Rates In Motion with Mike Cox (Episodes 87 – 96)


3 Reasons to Get a “Cash In” Mortgage

I hope you enjoyed your weekend! I don’t know about you, but I’m ready to get back on the horse.

Rates are flat again today. Mortgage Bonds are up slightly due to some weak economic data that came out this morning. Higher bonds means lower mortgage rates. For reference, today’s comparison rates with no lender fees are 4.5% on a 30 year fixed, 3.75% on a 15 year fixed, and 2.875% on a 5/1 ARM. Use these rates to negotiate the best deal with your loan officer (Click here to get the details and other rates I found today with no lender fees). If you have a question, shoot me an email, post on Facebook, or tweet it at me. I’m here to help.

I am sure you’ve heard of a “Cash Out” refinance, but have you ever heard of a “Cash In” mortgage? Today I share three reasons why a “Cash In” mortgage might be a good idea if you have the funds available.

I explain more in today’s video:

(Watch it on your mobile phone or email reader here)

 

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If you have the funds, here’s why you would get a “Cash In” mortgage:

1) It can help eliminate Private Mortgage Insurance (PMI)
2) You may get a lower rate
3) It will lower your Loan to Value Ratio (LTV) to get underwriting approval if the appraisal comes in low

It’s not an option for everyone, but this can be the right move depending on how long you will be in your house or your long term financial goals.

Before you bring money in, you should make sure you have enough cash reserves left over just in case you need them. I recommend at least 6 months of Principle, Interest, Taxes and Insurance (PITI) in your reserves at all times. If you have that, you may want to consider a “Cash In” mortgage.

Also, I found a great article this weekend written by Stacey Sprain. It covers some Q & A on a blog and how bad some mortgage “professionals” answer a consumers question. We share the same pet peeve – Bad information. Know your source before you believe anything you read on the internet. Great article Stacey! Click here to read the article.

Please don’t forget to share today’s episode and let’s change the way people shop for a mortgage…forever!

Have a great (long) weekend!

- Mike

PS. To ask a question, get advice, or find out what your lender is making off your loan, just post a comment with your question or contact me byclicking here.

Click here to visit the community of Rates in Motion viewers on Facebook.

I love interaction!

Daily comparison rates, calculators, and other cool features are available here for in the Rates in Motion LoanApp by going to your smart phone and clicking on this link, activation code is 9203780002

Memorial Day Tribute (Episode 95)

Happy Friday! We’re heading into the Memorial Day weekend and not only is this the unofficial start of summer, but it’s also a great opportunity to remember those who have died serving their country. Their sacrifice is the reason we have the freedoms we do and so we honor them in today’s video.

It’s all in today’s video:

(Watch it on your mobile phone or email reader here)

 

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In honor of Memorial Day weekend, a group of loan officers are running a special on VA home loans. They said they will not be beat! Contact me if you’re interested, I would love to help a veteran out.

Today’s rates with no lender fees are 4.5% on a 30 year fixed, 3.75% on a 15 year fixed, and 2.875% on a 5/1 ARM. Click here to get the details and other rates I found today with NO lender fees.

Please don’t forget to share today’s episode and let’s change the way people shop for a mortgage…forever!

Have a great (long) weekend!

- Mike

PS. To ask a question, get advice, or find out what your lender is making off your loan, just post a comment with your question or send me a detailed loan scenario by clicking here.

Click here to visit the community of Rates in Motion viewers on Facebook.

I love interaction!

If you have an iPhone, Android, or Blackberry smart phone, you can use the calculators, daily rate updates, and other cool features in the Rates in Motion LoanApp by going to your smart phone and clicking on this link. The activation code is: 9203780002

Top 5 Things That Will Delay Your Closing (Episode 94)

Some of the most common questions I get each week are related to “how long does a mortgage take to close?” To help out, I did a little survey and came up with average times and the top 5 ways to delay your loan from closing.

