Comments on: APR: Just One Part of the Mortgage Machine http://raincityguide.com/2007/02/03/apr-just-one-part-of-the-mortgage-machine/ Seattle's Leading Resource for Real Estate Information Sat, 21 Nov 2009 06:01:18 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: How to Shop for a Mortgage Originator | Mortgages Unzipped http://raincityguide.com/2007/02/03/apr-just-one-part-of-the-mortgage-machine/#comment-324973 How to Shop for a Mortgage Originator | Mortgages Unzipped Thu, 11 Sep 2008 19:47:09 +0000 http://raincityguide.com/2007/02/03/apr-just-one-part-of-the-mortgage-machine/#comment-324973 [...] they are simply a detailed reflection of the current rate with the corresponding closing costs.  Do not compare APR, use the Note Rate as quoted on the GFE and the total closing costs in Section 800 (the lenders [...] [...] they are simply a detailed reflection of the current rate with the corresponding closing costs.  Do not compare APR, use the Note Rate as quoted on the GFE and the total closing costs in Section 800 (the lenders [...]

]]> By: Rhonda Porter http://raincityguide.com/2007/02/03/apr-just-one-part-of-the-mortgage-machine/#comment-193181 Rhonda Porter Fri, 12 Oct 2007 16:39:11 +0000 http://raincityguide.com/2007/02/03/apr-just-one-part-of-the-mortgage-machine/#comment-193181 Jillayne, please consider this a home made track back: http://www.mortgageporter.com/reportingfromseattle/2007/10/comparing-good-.html Typepad's trackbacks seem non-existant. :( Jillayne, please consider this a home made track back: http://www.mortgageporter.com/reportingfromseattle/2007/10/comparing-good-.html

Typepad’s trackbacks seem non-existant. :(

]]> By: Friday’s Mortgage Interest Rates | Rain City Guide | A Seattle Real Estate Blog... http://raincityguide.com/2007/02/03/apr-just-one-part-of-the-mortgage-machine/#comment-186346 Friday’s Mortgage Interest Rates | Rain City Guide | A Seattle Real Estate Blog... Fri, 28 Sep 2007 19:15:28 +0000 http://raincityguide.com/2007/02/03/apr-just-one-part-of-the-mortgage-machine/#comment-186346 [...] Please do not select your Mortgage Professional by interest rates alone and do not shop rates by APR.    This is just a small sample available of rates and products.  Rates are as of Friday, September 28, 2007 at 12:00 p.m. and may change at any time.  Available programs may change at anytime as well.    This is not a guarantee nor is it a commitment of interest rate.  For your personal rate quote or for loan amounts over $650,000, please contact me. [...] [...] Please do not select your Mortgage Professional by interest rates alone and do not shop rates by APR.    This is just a small sample available of rates and products.  Rates are as of Friday, September 28, 2007 at 12:00 p.m. and may change at any time.  Available programs may change at anytime as well.    This is not a guarantee nor is it a commitment of interest rate.  For your personal rate quote or for loan amounts over $650,000, please contact me. [...]

]]> By: The Problem with Good Faith Estimates | Rain City Guide | A Seattle Real Estate Blog... http://raincityguide.com/2007/02/03/apr-just-one-part-of-the-mortgage-machine/#comment-141226 The Problem with Good Faith Estimates | Rain City Guide | A Seattle Real Estate Blog... Sun, 27 May 2007 15:59:56 +0000 http://raincityguide.com/2007/02/03/apr-just-one-part-of-the-mortgage-machine/#comment-141226 [...] The Problem with Good Faith Estimates May 27, 2007 The document that savvy shoppers use to determine which loan originator they will work with is called a Good Faith Estimate.  It is supposed to be just that an Estimate of the rate and closing costs associated with the loan provided in Good Faith by the Mortgage Professional.   (You are not a savvy shopper if your just get your quotes over the phone and do not obtain a GFE or if you depend solely on APR).    Sounds pretty rosy, doesn’t it?   The Mortgage Professional is promising you a nice rate with low closing cost and you’re going to select this person based on rate and cost alone.   Relying on the Good Faith Estimate to get you the best deal on a mortgage could leave you the same feeling as the “where’s the beef” lady from the Wendy’s commercial. [...] [...] The Problem with Good Faith Estimates May 27, 2007 The document that savvy shoppers use to determine which loan originator they will work with is called a Good Faith Estimate.  It is supposed to be just that an Estimate of the rate and closing costs associated with the loan provided in Good Faith by the Mortgage Professional.   (You are not a savvy shopper if your just get your quotes over the phone and do not obtain a GFE or if you depend solely on APR).    Sounds pretty rosy, doesn’t it?   The Mortgage Professional is promising you a nice rate with low closing cost and you’re going to select this person based on rate and cost alone.   Relying on the Good Faith Estimate to get you the best deal on a mortgage could leave you the same feeling as the “where’s the beef” lady from the Wendy’s commercial. [...]

