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Ivan Diaz's Blog

By Ivan Diaz | Mortgage Broker
or Lender in Castro Valley, CA
  • There are two kinds of points borrowers can pay when financing their home loan:

    Posted Under: Financing in Oakland  |  July 13, 2013 1:20 PM  |  321 views  |  2 comments



    Facebook Page: Mortgage Solutions Professional's Tip of the Day

    www.facebook.com/IvanDiazMortgage

    There are two kinds of points borrowers can pay when financing their home loan:

    Origination points: 
    These are charged by the lender to cover the costs of the loan. They are not tax-deductible. 

    Discount points: 
    These are actually pre-paid interest on the mortgage. The more points you pay, the lower the interest rate on the loan and vice- versa. Borrowers typically can pay anywhere from 0 to 4 points, depending on how much they want to lower their rates. This kind of point is tax-deductible. 

    Notes: Some fees charged by the lender do fall in the Originating bucket when a Good Faith Estimate is provided. They however are not considered the typical points covered above.
  • There are two kinds of points borrowers can pay when financing their home loan

    Posted Under: Home Buying in San Francisco, Financing in San Francisco, Investment Properties in San Francisco  |  May 17, 2013 9:25 AM  |  430 views  |  No comments



    Facebook Page: Mortgage Solutions Professional's Tip of the Day

    www.facebook.com/IvanDiazMortgage

    There are two kinds of points borrowers can pay when financing their home loan:

    Origination points: 
    These are charged by the lender to cover the costs of the loan. They are not tax-deductible. 

    Discount points: 
    These are actually pre-paid interest on the mortgage. The more points you pay, the lower the interest rate on the loan and vice- versa. Borrowers typically can pay anywhere from 0 to 4 points, depending on how much they want to lower their rates. This kind of point is tax-deductible. 

    Notes: Some fees charged by the lender do fall in the Originating bucket when a Good Faith Estimate is provided. They however are not considered the typical points covered above.
  • Jumbo Financing over 80% CLTV

    Posted Under: Home Buying in San Francisco County, Financing in San Francisco County  |  April 15, 2013 9:12 AM  |  415 views  |  2 comments


    Jumbo Financing over 80% CLTV

     

    Need a 10% Down payment option up to $750,000 with no Mortgage Insurance? Or a 15% Down option up to $1 million? We have that option for you. We can combine a 1st Mortgage with a Line of Credit (2nd Mortgage) and avoid the Mortgage Insurance.

     

    Details below-------

     

    Two following pricing tiers:

    ·         80.00% CLTV or below     Prime + 1.49% = 4.74%

    (start rate based on Prime@3.25%)

    ·         80.01% CLTV to 89.99%   Prime + 1.99% = 5.24%

    (start rate based on Prime@3.25%)

    Max combined liens:

    ·         89.99% to $750,000

    ·         85.00% to $1 Million

    ·         Combined liens to $1M is their absolute max

    Minimum HELOC:  $7,500/ Maximum HELOC: $350,000

     

    Allowable 1st mortgage products 2nd will go behind-

    ·         All Conforming Fixed

    ·         All Non-Conforming Fixed

    ·         5-7-10 Amortized  ARMS only – no I/O

    ·         FHA

    ·         VA

  • 97% LTV Conventional Loans Making A Comeback!

    Posted Under: Home Buying in San Francisco, Financing in San Francisco  |  November 27, 2012 11:13 AM  |  829 views  |  2 comments



    97% LTV Conventional Loans Making A Comeback

    The Land Home 97% Loan to Value (LTV) mortgage is a great alternative to FHA financing and probably a better overall option for some homebuyers given the increased monthly MIP on a FHA Loan.

    97% Loan to Value Benefits

    Not limited to first time homebuyers
    No income or sales price limits (loan limits do still apply)
    Gift or grants can possibly be used 
    for the down payment
    Seller concessions are limited to 3% of the purchase prices
    Single family primary residences only (including eligible condo’s)
    Purchase or refinance
    Homebuyer counseling may not be required
  • Investors: 6 month seasoning for cash out now an exception!

