I am often challenged with why use DML Mortgage. Whereas we have in house underwriting and over 27 years experience in business there is a defined reason I never became the Banker (although maybe mom wanted me to be the Banker).

A good mortgage broker with strong back office support can be more flexible, more service-oriented than the Banker who is in a never ending cycle to figure out which product line they want to offer and the never ending changes they must battle, both corporate and regulatory.
Mortgage Broker can pursue the best program and product that fits their borrowers needs better than the banker who may be subject to specific corporate pricing that hinders their ability to compete that given day, week, month or year.

Broker is better positioned to navigate the never ending sea of changes as we are leaner, meaner and more on top of our game.

It is often that we see our price better than competition for no other reason that today we may have Investor “A” with best rate and tomorrow Investor “B” or “C” so we can confidently maneuver and keep are customers happy.

Support, service, price, flexibility. The Broker model not only works for me (sorry mom) but for the thousands and thousands of customers we have assisted and continue to serve.

TRID is an acronym for TILA- RESPA Integrated Disclosure (also referred to as the TILA-RESPA Rule) and applies to most closed-end Borrower credit transactions secured by real property. The rule does not apply to HELOCs, reverse mortgage, and a dwelling not attached to real property (i.e. mobile homes).

Basically we have eliminated the GFE (Good Faith Estimate) and the early TIL (Truth-in-Lending Disclosure) and have replaced with the Loan Estimate (LE).

We have also eliminated the HUD Closing statement and replaced with the Closing Disclosure (CD).

Potentially, this will add a few extra days to the already trying process of getting your loan closed.Summary of the new timelines Rule require that the consumer be given or mailed:

• Loan Estimate (LE) within 3 business days of application.
• Borrower must acknowledge the LE by signing and returning the “Intent to Proceed With Application”.
• Closing Disclosure (CD) must be given to borrower at least 3 business days prior to closing so they have time to review all numbers.
• An additional 3 business days must be given to review a revised CD if the consumer or lender make certain changes to the annual percentage rate (APR) or loan product after the initial CD is received.
• There must be at least 7 business days to review the paperwork between the time the consumer receives an LE and closing!

At some point next year it will be business as usual. For now we will be digesting the nuances of coordinating closings while determining that closing numbers are close to exact PRIOR TO CLOSING.

Stay tuned and if you or your office needs further tutelage and understanding, give me a call and we can set up a presentation.

An adjustable rate mortgage (ARM) must start out lower than a fixed rate mortgage. An ARM is tied to an index (normally LIBOR or Treasury, sometimes Prime or Cost of Funds) and has a margin 2.25% – 2.75%. So whereas today’s 1 year LIBOR index is 1.04% and the bank’s margin is 2.25%, the fully indexed rate is 3.29%, rounded up to nearest eighth means the fully indexed rate of this ARM is 3.375%.
However banks will discount the initial fixed period of this ARM and you may be able to achieve a 5/1 ARM @ 3.00%, 7/1 3.125%, etc. (See below rates.)
The ARM has “caps”. The cap is the maximum the rate can increase after its initial fixed period and then annually thereafter and the most it can increase in the life of the loan. 2/2/5 Caps means it can’t increase by more than 2% above where it starts after the intial fixed period and then cannot increase by more than 2% annually thereafter, NEVER to increase by more than 5% over the start rate in the life of the loan.

The fixed rate mortgage will be a bit higher, today fixed 30 @ 3.875% – 3.99% but will never increase. When the fixed is so close to the ARM the vast majority of people take fixed rate mortgages. Interestingly so, I have never had a fixed rate mortgage on my primary residence. I do on my investment properties but not on my primary.

In order to keep payments low initially the ARM may be a good strategy. But as the rates are not that much of a savings it may behoove people to rethink their buying strategy and negotiate a bit lower price.

A $400,000 loan at 3.99% fixed 30 is $1,907.36/month.
Same 5/1 ARM is $1,686.42/month. A buyer might feel they want to be closer to $1,800/month and might not feel secure in having an ARM fixed in for only 5 years.
As such the same 30 year fixed getting closer to $1,800/month might mean borrowing closer to $380,000, payment would be $1,811.99/month. $20,000 negotiated difference makes buyer better prepared to move forward.

Bottom line, options always exist. Talk to your mortgage and real estate professional to help navigate the maze.

We work with a diverse array of borrowers. We are bi-lingual, proficient in English and Spanish.
We provide for financing for certain Visa types, even without US credit.

But even more important to our local market is the ability to secure mortgage finance for those borrowers who file tax returns, have established credit and are documented via their Employment Authorization Document. (EAD)
This allows for the individual to work, pay taxes, build credit and own a home. We can secure mortgages with as little as 3 to 3.5% down payment.