Let’s Talk Appraisals – Or Religion – Or Politics……

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Michael Nelson - Equity Prime, LLC
What You Need to Know About Home Appraisals – Geoff Williams – US News

We all have heard the age-old adage – never talk religion or politics with customers, the date you want to impress, or the in-laws.  Well, we might as well add appraisals into the forbidden discussion category.  As a mortgage lender, this is a tough topic.  Regulations are very clear on the interaction allowed between a loan officer and an appraiser.  Which is to say a loan officer and an appraiser can have no interaction at all.

 

 

Appraisals are a hot topic – lots of emotion and added stress!

Michael Nelson - Equity Prime
What You Should Know About the Appraisal Process – Michele Lerner – Realtor.com

I don’t take issue with the regulations for all the obvious reasons.  History has certainly taught us that relationships between loan officer and appraiser are ill-advised.  But, I do suggest regulation has taken the pendulum too far to the other side.  Scarcity of appraisers and the time required to get an appraisal have made the 30 day close very hard to hit.  Especially in a TRID environment and refinance transactions.  While, I understand that each state is different, I can tell you the appraisal situation in Colorado is especially troublesome.

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What is APR And Is It Important?

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There is a lot of regulation around APR and home mortgages – anything with this much regulation must be important, right?  Lenders and loan officers spend a lot of time calculating, managing, and disclosing APR – it is a big part of everyday life in the lending industry.

Candidly, APR is confusing and hard to understand.  I have heard it called many things – average percentage rate, about percentage rate, approximate percentage rates…  For the record it is Annual Percentage Rate.  Let’s clear up some of the confusion.

Equity Prime - Michael Nelson
The Mortgage Reports – by Gina Pogol

What is APR and Why Is It Important?

APR (annual percentage rate) is  the interest rate plus the costs associated with the loan.  This mysterious number is intended to give an apples to apples comparison between two different loans.  Theoretically, if the consumer compares the APR of two loans, the loan with the lowest annual percentage rate is naturally the best loan for the consumer.  APR is designed to protect consumes from hidden costs, bait & switch, and deceptive marketing schemes which have been used in this industry.

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Points & Mortgages: Good idea or wasted money? Observations from a LO – #3 in a series.

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Warning this post is long, technical, & full of numbers!
Understanding points takes a few more words than most of us want to read.

Mortgages are not the most exciting topic on the planet.  I try to keep my posts relatively short and to the point.  If you are considering discount points for a mortgage – give this post a read.  If you don’t want to read it – give me a call or send me a note.

If you have insomnia – I recommend this blog and a smart phone as you try to go to sleep.

Virtually every mortgage transaction includes a discussion of discount points.  Candidly, points are confusing.  From time to time, I will hear good analysis on points but most of the time I find the analysis misguided.

 Michael Nelson, Equity PrimeUse the right tool, in the right amount, for the right purpose

Points are like an ice cream scoop.  If you use the ice cream scoop a few times a week to scoop your favorite bowl of ice cream, the scoop is a great tool.  If you use that scoop 5 times a day for the next year it will bury you in debt – I mean ice cream. 

 

 

Click for morePoints & Mortgages: Good idea or wasted money? Observations from a LO – #3 in a series.

I still haven’t found what I’m looking for | Equity Prime Mortgage

Mortgage and loan blog updates Source: I still haven’t found what I’m looking for | Equity Prime Mortgage Good morning everyone – Follow the link above to the latest blog from our Chief Investment Officer – Philip N. Mancuso.  I always enjoy his blog posts – just the right amount …

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What’s Wrong With Negative Rates?

One reason for the lingering effects of the 2008 financial crisis is central banks’ continued reliance on a flawed economic model. As long as policymakers focus on interest rates instead of on the flow of credit, the problem of deficient aggregate demand is unlikely to be resolved. Source: What’s Wrong …

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How Negative Interest Rates Work – Short Video

Negative interest rates are a topic of conversation these days.  It seems that most of the Saturday afternoon bar-b-que conversations with friends from the neighborhood show a lot of misunderstanding about what negative rates are and how they work.  Let’s face it, negative interest rates are uncharted territory in the …

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What tools does the Fed have left? Part 2: Targeting longer-term interest rates | Brookings Institution

In the second of a series on the Fed’s remaining monetary tools, Ben Bernanke discusses how the central bank might target longer-term interest rates. Source: What tools does the Fed have left? Part 2: Targeting longer-term interest rates | Brookings Institution This is part 2 to Bernake’s post of a …

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