Mortgage : Home Loans : Refinance : Home Equity Loans

By Louie Latour

Yield Spread Premium sounds scary, but it

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By Louie Latour

Locking in your mortgage interest rate is how loan originators guarantee an interest rate. The purpose of the lock is to allow you time to close on the loan at the interest rate you agreed. If you are unable to close before the rate lock expires, the mortgage lender could charge you a higher interest rate for the loan. Here are the basics of mortgage rate locks to protect you when refinancing your mortgage loan.

Wholesales mortgage lenders use a rate sheet listing the current day

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By Louie Latour

Mortgage lenders and brokers use interest rate lock guarantees to insure you have time to close on the mortgage without the interest rate changing. How do you know the guarantee the loan originator gives you is the same the interest rate quoted by the wholesale lender? Loan originators commonly inflate their interest rates to receive an additional commission from the wholesale lender. Here are several tips to help you understand the interest rate guarantee provided by your loan originator.

There are two types of rate lock guarantees when you take out a mortgage loan. There is the written guarantee your mortgage company provides you and the guarantee the wholesale lender provides your mortgage company. These two guarantees may not be for the same interest rate. Your mortgage company may be adding a premium to the interest rate they are quoting you; mortgage companies commonly do this because they are paid a bonus for overcharging you on this rate.

When you receive a written rate lock from your mortgage company there are a several things to look for on this document. Make sure the interest rate, loan amount, lock date, expiration of the lock, and any points are all what you agreed. This rate lock means that your interest rate is only guaranteed with the mortgage company originating your loan. How do you know if the interest rate quoted by the wholesale lender has been marked up by the mortgage company? Ask them for a copy of the guarantee from the wholesale lender. Some loan originators stall or even refuse when you ask them for this guarantee; they are afraid you might find out they have marked up the interest rate. You can learn more about refinancing your mortgage without overpaying by registering for a free mortgage guidebook.

To get your free mortgage guidebook visit RefiAdvisor.com using the link below. Louie Latour specializes in showing homeowners how to avoid common ! mortgage mistakes and predatory lenders. For a free copy of “Mortgage Refinancing: What You Need to Know,” which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com. Claim your free guidebook today at: http://www.refiadvisor.com Mortgage Refinance Information

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For additional Mortgage Refinancing information
and resources visit Mortgage Refinancing.
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By Joseph Kocsis

An analysis conducted recently in the UK prompted the article, as it identified that fee-free UK mortgage offers are more expensive than deals with an application fee for consumers with a mortgage of

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For additional Mortgage Refinancing information
and resources visit Mortgage Refinancing.
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By Stephen Bush

Getting commercial real estate loans approved is almost always complex and frequently difficult. Business borrowers need to realize that there are several commercial mortgage loan situations which can be especially difficult to get approved. Examples of eight difficult business loan situations are described to illustrate two key points: (1) these difficulties are not uncommon; and (2) these difficulties can be overcome in most cases.

Difficult Commercial Mortgage Loan Situation Number 1:

A commercial loan that needs to be closed in 60 days or less. It is not unusual to discover that a traditional lender considers six to nine months “normal” for commercial loan underwriting. Obviously this will act as a severe constraint if a commercial borrower is trying to buy a property that the seller wants to close in two to three months. If quick funding is essential, the commercial borrower should contact a non-bank business lender where most commercial loans will close in 45 to 55 days.

Difficult Commercial Mortgage Loan Situation Number 2:

A commercial loan that won’t work without long-term financing. What is long-term financing for a commercial loan? Some commercial lenders view 3-5 years as the longest period before a commercial loan will be subject to a balloon payment. If that sounds short-term instead of long-term, most non-bank business lenders can arrange 25-year to 40-year commercial real estate loans for commercial properties. Longer-term financing will often be the critical difference that facilitates a successful business investment (especially because mortgage payments will be reduced dramatically).

Difficult Commercial Mortgage Loan Situation Number 3:

Providing financial data to a commercial lender after the loan is closed. Some commercial loans will have covenants stipulating that the lender must receive financial data even after the loan closing and that the loan can be recalled (forci!
ng the b
orrower to repay early) if the audit of this data is not satisfactory to the lender. In stark contrast to this, commercial loans via non-bank commercial lenders based on Stated Income will not require business plans or income verification either before or after the loan is closed.

Difficult Commercial Mortgage Loan Situation Number 4:

Borrower is self-employed or income is paid on a commission, bonus or incentive basis that is somewhat erratic and difficult to document properly. Non-bank commercial lenders using a Stated Income business loan program will not require tax returns or any income verification. They also will not require commercial borrowers to sign IRS Form 4506 (which authorizes the lender to obtain tax returns directly from the IRS), a form routinely required by many commercial lenders.

Difficult Commercial Mortgage Loan Situation Number 5:

A borrower wants to refinance a commercial property and use $500,000 to $1 million from the proceeds to buy another property. Most commercial lenders will restrict the maximum cash that can be taken out of a refinancing, with a normal limit of $100,000 to $250,000. It is also not uncommon to encounter restrictions on the use of the cash. With a commercial loan via most non-bank commercial lenders, the commercial borrower could receive unrestricted cash up to one million dollars and use the proceeds without restrictions.

Difficult Commercial Mortgage Loan Situation Number 6:

A borrower wants to use a substantial amount of subordinated debt (a seller second or other secondary financing) to reduce the amount of cash needed to purchase a commercial property. Many commercial loans will not permit a seller second or other forms of subordinated debt. With a commercial loan via most non-bank business lenders, a commercial borrower can obtain Combined-Loan-to-Value (CLTV) ratios up to 95% with subordinate financing (including seller seconds).

ng>Diffi
cult Commercial Mortgage Loan Situation Number 7:

Sourcing and Seasoning of assets or ownership. For a purchase, commercial lenders will frequently want documentation about where the down payment is coming from (the source, so having limitations about where the funds are coming from is called sourcing). Commercial lenders will frequently have requirements stipulating that the down payment funds must have been in a specific account for a specific period of time, often 3-6 months or longer (this is called seasoning because it is tantamount to requiring that the funds have matured by being in the same place for a while). Seasoning of ownership is similar to seasoning of funds, except this requirement involves the minimum time someone has owned a commercial property before they can refinance the property. Most non-bank commercial lenders do not have any requirements or limitations involving either sourcing/seasoning of funds or seasoning of ownership.

Difficult Commercial Mortgage Loan Situation Number 8:

A borrower needs a $100,000 commercial loan. What’s difficult about this situation? Many/most commercial lenders will have much higher minimum amounts for commercial loans ($250,000 to $350,000 is not uncommon). At most non-bank business lenders, the minimum commercial loan is $100,000.

Copyright 2005-2006 AEX Commercial Financing Group, LLC. All Rights Reserved.

Stephen Bush is the Founder and Chief Executive Officer of AEX Commercial Financing Group, LLC ( http://aexcommercialfinancing.com ). Steve provides commercial financing assistance throughout the United States and is the publisher of The Commercial Mortgage Loans Guide ( http://aexcfgllc.com ) and The Credit Card Receivables Guide ( htt! p://aexc fg.com ). Information about enrolling for a free online seven-part Commercial Mortgage Course or a free online six-part series of Special Commercial Financing Reports is available at all AEX Commercial Financing Group, LLC websites. Steve can be reached by phone at (937) 502-1345 or toll-free (888) 593-3951.

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For additional Mortgage Refinancing information
and resources visit Mortgage Refinancing.
(http://www.refinance-refinance.net)
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