Keith Gumbinger Quotes (36 Quotes)

If you re-extend from 15 years back out to 30 years, that might reduce your monthly payment by 30 percent, ... If there isn't a likelihood that you'll pay off your mortgage, the re-extension of the term of your loan could measurably improve your cash flow.

There are a variety of methods by which bridge loans are made.

What is new today is that lenders are allowing for the layering of risks on top of one another, ... What we don't know is what if we put all these risks together and put them in a rising interest rate environment, a declining housing market, or a weakening economy.

If you've refinanced in the last 18 months or two years, this movie's a rerun. Rates aren't at compellingly low levels.

These loans can be of value for people who want to save or invest the money they would have paid in principal, ... Unfortunately, the way the product has been pitched, borrowers have been encouraged to stretch their budget to buy more house.

Fannie Mae and Freddie Mac will even lend 103 percent of the homes value, ... You need to have very good credit to qualify for this kind of loan.

If you're making a pre-payment on your mortgage principal, ultimately you'll pay less interest,

Mortgage markets have been so flush with cash that home buyers are able to layer one risk on top of the other. It's possible to borrow more than the value of the home, put in no money of your own and pay a minimum monthly payment.

With rates as low as they are people can cut years off the mortgage for the same monthly payment.

If you're a good credit borrower you can challenge fees if they seem excessive.

This would free up cash now, while still minimizing their exposure to rising rates during the period they expect to remain in the house.

The risk with an ARM is that when interest rates rise, you could end up paying much more than you bargained for. You're subject to the vagaries of the market, ... You want to maximize the fixed-rate picture to match your time frame.

For most home buyers, especially first-time buyers, taking a 15-year (or 20-year) mortgage is out of the question.

As rates creep higher, we're likely to see more loan prices being put out into the marketplace which feature points as part of the equation, ... points are coming back into the lending lexicon.

I would definitely expect more of it. Buyers may not pay for it. The seller or builder may pay for it to get a house sold.

If you've already got one set up, you're good to go.

No-money-down home purchases used to be the kind of thing you only saw on late night TV.

Leveraging yourself out at a time when (home) prices are very high certainly could set you up for difficult times.

But all of that has changed in just a matter of months. Lenders don't have people beating down their door for their loan, ... You're more in the captain seat than you were even a week ago.

The optimal thing to do is to lock in your interest rate.

Whenever business slips a little, lenders trot this stuff out.

Expanding your menu (as a lender) to include as many loan choices means you get a better opportunity to scour borrowers out of niche markets.

Someone who will be out of their home within five years to seven years can save some money with an ARM. But you have to be aware of the reality that interest rates are likely to be somewhat to significantly higher in three years, five years, 10 years down the road from today.

If you're the gambling sort, you could get into an interest-only product and bet that the market will build equity for you.

Does that mean (consumers will) stop borrowing because it costs them another 5 a month Probably not. It may influence decisions. I don't think it halts decisions.

There's no way for consumers to borrow more cheaply. But that might change if the Fed raises rates a couple more times.

This is very popular right now because it lets you draw some money out of your home and improve cash flow. If you do this, resist the temptation to draw too much equity out of your home.

A quarter point here, a quarter point there, and soon you start to feel the pain of significantly increased monthly payments,

For some people a home equity line of credit is a brand new shovel for digging themselves further into debt.

Welcome to the cold reality. A lot of people selected short-term interest rate product and are now beginning to see how these things benefit the lender.

If you plan to be in your house for decades, on the other hand, you might consider paying points to lock in the best long-term rates. Points, which cost one-half of a percent to 1 percent of the loan and are paid up front, let you buy a better interest rate. If you pay points up front, it's harder to get your money back, ... When rates are high, borrowers have to pay points to trim rates any way they can, but with rates so low there is really no need to pay those points.

In many markets, it's possible to borrow at prime or even a quarter to a half a percentage point below prime.

People are a little more realistic about their time frame, especially young folks,

They're trying to make home prices more expensive, so some of this speculative activity will decrease, and incomes will have a chance to catch up.

Listing the person with the higher credit score as the primary borrower, ... may knock as much as two percentage points off the interest rate.

The question you need to ask yourself is, why would a bank be pitching you this product at this time The obvious answer is that bankers believe rates will rise in the future. Getting you out of a fixed loan and into a variable one helps ensure profitability on your account.