Mortgage Blog

I am working on a mortgage rate(primary home) quotes
for one REO in San Jose. The loan is 320k with 400k
purchase. The peroperty does not have a stove  and
also there is a need for termite fixes. The property
sold "AS IS" and the seller(bank) will not do any fixes.

The best rate on the market for no closing cost for
this loan was 4.875%. The borrower will fix the
stove. But he does not like to fix the termite before
the closing.

But this best rate lender does not allow escrow
holdbacks(Escrow hold the money until all fixes
satisfied after closing).

Then I have to quote the best rate as 5% to 5.125%
from another lender. The borrower can get this rate
because he has only one financed property now. If he has
more than 4 financed properties, then the rate is even
higher because most lenders now only allow maximum
of 4 financed properties.

So for different scenarios, the borrower may have
different rates.