able to point out the positive and negative aspects of properties that you may not consider if you?ve fallen in love already.

3. Not conducting your own inspections and investigations.

Some buyers don?t see the need for a home inspection ? especially if they are buying a new, or extensively renovated home. They don?t think an inspector will find anything that needs repairs, and the inspection can be costly at around $500. Saving that amount may seem like a good idea, but it may also cost the buyer more in the future. For instance, if the attic of a newly renovated home was poorly insulated, the buyer may not have the expertise to detect this defect. When winter hits and the hydro bills start coming in, the buyer will either pay for the extra fuel to heat the home, or will need to conduct an investigation ? and subsequently to remedy ? this problem. It would be much easier to discover this defect before purchasing the home so that the buyer could either negotiate the purchase price to cover the repairs, or make a satisfactory inspection subject to the current home owner fixing the problem.

4. Not knowing all the costs associated with buying a home.

Buyers should be aware of the costs that come with a real estate purchase transaction so they can budget accordingly. Nothing will dampen the excitement of taking possession of your new home than getting unexpected bills. See Real Estate Transaction Closing Costs for a detailed list of items to budget for.

5. Not selling current home before trying to buy.

Selling your current home will provide you with a definite budget for your new purchase. In addition, buyers who have sold their home are more likely to make a competitive offer on the home they?d like to buy. Sellers will appreciate an offer without the condition of another home selling which can work in your favour if other interested buyers cannot offer the same.


A Realtor familiar with the local market will help you make smart buying decisions.

6. Not using a professional Realtor who knows the local market.

Some buyers believe that working without an agent will allow them to negotiate a lower price on a house. This is a misconception that can be very costly when buying real estate. Realtors are able to access information on the actual sale price of comparable properties in the neighbourhood. This is crucial information that will help establish a negotiation strategy when making an offer to purchase. Aside from price, a professional Realtor will also provide guidance regarding what conditions to include in the offer to best protect your interests, what to look for in a property based on your needs and give you access to other reputable professionals in their network that can help with the transaction (inspectors, real estate lawyers, contractors, etc.) After all, a Realtor works for you.

 

[Tamalewagon]

I'm working on getting you docs...stay tuned


Sent from my Bat Cave

To what note?

 

[Vmjtc3]

Hey Tamalewagon, I have a quick question, I get a million flyers in the mail telling me I can re-fi my fanny or freddie loan with no qualifying, no income verification, no appraisal, no closing cost ect, ect. What is the real story, can anyone qualify with the new making homes affordable bs, or is it the old bait and switch sales pitch. I figure with as many people as you have helped on this forum you would be the guy to ask. You can pm if you need any personal info to give me an answer, thanks for your time:thumbup:

 

[Tamalewagon]

Hey Tamalewagon, I have a quick question, I get a million flyers in the mail telling me I can re-fi my fanny or freddie loan with no qualifying, no income verification, no appraisal, no closing cost ect, ect. What is the real story, can anyone qualify with the new making homes affordable bs, or is it the old bait and switch sales pitch. I figure with as many people as you have helped on this forum you would be the guy to ask. You can pm if you need any personal info to give me an answer, thanks for your time:thumbup:

Happy to help...I'll PM you the majority of the response but please note that most of these offers are nonsense. Most of the time the lender will require an appraisal and income documentation. Every Fannie or Freddie product offered requires full qualification unless you hold a mortgage through one of the big banks. If you get offered a "no cost, stated income loan" run for the hills. Lenders will make their pound of financial flesh from you one way or the other. With no cost loans, come higher interest rates. The closing costs of a loan over the life of 30 years will be much lower if you either finance the fees up front or pay them out of your pocket versus taking a no cost loan at a higher rate for 30 years. Math doesn't lie...banks do.

Example: $400000 loan amount with no cost at 4.625% versus $400000 loan amount with 4% interest rate at 1 point.

No cost principle and interest payment = $2056

Lower interest rate with 1 point payment = $1909

Difference in payment = $147 per month. Cost of lower rate loan is $4000 divided by $147 difference in payment equals 27.2 months to recoup the cost of the loan. Whereas if you take the higher rate with no cost, you would pay $740160 over the life of the loan and $687240 over the life of the loan for the lower rate. A difference of $52760. Would you rather pay $4000 in a point or $52760 more over the life of the loan?

