Anthony's Blog

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Mortgage and Lending - Source 1 Mortgage
Home Financing
RECENT BLOG POSTS
  A Contract for Deed allows a buyer to purchase a home at a negotiated price from a seller with a small down payment. A banking institution will then treat this as a refinance after at least 12 months or more of timely payments made through a third party (checking account) to the seller. This of...
06/10/2008
A lease with option to buy allows a renter to purchase a home after at least 12 months or more of timely payments made through a checking account to the seller.  A buyer usually enters a lease with option to buy with a small down payment and a negotiated purchase price of the home upon the maturi...
05/13/2008
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About Myself      I have been a respected lender within the Sauk Valley area since 1998. I am mainly a correspondent lender for US Bank, but I also have other resources.  My specialty is in first time home-buyers. Sometimes it takes creative solutions and knowledge to put a challenging transactio...
03/18/2008
Rates - Is it always best to have the lowest rate? We have been accustomed to always asking for the lowest long term fixed rate. Why would we think otherwise? The lowest rate is best for long term loans. Meaning, the borrower plans to not refinance or move within that term. If a borrower is in th...
03/18/2008
Lenders require at least 20% down on investment property. The best way to finance a flip property is to obtain a short term interest only portfolio loan due in 12 months.  This increases the buyers cash flow to renovate the property.  Some lenders are willing to set up a purchase loan based on th...
03/12/2008
Bi-weekly loans will pay off your mortgage in a shorter amount of time and save a borrower thousands on interest paid. It also accelerates a borrowers equity buildup.Some lenders charge extra for this type of loan when it is a simple math amortization conversion. A borrower just needs to apply ex...
03/02/2008
I have been advised that a buyer can receive immediate tax savings if they convert the loan costs into lender points paid. Otherwise the tax savings would be written off over the life of the loan. This would be exclusive to a persons primary residence only.example - your closing costs on a $100,0...
03/02/2008
It opens a seller up to a bigger market of buyers. Many buyers can now get 100% financing, but still need to save for closing costs and prepaids. As a seller you can sell your home for nearly your asking price and profit vs. haggling on a selling price with no seller concessions. See example belo...
03/02/2008
A recast is used by borrowers that can apply at least 10% towards the principal balance of their mortgage. The lender usually charges a small fee ( $250) to recalculate the borrowers mortgage payment on the reduced principal balance without having to change the locked rate or reset the amortizati...
03/02/2008
It makes more sense for a borrower that is looking to purchase another home prior to selling their existing home to use an equity loan vs getting a bridge loan. A bridge loan usually will have higher closing costs and fees associated with it than a line of equity loan. Please see example below.A ...
03/02/2008