Should You Get an Adjustable Rate Mortgage?

Question: “What do you think about getting an adjustable rate mortgage?” Answer: I’ll let Dave Ramsey answer this one from an email his organization sent me: “ARMs hook homebuyers with a low initial rate, then, after a designated period, the rate fluctuates for the remainder of the life of the loan. This kind of loan
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Contingencies to Get Back Your Lost Deposit

Question: “I tried to buy a condo about a week ago, but it fell out of escrow because my mortgage broker couldn’t find a loan for me when my credit score fell mysteriously.  My realtor’s broker has informed me that the seller is entitled to my $3000 good faith deposit. My realtor never informed me
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Can Your Bank Sell Your Mortgage & Change Its Terms?

Question: “I just got a notice that my home loan has been sold to some bank I’ve never heard of.  Can they do this?  And can they change any terms of my loan?” Answer: Yes, and no. Yes, banks have the legal right to sell your mortgage.  And no, they cannot change any terms of
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How Much Sooner Can You Pay Off Your Mortgage By Paying Extra?

Question: “I’d like to pay an extra $500/mo on my mortgage to pay it off sooner. How much sooner will that pay it off?” Answer: Congratulations. That’s a great idea and I’m glad to hear you can afford to do so. To answer your question, I’d have to know your loan balance, interest rate, when
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The One Loan Document You MUST Read

Question: “Hi Gary.  The last time I got a loan, I didn’t read the papers because there was just too much to read.  Are there certain documents in the big stack of papers you recommend I be sure to read?” Answer: You should read every single loan document you sign.  But who really reads a
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Pros & Cons of FHA Loans to Buy a San Diego Home

Question: “What are the pros and cons of getting an FHA loan to buy a home?” Answer: The Pros: Low down payments More flexible qualifying Lower credit score requirements The Cons: High up-front 1.75% mortgage insurance premium (MIP) High monthly 1.3% to 1.55% MIP Monthly MIP can never be removed if the loan is <10%
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Why You Can’t Use Cash For Down Payments

Question: “I run a cash business. Since banks pay so little interest, I keep most of it in a safe. Now I want to buy a home and someone told me that it’s a problem using cash for a down payment. Why would that be a problem?” Answer: OK, so I’m not going to ask
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Where to Look for a Lender for Your San Diego Home

Question: “Where do you suggest I start looking for a lender to get approved for a home loan?” Answer: I would avoid some of the common sources, such as going online or looking at newspaper ads. The best source is to ask a good, reputable, experienced agent. He or she will know a handful of
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What to Expect When Doing a Foreclosure

“We’re going to lose our home to foreclosure. We owe too much to sell and the bank denied our short sale. I lost my job and my wife isn’t able to work, so we can’t make the payment and definitely are going to lose our home. I hate the feeling of not knowing what’s going
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Unfinished Features Can Create Problems with the Sale

Question: “We’re buying a home and the owner is in the middle of redoing the kitchen. He started the demo work (sink, counters, some cabinets) but not the actual remodel. We’re getting a good deal because we said we’d take the kitchen as is. Will that create any problem with the sale?” Answer: If you’re
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