Mortgage Blog

Creativity of doing Loans

November 16th, 2015 8:58 AM by Eric Fang

I know a lot of people thinks that there is no such thing of "creativity" of doing loans. But sometimes, it does.

Normally for conforming loans, we will have to meet Fannie Mae guidelines, and then sometimes the rate might be higher than jumbo loans(Jumbo loans do not need to). So we can twist the loan programs to get better rates. Here are some of the examples:

1)My borrower has 417k Rental Property loan. And they wanted to do a low rate ARM refi. If we just think this is a 417k loan, then we can not get a good rate. But if you think it as 418k loan, then for 7/1 ARM, a lot of lenders will use Jumbo loan program, and I got them 7/1 ARM 3.25% rate for lender's covering all the closing cost. We can not get such rates for conforming loans.

2)ARM rate went up recently.  And high balance 5/1 ARM rate is over 3.25% now. But I locked one rate of 2.875% for no closing cost for my borrower. How I did it? Just simply cash-out to 626k loan, and let the loan amount be a Jumbo loan. Then we can get lower rates.

That's another example of why different agents can get different rates even they have the same lenders.

For the running, I finished most of the training, especially the  weekend long runs. So I am ready for another Marathon on Dec 6, 2015. And prior to that, I will race for another half marathon this weekend. Not sure whether I can get another PR. It depends on how I warm up this time.
Posted in:General
Posted by Eric Fang on November 16th, 2015 8:58 AM



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