I share my findings in today’s video:

(Watch it on your mobile phone or email reader here)

 

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It’s end of the month crunch time for lenders and Realtors working overtime to close by the 31st. I found this article about eliminating some of the stress in mortgage financing and I wanted to share it with you. Click here to read it. Share it with anyone doing a mortgage right now. It just may save them a few gray hairs.

One of the biggest questions I am being asked lately is “How long should I lock my loan?” or “How long should the loan process take?” These are a great questions and can definitely effect your mortgage rates and costs. So after taking a survey of several mortgage companies here it is:

- The average time for a purchase transaction is 30 days from acceptance of the offer to purchase until final close or escrow.
– The average time frame on a refinance transaction is 45 days right now due to the increase in loan volume due to lower rates.

These time frames effect how long you should be locking.

Now with that being said, here are five things that will delay your loan closing.Rates in Motion - 5 Things That Will Delay Your Closing

  • If you are buying a banked owned property or short sale. These type of properties can take a lot longer depending on the bank.
  • If there are any appraisal issues. Either value or repairs needed.
  • Subordination agreements for second mortgages.
  • Lack of communication with the seller
  • Not getting your loan office the proper documentation needed as soon as possible. Delaying the documentation could delay your closing. Be prepared!!

Mortgage Bonds started lower today but have improved quickly and again up against the though ceiling of resistance. This ceiling continues to stop rates from getting any better.

Today’s rates with no lender fees are 4.5% on a 30 year fixed, 3.75% on a 15 year fixed, and 2.875% on a 5/1 ARM. Click here to get the details and other rates I found today with NO lender fees.

Please don’t forget to share today’s episode and let’s change the way people shop for a mortgage…forever!

See you tomorrow!

- Mike

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To ask a question, get advice, or find out what your lender is making off your loan, just post a comment with your question or send me a detailed loan scenario by clicking here.

Click here to visit the community of Rates in Motion viewers on Facebook.

I love interaction!

If you have an iPhone, Android, or Blackberry smart phone, you can use the calculators, daily rate updates, and other cool features in the Rates in Motion LoanApp by going to your smart phone and clicking on this link. The activation code is: 9203780002

Learn About Your Loan Officer @AJBombers Style (Episode 93)

One of the friends of the show, Andrew Syiek, recommended that we check out AJ Bombers. They’re doing some amazing things with using social media to connect with their customers using tools like Twitter.

The AJ Bombers story is a great reminder of how people can truly learn about the people or companies they work with before working with them, not after it’s too late. (Plus, it’s also a great place to grab a burger and watch the bombers fly across the room to deliver peanuts)

You’d be surprised what you can learn about your mortgage company or loan officer from Facebook, Twitter, and Linkedin.  Some good, some not so good.  Either way, at least you know what you’re getting into.  There is much more to a mortgage deal than just the rate and costs.  A bad loan officer will cost you not just money, but time and heartache too.

Find out more about using social media to screen your loan officer in today’s video:

(Watch it on your mobile phone or email reader here)

 

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I think it’s becoming more common to use Social Media to help find a seasoned loan officer or originator. Whether it be a local person or someone over the internet, you should definitely be doing your due diligence online before you make a your decision on who will be handling your transaction. This person is handling one of the most important investments of your life and you want to make sure they have a good track record and will actually communicate with you.

You can find out a lot about a person from their Facebook page, Linkedin profile or tweets on Twitter. You should be using every tool available to make sure you are working with the right person. Social media basically lets you do a background check people you may want to do business with.

How great is that? And its FREE!! So get the best possible deal and make sure the person doing it is legit and someone you will want to work with.

Mortgage Bonds are in the negative territory today and again testing the 200 day moving average. We have seen some resistance here over past few weeks. Its going to take some major news to break through that ceiling of resistance. New homes sales are up 7.3% in April. That’s better than expected.

Mortgage Bonds started lower today but have improved quickly and again up against the though ceiling of resistance. This ceiling continues to stop rates from getting any better.

Today’s rates with no lender fees are 4.5% on a 30 year fixed, 3.75% on a 15 year fixed, and 2.875% on a 5/1 ARM. Click here to get the details and other rates I found today with NO lender fees.

