San Diego Housing Bubble News and Analysis

Which bank is offering this rate?
I need to refi within the next 30 days if possible and this looks like the best I have seen.

No offense, but this thread is advertising by HLS. And the rates quoted are not the lowest ever, although they are close. Last May I refinanced a $500K loan, 30 yr fixed, no points, 3rd party closing costs only, at 4.625%.

At the time, my experience was that Zillow mortgage quotes were by far the best way to find a good rate from a reliable broker. Essentially identical rates are quoted today through Zillow. Of course, your mileage may vary.

I think the main reason people are currently holding back from refinancing is the equity they have in their current homes.. the low rates quoted are for <80% LTV. Correct me if I am wrong

I see a sales speech.

Watch your ASSets! If you don't know how to read a mortgage contract take the contract to your CPA or equivalent. It with be the $300 fee that may save you thousands or even your house.

How many wish they had a REAL financial professional look at their mortgage and not trust their mortgage salesperson.

Beware the mortgage broker

Why is trying to educate people with facts viewed as a sales pitch ?

There are some real idiots on this blog that give people mortgage advice that haven't got a clue what they are talking about.
You have a choice of getting info from them if you wish.

Some people aren't intelligent enough to get accurate information from someone who knows what they are talking about. If my posts were sales pitches, they would contain 12 lines of my contact information.
Anybody who paid a CPA $300 to look at standard mortgage docs would be an idiot.

I don't need to defend myself. I've helped plenty of people who have contacted me and I don't think anybody has any complaints.
There are plenty of scumbags in the mortgage industry, without a doubt.

I'm not sure if those that throw daggers without knowing what they are talking about are jealous, ignorant or just foolish OR it just makes them feel important when they insult other posters..

HLS,

Do you disclose the YSP (mortgage broker kickback) and other payments you receive for selling someone a mortgage? How does the typical YSP on the mortgages you peddle compare to the YSP on an FHA loan?

I would like to point out that a refinance at this point could trigger a very bad consequence... that is, the refinanced balance would be a recourse loan, whereas if the home owner is presently in their original loan used to buy the house, that is protected by the purchase money exemption and is thus nonrecourse.

One would have to weigh the benefits of any savings against the reality that prices are still overinflated and to refinance could be kissing away your option to protect other assets should it later make sense or become necessary to allow foreclosure to proceed.

Just sayin'

YES I DO, I don't get a penny in kickback/YSP/rebate unless the borrower chooses that option up front, AND THEY KNOW IT.

I don't "sell" people mortgages and I don't "peddle" mortgages. I explain financing options to people 6 ways from Sunday so they can decide what's right for them. Banks don't do loans for free and I don't either, but I beat bank rates and programs on a daily basis.

ANY loan, FHA, VA, FNMA have no cost options.
It's truly fools like you that think they know everything about mortgages yet your question just proves how little you know.

Plenty of people on this board know who I am.
I've done a local radio show for over 2 and half years educating people about what's going on.
If I was a mortgage crook I wouldn't be here.

I can't guarantee anybody that I have the absolute lowest rate/programs, but if that's all people think they need, they can shop til they drop.

ADEBISI, since your first (recent) post you have proved yourself to be a jerk. Your limited knowledge and the people that you are choosing to pick on are further evidence of your ignorance, yet you think you are a know it all.
If you expect ANY respect around here you're going to need to earn it.
You appear to be the bully that just transferred to a new school mid year and are trying to impress people yet nobody likes you nor wants to be your friend.

Belittling people for asking questions is an old salesman's technique. No doubt this works on some of your more clueless clients, but I don't give a rat's what you think of me. Additionally, I find it suspicious that you are so defensive about your fees.

Bernie Madoff went 30 years before he was caught so the fact that you've been around for a couple of years means nothing. Just because the other realtors and mortgage brokers on this board know you also means nothing. There are plenty of crooks on radio and TV.

When I'm dealing with a mortgage broker or a realtor, I'll always keep a firm grip on my wallet. But thanks for the useless information.

Asking you a question about your fees is 'bullying' you? Please. That's a fundamental question that anyone dealing with a mortgage broker or realtor (or any type of saleperson) should ask.

From what I've seen of you, you tend to ignore people that ask thoughful questions (like scaredycat) and you also don't address critical issues like how refinancing can turn a non-recourse loan into a recourse loan.

As for the 'respect' that you think I so desire, think again. This is just a message board full of mortgage brokers and realtors. I shudder to think of what it would take to gain this board's 'respect'.

HLS has standing here and you (ADEBISI) do not. Quite a few Piggs have received good advice and or loans from HLS and respect his opinions.

To follow on that:

While many here think he is nuts (honestly the reason I don't send him clients is his personality), he is genuinely well-educated and intelligent with regard to borrowing.

You (adebisi) just really seem to want to mix it up with pros here in a disrespectful way.

Also, endorsing Battiata does not add to your credibility.

Oh and on that topic:
http://www3.signonsandiego.com/news/2009...

I asked HLS two questions:
(1) Do you disclose your commission for selling a mortgage?
(2) How do those commission rates compare to FHA?

