October 11th, 2009 8:17 AM by Eric Fang
I talked to a few mortgage brokers last week and was surprised that they did not do loans with Loan to Value over 80%(for Fannie and Freddie Loans). And they do not do refi if the borrower has the 2nd loans.
When the customer has the needs, we will help. I completed a lot of loans for LTV over 80%(one with LTV 105% condo, others 85% to 85%), though impound account required for those loans.
We also help the clients to fix and improve the credit scores for better rates. We bumped one credit score from 719 to 724 last week and the rate will be 0.125% better. We helped clients to improve the score from 6XX to 750 and waited a few months to refi with better score and better rates.
We know how to estimate the values. We advised the clients to wait for better value for the refi(we waited for 4 months) and just completed the refi with LTV 95%(loan 606k) with rate 5.25% for 30 yr fixed, it will be closed next week(it could not be done in the spring).
The last and the most important thing, the mortgage is not just a loan, you also need the planning. I don't want my clients to refinance all the time, without planning. We talk to the clients about the planing for the future. We suggested the clients to take cash out at the refi to prepare for the next upgrades; advised the clients to take 7/1ARM loans from their current 15 yr fixed to prepare the next purchase and the possibility of keeping the current as rental for another 5 to 7 years.
As a mortgage professional, I know the market and mortgage trend. If you follow my blog and/or rate trend, I predicted in May/June that the rate will go down in Oct when the rate was higher then. So whenever you plan to have a rfi or purchase, you will have a peaceful mind.
So mortgage loan is not just a rate. We add our expertise to the service.