Mortgages - Discounts for CSC members.

[Clovis]

As a lot of you know I'm a professional mortgage broker.

My personal specialty is refinancing for a variety or reasons such as an ARM to a fixed rate, cash out for debt consolidation, really any reason as long as it's beneficial to you.

I also offer a variety of home purchase products including first time home buyer products with down payment assistance.

In a nutshell I can do anything related to residential mortgages and being a preferred broker with the major lenders (Chase, Wells Fargo, Countrywide, Indy Mac, ect) I'm able to offer unbeatable pricing, especially for CSC members! (Discount!)

In addition to traditional financing I also offer a full spectrum of FHA and VA loans.

If you're able to full prove your income (aka, full doc) FHA loans offer killer rates up to 97% LTV even if your credit is spotty.

Currently rates for 30 year fixed mortgages with full doc borrowers or stated/stated borrowers w/ high FICO scores is around the mid- 5%s – These rates are nearing two-year lows.

If you're in the market for a home loan or even if you're in the final stages of refinancing or purchasing a loan and want a second opinion I'm happy to help!

Please feel free to contact me directly at 719-201-9383.

-Justin

[Clovis]

Bumpity!

[BeoBe]

i cant right now but i will surely keep you in mind... want to look for a house soon but need to get school finished and find out where im going to be stationed

[Brat]

bump for a good friend, and honest down to earth person.

[merlotSV]

I cant refi until feb 09 but i might call to get some advice before then! Thanks!

[Clovis]

Feel free to give me a call, I'm happy to answer any mortgage related questions and provide my professional advice.

[vmax2003]

im in the market i think for an condo or a townhome. i prequaled for 113k, not much i guess but my credit was excellent.

[Squisha]

Feel free to give me a call, I'm happy to answer any mortgage related questions and provide my professional advice.

Ok, so I'm in the process of buying a house, still mortgage shopping, btw, but I have a question. I was told that Adams county has some funky rule that affects whether you can go no money down or not. The explanation I got was VERY wishy-washy. There were lots of words I don't fully understand, having something to do with appraisal and underwriting. Help a gal out? I'll probably be giving you a shout regardless, see what you can do for me, since right now I'm being quoted a rate of 6.5% for a FICO score around 780, and that doesn't seem all that great. I'd love to hear your two cents!

[VFR]

Clovis, do you work with V.A? Basically I got into the house with 6.625 interest rate and I see they have went down. I have been in the house 1.5 years and was looking to refinance but did not want to pay the closing cost again. Let me know if you think you can work something out for me.

What I am looking for is about 5.25 interest rate, zero closing, fixed.

My current loan is fixed also. It is through Wells Fargo

Also looking to keep it under V.A

[Clovis]

im in the market i think for an condo or a townhome. i prequaled for 113k, not much i guess but my credit was excellent.

Condos are generally inexpensive so I would say $113k is about right.

Now condos in Aspen... my lord. I've seen them go for $2M+

-Clov

[Clovis]

Ok, so I'm in the process of buying a house, still mortgage shopping, btw, but I have a question. I was told that Adams county has some funky rule that affects whether you can go no money down or not. The explanation I got was VERY wishy-washy. There were lots of words I don't fully understand, having something to do with appraisal and underwriting. Help a gal out? I'll probably be giving you a shout regardless, see what you can do for me, since right now I'm being quoted a rate of 6.5% for a FICO score around 780, and that doesn't seem all that great. I'd love to hear your two cents!

As far as the Adams county specific rule, I'm not sure about that. Generally it's your credit score and doc type (full, reduced, stated) and the lender that determines if you can go with $0 down or not.

Generally speaking it's a good idea to have at least some of a down payment (I recommend 5% min) because the mortgage insurance differences at 95% LTV versus 100% LTV are significant.

FHA will go to 97% so a lot of people go with a 3% down or a 3% down payment assistance. The nice thing about FHA loans is the mortgage insurance is a flat .50 factor (loan amount times .5 - divided by 12 = per month MI payment. They're able to do this for two reasons. One, they charge you an upfront fee of 1.5% which is on the loan and rolled in and you can't get the MI removed until you've paid down to 78% from the original value/purchase price. Normal PMI you can petition to have it removed once your loan to value is 80% or less which generally comes from an appraisal showing your home has appreciated. FHA bases it off the original amount, not the appreciated amount.

So now that the FHA lession is over.. ;)

As far as your rate:

6.5% may be good, or may not be, I need more details.

Are you going full doc? Are they charging you points? What's your LTV at?(Loan To Value)

Chances are I can beat that rate and charge lower closing cost, especially considering I'm undercharging (discounting) CSC members.

I realize this was a bit longer then I intended but hopefully it make sense. Feel free to call me directly and I'll be happy to answer any questions - 719-201-9383.

-Clovis/Justin

[Clovis]

Clovis, do you work with V.A? Basically I got into the house with 6.625 interest rate and I see they have went down. I have been in the house 1.5 years and was looking to refinance but did not want to pay the closing cost again. Let me know if you think you can work something out for me.

What I am looking for is about 5.25 interest rate, zero closing, fixed.

My current loan is fixed also. It is through Wells Fargo

Also looking to keep it under V.A

VFR,

I do infact work with VA. However VA is generally not a very good option in my professional opinion for refinancing due to the closing cost involved. VA is a great means of purchasing a home.

For refinancing you're usually better off going FHA or conventianal financing - I offer both as well :)

With your current 6.625% I can give you a lower rate on a 30 year fixed but there will be cost involved depending on how much lower you want it to be. That really depends on how long you intend to keep the loan and stay in the house.

