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I’m officially a homeowner. Just closed.  2.75%, 15 years.  🥳

Just made my last mortgage payment yesterday!!!  I am free and clear!

If you guys would allow me to vent... I need to vent a bit... I could vent to other LO's who all know it and they just smile and nod (somehow that doesn't really feel like venting) or my wife but with

54 minutes ago, Chadstroma said:

Oh and if you know a lender... give them a hug. The new URLA is out and pretty much everyone has to use it now.... and it sucks to put it nicely. 

What’s that mean for brokers and buyers? 

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3 hours ago, fruity pebbles said:

What’s that mean for brokers and buyers? 

Buyers nadda... 

Brokers (all lenders)... pretty much the way everyone has been doing loans for years and years and years is thrown out the window. Chaos. Gnashing of teeth. Crying. 

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Very pumped up now. If you have followed my posts in here you may remember that one of the things I am somewhat passionate about is my dislike of Quicken/Rocket. Mat Ishbia came out today and announced a few things and in it told brokers that they must choose.... either them or Quicken/Rocket and Fairway. Most brokers will choose UWM and drop Rocket and Fairway versus drop UWM. The gauntlet has been dropped! 

Also, remember when I explained that UWMC would dominate as rates increased? Today is a great example of that. They announced that they will be lowering their rates dramatically, added a competitive jumbo product, teased more tech in the future as well. So, what does that means for consumers? Well, UWM is a huge force and is superior in technology, speed, and ease over other lenders. Most lenders try to price themselves lower than UWM in order to get business from brokers because it is just not worth it to send to most other lenders otherwise. So, the entire channel will see some dramatic price improvements as other lenders follow suit and cut their margins. This is good news for brokers and consumers! 

I am kind of pumped up now. 

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I would love to get some feedback... 

I am seriously considering adding Financial Coaching services to what I do. I would remain a Mortgage Broker and in fact will be enrolling in insurance classes soon to add doing Insurance Brokering. Both mortgage and insurance will be working for companies as a W2 employee. The Financial Coaching would be starting my own company. 

For those here in this thread you have been exposed to my advice and coaching. Honestly, the feedback and kudos from my fellow FBG's has been a driving force for me to consider this. 

Some further info on me. Obviously I am a Mortgage Broker, I have been in banking, financial services, lending etc for 20+ years. As is my nature, I have gone above and beyond to understand and learn more than the training given to me or what others in my positions in the past typically know. I would give myself an expert rating in mortgage and equity lending, banking, credit scores/repair, and general personal finance. I am well acquainted with investing. I am more knowledgeable than your average person for insurance. That knowledge base will greatly increase as I begin the process to get licensed. 

My general thinking currently is to focus on first time homebuyers in credit and generally preparing to buy their home as the niche but offer general financial coaching as well. 

I am not really sure what I am looking for in this post. I know many of you are smart (all except Bronco and Chief fans that is), some are business owners, insightful, knowledgeable etc. It is a great group of people who have a lot to offer. Anything helpful is much appreciated. Thoughts, feedback, advice, constructive criticism, pleas to not do it or whatever else. Thanks for anything helpful!

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Closed my refi on Friday, happened to be with UWMC. 2.375% for 15 with a nice credit that covered most of the closing costs. Only took 2.5 weeks so it was pretty easy. Biggest PIA is that my wife works for a very large company who has a dedicated number/way to download verification, but they wanted the company to send an email or fax. Not sure how a huge lender and my wife’s company never crossed paths (they had to have many times) and I also sent in updated pay stubs which happened to be from the day before we sent the automated verification wity the phone number on it. Since we have over 60% equity they just ignored my wife’s income, but it was beyond stupid. If you didn’t need my wife’s income, why was the verification so hard even though we had everything in place. Broker was extremely on top of things but I feel like common sense went out the window, almost like they couldn’t go out of the box or wouldn’t stay on the phone number long enough to get verification.

Oh well, it was really fast and it’ll be nice paying a ton less interest a month. I am not sure when our move from here will be (5-10 likely), but at around 5 years we’ll have paid an extra $27k and reduced the principal by $47k. The longer we stay obviously the more we save, but I’ll take the almost 75% return for a couple of hours of our time. Should have done it months ago.

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6 hours ago, Chadstroma said:

I would love to get some feedback... 