    Posted Under: Financing in San Jose, Investment Properties in San Jose  |  August 30, 2012 1:42 PM  |  513 views  |  No comments




    Currently, Fannie Mae requires a minimum of six months to elapse between the time a borrower purchases a home and subsequently applies for a cash-out refinance. The Selling Guide has been updated to allow a cash-out refinance within six months of a purchase transaction when no financing was obtained for the purchase transaction under the following parameters:

    The new loan amount is not more than the actual documented amount of the borrower’s initial investment in purchasing the property, plus the financing of closing costs, prepaid fees, and points (subject to the maximum LTV, CLTV, and HCLTV ratios for the transaction).


    The purchase transaction is documented by the HUD-1, which confirms that no mortgage financing was used to obtain the subject property. The preliminary title search or report must also confirm no liens on the subject property.

    The source of funds for the purchase transaction can be documented (bank statements, personal loan documents, HELOC on another property). Any loans used as the source for the purchase transaction will be required to be repaid on the new HUD-1.
  • Investors: 6 Month Seasoning for Cash Out Exception!

    Posted Under: Financing in San Francisco, Investment Properties in San Francisco  |  August 30, 2012 1:40 PM  |  489 views  |  No comments



    Currently, Fannie Mae requires a minimum of six months to elapse between the time a borrower purchases a home and subsequently applies for a cash-out refinance. The Selling Guide has been updated to allow a cash-out refinance within six months of a purchase transaction when no financing was obtained for the purchase transaction under the following parameters:

    The new loan amount is not more than the actual documented amount of the borrower’s initial investment in purchasing the property, plus the financing of closing costs, prepaid fees, and points (subject to the maximum LTV, CLTV, and HCLTV ratios for the transaction).


    The purchase transaction is documented by the HUD-1, which confirms that no mortgage financing was used to obtain the subject property. The preliminary title search or report must also confirm no liens on the subject property.

    The source of funds for the purchase transaction can be documented (bank statements, personal loan documents, HELOC on another property). Any loans used as the source for the purchase transaction will be required to be repaid on the new HUD-1.
  • Choosing a Good Loan Officer

    Posted Under: Financing in Palo Alto  |  August 29, 2012 10:16 PM  |  493 views  |  1 comment


     

     

     

    In the mortgage industry, most consumers shop rate sensitive not knowing what's higher on their priority list: Rate, Product and consider all upfront cost. A Great loan officer will guide you to making the right decision. Here is what you should expect:

     

    Great Rates- See my blog on Shopping Mortgage Rates:

    -   http://www.trulia.com/blog/ivanAdiaz/2012/04/how_to_shop_a_rate

    -   Most lenders have similar rates...Shop a rate too long and you might miss out.

     

    Get you in to the right product- Save money long term!

    -   Whether you refinance or purchase….There are many programs out there beyond a traditional 30 yr fixed and FHA. There’s a reason why our rate sheets are 18 pages long, not every client is identical to one another. One example would be: 5% down Conventional program vs 5% down FHA. Each product has distinct advantages and savings over one another yet I rarely see both options offered. The savings over the first 5 yrs are significant...Choose wisely.

     

    Manage the process and your expectations- One time Review = Less Stress

     

    -There are Mortgage Consultants and there are Loan Officers who take applications. Both titles are the same just different results.  Part of the frustration with mortgage consultants/lenders is sometimes we don’t manage the process and your expectations to the highest standard. Typically there is an initial list of documents needed to properly be qualified. Once packaged, a processor will usually tie in the loose ends by adding a list. After underwriting has reviewed it, that department will most likely ask for another round of documents/conditions. A great loan officer will anticipate which documents will be requested. A not so good one will blame their processing for delays!

     

    Save time and money up front!

    -   Did you know there are shorter lock times? 10 day locks, 30 day, 45 ..etc. Shorter locks are usually cheaper by .25% in price (not rate) of the loan amount. Do the math, it makes a difference. Having said that, lock management goes hand in hand with managing the process and shopping a rate. I do not recommend floating a rate to save on a shorter lock. Rates are just too volatile and we are one day closer to higher rates.

    In the 6 yrs I have originated loans, I can honestly say that the Mortgage industry is “Very” complicated and is always changing. Guidelines and Lender overlays further complicate and the grass isn’t always greener on the other side. My advice to those shopping for a lender: If you ask your loan officer enough questions, you will get a good feel of competency. If you feel comfortable…then stick with him/her.

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