“Why use a mortgage broker?”

“Why use a mortgage broker?”

If you’re in the market for a new mortgage, whether it be a purchase money mortgage or a refinance, you may be wondering how to go about it all.

Assuming you’ve heard the phrase “mortgage broker” thrown around, you may also be curious why anyone would use a mortgage broker.

Lower Rates

Mortgage brokers have access to wholesale mortgage rates, which are priced below those offered by retail banks.

They’re able to offer lower mortgage rates because they don’t need to pay a sales team to sell those rates, as mortgage brokers run their own businesses and earn money off commission (yield spread premium).

That said, you may be able to get a better deal if you work with a mortgage broker as opposed to walking into your local bank branch.

Rate Shopping

Not only that, but mortgage brokers have the ability to “shop your rate” with multiple mortgage lenders simultaneously, meaning more options for you and less legwork.



Customer Service

Finally, a mortgage broker may be able to provide better customer service than a giant, faceless corporation.

Many mortgage brokers are mom-and-pop shops, so it’s easy to get someone on the phone or speak in person.

They also tend to hustle a bit more with their commission on the line.


Concerns about Refinancing
Just as with the creation of any other new loan there are fees associated with refinancing your home mortgage. Depending upon how long you have been paying on your current loan, the interest vs. principle pay down will be a consideration. With a refinance, which means taking on a new loan, the bulk of your payment will once again go towards interest.

You also have to consider how much longer you will remain in your home. If you are going to save $1,400 a year by refinancing, but you have to spend $4,200 to get it done, then you will have to own that home for more than three years to realize any savings on that level.

Regardless of any of these concerns, if your situation is correct, you can save a ton of money by refinancing your current home mortgage loan. Do the research and do in now by comparing mortgage rates with us, time is of the essence and it may not be in your favor, but why?

If you want to see if Refinancing makes financial sense please reply via email with the following information

1. Current Interest Rate

2. Current Loan Balance

3. Idea of Home Value from Assessment or Recent Appraisal

4. Current Monthly Payment

5. Yearly Taxes

6. Yearly Homeowners Insurance

7. Idea of Credit Score or Rating Fair-550-620 Good 620-680 Excellent 680 and above.

By sending an email back with the above information, I can then forward you an accurate idea of what your new payment would be if you decided to refinance. Not 1 phone call unless you prefer to discuss further.

New HUD program offers up to 24 months of mortgage assistance to unemployed

A new program run by the Department of Housing and Urban Development allows delinquent borrowers who are unemployed or suffering from a severe medical condition to receive assistance with mortgage payments for up to 24 months.

The Emergency Homeowners Loan Program offers up to $50,000 to eligible borrowers at a 0% interest rate. HUD officials called it a true bridge loan because all deferred payments are forgivable provided the borrower lives in a home and remains current on payments for five consecutive years.

But the program isn't for everyone. Brian Sullivan, public affairs representative for HUD, said borrowers must have a consistent track record of making mortgage payments on time. A household's yearly income also may not exceed 120% of the area median income and must have had its income reduced by at least 15% in two years due to sudden unemployment, underemployment or a medical condition.

The property must be the borrower's primary residence and at risk of foreclosure.

"This is about families who were paying their mortgage, were current, were working, and then something happen," Sullivan told HousingWire. "It's for low- to middle-income, working families."

HUD announced plans for the program in August, after the agency was designated under Dodd-Frank to create an emergency homeowners assistance program with an allocated budget of $1 billion. Funding through the new program is only available in the 32 states and Puerto Rico that were not otherwise funded by the Hardest Hit Fund.

Borrowers must meet with their local NeighborWorks division or state finance agencies with HUD approved standards to receive funding. NeighborWorks is a national nonprofit organization created by Congress to provide financial support, technical assistance and concealing services to homeowners.

HUD hopes to begin accepting applications by the end of the year. HUD announced Tuesday how the $1 billion would be divided by state (chart below, in dollars):

Mortgage rates still breaking record lows

Mortgage rates, nearly across the board, reached record lows again for the week ending Sept. 23.

The Freddie Mac weekly survey showed the average 30-year fixed-rate mortgage reached 4.32% with an average 0.8 point, down to its all-time low from 4.37% last week. Last year, at this time, the 30-year FRM averaged 62 basis points higher.

The 15-year FRM reached a new record low at 3.75% with an average 0.7 point, down from 3.82% last week and 4.36% a year ago.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.52% with an average 0.6 point, down from 3.54% last week. And the 1-year Treasury-indexed ARM averaged 3.48% with an average 0.7 point, the only rate to increase from last week at 3.46%.

"Confidence in the state of the economy fell among consumers and businesses, which led to a decline in long-term bond yields and brought many mortgage rates to record lows this week," said Frank Nothaft, vice president and chief economist at Freddie.

The weekly Bankrate survey of large banks and thrifts showed the average 30-year FRM at 4.5%, unchanged from last week. New record lows came for the 15-year FRM, which fell 2 bps to 3.94%, and the 30-year FRM jumbo loan that dropped to 5.16%.