Instead of just answering my questions, HLS went ballistic and called me a jerk and a fool. I consider HLS's behavior to be far from 'pro'fessional and I don't see how those two questions are disrespectful.

That's funny coming from you.

You weren't simply asking questions. You were clearly implying that HLS must be swindling his clients and taking kickbacks from the banks. HLS has every right to call you a jerk. Ever since your name first popped up here, you have been nothing but insulting to many of the very respectable people on this site, and have not given one bit of decent advice or information yourself. It is clear to me that you are just a tool spouting off misunderstood tidbits of information you have gathered from who knows where. Maybe you should keep it to yourself since it seems nobody here wants to listen to you.

1: Between ethical guidelines and law, he has to.
He has a reputation for professionalism, honesty and emotional instability. I don't think he would go out of his way to undermine his rep (especially for a small increase in pay).
2: Its not "his commission" vs. "FHA commission".
It is how well he gets paid between the 2 products (fha vs. (I am assuming) conventional).
The reality is that his commission can be paid on the back or front and either can mean zero loan commission to buyer.

ur,

Thanks for explaining that. Let's hear more about this emotional instability. Does he frequently become irate when asked questions?

I think I have said enough on that front.

Adebisi,

It's pretty bad form to show up on a forum that has been around for several years and be an ass towards long-term posters because they are mortgage brokers and realtors.

Be smart. Take some time to distinguish between the helpful mortgage brokers and realtors and the losers. Most of the old-timers here are very helpful and well respected. Take 10 seconds and click on their user profile to see how long they have been around. We don't need you to protect us from them, really. Just assume all of the other readers are smarter than you and you'll do fine.

You have basically filled up this potentially useful thread, and much of the forum, with bullshit posts.

I'm taking odds on you being the third user banned from Piggington.

"While many here think he is nuts (honestly the reason I don't send him clients is his personality), he is genuinely well-educated and intelligent with regard to borrowing"

Urban, am I to take that as some sort of compliment ? I must have missed the poll that determined many on the site think that I am nuts.
(I have been told that I'm nuts for being honest with people)

We have never met and I don't think that we have ever had a conversation, so I wonder how you know what my personality is. I'm not sure what your motivation is, and not much bothers me, but your comments are awful close to libel.

With regard to your capability, I mean what I say.

How you take that is really up to you.

To my knowledge we have never spoken verbally.
We have interacted by email a couple of times.

My comment about nuttiness (or chewiness for that matter) were meant playfully.

It refers to your rants about Barney Frank, government intervention, upside down borrowers and whatever topic you feel like going off about. For the most part, I generally agree with your points. The delivery of them (eg: citing a (yet crazier) blogger endorsing Frank being jailed because the blogger disagrees with him) is what I am referring to as "nuts".

Thats my opinion. You are not required to agree. With regard to your professional insights, I find them compelling.

I don't really think that expressing my opinion (even playfully) in this regard is libelous but hey, feel free to contact a lawyer if you see fit.

It certainly is your prerogative to spend money and make this into public record.

I agree 100% with sdduuuude.

I do not belive that is correct... My understanding of current tax law, valid through Dec 31st 2012, is that refinance of any loan amount that was used to acquire and/or improve a primary residence remains exempt from becoming recourse debt...
It is true that any cash taken out over and above this amount MAY be considered taxable income (but it may not be enforced)
*Consult your tax adviser for your situation*

"Debt used to refinance your home qualifies for this exclusion, but only to the extent that the principal balance of the old mortgage, immediately before the refinancing, would have qualified. For more information, including an example, see Publication 4681"

Refer to page 7, 3rd column, halfway down:
http://www.irs.gov/pub/irs-pdf/p4681.pdf ..HLS

I think there is some confusion here over recourse. Recourse refers to whether the note holder can go after other assets from the borrower in case of default in a judicial foreclosure.
HLS, you are referring to whether the debt "forgiven" as a result of foreclosure is taxable or not for a personal residence. (It is not taxable whether it was the initial loan or a refinance, subject to cash out and other restrictions in the publication HLS linked)

These are two separate (but related) issues.

A refinance (even on a primary) may be a recourse loan, meaning the note holder can attempt to go after other assets. However, in California, because of the single action rule, the lender can either go through a non-judicial foreclosure or sue (judicial foreclosure). Because of the costs, time (12 months or more) and the potential for unfavorable rulings, judicial foreclosures are rare.
I would only worry about recourse if the amount the lender wants to recover is at least several hundred K and if I were a big fish with lots of obvious assets.

Edit : Warning. I am not a lawyer or accountant. The above is not advice. Before refinancing a personal residence, consult the tax laws and perhaps seek counsel, especially if you may be upside down. This stuff is complicated.

I think by "recourse" he meant that the lender could come after the borrower if there were a negative equity sale or repossession.

Edit: And it looks like somebody already posted that so sorry for the repetition.

Edit of the edit:
FSD, we are all taking it as legal advice and suing you when it does not work. Really it is a good thing to make people aware of. Thank you.