As far as a 5.25% fixed, no closing cost loan -Sorry, that's currently impossible and will likely remain so for the forseeable future.

Let me explain how the rate is determined:

On a 30 year fixed, the current (12/18/07) par rate is 5.875% for most lenders. This rate changes on a daily basis, usually within +/- .125%

The par rate is also known as the "rate at cost". This is the rate that only a wholesell broker can get. Unfortantely you can't go into Chase and simply ask for the wholesale par rate, they'll refer you to retail which charges a significantly higher rate (the retail rate). As a broker I have always been able to significantly beat a retail bank rate.

A broker/mortgage company, in order to get paid for their services structures the rate one of a few different ways. One option is to charge the par rate and a 2% origination fee. Another option is to charge a slightly higher rate and a 1% origination fee, or an even slightly higher rate with no origination fee.

With a higher rate the broker is paid Yield Spread Premium (aka YSP) from the lender in exchange for the slightly higher rate. This invaluable tool allows the broker to charge you a lower amount of fees because the lender is paying them instead.

In order to do a "no cost" refinance the rate is quite a bit higher then prime.

Generally speaking for every .25% increase in the rate over par (cost) the broker is earning 1% back from the lender.

For a no cost to be effective the total YSP has to be around 3%.

Here's an example:

$300,000 loan amount - Par is 5.875.
The broker charges 6.625% and makes 3% back in the YSP.
That 3% translates to $9000 paid to them by the lender - it may seem like a lot but he then takes that $9000 and uses it to pay your closing cost of say, $3000. The YSP that is then left over ($6000) is the profit for the broker/company but then they split it with the company. This split can be anywhere from 50/50 to 80/20 between the broker and the company. Mine personally is 65% for self-sourced loans as long as I do 3 or more loans per month.

In this scenario I would take home $3900 after a 65% split with $6000 in profit.

Because the "no cost" option uses YSP to pay the closing cost and the broker still has to earn a living, it only really works on larger sized loans in the $250k to $417k range.

www.bankrate.com (http://www.bankrate.com) is a good website for tracking national and state specific mortgage rates - Click over on mortgages and you can click Colorado in the map. These are the national average of rates which include loans with points and loans without - it's an average of millions of loans originated.

-Justin 719-201-9383.

[Clovis]

Another thing I wanted to advise people of.

Everyone has probably seen the flashing adds on various website claiming that "rates fall again in Colorado!" or perhaps simply just "Rates fall again, select your new payment" and the advertised is something like 2.99%, 3.99% ect.

Folks, welcome to pay option ARMs, the "lose your home" loans of the mortgage industry.

Pay option ARMs, also known as "pick a pay" loans are extremely dangerous for the average consumer. They are intended for a very small portion of the population and in the recent past (the refi boom, especially in CA) were marketed to the masses.

A Pay option arm is a loan that adjust on a monthly basis and gives you multiple payment options.

The adjustable rate itself is usually around 8 to 9%.

You have a minimum payment based off an interest rate of 2.99 or 3.99%, hence the deceptive advertisement and then you have your real payment.

These loans provide 3 to 4 payment options, as follows.

Minimum payment (which does not even cover the interest)
Interest only payment
Fully amort 15 year payment
Fully amort 30 year payment

The fully amort payments, which are the *real* payments are generally too high to afford that most people just make the minimum payment or at best the interest only payment.

A lot of people got into these loans without fully understanding what they were because the loans paid the originating broker exceedingly well because everything was structured around the minimum payment of 2.99% while the broker made a ton of YSP based off the true rate, effectively hiding it from the borrower.

With that said, I have never originated a pay option ARM. They're dangerous and not a benificial loan.

Here is why option ARMs are a lose your home loan.

When you make the minimum payment, the unpaid interest in added to your principle balance, every month.

In other words, every month your loan amount gets higher and higher. I've refinanced people with these ARMs where their loan has increased by $10,000 in just over a year's time.

Eventually when the new balance reaches 110% to 115% (depending on the state) of the original balance the minimum and interest only payment options are removed and you have to make fully amortitized payments, which effectively triples your payment. Generally by this time you're so upside down on your home that refinancing isn't an option because you owe more then it's worth and you're stuck with a payment you can't possibly afford. Welcome to foreclosure!

Call me with any questions!

[Clovis]

Presently (1/8/07) - Rates are at a 28 month low, so now is an exception to lock your rate.

[rforsythe]

Wrong forum. Moving.

[TurboGizzmo]

Anyone have a review yet? ;) I would love to bounce out of my Well Fargo weird ARM thing and lower my payments......

[Drew303]

You have a PM.

[denverbusa]

Just wanted to let everyone know that I am on my second loan with Justin. After refinancing my condo with him I am now getting close to finalizing the re-purchase of my house back from the ex-wife. She will be renting the condo from me.

Justin has always had the time to answer my questions and when there was an issue with the dollar amounts that were different from what we talked about, Justins company came up with the difference and I did not have to bring money to the table. It wasn't a great deal of money but it showed me that they were a reputable company and one that I didn't hesitate in bringing my next loan to. They understand what customer service is. I have had others call me about special offers and lower rates but there is always a catch and they always tried to slide right past the part where it was going to cost you. In going over the ex-wifes old documentation from her current 5 year ARM she paid over $8,500 dollars in closing costs.:shocked:Stupid, stupid, stupid!:banghead:

Just my .02 for what it is worth.

Mark