All Forum Posts by: Elise Marquette

@Rob Kishi that is mortgage fraud- please remember that the lender who issues the loan is a licensed professional and if anything fraud related comes up on their audits, that could put them in a difficult position. I’ve had clients who have tried to commit mortgage fraud and I’ve fired each one of them. It’s not worth jeopardizing my career and livelihood.

Hi all,

In case anyone was thinking or refinancing, now is the time to do it. Fannie Mae and Freddie Mac released statements yesterday that they will be adding a 50 basis point (.5%) to essentially all cash out and rate reduction refinances that are locked AFTER September 1 (The exception being construction to permanent loans). They say that due to the uncertainty and increased risk in the market due to COVID, it has become necessary to increase the rates. 

https://singlefamily.fanniemae.com/media/23726/display

https://guide.freddiemac.com/app/guide/bulletin/2020-32

I wanted to learn about REI so I became a lender. At the end of the day, we all are wanting to invest in RE so we have financial freedom, so I thought the best opportunity was to learn to understand the money and how finance really works. Not sure where you're located, but I believe FBC Mortgage has a recent grad program. Or at least they did back when I was graduating college. That might be worth checking out.

@Ben Zelenka I’m reading it now but to complement it, one of his other books titled outwitting the devil was an absolutely phenomenal read. It’s actually free to listen to on YouTube. I would probably recommend outwitting the devil over think and grow rich

Hi @Nathaniel Walker, we'd be glad to meet up. My fiance, @Jeff Shumway and I are both lenders in the Tampa Bay area for Paramount Residential Mortgage Group. 

It's a Fannie Mae requirement to be on title for the property at least 6 months before doing a cash out refinance. If you own the property 100% then you can do what is called "Delayed Financing" which means you can take out approximately 80% of the purchase price of the house. 

The biggest thing you'd have to be concerned about is your debt to income ratio. The higher the monthly payments on your liabilities are (i.e. your mortgage payment now vs. your increased payment once you take cash out of your house), the tighter is makes your debt to income ratio. This is the ratio of your gross monthly income relative to your monthly liabilities (mortgage payment, credit card payment, student loan payment, auto payment, etc.). It cannot exceed a certain percent to get approval to finance your next home. Of course if you're buying the next one cash, then this is a non-issue

Would definitely recommend switching it into your personal name to refinance to take cash out. Conventional loans can't close in an LLC. I would definitely recommend a cash out refinance though over a HELOC or Home Equity loan simply because the cash out refi will come with a fixed rate

Depending on the size of the deal, 7K in closing costs isn't bad. Remember, a lot of those are title company fees as well. I know there are a lot of lenders who charge only a flat fee/origination percentage basically to keep their lights on but everything else comes from the title company. 

When doing a refinance, you have the right to pick your own title company, so if you find one that'll do it more cheaply then by all means, use them. A lot of the title company fees are state mandated, so I don't know how much wiggle room they have but it's something to keep in mind. And as a couple other people mentioned, that may include your escrows too. You'll get a refund of whatever is currently in your escrow account because the new lender will set up a new escrow account for you, so that may hopefully negate some of the costs. 

@Brock Heppner - Yes, just leave a little bit of balance on the card so it has some utilization. That should help improve your score. Just FYI it may dip initially if you get on a card as an authorized user and open up another card all at the same time, but it should quickly increase then