RSS

Tag Archives: 15 year mortgage

Are you overwhelmed by the loan process?


Are you overwhelmed by how to research and find a good lender or how to compare the rates and fees?

Confused by what the broker says?

Wondering if your quote is competitive or who to trust?

I’m the Mortgage Fee Coach. I help you, the borrower, find the best quality lender and the lowest rates & fees.

If you have a quote(s) from a lender(s), I help you compare it with other lenders.

Don’t have a lender? I provide suggestions.

If I find you a better quote, than I will provide the lender information.

I only get paid when I save you money and I receive nothing from any lender!

My average client has saved over $10,000 because I helped them either negotiate a better rate and fees with their current lender or directed them to a better lender.

You will have peace of mind that you received the best possible loan.

Call now to learn how I can save you $$$$, 949-484-6322

(Copyright 2013 Mortgage Fee Coach, Inc. All rights reserved. This posting or any portion hereof may not be reprinted, sold or redistributed without the written consent of Dan Stone).

 

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Searching for the right mortgage lender? Watch a “Priceless” client testimonial


Are you overwhelmed by the loan process? Wondering who to trust? Confused how to find the lowest mortgage rates and fees? Unsure how to compare it all? Would you like a personal shopper to do it all for you, at virtually no cost?

Watch this video to learn more about how I can save you $1,000’s, which includes a clients’ “priceless” testimonial experience.

I compare many different lenders rates and fees for you. I help you shop for the best deal between many types of lenders. I also research the quality of each lender and loan officer, their Better Business Bureau rating and many other social media websites for you. Having 24 years experience in mortgage banking, I provide the information in a simple and easy to understand format so you can make a better informed decisions about which lender to apply for a loan. Best of all, I only get paid by you when I save you $. I saved a recent client over $1,800 more than the lender they were going to choose. Call now for a free consultation and I’ll show you how.

Description of Mortgage Fee Coach services:
– helping borrowers compare & negotiating lower rates and fees on home mortgage loans
– compare the quality of mortgage lenders
– client testimonial, saved them over $1,800 on their loan
– providing clients peace of mind through the process by an impartial mortgage professional
– services are virtually free, because I’m paid 20% commission on the amount I save you.  If I don’t save you $$$$, then there is no cost to you.

 

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Research Your Lender, 11 point recommendation



Applying for a loan? Since you will be providing your extremely sensitive personal and business information to an individual and company, it is imperative that you take time to research and compare companies. In addition, will they follow through to provide the advertised radio or TV offer? How well do you know or trust them? By spending approximately 15-20 minutes, you may save yourself significant heartache and money through the process. Like any industry, there are good and bad apples, so looking into their history and track record can indicate the kind of experience you may have. Would you want to use a lender that received 83 complaints at the Better Business Bureau in the last year? Below is a simple step by step process that can help you research and compare lenders to better ensure your deal is the best one for you.

Company or bank name:

Contact:

Contact email address:

Contact phone(Office / Cell):

Address:

Website:

  1. Is the company licensed to perform mortgage banking?  Check this website: http://www.corp.ca.gov/fsd/licensees/
  2. Has the company been in mortgage banking for 10+ years? I prefer to use a company that began business before the “Great Recession” and conducted their business in a way that avoided many of the pitfalls, such as accusations of fraud or poor management.
  3. Is the company website professional, provide information about loans and processes, and lists owners and loan officers? I prefer unique websites that lenders have taken time and effort to create, versus a canned website used by many smaller and more expensive lenders. I also prefer a company that is willing to display staff and owners pictures and experience, which allows me to research their longevity in the business.
  4. Does the company website provide client testimonials? I prefer to review a long history of very happy and satisfied customers that are willing to write anything from a quick comment to lengthy statement.

    a. Was the testimonial written recently?

    b. Does it provide detailed reasons why they like the company so much?

  5. Does the loan officer and lender have a mortgage license?
  6. Is the company accredited by the Better Business Bureau? http://www.la.bbb.org/Home.aspx

    a. Is their rating A or better? I prefer an A+ rating.

    b. How long has the company been in business?

    b. Are there any unresolved complaints?

  7. Does the loan officer and company have a LinkedIn profile? http://www.linkedin.com/

    a. Do they both have 5+ years loan officer and business experience? I prefer to have a very experienced loan officer and company any unusual situations happen which might delay the loan process. Problem solving experience really pays off in this area.

    b. Is their profile professional, detailed and have 200+ connections?

    b. Do they have recommendations from subordinates, fellow managers, supervisors or clients? Recommendations go a long way with me, especially over the years.

