#promortgage

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#promortgage #coldwelbanker #homesweethome (at Skiatook, Oklahoma)

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Just Approved: Dodging the onerous ‘Surprise’ refinance fee

Mortgage broker: Liz Bayer, ProMortgage.

Property type: Single-family home in Richmond.

Appraised value: $745,000.

Loan amount: $426,000.

Loan type: 30-year fixed.

Rate: 2.5 percent.

APR: 2.589 percent.

Backstory: Past clients of mine approached me after hearing the crazy news of just how low rates had gotten.

I explained to them that in conventional lending, after six months have past, the new loan no longer has a pricing hit so rates are even better.

Additionally, we were granted an appraisal waiver. After reviewing rates, my client decided to pay a fee for the lower rate based on the breakeven analysis that I provided to them.

However, right before we had locked the rate, an announcement came out by surprise to the entire industry from the Federal Housing Finance Agency (FHFA) announcing that they were implementing a refinance fee of half a point to all refinances.

Fortunately, after the industry reached out to their legislation to object to this and how this would not benefit the consumer. The FHFA later announce that they would delay the implementation of this onerous fee until Dec. 1.

So our lender removed the ½ point fee and my borrowers are thrilled to be getting this incredibly low rate and after the removal of the surprise refinance fee. Now they’re no longer paying points.

Liz Bayer, ProMortgage, 415-383-3111, lizforloans@gmail.com.

Just Approved: Dodging the onerous ‘Surprise’ refinance fee published first on Real Estate News

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Just Approved: Interest only jumbo refinance maximizes discretionary spending

Mortgage broker:

Liz Bayer, ProMortgage.

Property type: Single-family home in Sausalito.

Appraised value:

$1.6 million.

Loan amount:

$1 million.

Loan type: 7-year adjustable-rate mortgage.

Rate: 3.5%

APR: 3.937%

Backstory: I was approached by a past client who wanted to lower their current rate and also wanted to obtain a seven-year adjustable rate mortgage with an interest-only payment with a jumbo loan. The interest-only payment would afford them a nice low payment so that they had more discretionary income to travel and enjoy themselves.

I was able to use one of our portfolio jumbo lenders who had some competitive interest-only products to choose from. The great news is that not only did we get a great rate, we also had a lender credit of $7,500 to cover closing costs.

This lender had some stringent requirements that we needed to meet which included a loan to value of 70% or lower and also strong asset reserves which included higher liquid reserve asset requirements than a normal conventional loan.

The good news is that the lender allowed borrowers’ net surrender value of their life insurance policy to count toward the liquid reserve requirement which pushed us over the minimum amount of reserves needed.

This new loan puts the client in a great position to ride out the current economic downturn more easily.

Liz Bayer,

ProMortgage, 415-383-3111, lizforloans@gmail.com.

Just Approved: Interest only jumbo refinance maximizes discretionary spending published first on Real Estate News

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Just Approved: First-time buyer teams up with mortgage broker

Mortgage broker: Liz Bayer, ProMortgage.

Property type: Two-bedroom condominium in Marin County.

Appraised value: $479,000.

Loan amount: $455,050.

Loan type: 30-year fixed.

Rate: 3.625%

APR: 3.726%

Backstory: A first-time homebuyer seeking pre-approval to buy his first home initially reached out to online lenders who implied that the loan process was speedy and easy. However, he soon realized he needed more guidance than what the online lenders provided. His Realtor recommended he reach out to me for help.

I was able to pull together all the necessary paperwork and walk him through the process and next steps so that he understood all of the closing costs, as well as the housing payment, which was not at all clear when he attempted to go the online lender route.

Additionally, I was able to lock in a better rate than what he had been quoted. Our rate was a quarter point lower than the rate he was quoted by the “speedy” online lender.

He was also happy to obtain a mortgage with only 5% down for a conventional loan that has much lower mortgage insurance payments compared to an FHA loan.

Lately, I have seen an upswing in first time homebuyers who are tired of paying the high Bay Area rents without the benefit of the tax write-offs and who also want to take advantage of today’s low, low mortgage rates.

Liz Bayer,

ProMortgage, 415-383-3111, lizforloans@gmail.com

Just Approved: First-time buyer teams up with mortgage broker published first on Real Estate News

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Just Approved: My three ‘A’s’ deliver a smooth refinance

Mortgage broker: Liz Bayer, ProMortgage

Property type: Single-family home in Hercules.

Appraised value: $648,000.

Loan amount: $276,000.

Loan type: 30-year fixed.

Rate: 3.579%.

APR: 3.635%.

A couple I helped with a 7-year adjustable rate mortgage back in 2013 wanted to refinance into something more secure. This was a perfect opportunity to put my three As into play: Get an appraisal waiver, use assets as income and avert fluctuating payments.

Their original plan was to stay in their home for about 5 more years before retiring and moving out of state.

However, life happened and they became grandparents, so they decided they wanted to stay in their current home for a few more years so they could remain close to their daughter and grandchild.

They were both employed in 2013 but have since retired. They wisely socked away money in their savings and were holding off taking their Social Security benefits, drawing from their savings instead.

Time to employ the three As.

First, we were granted an appraisal waiver, which saved the borrowers $500 right off the bat.

Next, we used assets as income to cover their debt obligations and qualify the borrowers. Third, we averted a payment spike by getting them out of their 7-year adjustable-rate mortgage rate from 2013 that was set to balloon on them within 12 months.

The end result was a monthly mortgage payment that was $183 per month less than what they were previously paying. Meanwhile, the stability of the 30-year fixed loan means they no longer have to worry about the uncertainty of a variable rate payment.

Liz Bayer, ProMortgage, 415-383-3111, lizforloans@gmail.com.

Just Approved: My three ‘A’s’ deliver a smooth refinance published first on Real Estate News

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Just Approved: Jumbo lender allows rental income to qualify

Mortgage broker: Liz Bayer, ProMortgage.

Property type: Single-family ranch in Marin County

Appraised value: $1.425 million.

Loan amount: $815,000.

Loan type: Jumbo 30-year fixed.

Rate: 3.75%.

APR: 3.816%.

A past client approached me to help her buy a new home to accommodate an addition to the family. I had helped her obtain financing on her current home. As is typical in Marin County, she was competing with other offers so she made an offer over the list price and also included a short, 10-day timeframe to remove the loan and appraisal contingency and a 20-day closing date. She did not have her current home listed for sale so we set a strategy to use rental income on her departing residence to help to successfully qualify her income.

Some of the big banks did not allow the use of rental income on the departing residence unless the borrower had two years of experience as a landlord. Fortunately, ProMortgage is not limited to just the big banks and we had another lender in our jumbo quiver of lenders who had a great jumbo 30 year fixed product AND who also allowed us to use rental income WITHOUT landlord experience.

This lender also had excellent turnaround times so we exceeded the contingency deadline of 10 days and were ready to remove all contingencies in eight days and we easily met the 20 day close of escrow.

Liz Bayer, ProMortgage, 415-383-3111, lizforloans@gmail.com.

Just Approved: Jumbo lender allows rental income to qualify published first on Real Estate News

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Just Approved: Appraisal waiver speeds the process

Mortgage broker: Liz Bayer, ProMortgage.

Property type: Single-family home in Walnut Creek.

Appraised value: $985,000.

Loan amount: $726,525.

Loan type: 30-year fixed.

Rate: 3.875%.

APR: 3.904%.

Backstory: Back in 2015 I helped a client obtain mortgage financing with two loans and a 10% down payment. The client approached me recently because their second Home Equity Line rate was variable and had grown to more than 7%, so he was interested in consolidating his first and second mortgages into one loan.

We had several variables that were in our favor. For starters, the property’s value increased by more than 15% in just a few years. Additionally, the conforming loan limit increased from $625,500 to the $726,525. Plus my borrower's earning power had grown as well.

This allowed to consolidate and reduce their payments more than $400 a month.

The cherry on top was that we were also able to close quickly because we were granted an appraisal waiver, which saved time in closing and saved my clients a $550 appraisal fee.

Appraisal waivers for conventional financing have been available on refinances, and in 2019, these also have been granted on conventional loans for purchases as well.

Of course, such a deal must meet certain guidelines that include the borrower's qualifications and a 'test of reasonability' on the property’s value.

In my client's case, he was well-qualified and the property value met that reasonability test.

Liz Bayer, ProMortgage, 415-383-3111, lizforloans@gmail.com.

Just Approved: Appraisal waiver speeds the process published first on Real Estate News

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Just Approved: Cash-out without a higher rate

Mortgage broker: Liz Bayer, ProMortgage.

Property type: Single-family home in Tiburon.

Appraised value: $2.5 million.

Loan amount: $1.3 million.

Loan type: Jumbo 10-year Adjustable-Rate Mortgage.

Rate: 3.875%.

APR: 3.9%.

Past clients of mine were interested in refinancing their beautiful home in Tiburon, CA and were talking about opening up a Home Equity Line to recoup the $300,000 that they had invested in making home improvements.

The rate on their current mortgage was 3.875% for a 10-year Adjustable-Rate Mortgage. Since their home value had increased as a result of the home improvements, we had enough equity to get them a cash-out refinance to recoup the $300,000 WITHOUT a higher rate.

This helped them to avoid a higher interest Home Equity Line of Credit.

Additionally, the Home Equity Line would’ve had an “interest only” payment ($1,685 per month), so it would not reduce their loan balance unless they pay more every month, in addition to the loan balance.

By simply refinancing their first mortgage, my clients benefited from a lower rate while simultaneously building equity. Going with a cash-out first versus adding a Home Equity Line provided a lower payment of around $1,200 a month—a much better strategy than their original plan.

Liz Bayer, ProMortgage, 415-383-3111,lizforloans@gmail.com.

Just Approved: Cash-out without a higher rate published first on Real Estate News

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Just Approved: Leveraging equity to cover college expenses

Liz Bayer, ProMortgage.

Property Type: Single-family ranch in San Joaquin County.

Appraised Value: $649,000

Loan amount: $485,000.

Loan type: Jumbo 10-year adjustable-rate mortgage with ‘Interest Only’ payment for 10 years of 30-year term.

Rate: 4.375%.

APR: 4.480%.

Backstory:

A past client reached out to me about refinancing to get cash out to cover his daughter’s college expenses as she was soon to graduate high school.

We discussed his future plans and goals and he advised that he intends to sell his home in about seven years.

Additionally, he ideally did not want his payment to increase on the new mortgage.

Based on these objectives, I recommended that he consider a 10-year adjustable-rate mortgage with an ‘interest only’ payment feature.

While the seven-year adjustable-rate mortgage had a slightly lower rate, I suggested the 10-year adjustable-rate mortgage so that he has some flexibility to sell his home in the event the market is not favorable seven years from now.

This new mortgage resulted in $109,000 cash out to cover college expenses and simultaneously lowered his monthly mortgage payment from $1,824 to $1,768 a

month.

We successfully met his goals.

Liz Bayer, ProMortgage, 415-383-3111, lizforloans@gmail.com.

Just Approved: Leveraging equity to cover college expenses published first on Real Estate News

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Just Approved: Duplex owner consolidates two loans for lower rate, monthly payment

Mortgage broker:

Liz Bayer, ProMortgage.

Property type: Duplex in San Rafael.

Appraised value: $1.34 million.

Loan amount: $905,000.

Loan type: 30-year fixed.

Rated: 4.5%.

APR: 4.517%.

Backstory: Last year, my client purchased a duplex. She occupied one unit and planned to rent out the second, adjoining residence. She obtained a first mortgage and Home Equity Line to purchase the duplex. At that time, we went with a 10-year adjustable-rate mortgage at a rate of 4.875%.

She recently approached me, wanting to get out of the adjustable-rate mortgage and move into a 30-year fixed. I suggested that we consider consolidating the two mortgages into one, since lenders do not consider this to be a “cash-out” refinance when the second mortgage was obtained as part of the original purchase. This benefits the borrower with a more favorable rate.

Additionally, my client had made some updates to the property and the appraised value came in almost $300,000 higher from what she originally paid. The end result was that we lowered her payment by $380 a month. This thrilled my client.

Liz Bayer,

ProMortgage, 415-383-3111, lizforloans@gmail.com.

Just Approved: Duplex owner consolidates two loans for lower rate, monthly payment published first on Real Estate News

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Just Approved: Duplex owner consolidates two loans for lower rate, monthly payment

Mortgage broker:

Liz Bayer, ProMortgage.

Property type: Duplex in San Rafael.

Appraised value: $1.34 million.

Loan amount: $905,000.

Loan type: 30-year fixed.

Rated: 4.5%.

APR: 4.517%.

Backstory: Last year, my client purchased a duplex. She occupied one unit and planned to rent out the second, adjoining residence. She obtained a first mortgage and Home Equity Line to purchase the duplex. At that time, we went with a 10-year adjustable-rate mortgage at a rate of 4.875%.

She recently approached me, wanting to get out of the adjustable-rate mortgage and move into a 30-year fixed. I suggested that we consider consolidating the two mortgages into one, since lenders do not consider this to be a “cash-out” refinance when the second mortgage was obtained as part of the original purchase. This benefits the borrower with a more favorable rate.

Additionally, my client had made some updates to the property and the appraised value came in almost $300,000 higher from what she originally paid. The end result was that we lowered her payment by $380 a month. This thrilled my client.

Liz Bayer,

ProMortgage, 415-383-3111, lizforloans@gmail.com.

Just Approved: Duplex owner consolidates two loans for lower rate, monthly payment published first on Real Estate News

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Just Approved: Rate reduction after 6 months

Mortgage broker: Liz Bayer.

Property type: Single-family home in Novato.

Appraised value: $1.2 million.

Loan amount: $660,000.

Loan type: 30-year fixed.

Rate: 4.25 percent.

APR: 4.276 percent.

Background: Last year, I had worked with these borrowers to refinance their home and get a $100,000 cash-out refinance to pay off some their children’s student loans.

Rates were a bit higher back then, and since the transaction was a cash-out refinance, there were additional price adjustments that negatively impacted the rate pricing.

However, even then, the rate was still much more favorable than the rates of the student loans or taking out a home equity line of credit, where the variable rate was on an upward march.

What is not well known, however, is that once the cash-out refinance has been on the books for six months, if a borrower wanted to try to lower their rate and refinance again, then, the new refinance is no longer considered “cash-out” and rate pricing is more favorable.

So, I reached out to my client to consider refinancing for two reasons: First, overall rates were lower than last year, and, secondly, their previous refinance would no longer be treated as a cash-out transaction, which would offer them better rate pricing.

The benefit of circling back within a year’s time reduced my clients’ monthly mortgage payment by $200 and will save them more than $29,000 over the life of the loan.

Liz Bayer,

ProMortgage,

415-383-3111,

lizforloans@gmail.com.

Just Approved: Rate reduction after 6 months published first on Real Estate News

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Just Approved: Rate reduction after 6 months

Mortgage broker: Liz Bayer.

Property type: Single-family home in Novato.

Appraised value: $1.2 million.

Loan amount: $660,000.

Loan type: 30-year fixed.

Rate: 4.25 percent.

APR: 4.276 percent.

Background: Last year, I had worked with these borrowers to refinance their home and get a $100,000 cash-out refinance to pay off some their children’s student loans.

Rates were a bit higher back then, and since the transaction was a cash-out refinance, there were additional price adjustments that negatively impacted the rate pricing.

However, even then, the rate was still much more favorable than the rates of the student loans or taking out a home equity line of credit, where the variable rate was on an upward march.

What is not well known, however, is that once the cash-out refinance has been on the books for six months, if a borrower wanted to try to lower their rate and refinance again, then, the new refinance is no longer considered “cash-out” and rate pricing is more favorable.

So, I reached out to my client to consider refinancing for two reasons: First, overall rates were lower than last year, and, secondly, their previous refinance would no longer be treated as a cash-out transaction, which would offer them better rate pricing.

The benefit of circling back within a year’s time reduced my clients’ monthly mortgage payment by $200 and will save them more than $29,000 over the life of the loan.

Liz Bayer,

ProMortgage,

415-383-3111,

lizforloans@gmail.com.

Just Approved: Rate reduction after 6 months published first on Real Estate News

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Just Approved: Lower monthly payment lends huge sigh of relief

Mortgage broker: Liz Bayer.

Property type: Single-family home in Lower Pacific Heights.

Appraised value: $1.985 million.

Loan amount: $865,000.

Loan type: 7-year adjustable-rate mortgage, interest only payment.

Rate: 3.875 percent.

APR: 4.501 percent.

Backstory: I was contacted by my clients who wanted to accomplish three things.

First, they wanted to refinance their mortgage because their current mortgage was an adjustable rate mortgage and the payment was about to reset in May, effectively driving their rate and payment up. Secondly, they wanted to pay off several high-interest loans by leveraging the bundle of equity in their home.

Lastly, they wanted to shift into a low payment by moving into an interest-only payment rather than a principal plus interest payment. Their ultimate goal was to make a significant reduction in the monthly outlay of their bills.

We faced a hurdle in that the primary borrower had one year at their current job with a gap year in 2017.

I brokered this transaction with one of our portfolio lenders who accomplished all of the goals and also accepted the gap year in employment. The outcome was a huge reduction in payment from my borrowers’ previous payment totaling $7,593/month to a new payment of $2,793/month, giving them much financial relief.

Liz Bayer,

ProMortgage,

415-383-3111, lizforloans@gmail.com.

Just Approved: Lower monthly payment lends huge sigh of relief published first on Real Estate News

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Just Approved: Lower monthly payment lends huge sigh of relief

Mortgage broker: Liz Bayer.

Property type: Single-family home in Lower Pacific Heights.

Appraised value: $1.985 million.

Loan amount: $865,000.

Loan type: 7-year adjustable-rate mortgage, interest only payment.

Rate: 3.875 percent.

APR: 4.501 percent.

Backstory: I was contacted by my clients who wanted to accomplish three things.

First, they wanted to refinance their mortgage because their current mortgage was an adjustable rate mortgage and the payment was about to reset in May, effectively driving their rate and payment up. Secondly, they wanted to pay off several high-interest loans by leveraging the bundle of equity in their home.

Lastly, they wanted to shift into a low payment by moving into an interest-only payment rather than a principal plus interest payment. Their ultimate goal was to make a significant reduction in the monthly outlay of their bills.

We faced a hurdle in that the primary borrower had one year at their current job with a gap year in 2017.

I brokered this transaction with one of our portfolio lenders who accomplished all of the goals and also accepted the gap year in employment. The outcome was a huge reduction in payment from my borrowers’ previous payment totaling $7,593/month to a new payment of $2,793/month, giving them much financial relief.

Liz Bayer,

ProMortgage,

415-383-3111, lizforloans@gmail.com.

Just Approved: Lower monthly payment lends huge sigh of relief published first on Real Estate News

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Just Approved: Guideline changes that increase buying power

Mortgage broker: Liz Bayer, ProMortgage. Property type: Single-family home in Novato. Appraised value: $1 million. Loan amount: $700,000 Loan type: 30-year fixed. Rate: 4.375 percent. APR: 4.478 percent. Backstory: I had preapproved a client for a loan of $625,000. However, the price point that he ideally wanted was out of reach until Fannie Mae updated their guidelines. Previously, when a W2’d income person files a Schedule 2106 with their tax return to deduct “non-reimbursed” expenses, the lender would also deduct this from the borrower’s income, which lowered the qualifying loan size. So just in the nick of time, Fannie Mae guidelines changed so that the 2106 would no longer be deducted in computing income. Just Approved: Guideline changes that increase buying power published first on Real Estate News