Mortgage Loan Notes and Links
Mortgage Loan Notes
Option ARM Loan - Loan with 4 or more payment options. 30 year fully amortized payment, 15 year fully amortized payment, interest only payment, minimum payment/pay rate payment (usually between 1% and 3% - fully amortized over 30 years). Not sure why they make the pay rate payment fully amortized, but that is something I will find out at some point.
Interest Only Loan - Principal Optional Loan -> Get bad rap because they don't pay down the principal balance on a mortgage loan. But, the question is, why would someone want to put more than 15% or 20% equity cushion into their property when they will get zero return on it? The property will appreciate or depreciate with or without that extra equity. All paying down the principal balance does is give the lender more security. Better ideas are to put the money into a savings account to have cash on hand for when it is needed and to diversify your investments.
July 10, 2007 - Lending programs have changed dramatically over the past 3 to 6 months. Sub-prime lending has scaled way back. Interest rates have risen around 0.5% on most mortgage loan products recently. It will be interesting to see what affect these things have on the housing market.
Mortgage Loan Links
San Francisco Lender who can fund conventional and private money / hard money loans on property in California. Knowledgeable and honest. They tell it how it is unlike most of the loan jockey's out there. They have a great service for holders of option arm loans called their Recast Review, which shows borrowers exactly when they will hit their negative amortization cap and their option arm loan will adjust and payments become fully amortized.
Scottsman's Guide - Good list of lenders all over the United States.
Mortgage Broker Marketing - Green Hat SEO offers local search marketing for mortgage brokers. Pretty cheap way to get leads from the internet for mortgage professionals.