Smart Borrower Blog

Archive for November, 2007

Envirolending - Specialists In Energy Efficient Mortgages Pt.II

Today we conclude the interview with Jason Sampson of Envirolending. Many thanks to Jason for taking the time to answer our questions and giving us information on his company. Interview with Jason Sampson of Envirolending, Pt II AS: Tell us what kind of market share forecasts you expect to see in coming years. JS: We don’t have specific numbers in terms of market share forecasting for EEMs but we fully expect EEMs to make big gains. In large part this will be due to the increasing number of energy efficient homes being built each year. Builders recognize that consumers are... more »

Envirolending - Specialists In Energy Efficient Mortgages

We recently interviewed Jason Sampson of Envirolending.Com.   Mr. Sampson’s company specializes in “green” mortgages, and his offices are located in Texas.   We had a lot of questions for him.   I think you will find his response interesting.   Because of the length of this interview, we are offering it in two parts.   Read the rest of the story tomorrow. A~  Interview With Jason Sampson of Envirolending AS: Help us understand what your company does, and how it works. JS: EnviroLending is a Winning Mortgage Solutions brand. Winning Mortgage Solutions is a Texas-based full-service mortgage broker. EnviroLending... more »

The Skinny on adjustable Rate Mortgages - Part 3

In part one of this series, we discussed ARMs, how they vary, and the downside of getting one. In part 2, we talked about adjustment periods and indexes. Today, let’s look at the rate caps and payment caps. Rate Caps   Rate caps limit how much interest the lender can charge you. There are two main kinds of caps that might be used on ARMs: A Periodic Cap limits how much your rate is allowed to increase from one adjustment period to the next. A Lifetime Cap limits how much the interest rate can change over the entire life of... more »

Veteran Loans - A Good Market In Trying Times

I thought it fitting that on Veteran’s Day I post something relevant.   Being a veteran of the Vietnam Era, I have had some experiences with the inner working of the government.   Now, it seems, the VA mortgage has taken on new meaning, especially with the current market situation. Buyers Market, Sellers Market In times of a seller’s market, the VA loan is given the back seat.   Veterans are prohibited from paying some closing costs, and when the market is booming, people don’t want to go through the hassle of dealing with a mortgage that requires them to... more »

Fannie Mae and Freddie Mac Subpoenaed

It seems to me that when times get bad, like they currently are in the mortgage market, that everyone goes on a witch hunt to root out the bad guys.   I have to think that this should also be done in the best of times.   And also have to ask myself if someone is looking fir a scapegoat to hang this whole mess on.   Now, it appears that federally funded Fannie Mae and Freddie Mac are in trouble. The Players Fannie Mae and Freddie Mac have been subpoenaed by the State of New York by New York... more »

The True Value Of Your Home

In economic times such as we are in now, people tend to tighten their belts and attempt to ride it out.   There comes a time, however, when people, for one reason or another, need to lay their hands on money for whatever reason.   In past years, the best way to do this was to refinance and draw money out of equity to cover your needs.   We now see, with the market as it is that this is not a good alternative. Drop In Sales, Drop In Prices What has happened in the market is simple.   Homes... more »

The Skinny on Adjustable Rate Mortgages - Part 2

You hear a lot about ARMs, but a lot of people still find them confusing. The rate changes, they tell me, but they aren't sure how. Arms aren't all that complicated. Today I would like to try to clear up some of the confusion. An ARM, just like a fixed rate loan, has two elements: The interest rate and monthly payment. With a fixed rate loan those items stay the same. With an ARM, the interest rate changes –and that causes changes in your payment. Here's how it works. On your loan there is a period in between rate... more »

Democrats Move to Outlaw Mortgage Broker Profits

If you haven't heard, the mortgage broker community is buzzing right now due to recently introduced legislation (HR 3915) from Democratic Congressman Barney Frank that may outlaw a little known and understood compensation structure called yield spread premiums (YSP) for mortgage brokers. If YSP were outlawed or severely restricted it could mean the extinction of the mortgage broker industry ultimately raising the cost of obtaining a mortgage for consumers. Despite the complex sounding name, YSP is nothing more than a fancy term for profits. Unfortunately, many consumer groups and politicians who do not fully understand financial markets or the mortgage... more »

The Skinny on Adjustable Rate Mortgages - Part I

Many people believe that when they take on an adjustable rate mortgage, if they don’t like the way it’s going they can “always just refinance.” In fact, that is what many lenders tell borrowers as an extra incentive to get them to take on the loan. However, this is not always the case. Many times when you get a loan, you are not able to re-qualify. This could be due to job changes, credit score changes, or even a change in the real estate market. If you are unable to qualify for a new loan, you are stuck with the... more »

Is Now A Good Time To Buy?

Research shows that now is a good time to buy a home.   Fixed mortgage rates are down, and there is no end to the available homes in a market saturated by foreclosures.   There is still much trouble in the housing sector at this time. Some Statistics According to the Census Bureau, vacant homes have reached 2.07 million homes.   This is 7 percent above one year ago levels, but 5 percent down from the first quarter. Mortgage Bankers Association reports that mortgage application volume increased to 681.7 from 656.5, a 3.8% increase.   Keep in mind, however, that... more »