Please don’t forget to share today’s episode and let’s change the way people shop for a mortgage…forever!

See you tomorrow!

- Mike

____________________________________

To ask a question, get advice, or find out what your lender is making off your loan, just post a comment with your question or send me a detailed loan scenario by clicking here.

Click here to visit the community of Rates in Motion viewers on Facebook.

I love interaction!

If you have an iPhone, Android, or Blackberry smart phone, you can use the calculators, daily rate updates, and other cool features in the Rates in Motion LoanApp by going to your smart phone and clicking on this link. The activation code is: 9203780002

Guide to Using Gift Funds for a Down Payment (Episode 92)

I’m going to the Greater Milwaukee Association of Realtors (GMAR) Brewer game outing today, so it feels like Christmas in May at the Rates in Motion studio.

Since I’m feeling festive, not only am I going to talk about gift funds, but I want to give you the Rates in Motion LoanApp to use on your smart phone. For free. If you have an iPhone, Android, or Blackberry smart phone, you can use the calculators, daily rate updates, and other cool features in the Rates in Motion LoanApp by going to your smart phone and clicking on this link. The activation code is: 9203780002

Ho, Ho, Ho!

Let’s talk more about gifts. It’s the busy time of year for buying homes and I want to talk about using gift money for your down payment. If you have nice parents or other immediate family members that have extra money laying around, they can help you with the down payment needed for a home loan these days. However, there are a few things you should know…

Find out more in today’s video:

(Watch it on your mobile phone or email reader here)

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Realtors, my videos can help your borrowers out and make you look like a star. Don’t be afraid to share. Don’t be like this guy: Click here to meet the most worthless Realtor in the world

Back to the main topic. The biggest thing to know is that all gift funds have to be from an actual immediate family member. It might be a little weird if your brother’s girlfriend’s parent’s neighbor is borrowing you the money for your down payment. That’s not going to work. Let’s go over what is needed in the transaction if you plan on using gift funds.

Standard Conventional Mortgage

This one can be confusing. On a standard conventional mortgage, you must either receive a gift for a full 20% down payment from a family member with none of your own funds in the transaction OR you need to contribute at least 5% of your own funds and get a gift for everything else.

Basically, this means that if you have Really Really nice parents or other family members, you don’t need any of your own funds. If you have just have Really nice parents, you’ll need 5% of your own funds.

FHA Mortgage

Luckily the FHA guidelines are simpler and you can use any combination of gift funds with your own funds. There is no set percentage.

Mortgage Bonds are in the negative territory today and again testing the 200 day moving average. We have seen some resistance here over past few weeks. Its going to take some major news to break through that ceiling of resistance. New homes sales are up 7.3% in April. That’s better than expected.

Mortgage Bonds are in the positive territory and again testing the 200 day moving average. Debt concerns in Europe are again helping bonds get a boost today.

Today’s rates with no lender fees are 4.5% on a 30 year fixed, 3.75% on a 15 year fixed, and 3.0% on a 5/1 ARM. Click here to get the details and other rates I found today with NO lender fees.

Please don’t forget to share today’s episode and let’s change the way people shop for a mortgage…forever!

See you tomorrow!

- Mike

____________________________________

To ask a question, get advice, or find out what your lender is making off your loan, just post a comment with your question or send me a detailed loan scenario by clicking here.

Click here to visit the community of Rates in Motion viewers on Facebook.

I love interaction!

2 More Reasons to Buy a Home (Episode 91)

Happy Monday!

Since the world didn’t end on Saturday as predicted, I figure it’s time to focus on the future again. Obviously rates and home prices are low right now, but in this episode I talk about two more reasons why someone should consider buying a home.

Find out more in today’s video:

(Watch it on your mobile phone or email reader here)

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A few days ago a man in Utah found $40,000 in the attic of a home he just bought. Click here to read the story What would you do

Realtors, I would target everyone who sold their home because the world was ending. They probably need to buy a home again, at least until December 21st, 2012 when the Mayan’s predict the world will end. Personally, I think they should just rent for now to save transaction costs.

