Mortgage Update

As the year draws to a close, time to do a little market assessment.... It's a buyer's market, for homes and investment. Short sale and REO values are low due to market weakness and over-supply. REO rehab values are even weaker due to lack of mortgage programs to finance them. (Ever wondered why ...

Developers present me with REO projects on a daily basis. They need financing and investor capital. I am starting a new company dedicated to highly profitable, short-term, REO investments. If you are interested in being part of this as a (founding) shareholder, let me know. /// This week a quick ...

I first wrote about this in February. It significantly raises the rate in certain circumstances, like (a combination of) cash-outs, investment property, low credit score, high LTV. I have recently priced loans where the rates came in at close to 6.00%!  - P What are LLPAs?In 2007, Fannie Mae intr...

All the money is being made in REOs at the moment. Lower risk than securities, and great cash on cash returns. You can buy them, or finance them at <50% loan to value. To add yourself to the mailing list for opportunities go here. /// This week a quick review of mortgages after bankruptcy. In sho...

I am amazed at the detailed questions I get nowadays from Realtors, borrowers, and others. It prompted me to convert my website to a Mortgage Information Center for peeps who want to know more. It includes a detailed Mortgage Summary (stuff you'll want to reach at least once if you are a Realtor)...

As promised, here is a summary of current construction/rehab loan options. The 203K is the only mainstream program. The others are not, which means that there is limited availability and the terms are somewhat higher than they would otherwise be. The good thing is that you are dealing with portfo...

OK, stock markets up - and upward pressure on rates because bonds compete with stocks for investment money. Maybe also renewed confidence in real estate - we'll see. As of now: Lock ASAP! - Paul PMI or FHA?Conventional rates are about 0.50% higher. The cost is about the same. FHA is easier to qua...

Which state has the highest closing costs? The new Bankrate Closing Cost Study is out. Before you go there, please bear in mind that AFR mortgage ("a direct lender with a wholesale attitude") charges NO lender fees!, No kidding! Go to the closing cost study. /// Rates continue to be rock bottom. ...

I have been advocating mortgage-secured fix and flip investment and financing for over a year. I submit that with unstable stock markets and real estate markets the concept is soundly validated. It is a low risk/high yield way to invest - and to get highly profitable fix and flips done.  My inves...

Time to jump in, if you have not already? I see many investments with great cash-on-cash returns (there's one below). Good deals are still to be had, but rock bottom buying opportunities are dwindling, low rates, strong rental market, and now also an uptick in sales. The timing is right I think -...