  8. Google search the internet for client comments about the lender from:

        a. Consumer Affairs: http://www.consumeraffairs.com/

        b. Zillow.com http://www.zillow.com/advice/US/mortgage/question-discussion-guide/

        c. Credit Karma reviews: http://reviews.creditkarma.com/mortgages/1/ Any red flags?

  9. What are the reviews in their Yelp profile? http://yelp.com

    a. Do they have a 4 or 5 star rating? Four out of 5 stars is good for me.

    b. Are there recent reviews?

    c. Is the loan officer listed in the reviews and comments? Positive or negative experience?

    d. Read the “Filtered” reviews as well, at the bottom of the rest of the reviews. Even though these do not get in the primary viewing area, they could be very informative.

    d. Did many reviewers find the reviews helpful?

  10. Is the company donating to charities in the local community and nationally? 83% of the population want to use companies that are giving back to their communities or charities. I will utilize a company that is giving to charities over one that is not.
  11. Does the company website providing free educational tips? I like to see companies willing to provide free information to help the general population.
    – – –

    Example: I researched a local lender that a financial planner recommended for my client. The lender was recommended because he happened to be in the building, not because he had done a loan through him. That is red flag #1. I researched the lender to find out: the lender had been licensed for 5+ years, but the company had only been in existence for 2 years. Red flag #2. I wonder about lenders that recently started their business. Were they employed by a previous, potentially unscrupulous, lender that possibly committed fraud or bad business practices? When the lender provided a rate and fee quote, they did not include the appraisal fee. Red flag #3. Mistake or not, they may have been trying to make their quote look better than the competition. Either way, it was an error, and I prefer not to use lenders that create errors at the beginning of my loan. In addition, their website had no client testimonials or details about the owners, managers or loan officers. Red flag #4. After concluding my research, their fees were over $700 higher than the lender I found for my client. Ultimately I did not feel I could trust them. All of this is extremely important when providing your financial information.The lender I chose had the following:

    Munzing Mortgage Group

    Mike Munzing, Mike@MikeMunzing.com, 949-689-5626

    616 – #I S. El Camino Real, San Clemente, CA 92672

    1. Mike has 24+ years mortgage experience.
    2. Website is very unique and professional, providing more information than you would ever need. http://www.mikemunzing.com/
    3. Testimonials are on the left, 2/3 of the way down. Although nothing recently, the clients provide various positive comments.
    4. Yes, CA DRE Broker Lic. #: 00890921 * NMLS #: 329629
    5. No, he is not accredited, but he has no complaints filed against him in the 20+ years of business.
    6. Yes, with 500+ contacts and many recommendations.
    7. In 3 pages of searching through Google, I could not find anything negative.
    8. No search results found. Zero negative comments is great.
    9. His charities are political causes to improve the world.
    10. Yes, more times than you will ever need.

Years ago, I worked directly with Mike and found him to be highly experienced, ethical, devoted and resourceful in all aspects of his life. That is who I want to do business.

 
1 Comment

Posted by on October 30, 2012 in Finance, mortgage, mortgage refinance, refinance

 

Tags: , , , , , , , , , , , , , , , , , , , , , ,

How to save $100’s to $1,000’s: 11 tips to manage your credit score



Credit scores have become one of the most important factors in today’s financial environment. Credit impacts: the amount you can borrow; if businesses will lend you money; how much it will cost you to borrow that money; the cost of homeowners and car insurance; and it may even affect your ability to become employed. For example, in conventional mortgage lending, these fees may range from 0 to 3.25% of the loan amount. So, for a $200,000 loan amount at 3.25%, the fee would be $6,500. Good credit means freedom to choose lenders, lower fees, multiple credit card offers and lower insurance rates and fees. Maintaining your credit rating is also very important. If your credit score drops, businesses may increase fees or close credit lines. Either way, everyone should be spending time using the techniques below to manage their credit.

