Ingrid B. Quinn

NMLS ID #211652 Arizona, Loan Consultant


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Talking Down Payment

There seems to be misunderstandings about what it takes in down payment to purchase a home. Well, I will give you valuable information. You can purchase a home with very little down payment and at times, no money down.  Down payments come in all sizes.

VA loans: If qualified for a VA loan you are eligible for a zero down payment loan. Determining this will be based on service time, discharge type and whether you have used your VA benefit before. VA loans are also available in higher loan balances which depend on location in the country. In the higher loan balances (JUMBO) you may receive better terms for down payment than what is available through other types of JUMBO financing.

FHA loans: The minimum required down payment is 3.5% for a typical FHA loan. Maximum loan amounts are determined by county. All FHA loans require mortgage insurance, so no matter how much you put down, you will have mortgage insurance in some amount for a specified time period.

CONVENTIONAL CONFORMING loans: Following Fannie Mae guidelines a 1st time home buyers can get in for as little as 3% down payment. The maximum loan amount in most markets is currently $453,100. Check your area for your maximum loan amount. Mortgage insurance most likely is required for loans that have a less than 20% down payment but there are many ways to handle how mortgage insurance is paid through the loan. What I mean is, it can be paid for in cash at closing so that it is not included in your monthly payment. It can be financed into the interest rate, or paid monthly or a sum can be paid for in cash and the balance paid monthly. Check with your lender what options are available to you.

There are a number of other types of programs, USDA, JUMBO Conventional, Down Payment Assistant Loans, RENOVATION Loans and lender PORTFOLIO products. Each have their own set of guidelines. If you have questions about what is available for your situation please let me know and leave a comment below.


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Your Home Loan Was Sold?

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recently experienced a situation with clients who were confused as to why their loan had been sold to a secondary lender. This has no reflection on the borrower. Selling a loan is typical in the mortgage industry. Mortgage brokers do not close loans in their own name. The funding lender’s name will be on the borrower’s closing documents. Mortgage bankers and banks close loans in their own name and typically retain the servicing (collection of monthly payments) of the loans while selling the loan on the secondary market.
A common reason for banks and lenders to sell their closed mortgages is to free up capital to do more loans. Lenders can only fund so many loans before they no longer have any funds on their warehouse line left to loan. This is where the secondary markets (the place that mortgages are bought and sold after they are closed) come in to play. When a lender funds a loan and then sells it to a secondary market investor (commonly Fannie Mae, Freddie Mac, Ginnie Mae or jumbo loan investors), they are able to make a profit as well as free up capital to originate new loans.
This system actually benefits borrowers by increasing demand in the mortgage market. If the process of selling loan did not exist it would force lenders to create a set amount of loans and they would have to wait for the loans to be paid off prior to creating new loans. The competitive part of the business would be reduced.
Borrowers have nothing to worry about if/when the loan is sold. The loan terms are set in your note and will not change. If you have a home loan and want to see what entity actually owns the loan, call your customer service department and ask. A servicing company is not generally the owner of your mortgage.
For questions or suggestions please feel free to contact me at Ingrid.Quinn@cobaltmortgage.com or visit me at http://www.CobaltMortgage.com/IngridQuinn or http://www.ScottsdaleMortgageExpert.com .


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The Mortgage Business-Not How It Was

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It’s been a 30 year ride for me in this business. I thought it was time to reflect where the industry has been and where it may go. It certainly is not a boring job. I find it an exciting challenge to daily talk to people and work with them towards their goal of buying a home.

The industry has been in the news a lot in the last 7-8 years and there has not been a dull moment. There have been a lot of changes in the rules and just keeping up with those has been a huge undertaking, but it just takes me back to when I first started out. We verify everything. It’s the way it should be.

I have been through real estate booms and busts, trends come and go and so do people I have worked with. The industry has done some weeding out and hopefully most of the bad apples are gone and hopefully industry standards are where they should be.

What remains the same is that Americans still want to own their homes. I find that people place an enormous amount of trust in my hands and I do everything I can to make their homeownership goal a reality. What has changed, though, is the difference about how a mortgage is originated. The online channel has grown and the mortgage industry has finally automated the process to an almost paperless process. Yea!! Gone are the file folders of 3-8 inch thick loan files and pdf versions of documents loaded into our processing system has make copying and faxing a near thing of the past.