I am seriously considering adding Financial Coaching services to what I do. I would remain a Mortgage Broker and in fact will be enrolling in insurance classes soon to add doing Insurance Brokering. Both mortgage and insurance will be working for companies as a W2 employee. The Financial Coaching would be starting my own company. 

For those here in this thread you have been exposed to my advice and coaching. Honestly, the feedback and kudos from my fellow FBG's has been a driving force for me to consider this. 

Some further info on me. Obviously I am a Mortgage Broker, I have been in banking, financial services, lending etc for 20+ years. As is my nature, I have gone above and beyond to understand and learn more than the training given to me or what others in my positions in the past typically know. I would give myself an expert rating in mortgage and equity lending, banking, credit scores/repair, and general personal finance. I am well acquainted with investing. I am more knowledgeable than your average person for insurance. That knowledge base will greatly increase as I begin the process to get licensed. 

My general thinking currently is to focus on first time homebuyers in credit and generally preparing to buy their home as the niche but offer general financial coaching as well. 

I am not really sure what I am looking for in this post. I know many of you are smart (all except Bronco and Chief fans that is), some are business owners, insightful, knowledgeable etc. It is a great group of people who have a lot to offer. Anything helpful is much appreciated. Thoughts, feedback, advice, constructive criticism, pleas to not do it or whatever else. Thanks for anything helpful!

While I think there is a strong need for the financial coaching portion, many consumers won't want to pay for that service.  They think they should get it for free assuming that you're also doing their mortgage.

I think it would be better to branch out into insurance brokerage.  There's likely a strong desire for a number of products: life, long-term disability, and long-term care.  As Gen-X sees their parents in retirement and the issues with long-term care, I think that's a growth market for sure. 

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8 hours ago, Chadstroma said:

 

I am not really sure what I am looking for in this post. I know many of you are smart (all except Bronco and Chief fans that is)

I think you would be terrible at this. 

 

 

 

 

 

 

 

 

 

 

 

 

:) 

 kidding: you would probably be really good at this: clearly you have the best interests of your clients at heart, which to me is the #1 factor. 

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4 hours ago, stbugs said:

Closed my refi on Friday, happened to be with UWMC. 2.375% for 15 with a nice credit that covered most of the closing costs. Only took 2.5 weeks so it was pretty easy. Biggest PIA is that my wife works for a very large company who has a dedicated number/way to download verification, but they wanted the company to send an email or fax. Not sure how a huge lender and my wife’s company never crossed paths (they had to have many times) and I also sent in updated pay stubs which happened to be from the day before we sent the automated verification wity the phone number on it. Since we have over 60% equity they just ignored my wife’s income, but it was beyond stupid. If you didn’t need my wife’s income, why was the verification so hard even though we had everything in place. Broker was extremely on top of things but I feel like common sense went out the window, almost like they couldn’t go out of the box or wouldn’t stay on the phone number long enough to get verification.

Oh well, it was really fast and it’ll be nice paying a ton less interest a month. I am not sure when our move from here will be (5-10 likely), but at around 5 years we’ll have paid an extra $27k and reduced the principal by $47k. The longer we stay obviously the more we save, but I’ll take the almost 75% return for a couple of hours of our time. Should have done it months ago.

The VVOE (Verbal Verification of Employment) is the only PIA thing about UWM right now. It is a COVID overlay and it use to be even more of a nightmare because it was to be done on the day of closing. They changed it to be within striking distance to closing date but it is still something that for more than a couple of loans I have to work with the borrower to figure out a way to get the info they want in the way they want it done. On one end, I understand the protections they have in place on it but on the other end it is not unusual for it to be a big PIA for the client and broker. 

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4 hours ago, The Z Machine said:

While I think there is a strong need for the financial coaching portion, many consumers won't want to pay for that service.  They think they should get it for free assuming that you're also doing their mortgage.

I think it would be better to branch out into insurance brokerage.  There's likely a strong desire for a number of products: life, long-term disability, and long-term care.  As Gen-X sees their parents in retirement and the issues with long-term care, I think that's a growth market for sure. 

I am adding the insurance brokering for sure. 

The interesting thing is that I use to basically think like you where I didn't think it would be something to monetize. Here is some things that made me reconsider that.