]]> By: Friday’s Rates…conforming is up 0.25% from last Friday | Rain City Guide | A Seattle Real Estate Blog... http://raincityguide.com/2007/02/03/apr-just-one-part-of-the-mortgage-machine/#comment-140279 Friday’s Rates…conforming is up 0.25% from last Friday | Rain City Guide | A Seattle Real Estate Blog... Fri, 25 May 2007 18:30:14 +0000 http://raincityguide.com/2007/02/03/apr-just-one-part-of-the-mortgage-machine/#comment-140279 [...] Please do not select your Mortgage Professional by interest rates alone and do not shop rates by APR.    This is just a small sample available of rates and products.   For a specific strategy for your mortgage needs, contact a qualifed Mortgage Professional. [...] [...] Please do not select your Mortgage Professional by interest rates alone and do not shop rates by APR.    This is just a small sample available of rates and products.   For a specific strategy for your mortgage needs, contact a qualifed Mortgage Professional. [...]

]]> By: 5 Steps to Shop for Mortgage Interest Rates | Rain City Guide | A Seattle Real Estate Blog... http://raincityguide.com/2007/02/03/apr-just-one-part-of-the-mortgage-machine/#comment-116330 5 Steps to Shop for Mortgage Interest Rates | Rain City Guide | A Seattle Real Estate Blog... Thu, 29 Mar 2007 14:08:03 +0000 http://raincityguide.com/2007/02/03/apr-just-one-part-of-the-mortgage-machine/#comment-116330 [...] Don’t forget to ask the LO to email or fax the Good Faith Estimate and Federal Truth in Lending to you as soon as possible (this means you will need to provide them with your email or fax information).   Ask the LO if they guarantee their closing costs.   Let them know you like to bring your GFE to your closing appointments to compare it the estimated HUD-1 Settlement statement. Step 5:   Review the good faith estimates.  (Are we having fun yet?)   Lines 800 – 823 are the closing costs associated with the rate.    If your transaction is a purchase, there are also title and escrow charges (these charges exist with a refinance as well).  The title and escrow fees (section 1100) on the good faith estimate are just that, an estimate since the companies who will be providing that service will be set forth on the purchase and sale agreement.    You do not need to shop by what the lender is showing for reserves (prepaid interest, taxes and insurance).  These are not closing costs and the amounts of reserves are set based on when your first mortgage payment will be due.   Some loan originators might reduce the amount of prorated interest to try to make their closing costs look less.  (Unless I know when you’re closing, I show 15 days of prorated interest on my good faith estimates.   I’d rather be higher with my estimates to start with and have you happy with me at closing).   Again, you’re really most interested in comparing the cost show on lines 800 – 823 in relationship to the interest rate (not the APR) on the Good Faith Estimate.   When I’m working with a “rate shopper” I’m happy to help review the good faith estimates (in fact, if I’m being shopped, I’d rather just have the other estimates faxed or emailed to me and I’ll confirm if I can better the rate or closing costs).     [...] [...] Don’t forget to ask the LO to email or fax the Good Faith Estimate and Federal Truth in Lending to you as soon as possible (this means you will need to provide them with your email or fax information).   Ask the LO if they guarantee their closing costs.   Let them know you like to bring your GFE to your closing appointments to compare it the estimated HUD-1 Settlement statement. Step 5:   Review the good faith estimates.  (Are we having fun yet?)   Lines 800 – 823 are the closing costs associated with the rate.    If your transaction is a purchase, there are also title and escrow charges (these charges exist with a refinance as well).  The title and escrow fees (section 1100) on the good faith estimate are just that, an estimate since the companies who will be providing that service will be set forth on the purchase and sale agreement.    You do not need to shop by what the lender is showing for reserves (prepaid interest, taxes and insurance).  These are not closing costs and the amounts of reserves are set based on when your first mortgage payment will be due.   Some loan originators might reduce the amount of prorated interest to try to make their closing costs look less.  (Unless I know when you’re closing, I show 15 days of prorated interest on my good faith estimates.   I’d rather be higher with my estimates to start with and have you happy with me at closing).   Again, you’re really most interested in comparing the cost show on lines 800 – 823 in relationship to the interest rate (not the APR) on the Good Faith Estimate.   When I’m working with a “rate shopper” I’m happy to help review the good faith estimates (in fact, if I’m being shopped, I’d rather just have the other estimates faxed or emailed to me and I’ll confirm if I can better the rate or closing costs).     [...]

