ask me anything about the mortgage industry; I've been married to this bitch(mortgage industry) since 2002; I still love her... what do u want to know?
Is 5% down on a jumbo coming back anytime soon?
I really doubt it, the secondary Market doesnt have an appetite for Jumbo loans. Right now we are seeing 10% down jumbo, the rates not great, the requirements are ridiculous.
i had to come back and post on this... last night i had dinner with some execs at Patelco...CU. they are rolling out a product for 95% jumbo. Available for a few loan officers who rank the highest with their company. im sure their guidelines will be reasonable for both parties. if you need a contact, let me know PM me
How many mortgages do you have and how much is your mortgage debt?
personally I have two mortgages. how much is my mortgage Debt, combined it's about $600,000. Two mortgages between two properties. Is that the question that you were really looking to ask?
What's the best APR you can get on any ARM today?
APR is different than a mortgage note rate, I'm assuming you may be asking about the note rate? in today's market we have a 5/1 arm, 7/1 arm, and a 10/1 year arm.. The Sweet Spot for lenders is going to be between the 7/1 arm 10/1 arm. I have seen it ranges between a 3.25 - 3.875 depending on the actual arm product. the size of the loan is going to play a critical role along with your loan-to-value ratio. FICO score is going to be key also, 740 and above would a good arm product
I meant the APR and not the interest rate. APR includes the added fees etc. so it's a more realistic rate which accounts for what goes out of your pocket.
not mortgage directly, but what do you think about opendoor, the company.
i believe there is a place for them in the real estate market and opendoor is not for the regular seller in silicon valley.
do you think their financing is sustainable in a down market, for example? is the risk low since they are buying and selling quickly?
Is this right time to buy a house ? 2 years back thought the prices are crazy but it went up by 10-20% since then.
its always a good time to buy. as u can c u have been missing yhe train. buying a home is like having a child...when is the prefect time? when i come u just make it work. shop for affordability... not for market time. at the end of the day it about being able to pay your mortgage and making sure u can actually live your life. the question is whay are u afraid of?
What is the commission like? Say a loan of 1.5 million? And how much can you earn per year?
different lenders pay differently. its common to earn 1% of the loan amount cap'd by a max earning amount. it really depends how the loan officer negotiated their contract with who they work for. example; on a 1.5M loan, i would make 10K, bcuz im capped at 10K as maximum earning potential. however on a loan amount of 600K i make 6K. as far as earning potential; an average loan officer is earning north of 125K per yr in silicon valley. a good one is earning 250K grade A loan officers are earning 300k +. i know loan officers making 400K -600k. branch managers also earn overrides foe the people tbey manage. they may make 1% on their own deal + a percentage of the branch production... btw, there are more shitty loan officers than good ones... trust me i manage and recruit... brokers get paid differently... does that help?
Helps a ton. Thanks!
How many conventional loan one can take? I have three already, working on fourth.
Is there a bubble popping soon ?
Is it wise to buy a home in Seattle right now? 28yr old single male!
yes! but something to think about; will u be doing it as investment? or owner occupied? if its investment: make sure u have a positive cash flow from rent. take the full payment of the mortgage, monthly property taxes, monthly home insurance, HOA if applicable....when u add it up, if its 75% of the gross rents collected u will be good as long as u get a good loan. manager the cash flow in a good way!!! if u are buying owner occupied to live in, just make sure u get a good loan.
oh yeah... 28 single male... u need the tax deduction... make it happen. DM if u have more Qs
Does the mortgage industry play a direct part in home prices getting higher/lower? If so, then how?
this is one of those yes and no answers. I'm going to use Silicon Valley as an example... here in Silicon Valley we have a limited amount of inventory with homes, this creates supply and demand, supply and demand creates higher purchase prices. the home buyers that are going out in the field to buy right now or offering over the listed price to try to win the actual home and get into contract. if mortgage rates were lower, it would create more people qualifying for a particular price range, meaning that a seller will have more offers. a seller is typically selling to make money so that means he's going to take the highest and best offer. when the seller takes the highest and best offer, he just created a higher price comparable in his neighborhood which means more sellers can expect to do the same. even if mortgage rates were to go up by 2% in the next 30 days, all it would really mean is that there would be less offers on a particular property. right now my real estate/ realtor partners are seen on average 17 - 22 offers per home that's listed. I predict that if rates were to rise by 2%, then the offers would be anywhere between 5 and 8 offers.. which means that supply and demand will still be the driving Factor behind home prices. another way that the industry plays a role is with regulation and guidelines. for example, in 2009 and 10 guidelines lines were super strict... however individuals that were able to qualify during that time probably got a really good deal. today guidelines are still strict, but they have loosened up a bit more which has allowed more people to qualify even if rates have gone a bit higher. i hope that helps...
when you say they got really good deals in 9/10 does it mean better rates or cheaper inventory? it doesnt look like rates were lower at all