Most LO's don't mess with putting time and effort in helping people get ready for a mortgage. They basically tell them "your credit needs to be XXX, come back when you get it there" or otherwise quickly move on. Why? Because you put all this time and effort into helping someone and then they hear about some DPA program or a family member tells them to go somewhere else or they think they are getting a better deal somewhere else for some reason and the hours of time you put into helping them means nothing to them. All of those are real examples that have happened to me- regardless of whether I can actually help them better or not, they think they are getting something better/more elsewhere. Whether broker or LO, anyone that does go above and beyond has been burnt. On top of that, people that need the help may or may not actually do what you tell them to do to get ready. So, even if they are committed to using you, they may never get there because they are not really committed to it. Someone paying for a service to get there is likely at a higher level of commitment. 

I help a lot of people that I am not licensed in states for and I get nothing for it. I do enjoy helping people but I also need to be fair to my family and respect my time since I am not independently wealthy. I have to just turn people down who ask for more help because my time is my money. If they want further help, they can pay for that and I can serve them.

I have an email that I put together to help my clients get ready for a loan without spending a ton of time with them. I often send that to people who I have no opportunity to do a loan for (in a state I am not licensed in). One of the guys I did reached back out and asked if I could spend time with him to go over everything specifically and offered to pay me. I said that I didn't normally do that but it sounded like something I could agree to and asked him what he thought was fair. He said $100 and I agreed. He sent me his credit report and I reviewed it and then we had a phone conversation to go over everything and give him a specific game plan on what he needed to do. It all took less than an hour of my time to do. (My first paying client)

People literally pay hundreds of dollars for the Dave Ramsey crap. I mean, hundreds of dollars to have someone say "Don't spend money and don't use debt" and along the way give poor advice in other areas. Obviously I don't have the Dave Ramsey brand/name and I am not about to pay thousands to be one of his pep's but that is evidence there is a market for this.

I ended up coming across a Financial Coach and he agreed to jump on a call for us to talk about it. He actually has his niche doing basically the same as I was thinking of doing. He just started and is doing it part time but he is bringing in business. 

Finally, I have a FB group that is centered around Credit Scores/Repair. It has a little over 300 people in it right now (I hadn't been trying to grow it much until recently) and I threw up a poll last night when I also posted in here. Simple question: If I were to offer Financial Coaching services would you be interested? Two options: Yes! Where do I sign up? and No thank you. It currently shows 65 reached and 19 have answered Yes! (no one said no but I wasn't really expecting anyone to- lol) Now, not sure who many of those 19 would really sign up when it came to actually paying money but that is a pretty good response I think. 

So, that is all why I am thinking there is some business here. I further thought of the potential to tap into my broker contacts across the country where I see some opportunity to have this become my main business, maybe even eventually stop lending but for now it would be a minor part of what I do unless/until it grew to be the primary source of income. Who knows. 

:hijacked: maybe I should start another post?

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Mortgage Rate wise.... I am amending what I have previously said in terms of forecasting where rates are going. 

The reopening of the economy, another massive stimulus bill, raising gas rates, etc all are and will be big inflationary pressures. The 10 year yield will raise greatly. 

Rates may increase significantly through the year more so than I was previously thinking. 

70% of mortgages, from data, suggest there are still refinance opportunities to be beneficial for the homeowner. If you or someone you know is in that 70%, you need to act now. I don't see any benefit in waiting. 

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21 minutes ago, Chadstroma said:

The VVOE (Verbal Verification of Employment) is the only PIA thing about UWM right now. It is a COVID overlay and it use to be even more of a nightmare because it was to be done on the day of closing. They changed it to be within striking distance to closing date but it is still something that for more than a couple of loans I have to work with the borrower to figure out a way to get the info they want in the way they want it done. On one end, I understand the protections they have in place on it but on the other end it is not unusual for it to be a big PIA for the client and broker. 

Yeah, it was silly if you looked at everything I had sent. Paystubs from 2/26 and letter from my wife’s company on 3/1 with a number to call to verify. Her income didn’t even matter and it was still an issue. It’s good to be really streamlined with technology but it seems like it’s hard to have some common sense and keep it super fast/efficient.

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28 minutes ago, Chadstroma said:

f you or someone you know is in that 70%, you need to act now. I don't see any benefit in waiting. 

It's likely a combination of being educated on mortgages in general, no position to refi due to personal factors, and some have recently refi'd and don't want to do it again so soon.  Oh and some laziness too.

