Posts

Refi Boom Over? Record Appreciation; Affordability Crisis? Not Here

PANICKED LISTING AGENT; PURCHASES HARDER THAN REFI’S I got this text last week from a panicked listing agent: “Jay, my listing is supposed to close Friday and the lender went MIA; how fast can you close?” I get texts and emails like that all the time, but have been getting them slightly more often lately, […]Read More

Average Texas Monthly Mortgage Payment In 2021

How much can homebuyers expect to pay every month for their mortgage in Texas? Based on existing median home values in Texas and a current mortgage interest rate of 3% , the average monthly payment for a 30-year mortgage is approximately $1,634. Average Texas Monthly Mortgage Payment In 2021 Mortgage rates are continually fluctuating due […]Read More

Do Borrowers Get to “Skip” a Payment When They Refinance? Purchase?

NO COST DOES NOT MEAN NO “CASH TO CLOSE” Almost all of our refinances are “no cost” loans, meaning that we, as a lender, cover all of the “non-recurring closing costs” (title, escrow, appraisal, underwriting, etc.) with our commission or rebate. Borrowers often get confused though b/c they interpret “no cost” as “no cash to […]Read More

1/4% Rate Increase = Less Than 4 Lattes

There have been a lot of rumblings in the news lately about rate increases…mostly b/c rates have been increasing :). The Fed recently announced an increase in the Fed Funds rate with more on the way, and rates have been increasing in general in response to positive economic reports, as most everyone knows. As a […]Read More

Interest Expense Always Exceeds Tax Savings; Nobody “Needs” Write-off

There is no doubt that renters experience a tremendous tax benefit or subsidy when they buy a house. This is b/c they can deduct all of the interest and property taxes they pay from their income before calculating their tax liability. But, we often have borrowers who are confused about the nature of tax deductions, […]Read More

“Early Pay Off Penalties” That Originating Lenders Pay

We discussed the general lack of prepayment penalties (they no longer exist) on Monday. But I also mentioned “Early Pay Off” or “EPO” fees. What Are “Early Pay Off” Penalties? EPO penalties are fees that originating lenders have to pay whenever a loan pays off within four to six months of funding. Borrowers are not […]Read More

Prepayment Penalties Thing of the Past; Early Pay Off Penalties?

Prior to the mortgage meltdown, prepayment penalties were relatively common. The penalties were typically from one to five years in length, and were commonly associated with Adjustable Rate Mortgages (ARMs). Almost all sub-prime loans had them, as did “negative amortization” loans (where the payments did not even cover accrued interest). The prepayment penalty amounts usually […]Read More

Accrued Interest on Mortgages – Arrears, Skipping Payments

Interest on mortgages always accrues in arrears. This means your December 1st mortgage payment covers interest that accrued in November. In contrast, a December 1st car payment will cover interest that will accrue in December. For a purchase, borrowers pay interest through the end of the month, and then skip a payment. Hence, if a […]Read More

Accrued Interest and Mortgage Payment Myths

We had a seller recently who insisted on closing by month-end b/c he could “not afford another payment” on his mortgage. B/c we inherited the deal from another lender 7 days before month-end, we were not able to comply with the seller’s request. The seller was utterly confused, however. Interest was accruing against his mortgage […]Read More

Can Non-Borrower Make Mortgage Payments for Borrower?

We are often asked if it is “OK” for someone other than the borrower to make mortgage payments on behalf of the borrower. Our answer is “yes” in most cases, based on our experience. Many lenders expressly prohibit non-borrowers from making payments because they want to discourage borrowers from buying properties on behalf of others, […]Read More