Scratch the PM...I laid it all out here. LOL. Bottom line, is try to qualify full doc if possible and pay the loan fee's either out of pocket or up front in the loan. You'll be surprised at how much you will save. :thumbsup

 

[Vmjtc3]

Happy to help...I'll PM you the majority of the response but please note that most of these offers are nonsense. Most of the time the lender will require an appraisal and income documentation. Every Fannie or Freddie product offered requires full qualification unless you hold a mortgage through one of the big banks. If you get offered a "no cost, stated income loan" run for the hills. Lenders will make their pound of financial flesh from you one way or the other. With no cost loans, come higher interest rates. The closing costs of a loan over the life of 30 years will be much lower if you either finance the fees up front or pay them out of your pocket versus taking a no cost loan at a higher rate for 30 years. Math doesn't lie...banks do.

Example: $400000 loan amount with no cost at 4.625% versus $400000 loan amount with 4% interest rate at 1 point.

No cost principle and interest payment = $2056

Lower interest rate with 1 point payment = $1909

Difference in payment = $147 per month. Cost of lower rate loan is $4000 divided by $147 difference in payment equals 27.2 months to recoup the cost of the loan. Whereas if you take the higher rate with no cost, you would pay $740160 over the life of the loan and $687240 over the life of the loan for the lower rate. A difference of $52760. Would you rather pay $4000 in a point or $52760 more over the life of the loan?

Scratch the PM...I laid it all out here. LOL. Bottom line, is try to qualify full doc if possible and pay the loan fee's either out of pocket or up front in the loan. You'll be surprised at how much you will save. :thumbsup

My loan is with Wells Fargo, when I got the loan I paid closing costs ect. So I was just wondering if for the re-fi flyers I get all the time if the same holds true. So even on the re-fi you will get a lower rate if you pay closing costs? From what I read on the flyers you can re-fi and get a better rate now then I got 5 years ago with no out of pocket, and no qualifying. Your math makes sense over the life of the loan, and I plan to keep this home, but in my current situation the only way I could re-fi and get the lower rate would be to do it with no out of pocket, and no income verification because I have only worked an average of three months a year for the last 4 years!

 

[Tamalewagon]

My loan is with Wells Fargo, when I got the loan I paid closing costs ect. So I was just wondering if for the re-fi flyers I get all the time if the same holds true. So even on the re-fi you will get a lower rate if you pay closing costs? From what I read on the flyers you can re-fi and get a better rate now then I got 5 years ago with no out of pocket, and no qualifying. Your math makes sense over the life of the loan, and I plan to keep this home, but in my current situation the only way I could re-fi and get the lower rate would be to do it with no out of pocket, and no income verification because I have only worked an average of three months a year for the last 4 years!

If that is the case and you have no other co-borrowers with additional income, then yes that is the only way to go. I would check to see what pricing options they can offer you instead of the no cost loan option though. Just my .02. Feel free to give me a call, PM, respond to this thread or shoot me an email for any questions you have even if it is with another lender. I can guide you through the BS and let you know if you have any BS fee's you can negotiate out of. :thumbup:

 

[Vmjtc3]

If that is the case and you have no other co-borrowers with additional income, then yes that is the only way to go. I would check to see what pricing options they can offer you instead of the no cost loan option though. Just my .02. Feel free to give me a call, PM, respond to this thread or shoot me an email for any questions you have even if it is with another lender. I can guide you through the BS and let you know if you have any BS fee's you can negotiate out of. :thumbup:

If you can do loans in Nevada then I am game to see if we can get this done. I'll shoot you a pm after the wife gets home and I talk to her about it, If I can get a better rate and save some money over the life of the loan I would like to. But I figured it was all just a sales pitch so I have pretty much been ignoring it all.....

 

[Tamalewagon]

I'm in CA only currently.

 

[Vmjtc3]

I'm in CA only currently.

Ah, well shoot, I was hoping you were out here also, I never know who to trust on these deals. But thanks for the info!