Ways to manage your credit score:

  1. Pay all bills on time and before the due date. The best way to consistently help your credit score is to pay all your bills on time. Paying bills, such as utilities, credit cards, etc. by the due date may be difficult, but it is extremely important and is a great indicator that other more important credit payments will be made on-time. Cash flow can be challenging, but planning ahead and setting aside money to pay the bills will help you manage this and avoid costly late payment fees and finance charges.
  2. Keep balances low by paying off as much of the balance as possible. The second best way to improve your credit rating is to keep balances low compared to the credit limit, also known as your utilization rate. In general, if your monthly balance is 30% or less of the limit, it looks more favorable to the credit agencies.
  3. Keep old unused credit accounts open, if they have a positive history. This decreases the utilization rate, also known as balance to limit ratio. Even though you may not be using the account(s), holding it open keeps your credit score higher.
  4. Multiple credit cards with balances is good.  Contrary to belief, people with high credit scores are not debt-free.  But, they manage their accounts responsibly, even if they have had mistakes at times. Per a recent FICO report, “they hold an average of seven credit cards, four with balances. The average account is 11 years old, the oldest credit account on file was opened an average of 25 years prior, and the most recent credit account is an average of 28 months old. Some 58% of high achievers did not open an account in the prior year, and 26% opened only one new account.”
  5. SPECIAL TRICK – Paying off as much of the balance before the statement closing date. If possible, five days before each credit card closing date, payoff as much of the balance as possible. When the balance is reported to the three credit agencies(Experian, Transunion and Equifax), it will be lower than the amount you actually spent and thereby lowering the utilization rate.
  6. Request a current credit report and dispute inaccurate information. It may take months for items to be removed from the report, so immediately dispute, keep meticulous notes and keep checking to confirm it was removed. It may be worthwhile to pay for a new credit report every couple months in this case.
  7. Avoid applying for credit too often. If you plan to buy a car or home, multiple inquiries in a 30 day period will be counted as 1 inquiry by the credit bureaus. Each time you apply for a credit card or loan, the creditor requests a current report from one of many reporting companies.  They then review your credit score, payment history, balances, etc. These inquiries remain on your report for up to two years, the credit score will probably be lower, will look damaging for the first year, and alert potential lenders of possible lending risks, whether it exists or not. After you have purchased your home or bought a car, at a time when a drop in your credit score matters less, then apply for a new credit card(s). Or, apply for new credit after 6 months, so as not to adversely impact your score.
  8. Explore all options and resources before bankruptcy or foreclosure. These are devastating to your credit score. Reach out to creditors to negotiate better rates or terms or ask for temporary reduced payments or loan modification, etc.
  9. Pay by cash, debit card or check when possible. Even though you have credit cards and other loans, it looks much better to the credit bureaus and lenders if you do not need to use them.
  10. Getting married? Since the divorce rate is 50%+, you might consider adding your spouse as an authorized user or as an additional cardholder. If you separate or get a divorce, it will be easier to remove the spouse, without requiring to close the account and keeping your score higher.
  11. Be careful co-signing on a loan. Avoid co-signing on another person’s loan, as it may lead to missed payments or default. Lending money to relatives can be very risky. Unless you are prepared to help make the payments if the primary borrower can’t, then be very careful.

Managing your credit takes time and effort, but the rewards are lower expense and financial freedom.

 
 

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Why refi from 30 year fixed to 15 year fixed?


Mortgage advertising is everywhere these days. Sometimes a 15 year mortgages is mentioned instead of the traditional 30 year mortgage.  Before I give you reasons why it will save you money, let’s first discuss your overall financial plan. Do you have credit card balances, paying finance charges of 10.99% or more? Do you have 6 months cash reserves for living expenses? Have you started saving for your kids college expenses? Do you have large car loans? Do you owe anyone money? If you answered yes to any of these questions, refinancing from a 30 to a 15 year fixed may not be in the best decision. Interest rates are at historical lows, so borrowing money is cheap right now. To view the current average U.S. 30 year mortgage rate, look at http://www.bloomberg.com/markets/rates-bonds/key-rates/ Even though you would save money on interest paid and pay the loan off sooner, it is more important to save money for children(s) college, saving 6 months cash reserves, or paying off expensive credit cards and car loans is a much better use of funds. Ask a certified financial planner to determine the right answer for you.

Reasons why it will save you money:

  1. The mortgage loan will be paid off 15 years faster.
  2. In the 15 year loan payment, more money goes toward the principal portion of the loan sooner. As a result, equity is built-up more quickly.
  3. Making higher payments during a shorter timeframe will save tens, even hundreds of thousands of dollars in interest.
  4. A shorter term can also provide a tax break. The New York Times recently noted, by restarting the mortgage you’ll pay more in interest in the loan’s early years, which will increase the mortgage-interest deduction as compared to the waning years of a 30-year loan.
  5. Rates on 15 year fixed are currently lower than 30 year by approximately .50% – .625% or more, which will save money.
  6. At times, investments are losing money. By paying more on the mortgage loan, you may be earning a higher return.

