June 25, 2010  


Welcome To The Weekly Update And More  
Rarely do we pick on or attack our competitors, however in our quest for the honest and ethical treatment of borrowers we have to expose or explain a shady deal when we see it. You may have heard the Chase ad about their mortgage with a 1% annual rebate (up to $500 max). We had a customer referred to us by one of our Realtors. The borrower started their refi at Chase and was locked into a 30 year fixed at 5.25%, loan amount $300,000 with 0 points. Our rate to them for the same terms was 4.75%. Let’s do some mortgage math (our favorite thing we love to do), the payment on a $300,000 loan for 30 years at 5.25% is $1656.61 (Chase’s deal). Applying Chase’s rebate $1,656.61 X 12=$19,879.32 per year, the rebate is 1%, easy math, just move the decimal place to the left 2 places, equals a rebate of $198.79. Therefore $19,879.32 – $198.79 = $19,680.53 gets us to the net payment. The payment on our option $300,000 loan 4.75% rate 30 year (both loans are 0 points), is $1,564.94 X 12 = $18,779.28. Getting to the finish line is easy, $19,680.53 – $18,779.28 = $901.25 savings with our deal. To steal a line out of Chase’s play book “Chase what matters” even if you have to run away from Chase. We think Mr. Shakespeare said it best, “All that glitters is not gold.” We will always tell you, with an apples to apples comparison, if someone’s offer is better than ours. We have done that and will continue to do that, that’s how we roll.   

It Must be Some Where?
We all know it’s true, but we need to see it in black and white. We are talking about the assumption of FHA mortgages. A very astute Realtor asked, “Where in the note does it say that FHA loans are assumable?” Well that sent us packing, we asked for a copy of the note and it did not mention anything about assumption. A call to our Government lending guru confirmed what we already knew, what we were looking for was not in the note. The light bulb flashed on for our guru and the assumption notice is part of the application for an FHA loan, DUH! We have explained that notice to every FHA borrower and did not realize that is it, there is no more than the “Assumption of HUD/FHA-Insured Mortgages Release of Personal Liability”. If you would like your very own copy, drop us a line and we will send you one; it’s only a one pager.  
“Exploit the Difference”  
Exploit is a word that doesn’t conjure up positive images. There is probably some textbook on selling that has a “Top Ten” list of words you should never use in selling and exploit is number 3. However we are going to tell you how to exploit a difference between Fannie Mae and Freddie Mac. Freddie Mac will combine ratios with a non occupant co-borrower, Fannie Mae won’t do this. We can even do this on Freddie Mac agency jumbo loans. Therefore, if a borrower has 20% down and is tight on ratios, we can add a non-occupant co-borrower and qualify. Better option than FHA if you have the down payment. Maybe we should create a tag line this “Exploit the difference” we like it better than “Chase what matters.” What do you think?  
Listening to a panel discussion this week one of the panelist had a novel idea that I thought we would try. They said, “Ask for the business.” OK we will give it a shot, we want your business! Next week we will not publish this newsletter in light of the holiday; Happy 4th.     



 The Meredith Mortgage Team, CMPS® 

Certified mortgage planning specialist  

“We Will Always Have Your Best    

  Interest In Mind”      


Erin & Kathleen  

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