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2 hours ago, Chadstroma said:

Mortgage Rate wise.... I am amending what I have previously said in terms of forecasting where rates are going. 

The reopening of the economy, another massive stimulus bill, raising gas rates, etc all are and will be big inflationary pressures. The 10 year yield will raise greatly. 

Rates may increase significantly through the year more so than I was previously thinking. 

70% of mortgages, from data, suggest there are still refinance opportunities to be beneficial for the homeowner. If you or someone you know is in that 70%, you need to act now. I don't see any benefit in waiting. 

Sweet, right as I'm getting ready to move in April and look to buy my first home.  

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On 3/4/2021 at 12:49 PM, Chadstroma said:

Very pumped up now. If you have followed my posts in here you may remember that one of the things I am somewhat passionate about is my dislike of Quicken/Rocket. Mat Ishbia came out today and announced a few things and in it told brokers that they must choose.... either them or Quicken/Rocket and Fairway. Most brokers will choose UWM and drop Rocket and Fairway versus drop UWM. The gauntlet has been dropped! 

90%

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50 minutes ago, JaxBill said:
On 3/4/2021 at 12:49 PM, Chadstroma said:

Very pumped up now. If you have followed my posts in here you may remember that one of the things I am somewhat passionate about is my dislike of Quicken/Rocket. Mat Ishbia came out today and announced a few things and in it told brokers that they must choose.... either them or Quicken/Rocket and Fairway. Most brokers will choose UWM and drop Rocket and Fairway versus drop UWM. The gauntlet has been dropped! 

90%

Meanwhile.... the Rocket strikes back?

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27 minutes ago, Desert_Power said:

Meanwhile.... the Rocket strikes back?

Is this how rich people fight? Ish donated the largest amount ever to MSU and then Farner goes and buys the marketing rights (Farner, CEO of the red rocket is a MSU almunis as well)

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1 hour ago, JaxBill said:

90%

The evil empire is throwing 35 bps in pricing bonus to try to fight back. Brokers are reporting getting mutiple calls a day from whatever schmuck VP. They are definitely scared about their wholesale division taking a dive. 

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4 minutes ago, Chadstroma said:

The evil empire is throwing 35 bps in pricing bonus to try to fight back. Brokers are reporting getting mutiple calls a day from whatever schmuck VP. They are definitely scared about their wholesale division taking a dive. 

Don't understand why Fairway is mentioned also.  I work with them and they love RE agents 

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15 minutes ago, Getzlaf15 said:

Don't understand why Fairway is mentioned also.  I work with them and they love RE agents 

It is s broker thing. Their wholesale division is what is called wholetail and they have been extremely aggressive at going after broker LO's. 

I also think that their active attempts to spread false rumors about UWM this time last year may be part of it. They essentially were saying UWM was going to fail and was going to investment companies asking for capital or to sell to them etc. Essentially trying to make it happen. 

My brokerage does some business with Fairway but I have never and would never send a loan to them. No tears shed from me that they were added. 

My guess is this will kill Fairway's wholesale division. They will focus on retail. 

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I just want to thank @Chadstromain this thread, I refinanced with someone he referred me to and for the most part it went fairly smoothly.  It just took a little longer than expected and at closing I was charged to extend our rate. Chad encouraged me to reach out to the broker and when I didn’t get answer in a timely fashion he contacted the broker directly. Yesterday I got my refund in the mail, Chad is a good dude. Thanks for your help in the process.

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On 3/10/2021 at 3:48 PM, SFBayDuck said:

Sweet, right as I'm getting ready to move in April and look to buy my first home.  

Latest inflation reading was pretty tame.  Predicting interest rates is a fool's game.

BTW, congrats on buying a place.  Buying in the Bay area?

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34 minutes ago, pbm107 said:

I just want to thank @Chadstromain this thread, I refinanced with someone he referred me to and for the most part it went fairly smoothly.  It just took a little longer than expected and at closing I was charged to extend our rate. Chad encouraged me to reach out to the broker and when I didn’t get answer in a timely fashion he contacted the broker directly. Yesterday I got my refund in the mail, Chad is a good dude. Thanks for your help in the process.

Thanks bud

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1 hour ago, Sand said:

Latest inflation reading was pretty tame.  Predicting interest rates is a fool's game.

BTW, congrats on buying a place.  Buying in the Bay area?