What I still feel is important is the relationship of the quality referral to an experienced and trusted lender. Though online access is readily available, the referral to your mortgage lender is important because they are handling all of your personal information and the trust factor is imperative as to who has your information.

A home purchase is close to if not the largest personal purchase you will make. Take the time to find your trusted advisor in this process. It will make the experience a smoother one. For questions or suggestions please feel free to contact me at Ingrid.quinn@cobaltmortgage.com or visit my websites http://www.scottsdalemortgageexpert.com or http://www.cobaltmortgage.com/ingridquinn.


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Locking, What is it?!

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In today’s volatile market, consumers need to understand what a lender offers as options for locking in their loan. Many consumers think that when they begin speaking to a lender, the rate they discuss that day will be the rate they carry from there on. However, this is not the case. Laws govern what constitutes a loan application. An actual loan application requires that 6 pieces of information are received, which triggers disclosures for the good faith estimate and the ability to lock in loans. These items are social security number to pull credit, borrower name, estimated value, monthly income, loan amount sought & property address. These six things are important because without these six items a lending company is not able to give a borrower a locked rate.
A borrower is required to give all of the information except the address when prequalifying. Once you have a property under contract then you have the ability to lock in a rate for the loan. Loan rates are locked in for a specific period of time. This time frame is based upon the close of escrow date. Typically loans are locked 15, 30, 45 or 60 days. There is the option of locking in rate for a longer period of time, but this is mainly used when you are purchasing a home that is being built for you and will not be completed with in 60 days.
What does locking in a rate/loan actually mean? When you lock your loan your lender should provide you the rate and/or points as well as the specific date of expiration of those terms. Regardless of how the market changes, your rate will continue to hold as it was locked. This can be both a good and bad thing.
Whether the market improves and rates lower or the market worsens and rates increase you are guaranteed to have the rate you have in writing. There can be an exception to these rules, but only with some lenders. This is called a renegotiation policy. This can typically occur when the market improves at least .25%(depending on your lender’s rules) and your lender will allow you to change your locking contract. Keep in mind that when you choose to lock in your rate, you are asking the lender to protect you and you are making a commitment to do the loan with your lender. The shopping rate time is over. Renegotiation is a courtesy provided by your lender.
Borrowers need to make sure that when they go to lock in their rate, that their lender gives them their terms in writing. You should never assume something has been done without seeing it in writing. Be safe, talk to your lender about locking and what their renegotiating options are. Never hesitate to ask questions and learn as much as you can.
For questions for suggestions please feel free to email me at Ingrid.Quinn@CobaltMortgage.com or visit me at http://www.scottsdalemortgageexpert.com or http://www.CobaltMortgage.com/IngridQuinn .


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Mortgage Points, What are They?

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Mortgage points generally refer to a loan origination fee and/or discount points. Discount points refer to the amount of money that a person pays to a lender to get a loan at a specific rate. Points are paid when discounting the rate for a loan. A lender usually has a menu of rates available on any given day at a variety of costs. Par pricing is when no discount points are required.
An origination fee is what a borrower will pay the lender for their services. Since the change in lending and disclosure rules in 2009, the term origination fee was changed to origination charge. The origination charge will include any lender admin fees and an origination point if applicable.
Before you can even consider whether or not purchasing points is a good idea, you have to make sure that you will have the extra cash because points will increase your total closing costs. Points can be financed into a refinance transaction but not into a purchase. Sellers can pay points for a buyer as part of a closing cost concession.
Positive mortgage points can be viewed as a form of pre-paid interest. Each point is equal to 1% total loan amount. Why would you want to pre-pay a part of your interest? The buyer is offering to pay an up front fee to receive a discount on the interest rate. The reduction in interest will give the buyer lower monthly mortgage payments. With mortgages duration of typically 15, 20 or even 30 years, the discount points will help save you a huge amount of interest over the life span of the loan. Positive discount points are usually worthwhile to a home buyer if he or she will maintain the mortgage for a while.
There is a second type of mortgage points, negative mortgage points or as termed, Yield Spread, work very much like positive mortgage points except in reverse. Instead of you paying the bank to lower your rate, the bank will pay you to take a higher rate. As an example, if you were offered a rate of 5.5 percent on your $100,000 loan. The bank is now offering you one point to raise your rate to 5.75 percent. Therefore, they are basically giving you $1,000 in order to raise your interest rate. This will also result in you paying a higher mortgage payment every month. These points don’t end up as a written check for the money. The yield will just be applied to your total closing costs on the loan.
Closing costs can result in a few thousand dollars of out-of-pocket expense. Amounts for closing cost vary by state, location and amount of loan requested. Purchase transactions and refinances can have a difference in costs too.
“Breaking even is a major factor in deciding what to do with points. Something the buyer will want to inquire about is how long it will take to “break even” in regards to possibly selling the home before their loan is paid in full. You will want to have retained the mortgage at least until you “break even”, if not longer, to make it worthwhile to reap benefits from discount points. Keep in mind there may also be a tax benefit to paying points and you will want to consult a tax advisor on this subject and what may be beneficial to your individual circumstance.
For questions of suggestions please feel free to email me at Ingrid.Quinn@cobaltmortgae.com or visit me at http://www.ScottsdaleMortgageExpert.com or http://www.CobaltMortgage.com/IngridQuinn


