Real Estate Forums

San Diego Real Estate · 05-03-2005, 07:40 AM

afm1...
where do you see the market headed in regards to new loan scenarios?

afm1 · 05-04-2005, 04:46 PM

Well, it is tough to say. It usually seems like new products come out all of the time. I find that most people don't like creative financing. They are too comfortable with paying 30 year money.

A few things that I have seen becoming more popular recently are as follows:

Option ARMS - neg am possibilities (investors now go to 95%) low teaser rate
40 year notes
1st lien HELOC's
100% investor (non owner occupied loans)
Reverse Mortgages (refi only)
Balloon resets. Can reset at 50 basis points above market rate at no cost. (Freddie Mac has a great product for this)
No Doc (true no doc - no income, no assets, no job)

These are just a few that I dabble with from time to time. It is funny, I have not done a 30 year fully amortized fixed mortgage for well over a year now.

Portland Real Estate · 05-04-2005, 05:01 PM

Very interesting. I think Portland is still stuck in the dark ages.

afm1 · 05-05-2005, 07:27 AM

lol.

Portland. It is all about education for the borrower. The "customer is always right", but I always give a minimum of two loan scenarios to my borrowers...sometimes more and I let them pick which one they like.

I have mentioned in the past, age of a borrower and the amount of the downpayment can be very telling. I am 30 years old. I will probably do 5 year arms until I am about 45 and then get into a 15 year fixed. I also know that I will not live in my house forever. That is just me.

Portland Real Estate · 05-05-2005, 10:05 AM

afm1, I'd love to have clients like you, changing house every few years!!! Have a good one.

Max

afm1 · 05-05-2005, 10:14 AM

lol.

Yeah, I am in a hot market too.

In my market, people refinance (on average) every 3 years. They need money for weddings, tuition, credit cards, home improvements...you name it.

The biggest thing I see with purchases is KIDS. Once they have them, they need more room. That is why age is so important when showing and pitching.

Good luck out there. Talk to you soon.

San Diego Real Estate · 05-10-2005, 08:37 PM

Quote:

Originally Posted by afm1

lol.

Portland. It is all about education for the borrower. The "customer is always right", but I always give a minimum of two loan scenarios to my borrowers...sometimes more and I let them pick which one they like.

I have mentioned in the past, age of a borrower and the amount of the downpayment can be very telling. I am 30 years old. I will probably do 5 year arms until I am about 45 and then get into a 15 year fixed. I also know that I will not live in my house forever. That is just me.

afm1 that is a great point...One of the most important things for someone to consider before shopping! Great Info!