 

[Tamalewagon]

Ah, well shoot, I was hoping you were out here also, I never know who to trust on these deals. But thanks for the info!

My pleasure. If you want me to review the GFE and terms on your future deal, let me know. I'll be happy to help.

 

[Vmjtc3]

My pleasure. If you want me to review the GFE and terms on your future deal, let me know. I'll be happy to help.

Awesome, thank you!

 

[ductape1000]

Pm sent.

Thanks

sent from a van at the waters edge.

 

[Tamalewagon]

Pm sent.

Thanks

sent from a van at the waters edge.

PM returned

<-still down with the plague. Hope to have my voice back tomorrow.

 

[Tamalewagon]

http://blogs.wsj.com/developments/2...evelopments/feed+(WSJ.com:+Developments+Blog)

 

[Tamalewagon]

Link to the website FINALLY works again. What a frickin' battle! www.scottwenhe.com for rates and application. :thumbup:

 

[Tamalewagon]

We can now do conventional financing for anyone that has had a short sale 2 years ago. Gone are the days of waiting 3 years for a lousy FHA loan.

 

[RodnJen]

Any changes to the refi market on cashout loans on rental properties? Still 75-80% LTV?

 

[Tamalewagon]

New Conventional ZERO $ Minimum Investment from Borrower:

Starting Dec 1st, we will be offering a conventional product that allows for ZERO minimum investment from the borrower. It will be conventional 95% LTV, where the 5% can be a gift. There are some additional requirements on loans where the borrower does not contribute their own funds into the transaction.

Additional Requirements:

Minimum 720 FICO
Maximum 41% DTI
Minimum 2 Months Reserves (reserves may be gifted)

The additional requirements are only for borrowers who are having their minimum investment gifted, and/or who are not contributing their own funds toward their minimum investment into the transaction.

Maximum loan amount is $417000.

 

[Tamalewagon]

Any changes to the refi market on cashout loans on rental properties? Still 75-80% LTV?

Still the same...75% LTV. Your property value may have increased in the past 6 months though. PM me the address and I'll look at the comps. :thumbup:

 

[Tamalewagon]

New Conventional Short Sale waiting period requirements:

2 years @ 80% maximum LTV ratios
4 years @ 90% maximum LTV ratios
7 years LTV ratios are still per the Eligibility Matrix
IMPORTANT: The only exception is Investment property requirements they will stay the same

 

[skifaster]

Hey Scott,
I know at one time you were working on being able to lend in Arizona. Any updates on if/when that may happen? If not, any recommendations for someone in AZ? Wasn't sure if there was someone here on the boards or not. Thanks.

 

[Tamalewagon]

Hey Scott,
I know at one time you were working on being able to lend in Arizona. Any updates on if/when that may happen? If not, any recommendations for someone in AZ? Wasn't sure if there was someone here on the boards or not. Thanks.

For now, we are sticking to CA. We have plans to branch into AZ but they are on the back burner at this time.

 

[Tamalewagon]

Rates bounced back down this morning. Check out our rates at www.scottwenhe.com and then ask me about the RDP member discount. Email or call with your scenario and I'll get you pricing within an hour. If you are looking to purchase a home, don't make the mistake 90% of home shoppers make and remember to get pre-qualified first to see how much you can comfortably afford. :thumbup:

 

[Tamalewagon]

Had a small dip in the rates yesterday (finally a bit of good news). Come December 1st, we are getting the zero down payment loan options which allows for a 5% gift to down payment. The 5% is mandatory but again, it can be a gift as well as the closing costs. The program is specifically designed for loan amounts under $417000. For any first time homebuyers out there, this is the way to get your first home. It is MUCH less expensive than a FHA loan.

Here is another little tid bit of good news effective immediately. If you have had a prior short sale and you are trying to refinance or purchase a primary residence or second home, here are the new wholesale parameters for a CONVENTIONAL LOAN (not FHA):

- 80% loan to value = 2 years since short sale reconveyance issued
- 90% loan to value = 3 years since short sale reconveyance issued
- 90%+ loan to value = standard 4 year time frame

FHA purchases can be done after 3 years from a short sale.

 

[Tamalewagon]

Ok campers...this is now in effect.