Nope, after 25 years in Northern California we’re moving back to Oregon, Eugene specifically. It’s been the plan for sometime in the next few years, but our landlord told us last month that they’re selling the place so the plan got accelerated. 
 

We’ve been looking online for months, and obviously ramped that up the past few weeks. But places are selling within a matter of days, so we really have to be there and ready to act quickly. So we head up on the 4th, have an Airbnb for the month and we’ll go from there. 

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1 hour ago, SFBayDuck said:

Nope, after 25 years in Northern California we’re moving back to Oregon, Eugene specifically. It’s been the plan for sometime in the next few years, but our landlord told us last month that they’re selling the place so the plan got accelerated. 
 

We’ve been looking online for months, and obviously ramped that up the past few weeks. But places are selling within a matter of days, so we really have to be there and ready to act quickly. So we head up on the 4th, have an Airbnb for the month and we’ll go from there. 

Awww, yea, the Oregonians will love to welcome another Californian! :lmao:

Good luck on the move bud!

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2 hours ago, Chadstroma said:

Awww, yea, the Oregonians will love to welcome another Californian! :lmao:

Good luck on the move bud!

Well I’m a native born and raised, and left after graduating from U of O. But yeah until we get new plates on the car I’m sure we’ll get some looks!

and thanks, appreciate it!

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1 minute ago, SFBayDuck said:

Well I’m a native born and raised, and left after graduating from U of O. But yeah until we get new plates on the car I’m sure we’ll get some looks!

and thanks, appreciate it!

Make sure you get your Oregon Duck stickers on your car! :lmao:

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Bought Condo 3-4 yrs ago, interest rate was in the Mid 4s, I know I'm lazy and I should have refinanced already. 

I don't think I got the very best deal but I called a few places and most traditional banks like Chase where we have an account and do our banking were going to take roughly 60-90 days+ and that seemed ridiculous to me. 

I did get a direct lender on a referral and I think overall we did OK. Again I am sure others got way better somehow but we ended up with 2.9%(30-yr) and no points which was a big deal to me. There was a $995 Loan Fee but I assume that's where the LO and the direct lender charge their fee. Most of the other stuff was Title, Impounds, little junk, we took no cash out and I even offered to pay most of the closing costs out of pocket like the impounds as an example and just pay them up but that would have actually increased the interest rate I was told 🤷‍♂️

About 4.5% down to 2.9% with no points, I used to write loans in SoCal, 2/28 with an 8.5% fixed and times have really changed. 

I hope everyone is doing well, still an incredible time to own or purchase RE...the best part was the appraisal and finding out the same Condo we own in other buildings are selling for silly money vs what we paid when we bought in here. We bought it for around 200 and they are now going for around 300, that's crazy to me but Florida is simply booming right now. 

Cheers from South Florida everyone. 

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On 3/10/2021 at 1:32 AM, Chadstroma said:

I would love to get some feedback... 

I am seriously considering adding Financial Coaching services to what I do. I would remain a Mortgage Broker and in fact will be enrolling in insurance classes soon to add doing Insurance Brokering. Both mortgage and insurance will be working for companies as a W2 employee. The Financial Coaching would be starting my own company. 

For those here in this thread you have been exposed to my advice and coaching. Honestly, the feedback and kudos from my fellow FBG's has been a driving force for me to consider this. 

Some further info on me. Obviously I am a Mortgage Broker, I have been in banking, financial services, lending etc for 20+ years. As is my nature, I have gone above and beyond to understand and learn more than the training given to me or what others in my positions in the past typically know. I would give myself an expert rating in mortgage and equity lending, banking, credit scores/repair, and general personal finance. I am well acquainted with investing. I am more knowledgeable than your average person for insurance. That knowledge base will greatly increase as I begin the process to get licensed. 

My general thinking currently is to focus on first time homebuyers in credit and generally preparing to buy their home as the niche but offer general financial coaching as well. 

I am not really sure what I am looking for in this post. I know many of you are smart (all except Bronco and Chief fans that is), some are business owners, insightful, knowledgeable etc. It is a great group of people who have a lot to offer. Anything helpful is much appreciated. Thoughts, feedback, advice, constructive criticism, pleas to not do it or whatever else. Thanks for anything helpful!

DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT!!!

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1 hour ago, Ministry of Pain said:

DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT DO IT!!!

Soooooo.... I am not clear on what you think I should do. Can you unpack that?

