Posts

#1 Reason Fintech Firms Fail In The Mortgage Space

Mortgage Industry Is Reeling With mortgage rates 2% higher than where they were in 2021, much of the mortgage industry is struggling for survival now that refis are all but dead. Many mortgage companies relied so heavily on refis that they are all but out of business now. But – the companies that always seem […]Read More

Why Do You Need A Home Appraisal For A Refinance?

  Home appraisals are a valuable tool for homeowners who are pursuing a refinance. Refinance appraisals are used to assess a home’s value, determine the limits of cash-out refinancing, and establish how risky lenders will view the loan Homeowners should consider getting their home appraised in the process of refinancing because it helps protect their […]Read More

Forbearance Confusion; Refis Dominate Market; Purchases Still; Mortgage Industry Remains Alive

FORBEARANCE CLARITY The mortgage industry, terrified of a mass onslaught of payment forbearances, was alarmed by a misleading report by CNBC. Reporter Diana Olick said that borrowers obtaining a forbearance could tack the missed payments on to the end of the mortgage. This is not true, however, as most servicers will try to recoup the […]Read More

What Happens When Entire World Wants to Refi? RATES WAY UP; Turmoil; Service Way Down

In January and February, interest rates dropped as much as 1/2 percent over the course of a few weeks and the mortgage industry experienced a refinance boom like it has never seen before. The result is now higher rates, confusion, turmoil and utterly inadequate capacity. Lenders are not even close to being able to handle […]Read More

Cash Out Refis – What, Why, When; Rates?

Reminder: Owner Occupancy Ratios in condo complexes are irrelevant if a buyer intends to occupy the unit. Owner Occ Ratios can be as low as 10% and Fannie or Freddie will still finance the unit. FHA and investment purchases, however, require owner occ ratios to be over 50%. CASH OUT REFIS Almost 90% of all […]Read More

Predictions for 2020 – Higher Rates; Tech Disruptions; Fight for Eyeballs; Collapse of Mortgage Industry; Start of Boom

I have read dozens of predictions of various sorts over the last month, so I thought I’d add a few of my own. HIGHER RATES While many pundits like Barry Habib (owner of MBS Highway) think there will be a recession next year, resulting in sharply lower rates (b/c all of our economic indicators have […]Read More

Why “Refi” Rates Are Higher Than “Purchase” Rates

Refinance borrowers sometimes see the rate quote in my daily blog and ask why their rate is higher than the “purchase money” rate quote in my blog. B/c this has been happening more often than not lately, I thought it warranted a brief explanation. ASSUMPTIONS FOR BLOG VS. FACTS FOR REFI The assumptions we use […]Read More

Delayed Financing (Paying Cash & Refinancing After Close)

With so many cash-rich buyers in our California and Texas markets, we want to remind everyone that “Delayed Financing” is sometimes a great option for buyers. Delayed Financing is a conventional financing provision that allows “all-cash” buyers to immediately do a cash-out refinance after an all-cash purchase closes. The advantage for buyers of course is […]Read More

Cash Out Vs. Rate & Term Refis – What’s The Big Deal?

Prior to the 2008 meltdown, as much 90% of all refinances were “cash out,” meaning borrowers increased their loan amount with almost every refinance. That percentage has since dropped to about 50%, as borrowers are more conservative nowadays and they don’t want to incur the extra cost associated with cash out refinances. Borrowers are allowed […]Read More

Cash Out Refi’s Back – For Good Reasons This Time; Down Payments?

Prior to the meltdown in 2006, almost 90% of all refi’s were “cash out,” meaning that borrowers increased the size of their loan with their refi. Borrowers effectively used their homes as ATMs, and used the cash from their refi’s to buy expensive cars, time-shares, vacations, boats and other luxury goods. Heejin and I bore […]Read More