Welcome To The Weekly Update And More



The cost of getting a conforming loan has gone up. This has nothing to do with interest rates increasing. It is all about the risk based pricing matrix. We talked about this a while back, basically the Y-axis is credit score and the X-axis is loan to value. The higher the loan to value and the lower the credit scores, the more expensive it is.  Previously if your score was >= 740 there was no hit to pricing, now it will cost you .25% to the points unless you have 25% or more to put down. Just about every combination of LTV/ Credit Score on the matrix increased by .25% in fee. If your score is less than 680, you are not going to get a conventional loan unless you put 20% down. If your score is less than 660, and you put 20% down, you will be paying a 3-point risk based pricing premium, which is painful. Please see the article below titled “Get Over It.”



Not Quite Dollar for Dollar!

 When is a dollar not worth a dollar? When you need it for reserves. Fortunately CMG Mortgage is one of the few lenders that will do loans for borrowers buying the 5th – 10th financed property. One of the big hurdles is that the borrower needs 6 months PITI reserves for each property. Money in retirement / pension / 401K accounts are counted as 60 cents on the dollar. If you have a brokerage account (non retirement) you will get 70 cents on the dollar. CMG Mortgage will still give you dollar for dollar on non-retirement cash, CD’s and Money Market accounts.


Get Over It!

 If you have a prejudice against FHA you absolutely need to “get over it.” With the increased cost in the risk based pricing matrix for conforming loans; FHA loans are cheap by comparison. Whatever you have in your mindset preventing you from accepting FHA or doing an FHA loan with your clients you need to flush these thoughts out of your mindset. If you have ANY concerns about FHA call us and we will talk you off the ledge.


We were supposed to publish our weekly newsletter last week; however our entire crew was sick at the same time. We are happy to be back on our feet, literally! Stay healthy, the alternative is no fun.  



The Meredith Mortgage Team, CMPS®

Certified mortgage planning specialist


“We Will Always Have Your Best  

  Interest In Mind”   


Erin & Kathleen

The Bay Area’s Premier

Mortgage Banker and Broker


(925)983-3048 office

(925)226-3215 efax

(925)918-0585 mobile






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