Reasons to refi from 30 year to 15 year fixed:

  1. Pay-off your mortgage before retirement.
  2. Build equity in your home twice as fast compared to refinancing back into a 30 year mortgage.
  3. Save more than 1/2 the interest paid. Per Bankrate.com, on a $100,000 loan, 30 year fixed at 6% versus 15 year at 5.75%, the savings is $66,364. http://www.bankrate.com/calculators/mortgages/15-year-30-year-mortgage-calculator.aspx
  4. Lock in a 15 year mortgage rate at historical lows, as borrowing money is cheap currently.
  5. Financial and payment stability, knowing the mortgage payment will not change for 15 years.
  6. Often, when borrowers choose the 15 year term, they usually have a better understanding of their finances, better budgeting and more organized cash management to afford the higher payment. Described in another way, they are spending less on frivolous things.
  7. If the 15 year fixed rate is lower than your current 30 year rate by .75% or more, it may be more cost effective to refinance. See my earlier post about when you should refinance and the breakeven analysis, found at: Bankrate.com mortgage calculator

Reasons NOT to refi from 30 year to 15 year fixed:

  1. The 15 year payment is higher by more than 35%, which may be difficult to manage.
  2. If you have a prepayment penalty on your current loan which is excessive and increases the cost of refinance this could make it difficult to recoup the cost by the time you plan to sell the home.
  3. If you do not have a steady job and income, than committing to a higher payment may be too risky. It would be better to commit to a 30 year loan, then if possible, pay the higher 15 year amortized payment as much as possible, thereby reducing the term and interest payments.
  4. If you are trying to qualify for a streamline refinance, which is less loan information and documentation, it is not possible when changing from a 30 to a 15 year fixed rate.
  5. If you know you are moving in a few years, it does not make sense to refi to a shorter term.
  6. If you are a first-time home buyer, you may not fully understand the costs involved in home maintenance and taxes. So, committing to a higher 15 year payment may limit other spending on your home.
  7. The expense to refinance versus simply paying the 15 year payment instead of the 30 year payment.

Interesting fact:

Per Freddie Mac, the Government Sponsored Entity(GSE), “Of borrowers who refinanced during the second quarter, 30 percent reduced their loan term, while 67 percent of borrowers kept the same term as the loan they had paid off. So, almost 1/3 of the borrowers thought it was a good idea, based on their situation.

http://freddiemac.mediaroom.com/index.php?s=12329&item=131537

 
Leave a comment

Posted by on September 19, 2012 in mortgage, mortgage refinance, refinance

 

Tags: , , , , , , , , , , , , ,

11 suggestions for saving $$ on your mortgage


Usually the mortgage payment is the largest monthly expense, especially in California. After we receive the loan and begin making payments, we forget there are opportunities to cut costs. With a little effort we can all reduce our expenses.  This is the first in a series on how to reduce your mortgage costs.

Mortgage tips to consider:

  1. Refinancing when current rates are lower than your rate by .50% or more.
  2. Refinance from a 30 year loan into a 15 year fixed, thereby saving money on the total amount paid on your mortgage.
  3. Increase your credit score prior to refinancing or applying for a home loan, thereby qualifying for the best or lowest rate and fees possible.
  4. Compare mortgage lenders rates and fees when applying for a home loan.  See my tips on a future blog.
  5. Pay additional money towards principal balance, thereby decreasing the total loan balance and subsequent date when balance is paid-in-full.
  6. Pay 1/2 payment 15 days before it is due and the remainder on the due date, which decreases the overall balance paid over time.
  7. Drop monthly mortgage insurance coverage(MI or PMI), if it was originally required on your loan.
  8. Fight property assessment valuation by the state. (This saves money on taxes)
  9. Shop for lower priced home owners insurance.
  10. Recast your mortgage payment.
  11. Loan modification.

Fees and guidelines vary by lender, program, loan amount, loan-to-value(LTV), credit score, state, fixed rate loan versus adjustable, etc.

 

Tags: , , , , , , , , , , , , , , , , , , , , , , ,