Come December 1st, we are getting the zero down payment loan options which allows for a 5% gift to down payment. The 5% is mandatory but again, it can be a gift as well as the closing costs. The program is specifically designed for loan amounts under $417000. For any first time homebuyers out there, this is the way to get your first home. It is MUCH less expensive than a FHA loan.

Here is another little tid bit of good news effective immediately. If you have had a prior short sale and you are trying to refinance or purchase a primary residence or second home, here are the new wholesale parameters for a CONVENTIONAL LOAN (not FHA):

- 80% loan to value = 2 years since short sale reconveyance issued
- 90% loan to value = 3 years since short sale reconveyance issued
- 90%+ loan to value = standard 4 year time frame

FHA purchases can be done after 3 years from a short sale.

 

[Tamalewagon]

Hi campers...here's a little information that may come in hand for those of you considering a FHA loan in the near future. This applies to all states where applicable.

FHA will be lowing the max loan amount for high cost areas to 625,500.

Federal Housing Administration?s (FHA) Maximum Loan Limits Effective for Case Numbers Assigned on or after January 1, 2014 through December 31, 2014.

 

[COCA COLA COWBOY]

Ya got to give it to Fannie Mae, prices go up and they lower the limits. lol Heard they are changing the DTI ratios next year too!

You going to Bruce Norris tomorrow night?

 

[Tamalewagon]

Ya got to give it to Fannie Mae, prices go up and they lower the limits. lol Heard they are changing the DTI ratios next year too!

You going to Bruce Norris tomorrow night?

The DTI change is right around the corner sadly. Wish I could make it to Bruce Norris. Where is he going to be?

 

[Tamalewagon]

Mortgage rate info -

http://www.bloomberg.com/news/2013-...tes-fall-from-an-11-week-high.html?cmpid=yhoo

 

[COCA COLA COWBOY]

The DTI change is right around the corner sadly. Wish I could make it to Bruce Norris. Where is he going to be?

Every Year he does a presentation at the Scottish rite building. Make it next year! Basically, prices to continue to rise till about 2017. Lending practices to become more liberal influencing prices. We will see the ARM's and such becoming more and more commonplace keeping the prices affordable. This year is basically the same as 2001 and the future looks the same. Buy buy buy!!!

 

[Tamalewagon]

Every Year he does a presentation at the Scottish rite building. Make it next year! Basically, prices to continue to rise till about 2017. Lending practices to become more liberal influencing prices. We will see the ARM's and such becoming more and more commonplace keeping the prices affordable. This year is basically the same as 2001 and the future looks the same. Buy buy buy!!!

Almost a carbon copy.

 

[riverratmike]

Holy smokes campers...

4% on a 30 year fixed for $417K and under

4.125% on a 30 year fixed for conforming jumbo loans.

2.75% on a 5/1 fixed ARM

DAMN! :boobeyes:

Check the rest of our rates at www.wenhemortgageandrealty.com or click on our advertising banner here at RDP.

and these numbers only apply to those with EXCELLENT credit

 

[Tamalewagon]

and these numbers only apply to those with EXCELLENT credit

720 fico and above. Rates have changed however. Please check our website at www.scottwenhe.com for the most current rates. Rates are typically posted after 9am daily.

 

[Tamalewagon]

FYI, we are still offering a free appraisal at the close of escrow on any loan application taken in December.

 

[Tamalewagon]

The Fed just announced they will be reducing the monthly stimulus to purchase bonds. What this directly translates to is higher mortgage rates. We have already received a deteriorating price adjustment today as soon as the news was announced. If you are even tossing around the idea of purchasing or refinancing, please call, email or PM me or your trusted mortgage banker to get this going and locked as soon as possible. You may end up missing out very soon.

 

[skifaster]

The Fed just announced they will be reducing the monthly stimulus to purchase bonds. What this directly translates to is higher mortgage rates. We have already received a deteriorating price adjustment today as soon as the news was announced. If you are even tossing around the idea of purchasing or refinancing, please call, email or PM me or your trusted mortgage banker to get this going and locked as soon as possible. You may end up missing out very soon.

How big of a change do you think you will see in the next 2 weeks if you had to guess?