AARONMEILICH.COM

Condos are priced very attractively...how come you can't get financing?

AaronM — Mon, 09 Jan 2012 06:08:00 GMT

Here is a term to get familiar with:

Non Warrantable Condo

The condo project does not fit the three Fannie Mae, Freddie Mac or FHA class guidelines. Banks typically do not like to lend on condominiums in non warrantable condo projects because they cannot be insured and cannot be sold off to an investor. The only lenders who will lend on a non warrantable condo project is a portfolio lender.

Non warrantable condo portfolio lenders lend their own money and hold the loan for servicing in their “portfolio” of loans. Non-warrantable condo portfolio lenders tend to lend on riskier real estate transactions and give higher rates due to the risk. Yes…this means a non warrantable condo typically have higher rates.

How do I find one of these banks that offers portfolio lending?

You reached the right spot! If you are located in California you can reach me at Golden Pacific Bank and we offer a bank portfolio loan that has competitive rates and terms. As an actual FDIC Insured depository bank we underwrite and fund our loans here locally in Sacramento.

We offer financing on :

NON-Warrantable Condos
Condo Hotels (Condotels)
Hobby Farms
Residential Care Homes
Mixed Use
Residential Construction
Rural/Agricultural residential

Aaron Meilich |Community Banker

Golden Pacific Bank

916.798.3000 direct

aaronm@goldenpacificbank.com

A little motivation...to win

AaronM — Wed, 10 Aug 2011 05:29:29 GMT

Can interest rates go any lower?

AaronM — Fri, 05 Aug 2011 05:38:29 GMT

Mortgage Interest rates have again tested 20 year lows. So the for those trying to time market make sure you are already approved by your bank or lending institution and have your finger on the trigger. While for years and years most economists or analysts have predicted that at some point rates will have to go up. While that probably is correct is up going from 4.25%-4.75% or does that mean to 5.25%? Your guess is as good as mine. I believe most mortgage holders would benefit from today low rates. The important thing to do is work on getting yourself qualified as soon as possible so you are prepared. With rates this low the process starts to sloooooowwwww down. As a borrower you have to have the 3C's in order(Good Credit, Capacity to repay documented with tax returns, Collateral or enough equity in your property) You can also start the process then watch the rates with your trusted lender. In today's lending environment the "haggle" over interest rates isn't an impressive conversation with your lender. Lenders no longer earn their income based on the interest rate you decide you want to "lock in" at. The rate will determine whether you are paying closing costs or the bank is covering the costs for you. (see my earlier article on closing costs)

Home Energy Improvement Loans 0-3%!?

AaronM — Fri, 05 Aug 2011 04:35:21 GMT

I just called these guys and got referred to a contractor that comes out to do a HERS rating which basically compares your home to 2008 efficiency standards. From there gives you the recommendations that will improve your utility costs. I have a appt. on Monday to have them come out I will report back my findings.

08/04/2011

Is your house leaking energy and money? Get financial assistance to upgrade now!

The CHF Residential Energy Retrofit Program makes it possible to finance energy upgrades to your home with grants and a 3% fixed interest rate 15-year loan†. Replacing windows, sealing air spaces, insulating walls, floors, ceiling or roof, and upgrading heating and cooling equipment are just a few examples of energy efficiency work that can significantly reduce your household energy consumption and slash your energy bills.

With thousands of dollars in rebates and incentives available, and financing options and grants through CHF, it's the right time to plan your home energy upgrade. View Program Flyer

The benefits

Increase energy efficiency
Create a more comfortable home
Potentially lower your utility bills
Potentially increase your home's value

Spot light on the "NO COST" loan

AaronM — Tue, 31 May 2011 22:26:58 GMT

2 Questions: Does the "No Cost" loan really mean "No Cost"? Why would I want to pay points?

Answer: While a "No Cost" loan certainly can devoid you of the traditional costs (Closing costs)of obtaining financing commonly including: Title/Escrow Fees, Appraisal Fees, Point(s) or Discount Fee(s), Processing Fees & Lender fees. This doesn't mean it won't cost you.

Take for example a 30 year fixed mortgage at 4.875% on a $250,000 loan amount. This loan has NO Closing Costs The interest you pay over the life of the loan is $225,928

Now for the same loan at a lower rate of 4.625% you would have $4350 in closing cost. However you would only have $212,398 ($13,530) in total interest and the lower rate would save you $38 per month ($13,680 in life payment savings).

While the savings over 30 years are noteworthy before you go spend your hard earned money in the bank lets consider some variables.

How long have you been in the home /How long you plan to be in the home?
Are you going to refinance again in the future? Adjustable Mortgages, Balloons, Construction Loans etc may cause you to refinance in the future. Historically the average life of a loan is 7 years. Lower rates may stretch that figure out.
Do you have the savings or equity necessary to pay the closing costs? Does it cause a hardship by using those funds?
Can you invest those savings to further increase your savings?
What rate of return do those funds (used for closing costs)currently create for you?

This is just one area a seasoned mortgage professional that is looking after what's best for you will bring to light.

Welcome

AaronM — Mon, 30 May 2011 21:54:53 GMT

Welcome to my blog. Please check back soon for new entries.