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Do you work the Denver Colorado markets or do you have a referral who does?   Looking at refi now after a bad experience with another mortgage company on a purchase caused us to have to pay all cash to buy.  You can PM if you can help or want any details. Thanks

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On 3/12/2021 at 2:55 PM, SFBayDuck said:

Well I’m a native born and raised, and left after graduating from U of O. But yeah until we get new plates on the car I’m sure we’ll get some looks!

and thanks, appreciate it!

Excited for you, though the trail pics may not be as dramatic.

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1 hour ago, Chadstroma said:

Soooooo.... I am not clear on what you think I should do. Can you unpack that?

Honestly, I was going to say that part of a good home buying process for anyone is getting their finances in order first. That means working on credit and credit worthiness, cleaning up credit reports if they have blemishes and showing folks the difference between an asset and a debt. 

I was walking my son thru some of this ReFi we are doing and I showed him what we pay P&I then the taxes and then the HOA because this place doesn't look immaculate on its own, but in the end I have figured out that whatever we are paying per month isn't as much as we are making in appreciation monthly. As an example let's say the Mortgage is $1500 a month but the appreciation is around $2k a month...it's nice to know you could sell and get almost every single penny you have paid monthly that many folks factor in as "rent" never to be seen again...we should be teaching our children how mortgages work when they are young and especially those in poorer communities who might not have 1 relative or family member that even owns a home. 

I used to get shot down when I was teaching math and took the first 2 weeks o the school year when others were going over classroom rules and setting a slow n steady pace, we learned the Rules of Money and specifically compound interest and how it works for and against them throughout their lives, that didn't go over well with administration for some reason 🤷‍♂️

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2 hours ago, Ministry of Pain said:

Honestly, I was going to say that part of a good home buying process for anyone is getting their finances in order first. That means working on credit and credit worthiness, cleaning up credit reports if they have blemishes and showing folks the difference between an asset and a debt. 

I was walking my son thru some of this ReFi we are doing and I showed him what we pay P&I then the taxes and then the HOA because this place doesn't look immaculate on its own, but in the end I have figured out that whatever we are paying per month isn't as much as we are making in appreciation monthly. As an example let's say the Mortgage is $1500 a month but the appreciation is around $2k a month...it's nice to know you could sell and get almost every single penny you have paid monthly that many folks factor in as "rent" never to be seen again...we should be teaching our children how mortgages work when they are young and especially those in poorer communities who might not have 1 relative or family member that even owns a home. 

I used to get shot down when I was teaching math and took the first 2 weeks o the school year when others were going over classroom rules and setting a slow n steady pace, we learned the Rules of Money and specifically compound interest and how it works for and against them throughout their lives, that didn't go over well with administration for some reason 🤷‍♂️

One of the biggest failures of the school system as is is that it fails to teach personal finance (and other basic skills). I see it on a daily basis, so many people are clueless and never even have the most basic of foundations of how to operate as an adult with finances. 

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2 hours ago, jps said:

Do you work the Denver Colorado markets or do you have a referral who does?   Looking at refi now after a bad experience with another mortgage company on a purchase caused us to have to pay all cash to buy.  You can PM if you can help or want any details. Thanks

Our brokerage is licensed in CO. I will reach out. 

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On 3/1/2021 at 4:00 PM, Chadstroma said:

Oh and if you know a lender... give them a hug. The new URLA is out and pretty much everyone has to use it now.... and it sucks to put it nicely. 

UPDATE: THIS STILL Fing SUCKS!

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1 hour ago, Chadstroma said:

foundations of how to operate as an adult

I'm 45 and don't think I know how to do this.  Oh wait you're talking about finances, well that too.  

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Fully aware that I could do more research, but would love your thoughts/knowledge @Chadstroma:

 

One of my best friends just got in his head to buy his first home. He is probably above average financial health for Americans (which makes me sad), but I would say has a long way to go (e.g., makes like 5-6k post-tax, and his only savings are a maxed Roth IRA I convinced him to start like 18 months ago).

 

Anyway, a place came on the market, and he could put together like 3.5% down + closing costs. Would completely wipe out the small semblance of savings he has outside of that IRA. This is the same guy who spent the last 6 months throwing extra money at a car loan to get rid of it...and planned to get a new car this summer as a result. 

