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Mortgage Loans and Lenders to Avoid

Wednesday, February 23, 2011

by Mike Parker

In many cases, the seller and the buyer are actually represented by their real estate agent. In those situations, there is a fiduciary relationship created that requires the agent put the client's interests above their own.

There is generally no such relationship between buyers and lenders. Some of the housing crisis issues may have been avoided had the lenders been more concerned for the buyer's best interests.

The following are a few warning signs that should cause a buyer to do much closer investigation:

Claims that bad credit is not an issue
Prepayment penalty
Larger than normal loan charges
Rate gouging by brokers - yield-spread premium
Loans without escrow accounts for taxes and insurance
ARM loans that only go up and not down
Initial loan to secure property with plan to replace it later

As a real estate professional, I can recommend a lender who is experienced in your market and has a history of providing good service. A real estate professional can be a good intermediary between you and the lender.

mortgage loans lenders

Annual Home Owners Advisory

Friday, February 11, 2011

by Mike Parker

An annual physical is an important proactive approach to personal health and an annual homeowner advisory can be just as beneficial for you and your finances.

Regardless of whether you're moving, knowing the values of homes similar to yours that have sold recently allows you to keep your hand on the pulse of the market. It should be interesting to know how many homes in the area have sold, their time on the market and how much current inventory is available.

Even though mortgage rates are starting to creep up, it may be the last opportunity to refinance your home to lower your monthly housing costs. I can provide a simple analysis showing your monthly savings and how long it will take to recapture the cost of refinancing.

A powerful strategy might be to continue making the higher payment from your current mortgage on the newly refinanced mortgage in order to pay the principal down faster. It will build equity faster and shorten the term of your fixed rate mortgage.

Maybe you'd like to know how much extra you'll need to pay on your mortgage each month to get it paid off by a certain date. I can quickly calculate that amount and send it to you.

Don't forget to call whenever you need a recommendation of a painter, plumber or other workmen. We're constantly evaluating service providers based on work done on the homes we're selling.

Contact me if you want information on any of the following: