Greg 's Blog

Properties with more than 3 rental units are generally considered commercial properties. Qualifying for commercial loans often requires higher documentation and greater analysis of the rental income.  Calculating Net Operating Income can help determine the fair market value for these and other i...

"You won't have to make this month's payment and you won't have to make a payment for the next 2 months." How many have heard this closing pitch when speaking with a mortgage lender?  There is no free lunch regarding mortgage interest.  Your current mortgage provider will supply a payoff letter i...

Hard Prepays mean that selling or refinaning your property before the prepay period ends will trigger the prepayment penalty.Soft Prepays mean you may sell the property but not refinance before the prepay period ends without a penalty.Prepay penalties reward borrowers with rate discounts for keep...

An adjustable rate mortgage (hybrid/ARM), is a loan with an interest rate linked to an economic index. The interest rate, and your payments are periodically adjusted ^ up or down v as the index changes. Lenders generally offer lower rates on ARM loans because they have the ability to adjust the r...

Have you wondered how mortgage rates north of 6% are considered historically low?  Here is the answer according to Bankrate.com. Bankrate has been tracking the 30-year fixed since September 1985. In nearly 22 years, the 30-year fixed has averaged 7.99 percent. Today's rates are under that and the...

Points reduce interest rates. A point equals 1 percent of the loan amount. A 30-year, $150,000 mortgage might have a rate of 7 percent, but come with a charge of 1 point, or $1,500. A lender may charge 1, 2 or more points.  Discount Points: Are prepaid interest on the mortgage loan. The more poin...

All Rates are NOT EqualQualify advertised rate terms before sending your personal documents.Is the published rate today's rate? Is the published rate for 30 year amortization? (shorter terms = lower rates & higher payments) Is the rate lock period for 30 days? (shorter periods = lower rates & ext...

Illinois legislators missing the point? Some IL State Senators have been attempting to pass legislation banning negative amortization loan products & stated income loans for mortgage brokers (only).  They also want to make individual loan originators liable for loans that default. Here are some c...

How do you choose a mortgage lender?  Is it important to meet with a loan officer before providing your loan application documents?  In todays electronic age where we press a button to send documents or via overnight packages, I'm always happy to take time to meet personally.Where a personal conn...

The Loan ProcessTogether we identify your specific goals and determine the best way to meet them.  In doing this we discuss personal information such as name, address, employment, income & savings.We review three areas impacting eligibility for the loan options you choose.  Your FICO credit midsc...