For the rest of us, I wanted to point out a few facts today about home ownership that I think get overlooked when deciding to be a homeowner or not. Besides the fact that rates and home prices are extremely low and more affordable, there are a few other things I think you need to consider.

1) How long do you want to make housing payments?

When you are struggling with the decision to rent or buy, it’s good to consider that everyone has to live somewhere. You can live with your parents, pay someone else’s mortgage, or buy your own home. In either of the latter cases, you will have a housing payment.

If you decide to be a renter over the long-term, you are making a decision to have a housing payment for the rest of your life. If you don’t like that idea, then homeownership it the way to go. For those with a mortgage, it will be paid off in 30 years. This means that the sooner you decide to become a homeowner, the sooner you can start paying off the Mortgage of your choice.

2) Consider the hard times

The other thing some people don’t consider is what happens when you fall on hard times and can’t make your payments. If you are renting and miss your payments, you are on the streets in 60 days in most cases. Homeowners have a lot more flexibility to work with the lender to make arrangements or at the very least go through the foreclosure process, which right now can be anywhere from 6 months to two years. This should not be the reason you buy a home, but it should be added with all the other benefits of homeownership.

Mortgage Bonds are in the positive territory and again testing the 200 day moving average. Debt concerns in Europe are again helping bonds get a boost today.

Today’s rates with no lender fees are 4.5% on a 30 year fixed, 3.75% on a 15 year fixed, and 3.0% on a 5/1 ARM. Click here to get the details and other rates I found today with NO lender fees.

Please don’t forget to share today’s episode and let’s change the way people shop for a mortgage…forever!

See you tomorrow!

- Mike

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To ask a question, get advice, or find out what your lender is making off your loan, just post a comment with your question or send me a detailed loan scenario by clicking here.

Click here to visit the community of Rates in Motion viewers on Facebook.

I love interaction!

My Last Show, My Final Piece of Advice (Episode 90)

I was hoping to make it to 100 episodes, but unfortunately today is going to be the last video. You can find my explanation and my final piece of advice for you in today’s video.

Here’s more:

(Watch it on your mobile phone or email reader here)

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It has come to my attention that the end of the world is tomorrow. I wish I would have known that sooner…I would have called in sick today. Click here to read the story

If your not half crazy and are still shopping for a mortgage, I want to go through the most important thing I think you should know today.

It is simple, to the point, and may not sit well with 95% of the mortgage lenders out there. The truth is not every lender’s business model is set up to give you the best deal you qualify for. Its just the opposite.

The business plan is to give you the highest rates and cost they can without losing you as a client. That way they can make the most money possible on your loan.

You may think that the new compensation rule has eliminated that problem, but that’s not true. I don’t think you want to go into the two hour explanation on how mortgage compensation works, but the bottom line is that higher rates still equal higher compensation. You won’t know unless you shop around.

The truth is if you really spend some time and effort to shop around to get the best rates and costs on your mortgage, the compensation thing takes care of it self. But, it’s not easy. It can be a lot of work. Especially if you don’t actually know what the best rates and costs are. That is why Rates in Motion was born. I truly believe it can help.

Know what the best rates and cost you qualify for and then go find a lender that will give you those terms. That’s it. Rates in Motion is a The Kelly Blue Book for the mortgage world. Yes I know it sounds like I am tooting my own horn here, but it’s true. I want you to get the best deal possible and I just hope my information makes it easier.

That’s it! That’s my one thing!

Mortgage Bonds are trading slightly lower today. The weakness in the stock market has been helping mortgage bonds. Market is quick to react to any news.

Today’s rates with no lender fees are 4.5% on a 30 year fixed, 3.75% on a 15 year fixed, and 3.0% on a 5/1 ARM. Click here to get the details and other rates I found today with NO lender fees.

Please don’t forget to share today’s episode and let’s change the way people shop for a mortgage…forever!

See you tomorrow!

- Mike

____________________________________

To ask a question, get advice, or find out what your lender is making off your loan, just post a comment with your question or send me a detailed loan scenario by clicking here.