]]> By: Just for Ardell…Interest Rates on Friday | Rain City Guide | A Seattle Real Estate Blog... http://raincityguide.com/2007/02/03/apr-just-one-part-of-the-mortgage-machine/#comment-97899 Just for Ardell…Interest Rates on Friday | Rain City Guide | A Seattle Real Estate Blog... Fri, 16 Feb 2007 17:42:24 +0000 http://raincityguide.com/2007/02/03/apr-just-one-part-of-the-mortgage-machine/#comment-97899 [...] I am required to disclose the APR as well.  NEVER shop by APR…for more information on why you should not compare lenders by APR, please read Jillayne Schlicke’s excellent recent post.    The rates below do not have prepayment penalties.    Okay…I think I’m ready to proceed! [...] [...] I am required to disclose the APR as well.  NEVER shop by APR…for more information on why you should not compare lenders by APR, please read Jillayne Schlicke’s excellent recent post.    The rates below do not have prepayment penalties.    Okay…I think I’m ready to proceed! [...]

]]> By: Jillayne Schlicke http://raincityguide.com/2007/02/03/apr-just-one-part-of-the-mortgage-machine/#comment-90054 Jillayne Schlicke Mon, 05 Feb 2007 05:54:09 +0000 http://raincityguide.com/2007/02/03/apr-just-one-part-of-the-mortgage-machine/#comment-90054 Hey Shane, Glad you liked it. Sometimes it helps to be able to visualize. In my motor engine analogy, what's missing, besides the rest of the car, is the DRIVER. We wouldn't want to put a teenager behind the wheels of a racecar, but for a trained race car driver, this is not a problem. The loan originator acts like a coach, and a mechanic, helping fit the driver with the car and engine that will help the driver get from place to place along life's highway without the driver doing harm to himself/herself and others. Hey Shane,
Glad you liked it.
Sometimes it helps to be able to visualize.

In my motor engine analogy, what’s missing, besides the rest of the car, is the DRIVER. We wouldn’t want to put a teenager behind the wheels of a racecar, but for a trained race car driver, this is not a problem.

The loan originator acts like a coach, and a mechanic, helping fit the driver with the car and engine that will help the driver get from place to place along life’s highway without the driver doing harm to himself/herself and others.

]]> By: Rhonda Porter http://raincityguide.com/2007/02/03/apr-just-one-part-of-the-mortgage-machine/#comment-90040 Rhonda Porter Mon, 05 Feb 2007 05:36:27 +0000 http://raincityguide.com/2007/02/03/apr-just-one-part-of-the-mortgage-machine/#comment-90040 Shane, it really takes a consultation with a qualifed mortgage planner to help determine what the best program would be. And, this should be free--there should not be an application fee EVER as someone was charged by their bank (comment 2). A credit report may cost $18 for a tri-merge (all 3 bureaus) from a lender at most. Shane, it really takes a consultation with a qualifed mortgage planner to help determine what the best program would be. And, this should be free–there should not be an application fee EVER as someone was charged by their bank (comment 2). A credit report may cost $18 for a tri-merge (all 3 bureaus) from a lender at most.

]]> By: shane http://raincityguide.com/2007/02/03/apr-just-one-part-of-the-mortgage-machine/#comment-90019 shane Mon, 05 Feb 2007 04:53:07 +0000 http://raincityguide.com/2007/02/03/apr-just-one-part-of-the-mortgage-machine/#comment-90019 Jillayne I really like how you used the metaphor of an engine with components and working parts! Good communication Skills! Jillayne

I really like how you used the metaphor of an engine with components and working parts! Good communication Skills!

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