Tag Archive for: ltv

The Loan-to-Value (LTV) Ratio: A Guide for Borrowers in Texas

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The Loan-to-Value Ratio (LTV) is a key mortgage term for homebuyers and homeowners to know and understand. We mention LTV a lot when breaking down other mortgage topics and products. Today we’re giving a crash course in LTV and explaining the impact LTV has on purchasing and owning a home. Loan-to-Value Ratio Defined The loan-to-value […]Read More

Do First-Time Homebuyers Need Mortgage Insurance in California?

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Mortgage Insurance (MI) can set off alarm bells for first-time homebuyers. Homebuyers are not automatically required to pay for mortgage insurance just because they are first-time homebuyers. MI requirements can vary between loan amounts and loan programs. Mortgage Insurance Triggers Buyers are generally required to pay for mortgage insurance if their down payment is less […]Read More

3 Ways to Avoid PMI When LTV Is Over 80%

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There are 3 ways to avoid monthly Private Mortgage Insurance (PMI) when a down payment is less than 20%: (1) Combo Loans; (2) Lump Sum or Single Payment PMI; and (3) Lender Paid PMI. Combo Loans employ 2nd mortgages to cover the loan-to-value portion that is over 80% (eliminating the need for PMI). We can […]Read More

Comparing Rates Among Lenders – Factors, Considerations, Yelp

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Sometimes other lenders (usually big banks) buy the market and quote very low rates. But, more often than not, many loan officers misquote rates b/c they do not have all of the necessary information, and they are trying to lure in borrowers any way they can.** This is why we now request rate-quotes in writing […]Read More

When Can Seller Sign? No Impounds If LTV 89.9% Or Less

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Two Reminders: Sellers can sign documents at almost anytime after escrow opens for conventional and jumbo transactions (as long as escrow has all necessary terms and time to prepare documents). Sellers do not need to wait for the buyer’s loan documents to get to title before they can sign. With an FHA transaction, however, sellers […]Read More

5% Down Conventional Condo Purchase up to $625,500; Owner Occ. Ratio; Lender Credit for Closing Costs

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This is another reminder that Fannie Mae now offers 95% Loan-Value-Financing for High Balance loans up to $625,500 (we alluded to this yesterday too). This is especially important for the many condo buyers with limited cash. Most condo complexes are not FHA approved, so most higher-end condos were off limits to buyers with limited cash. […]Read More

Eliminating Private Mortgage Insurance or PMI

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Here are three options for eliminating the private mortgage insurance (PMI) obligation associated with a conventional loan (FHA MI is permanent). Option #1 – Refinancing: If your property appreciates to the point where we can garner a new appraisal to support a value high enough to reduce your loan-to-value (LTV) ratio to 80% or less, […]Read More

95% LTV With No PMI? LPMI Not A Good Deal.

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Many lenders are again touting their 5% or 10% down loans with no private mortgage insurance (PMI). Almost all lenders (including JVM) offer this through a product called Lender Paid Mortgage Insurance (LPMI). With LPMI, borrowers take a higher rate in exchange for no PMI. Lenders get more yield premium or commission with the higher […]Read More

Post-Close HELOC to Reclaim Liquidity; 90% CLTV

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We often encourage buyers to put down 20% or more not just to avoid mortgage insurance, but also to make their offers much stronger and to allow us to close in 14 days (80/10/10 financing with two loans requires 21 days). Buyers are often reluctant to deplete their liquidity, borrow from 401ks, or access gift […]Read More