Click here to visit the community of Rates in Motion viewers on Facebook.

I love interaction!

How to Lower Your Payment Without Refinancing (Episode 89)

When life gives you lemons, make lemonade!

  • Did you get denied for a refinance after paying for an appraisal?
  • Did you pay less for your home than what the tax assessment is?
  • Do you just want to lower your monthly payments?

Let’s do something about it!

Today I have one idea on how to make sweet lemonade out of some real estate lemons you might have laying around. If this episode was sent to you by a Realtor or loan officer then you know you have a gem. Hold on to them forever because not every real estate professional cares enough to share tips like this with you. They are definitely a keeper.

In today’s video, I explain one simple way to use your appraisal to lower your monthly payments.

Here’s more:

(Watch it on your mobile phone or email reader here)

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I am still on the fence with the information that is provided by Zillow.com. There has been a lot of misinformation posted on their site such as you have to have 25% down to get a mortgage. That is just stupid. However I did see a good article today that describes 5 items a new home buyer may not know. So in a leap of faith I will provide the link so you can check it out. It’s a pretty good one! Click here to read the full story!

Also, I want to welcome David Stevens (CEO of the Mortgage Bankers association and previous Head of FHA) to Twitter. I look forward to your tweets. By the way, if you don’t follow him you should. He’s @DavidHStevens and needs some love from the Rates in Motion community.

Now let’s get down to business.

One thing is for sure. If you have a house, you have property taxes. So this applies to anyone who has or wants a house.

If you want to lower your monthly payment without refinancing your mortgage, you need to use your appraisal to dispute your property taxes. Obviously appraised value has been an issue lately on refinance transactions and purchase transactions alike, even more so in certain areas. However, I think a lot of people are missing an opportunity to lower their monthly payments by lowering their property taxes.

If you are purchasing a house, just purchased a house, or are refinancing your mortgage and the appraised value is lower than your assessed value form the county, you need to dispute your real estate taxes.

Here’s what to do.

Take your appraisal (ask your loan officer if you don’t have it) and contact your assessors office to request a reassessment of your house. This goes especially for those of you that got turned down in the last year because of value only (a big lemon). If you can’t refinance because you’re underwater, you better be taking that appraisal that you already paid for and putting it to good use. I have personally done this on investment properties that I bought in foreclosure and held for rentals. When you buy a house at 80,000 that was assessed at $165K, guess what?

Your taxes should go down.

It’s a no brainer. Your lender and realtor should be providing you this information. If they sent this video to you, it’s because they think this may be something you should consider.

Mortgage Bonds are lower again today. The labor market is improving but slowly. We have seen some great gains the past few weeks. Take those gains and lock today. Call your rates in motion approved lender and lock, lock, LOCK!

Today’s rates with no lender fees are 4.5% on a 30 year fixed, 3.75% on a 15 year fixed, and 3.0% on a 5/1 ARM. Click here to get the details and other rates I found today with NO lender fees.

Please don’t forget to share today’s episode and let’s change the way people shop for a mortgage…forever!

See you tomorrow!

- Mike

____________________________________

To ask a question, get advice, or find out what your lender is making off your loan, just post a comment with your question or send me a detailed loan scenario by clicking here.

Click here to visit the community of Rates in Motion viewers on Facebook.

I love interaction!

The 4 People in your Mortgage Transaction (Episode 88)

I’m back at it today, shaking up the mortgage world (literally)!

Today I wanted to provide a brief “Who’s Who” in your mortgage transaction so you know what’s going on behind the scenes.

Check it all out in today’s video:

(Watch it on your mobile phone or email reader here)

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Congratulations to Guinness World Record holder Don Gorske from Fond du Lac Wisconsin. He Just ate his 25,000th Big Mac yesterday! Don if you would like to stop in an learn how to use the Shake weight let me know. You’re only 20 miles away. It might just help you get to 50,000. Click here to read the full story!

Let’s talk about these four main people involved in your mortgage transaction.