He asked for some help/what would I do (I'm a good friend, so I keep my mouth shut unless asked) and I said there's n universe I'd empty my savings to buy anything, and especially not to only be able to put down 3.5%.

 

Anyway, the questions:

  • I wouldn't buy a home until I could put 20% down. What is the tradeoff of putting less?
  • What's an FHA mortgage? Realtor mentioned it. I know Fair Housing Act, but what are the practical consequences?
  • How is buying a condo different from a SFH?
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52 minutes ago, Instinctive said:

Fully aware that I could do more research, but would love your thoughts/knowledge @Chadstroma:

 

One of my best friends just got in his head to buy his first home. He is probably above average financial health for Americans (which makes me sad), but I would say has a long way to go (e.g., makes like 5-6k post-tax, and his only savings are a maxed Roth IRA I convinced him to start like 18 months ago).

 

Anyway, a place came on the market, and he could put together like 3.5% down + closing costs. Would completely wipe out the small semblance of savings he has outside of that IRA. This is the same guy who spent the last 6 months throwing extra money at a car loan to get rid of it...and planned to get a new car this summer as a result. 

He asked for some help/what would I do (I'm a good friend, so I keep my mouth shut unless asked) and I said there's n universe I'd empty my savings to buy anything, and especially not to only be able to put down 3.5%.

 

Anyway, the questions:

  • I wouldn't buy a home until I could put 20% down. What is the tradeoff of putting less?
  • What's an FHA mortgage? Realtor mentioned it. I know Fair Housing Act, but what are the practical consequences?
  • How is buying a condo different from a SFH?

-I am generally not a fan of waiting to save 20% for a down payment unless you are living with the parents and not paying rent. 100% of the rent you pay every month is sunk cost. Meanwhile, if you own you are paying principal as well as property averages appreciation over time (including boom and busts) at about just over 5% a year. On top of that, rates are low and will only be going up from here so waiting to build up a down is going to cost in terms of the interest rates available as well. 

 

-FHA (Federal Housing Administration) is a government backed loan that allows for as low as 3.5% down. In short, you generally want to try to qualify for conventional over FHA but FHA fills in some options that conventional do not allow. Conventional can potentially do 3% down or 5% down. 

-The buying process is pretty close as being the same. The one big difference is the condo will need to be warrantable or it causes issues/cost and rates are generally slightly higher than SFR. Property taxes and insurance is generally less than similar SFR but then you have HOA dues. 

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47 minutes ago, Chadstroma said:

-I am generally not a fan of waiting to save 20% for a down payment unless you are living with the parents and not paying rent. 100% of the rent you pay every month is sunk cost. Meanwhile, if you own you are paying principal as well as property averages appreciation over time (including boom and busts) at about just over 5% a year. On top of that, rates are low and will only be going up from here so waiting to build up a down is going to cost in terms of the interest rates available as well. 

 

-FHA (Federal Housing Administration) is a government backed loan that allows for as low as 3.5% down. In short, you generally want to try to qualify for conventional over FHA but FHA fills in some options that conventional do not allow. Conventional can potentially do 3% down or 5% down. 

-The buying process is pretty close as being the same. The one big difference is the condo will need to be warrantable or it causes issues/cost and rates are generally slightly higher than SFR. Property taxes and insurance is generally less than similar SFR but then you have HOA dues. 

Thank you sir!

 

So to clarify: from a mortgage perspective what is the downside of not having 20% down? Is it "just" PMI? Does it affect your actual rate? I assume some sellers may be wary?

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On 2/25/2021 at 5:18 PM, BassNBrew said:

Thanks for the reply.  In for more AH at $7.57.  Chasing this to Zero.

Been thinking about shorting Rocket, so I came in here.  

Shorting UWMC the play?

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39 minutes ago, Instinctive said:

Thank you sir!

 

So to clarify: from a mortgage perspective what is the downside of not having 20% down? Is it "just" PMI? Does it affect your actual rate? I assume some sellers may be wary?

95% and 80% LTV rates on conventional, all else being the same, generally run the same so the difference is the PMI. 

Generally, it isn't an issue for sellers but in a hyper competitive market like this even small details could tip an offer one direction or another. 

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5 hours ago, KGB said:

Been thinking about shorting Rocket, so I came in here.  

Shorting UWMC the play?

Shorting a company with a PE in the 6s paying a 4.5% dividend wouldn't be at the top of my list.

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