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APR vs. Interest Rate, What’s the Difference?

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Recently one of the Realtors I work closely with asked me what the actual difference between APR (annual percentage rate) and the Interest rate. Well, there is a big difference and when you are shopping for a home mortgage you are going to want to pay attention to a lot more than just the APR that is being offered by a lender. The short answer to this question is that simple interest is only the interest you pay on the loan whereas the APR is an informational number that covers some of costs of obtaining a residential loan, including points, interest, lender administration fees, mortgage insurance and various title fees.
In the case of a mortgage, the annual percentage rate, or APR, is the total yearly cost of financing a home, expressed as a percentage of the amount financed.
The federal Truth in Lending Act requires the lender to disclose both the nominal rate and the APR. Loans are frequently offered on different terms. Loan terms from different lenders can make it hard to figure out which offer is truly the best one.
The APR disclosed can be rounded up or down to the nearest one-eighth of a percentage point. Both the APR & simple interest rate must be advertised in the same font size or APR may be larger in print.
What this all means is that the APR of a loan is essentially a consumer tool designed to assist people when looking to make a major purchase. On the other hand, you have your simple interest rate. This is a very straight forward percentage that will be applied to your loan and determines your monthly payment.
People can use APR to get a general idea of what you will be looking at long term, but when it comes down to it people need to not be hesitant to ask lenders questions. Call them and find out what exactly their APR includes and what other fees are to be expected. You can also talk to your realtor and ask them about different lenders they have worked with. It’s never a bad thing to get a second opinion. Especially from a professional who is there to get you into your new home or assist you your refinance transaction.
For any questions or suggestions please feel free to email me at Ingrid.Quinn@CobaltMortage.com or visit me at http://www.CobaltMortgage.com/IngridQuinn or http://www.ScottsdaleMortgageExpert.com .


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There’s Nothing to Fear, Real Estate Rebound Is Here!

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“We are keeping a very close eye on the effect of rising mortgage rates on the housing market and the economy, but our July forecast is little changed from last month,” said Fannie Mae Chief Economist Doug Duncan. Fannie Mae does not fear the increase in mortgage rates and feels that the housing market is going to continue to grow. People will always need to buy homes, so a rate increase will not deter many homebuyers. We are always writing mortgage loans.
With the latest jobs report showing job creation still on the rise and consumer confidence leading the climb, we should see the housing market continue to grow and thrive. “We continue to see growth in housing, partly due to an increase in existing home sales as buyers choose to act while rates remain near historic lows,” Fannie Mae Chief Economist Doug Duncan said. “Consumer attitudes are improving amid a strengthening employment sector and we should begin to see a moderate pickup in consumer spending.”
Even with the increase in mortgage rates, we are still seeing great rates. Fannie Mae did make note of the fact that even with mortgage rates increasing we are still seeing a steady flow of mortgage applications, however we are seeing a significant slow down in refinances. This is to be expected and the number to homes being built and coming on the market is still increasing.
All of these factors are pushing home values forward and it truly looks like we are seeing the light at the end of this tunnel. FNMA is expecting economic growth of 2% this year and for that to continue to increase in the coming year.
For any questions or comments, please contact me at Ingrid.Quinn@cobaltmortgage.com or visit my websites http://www.cobaltmortgage.com/ingridquinn or http://www.scottsdalemortgageexpert.com.