  • Loan Officer
  • Loan Processor
  • Underwriter
  • Closing Agent

It all starts with your loan officer or loan originator (they go by many names). This should be the person you spoke with to structure and negotiate the terms of your mortgage.

After you make your decision on what loan program you want and lock your loan, you get to meet the loan processor. This is the person who orders the necessary documentation to get your loan done. They get verifications of employment, deposits, title insurance and whatever else is needed on your loan. Then they package up your loan file in a nice little package with all the necessary documents to deliver it to your loan to the underwriter.

The underwriter is like the Wizard of OZ. You don’t ever get to talk to them or see them but they run the show. What your underwriter wants, your processor gets. Your loan originator may be the person you actually talk with on a day to day basis but the processor and underwriter are the ones getting your loan ready for closing. Everyone has there role in a loan transaction all equally important and necessary.

The last person you see should be seeing is the closing agent. This means the other three individuals did their job. You might want to ask if you have a designated underwriter on your file. That means the same underwriter works your file from start to finish. In my opinion that is the most efficient way to do it.

Rates are Up today!

Mortgage Bonds are lower today and have bounced off that 200 day moving average ceiling of resistance and resulted in worse pricing today. This should be no surprise. Rates have been extremely volatile.

Today’s rates with no lender fees are 4.5% on a 30 year fixed, 3.75% on a 15 year fixed, and 3.0% on a 5/1 ARM. Click here to get the details and other rates I found today with NO lender fees.

Please don’t forget to share today’s episode and let’s change the way people shop for a mortgage…forever!

See you tomorrow!

- Mike

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To ask a question, get advice, or find out what your lender is making off your loan, just post a comment with your question or send me a detailed loan scenario by clicking here.

Click here to visit the community of Rates in Motion viewers on Facebook.

I love interaction!

7 Things Borrowers Need to Do a Mortgage (Episode 87)

After letting the guys have some fun yesterday, I’m back! While I was gone I discovered what women want and I’m pretty excited! I share my ground breaking discovery in today’s episode.

I also share the 7 things that every borrower needs when doing a mortgage. Why not prepare? It might save you time and money.

Check it all out in today’s video:

(Watch it on your mobile phone or email reader here)

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What do women want? According to recent research and Century 21, single women want their own home (and to watch Rates in motion every day). Check out this article to learn more.

After the “How to Close Your Mortgage Loan Faster” episode, I got a lot of questions from borrowers and realtors about what is needed in today’s typical mortgage transaction. Ask and you shall receive.

Here is a list of items you will need in todays new lending environment:

  • 2 years of tax returns and W-2′s (3 years if self employed
  • 30 days worth of paystubs
  • Bank statements covering 30 days and documentation on any large deposits
  • Proof of homeowners insurance
  • Bankruptcy, divorce decree, or child support papers (if applicable)
  • Copy of your current mortgage statement and property tax bill (or lease if you’re purchasing)
  • A complete “Offer to Purchase” agreement with all signed addenda and inspections (purchase only)

In order to have a smooth underwriting experience, all these items should be sent together. Not all loans require all these items. However, if you have them ready to go just in case, you wont run into any issues with needing more documentation. You can never be over prepared!

If you email me (Mike@RatesinMotion.com) I will send you a more detailed list of items needed on each type of mortgage transaction. Hopefully it helps!

Rates are Down today!! Nice!

Mortgage Bonds are seeing a nice rally and remain in the positive territory due to the weaker than expected housing numbers and manufacturing data. Weakness in the stock market is also helping mortgage bonds.

Today’s rates with no lender fees are 4.375% on a 30 year fixed, 3.625% on a 15 year fixed, and 2.875% on a 5/1 ARM. Click here to get the details and other rates I found today with NO lender fees.

Please don’t forget to share today’s episode and let’s change the way people shop for a mortgage…forever!

See you tomorrow!

- Mike

____________________________________

To ask a question, get advice, or find out what your lender is making off your loan, just post a comment with your question or send me a detailed loan scenario by clicking here.

Click here to visit the community of Rates in Motion viewers on Facebook.

I love interaction!Rates In Motion