All Forum Posts by: Michael Kopay

@Drew Lied, I agree with @Tom Gimer as I am a mortgage banker, but it does sometimes depend on the state and the legalities.  We do many mortgages in Michigan, as well as others, where a spouse (or business partner) is on title,  but not on the mortgage...

Hello Matthew,  I am looking into starting a title company/settlement service agency and saw your post.  I noticed that you haven't received any responses.  Did you find the info you were looking for?  I would love some advice also...

Regards,

Mike

I've heard "through the grapevine" that there is a bank that offers an Investor (with a business) a Line of Credit for $1MM at a rate of 5-6% with no points.  Does anyone know of something like this for an investor with only a 3 deals under his belt?

That would entice someone to continue sending business to a particular Loan Officer/Banker and/or Mortgage Company... This is illegal and known as a "kickback."  Once this happens, then it's a competition to send business toward the company/person with the deepest pockets...  definitely not a good idea!

Do good for the client.  Send the client to someone who will take care of them and treat your referred client right.  It will come back around!  You can look for mortgage companies that are looking to build relationships with agents - you refer to them and they'll refer to you - it's a win-win!

As long as you're working with a "reputable" organization, it comes down to the knowledge of the person who's taking care of you.  If you have questions, he/she should be able to answer them.  If they tell you, "google it," then they don't know (and aren't even willing to find out for you)...

You'll want to check with the bank or lender as soon as possible so you'll be structuring the purchase correctly, but if done right, you shouldn't have to wait. All banks & lenders can put their own guidelines on top of Fannie Mae or Freddie Mac guidelines. This is why some will say immediately and others may say you have to be on title for a specific period of time.

My two cents...I've been in the mortgage industry for years and I've NEVER heard of a "loan bio"... I can only assume that they're asking for some type of "letter of explanation" for underwriting to understand the situation. Are you speaking to a bank, lender, or broker and are they credible? I would do some research on the company AND the rep!

It depends on a couple things like your credit score, loan-to-value (LTV), type of property (i.e. Condos usually get "bumps" to the rate), and yes, whether the HELOC was opened with the purchase of the home. You can get whatever rate you want...the difference is the cost to get the rate. Put yourself in the place of the bank...you'd give a person with the best credit (by the way 740+ is the highest tier and banks take use the middle score out of all 3 credit scores) and most equity, the lowest rate at the lowest cost. You would give the person with low credit and little equity a higher rate with a higher cost. "Interest rates" really don't change; just the cost to get the rate. If you're familiar with golf, the you know what "par" means. Most banks & lenders will quote the par rate, but you can pay additional cost to "buy down" the rate (aka points). You can also choose a higher rate and get a credit for the costs. You essentially either add cost to the loan and pay a lower rate or keep the loan amount lower and take a higher rate. Taking the higher rate, you're just financing the costs in the form of a higher monthly payment. If you have more questions, don't hesitate to call me.

Hello and welcome to BP Brittani!  If there is anything I can help with, don't hesitate to contact me...

Hello Vy, I'm a Sr. Mortgage banker and have some friends that work for QL; decent company, excellent training, but they would never give anyone anything "free"! Their in the business to make money (and Dan Gilbert has to pay Lebron James' salary - lol! Plus he currently owns about 1/4 of the city of Detroit. I work for an FDIC insured bank and we all compete against each other for loans. There is one MAJOR difference...and it's not the company... It's the loan officer or banker and that person should explain everything to you (unless of course you don't care and just want the lowest rate or payment). I've been in the business for years, got out for a while and explored other avenues, but got back in - because I enjoy helping and teaching others. Other loan officers/mortgage bankers really don't care about you. They just want the deal to close and move on to the next one.

If you're ready to close, that's the "CD" or closing disclosure (it's a new form in the industry that the CFPB (consumer financial protection bureau) put in place for every loan from now on, instead of the old Good Faith Estimate and Truth in Lending. 

To answer your question and explain the payment: yes, it's a 7/1 ARM (the rate is fixed for the first 7 yrs, then can adjust annually (but ther is a max "cap rate" where the rate cannot go above. The rate is based on an index rate plus a margin - I don't know which index and I would have to back calculate to determine the cap interest rate. However, we know your P+I is $857.44 and we know that the property taxes & homeowners insurance is estimated at $213. I do have one question for you to ask your loan officer: the $293 for estimated taxes, insurance, & assessments, why is it different than what is showing in the payment and am I paying MIP (or PMI)? - they're often used interchangeably, but it is essentially a mortgage insurance premium that you pay each month, in your payment, to ensure the bank or lender gets their money, if you default on the loan. Mortgage insurance is charged when there is less than 20% equity in the home...

Please let me know if you have any other questions! I wish you the best, but please call me first next time!!!