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Author: mandmweb

Commercial Mortgage Broker Fee Agreement

Now having a good commercial mortgage broker agreement in place with your borrower is more important than ever. As CMBS lenders like Lehman, Silver hill, etc have been taking the worst of it, we as commercial mortgage brokers are now forced to originate our commercial mortgages through traditional sources, i.e. regional or smaller banks. These banks that for years saw their market share shrink are now in control. Many of them never bothered to increase their risk thresholds and or change their underwriting guidelines to stay competitive. They are now reaping the rewards of that prudence. Bottom line, they still have money to lend and many times their rates are considerable better than the rest of the market. The challenge however for commercial brokers is that most of these smaller banks are not broker friendly. Or more accurately stated most of them are not set up to work with brokers like the CMBS lenders. For example it’s very rare that a smaller bank will pay rebate or ysp. Once in a while you may find a bank that will pay a .5% or 1% referral fee, but that’s it and it’s rare to find. Rather many of these banks expect you to get paid on top of their 1% bank fee. Or worse many of them will want you to make your fee outside of close… When was the...

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Dangers of Reverse Mortgage – Be Informed About Your New Mortgage

As baby boomers get older and start thinking about how to finance their retirement, reverse mortgages are becoming more popular. For people over the age of 62 who have 75% equity in their home, a reverse mortgage can be a good way to get tax-free income that does not have to be repaid. But along with every good thing comes some bad and there are some dangers of reverse mortgages that you should be aware of. Although they are a good opportunity for most of those who qualify, you just want to make sure you are fully informed about all the options. A reverse mortgage allows seniors to use the equity in their home and receive tax-free income without having to give up ownership, or make a monthly payment. The money that is received is paid back when the home is sold, usually after the owners have died or moved into other living arrangements. The amount of money received depends primarily on your age, how much the house is worth, the interest rate, and the current mortgage balance, if any. You can receive the money basically three different ways: a lump sum payment, fixed monthly payments, or a line of credit that can be accessed whenever needed. There are dangers of reverse mortgages associated with each of these options. A lump sum payment When you receive a lump sum...

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When is a Good Time To Refinance

When to Refinance your Mortgage All homeowner in Northern California and Southern California can be different and I'll help you decide if refinancing is the right move for you. Refinancing usually means lowering your current mortgage rate by at least one percent or staying around the same rate but consolidating higher debt (credit cards, car loans, etc). You might also want to consider changing the length of your loan or receiving money from the equity in your home. It's easy to see what will work for you, just run the numbers for yourself using one of our refinance calculator. Possible Benefits of Refinancing If you want to increase your monthly cash flow, refinancing to lower your monthly payment could help you out. To get a idea of ​​what your new monthly payment would be, you can use a Refinance Calculator. Refinancing could also allow you to shorten your loan term if you qualify and help you consolidate Bills. Using your Homes Equity Many people borrow from the equity in their homes and to use the money to make improvements. 90-95 percent of the appraised value of your home can be used to make those improvements or consolidate debt. The equity you can use is measured on the value of the home and what you currently owe. You can still refinance if you do not have much equity – up...

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The 15-Year Mortgage Strategy

Many people focus on the interest rates and points of a loan till they can not see straight. In truth, the term of the loan is just as critical if not more so. The term of a home loan is simply the number of months you will be repaying it back. Most people refer to the term by years for easy, but it the 30 year mortgage is really 360 months in the view of lenders. If you take the time to think through your loan, you will soon come to realize the term can be tweaked to save you serious money on interest. The traditional home loan has a term of 360 months or 30 years. Most people accept this term without blinking an eye, but think about that for a moment. You are committing to making monthly payments for 30 full years. It is like being the parent of the kid who never grows up and leaves the home. If you are 30 years old when you take out the loan, you are committing to paying it till you are 60! To shorten the term of most loans, borrowers are often advised to consider terms of 180 months or 15 years. If you can choose this term, you will save a bundle on the total interest paid on the loan. You will also typically get a lower...

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