I am an actual person so if you are interested in refinancing you can receive real time quotes and payment options by calling me directly. You can reach me, Gene Neal at 877-276-6400 Ext 101.

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Burning Down the House

A North Carolina man facing foreclosure reportedly hired another man to burn down his house, according to a Winston-Salem-based news outlet.

Davidson County Sheriff David Grice said homeowner Gregory Ringley, 48, hired David Hill, 40, of Coeburn, Virginia, to start the fire.

The home was actually burnt down on August 16 – and a subsequent investigation found that a flammable liquid was used to start the fire.

Ringley was not only looking to avoid foreclosure, but also interested in collecting insurance money.

He was charged with conspiracy to commit arson and conspiracy to commit insurance fraud, while his mother, who drove Hill to the home to set the fire, faces charges of conspiracy to commit insurance fraud.

Both were being held on a $100,000 bond, while Hill was charged with second-degree arson and held on a $5,000 bond.

This incident is just one of many odd attempts to avoid foreclosure since the mortgage crisis got underway.

There was the guy who simulated robbery to pay the mortgage, and the other guy who tried to blow up the bank holding his mortgage.

Not to mention the guy who bulldozed his own home after his bank began foreclosure proceedings.

Back in early 2008, the Insurance Information Network of California actually warned homeowners not to resort to arson if facing foreclosure.

Sign of the times…

I am an actual person so if you are interested in refinancing you can receive real time quotes and payment options by calling me directly. You can reach me, Gene Neal at 877-276-6400 Ext 101.

Zero Down !!!!!!

Just a few years after the mortgage crisis swept in, zero down mortgages seem to be making a comeback, according to a piece in the NY Times.

Mortgages with no money down have performed worse than home loans where borrowers have some skin in the game, but proponents believe the lack of down payment wasn’t/isn’t the core issue.

Instead, the combination of zero down financing, lax underwriting requirements (stated income), and exotic loan programs (option arms) has been seen as the problem.

So will the new breed of zero down mortgages perform better than their earlier counterparts?

Affordable Advantage

Fannie Mae recently launched “Affordable Advantage,” a program that allows borrowers to purchase a home for as little as $1,000 down.

Throw in downpayment assistance (to cover closing costs), and you can get a mortgage for as little as 67 cents.

But in order to qualify, you must fully document your income, have a minimum credit score of 680, and actually live in the home.

The only loan offered is a 30-year fixed-rate mortgage, making it all the more safer for borrowers (and mortgage lenders).

Currently, they’re available in four states, including Idaho, Massachusetts, Minnesota and Wisconsin.

And of the 500 loans originated in Wisconsin since March, none are delinquent after six months (slow clap).

USDA Zero Down Loan Program

One of the other few remaining zero down loan programs comes from the United States Department of Agriculture (USDA).

Though it’s reserved primarily for low-income individuals and households, you can have income up to 115% of the median for the area in which you purchase the home (figure that one out).

The property has to be located in a rural area (or exurb) and be modest in size, cost, and design, and borrowers must have “reasonable credit histories.”

But it’s still an easy way around that pesky down payment.

Then there are FHA loans, which only require 3.5 percent down – and before things went so very wrong, you could get 100 percent financing via seller-paid downpayment assistance.

Of course, those loans didn’t turn out so well…


I am an actual person so if you are interested in refinancing you can receive real time quotes and payment options by calling me directly. You can reach me, Gene Neal at 877-276-6400 Ext 101.

Mortgage Comparison Shopping

The Federal Reserve has proposed a new rule that may make it easier for prospective homeowners and those looking to refinance shop around before making a commitment.

The proposal, which was part of a 930-page document published mid-month in the Federal Register, would allow consumers to cancel mortgage applications within three days and get refunded for certain costs.

Things like application fees and appraisal fees would be refundable, while credit report fees would not.

Mortgage shoppers would be entitled to refunds if they canceled an application within three business days of receiving key disclosures, including the Good Faith Estimate and Truth in Lending Act statement.

The Fed believes such a rule would help consumers shop for the best deal, instead of being locked in with one mortgage lender for fear of losing any up-front costs.

But many lenders believe the rule will have little effect, as most already wait several days before charging any fees.

Others are concerned it could delay an already backed-up process, as there will be a waiting period before anything is acted upon or ordered.

Although, it’s not uncommon for a loan to be “on hold” until it makes it through underwriting and receives a formal decision.

It’s unclear how the rule would affect mortgage brokers, those who work on behalf of banks directly with consumers.

A recent Bankrate.com study found that mortgage closing costs rose more than 36 percent this year, with loan origination fees rising nearly 25 percent and third-party fees jumping almost 50 percent.


I am an actual person so if you are interested in refinancing you can receive real time quotes and payment options by calling me directly. You can reach me, Gene Neal at 877-276-6400 Ext 101.