Username or Email Address
Do you already have an account?
Forgot your password?
  • Log in or Sign up

    VWVortex


    Page 12 of 31 FirstFirst ... 2891011121314151622 ... LastLast
    Results 276 to 300 of 759

    Thread: Mortgage Q&A

    1. Member dubweiser's Avatar
      Join Date
      Dec 20th, 2000
      Location
      White Marsh, MD
      Posts
      1,732
      Vehicles
      02 GTI 1.8T, 00 Suzuki GSX-R 600
      01-11-2012 12:48 PM #276
      Thanks guys. I appreciate the info.

      I understand that there may be a difference between agencies, but why would MY results differ from HIS results? We are both querying the same agencies...?

      I'm definitely not looking at flipping a house. We (my soon to be fiancé and I) are in it for the long haul. This is all so overwhelming, I can't imagine going through this again in a few years.

      As far as the down payment, I'm going to be completely honest. We don't have 20% to put down. Realistically we're looking at probably 5% down in cash. My employer and the city of Baltimore has a few programs (loans and grants) to assist with downpayment and closing costs also.

      I wouldn't say my credit is destroyed, I'm 29, and I do have a few small items that are in collections which need to be dealt with. It has also been suggested to me to get a small, secured, credit card and make minimum monthly payments (on time) to establish those green blocks.

      I know time will help me, but unfortunately my lease is up in July. Right now i'm paying about $1300 a month in rent. I DO NOT want to sign another 1 year lease at my current place, and they almost DOUBLE my rent if I want to go month to month. Catch 22, I suppose.

      The mortgage guy i'm dealing with specializes in first time buyers and says getting my credit up to snuff is do-able by mid summer. I guess it all depends on how quickly I can pay off these items that are in collections, and establish a few (6?) months history of on-time payments.

    2. 01-11-2012 04:02 PM #277
      REFI time....locked in a Fixed rate of 3.5% @ 15yrs, down from Fixed 6.625% @ 30yrs.

      i'm currently 4.5yrs into the 30yr already so essentially i'm knocking 11yrs off and butt load of interest .....that is if the REFI goes smoothly and i don't get jerked around. i hear REFI's are a bit of pain lately, my first one so i'm hoping for the best with a tentative closing of 2/29/12...thats an odd day so it must be good luck.

      ~mikey m.
      dubaudi | LUX | banchwerks | joosey

    3. Member ruetzal's Avatar
      Join Date
      Dec 17th, 2007
      Location
      Wisco
      Posts
      3,151
      Vehicles
      '13 WRX, 2009 A3 sold, '03 GTI sold
      01-11-2012 04:06 PM #278
      well based on the credit your lender pulled you won't be able to obtain a mortgage. new industry standard is about 620 and up ofcourse rates come with these low territories. Also keep in mind they will be looking for 2-3 months of saving reserves. Which means you need to have at least 3 months of your mortgage payments in a bank account.

      best advice i can give to you is that be patient, your causing yourself to be in a hurry. You can find a month to month lease somewhere else if needed (I realize it can be a pain to move all the time) but well worth it in the end. these days a lot of first timers take 6 months to a year to find a home they like. There are a lot of undesirable properties for sale now due to market conditions. So while the price may be pleasing the home generally needs repairs. It takes some time to find a good home for a good price. The responsible people are not selling now just the distressed ones so be wary and get a good realtor. If you feel the realtor is pushing you to do something drop them and get a different one. Also you are not required to sign any realtor documents, I suggest not to even if they tell you that you need to. Its BS! if they try to force you state you will go somewhere else. If you don't like a realtor and you sign those documents it can get harry to find another one before the contract is up. Again you don't need to sign there paperwork. They will still work for you!


      As dunhamjr said ensure you have the proper funds in a account even if you don't put 20% down. If you lose your job you will need a back up supply of cash. FYI you will need at the minimum 3-5%

      I suggest to find another place to live for a short time period 6 mos or month to month and build your credit and savings while looking for homes. As a first time homebuyer both you and your fiance will 90% of the time want to jump on the first one you see. Just keep looking, cover your whole area and make a decision. Don't be ansy to make a offer. If you lose a place there will be another one. Almost always a first time homebuyer makes a bad decision on their first home. thats why most people sell their first purchase within 10-15 years.

    4. Member
      Join Date
      May 28th, 2000
      Location
      Maple Grove, MN
      Posts
      6,879
      Vehicles
      8V, 16V, 20V, 30V
      01-14-2012 10:16 PM #279
      Tried to refinance over the last 2 months. We are a bit under water (about $20k). Have owned house since 2005. 30 year fixed at 6.375%. Credit is 750+

      Anyways, we waited for these new guidelines and they are out now. Scheduled an appraisal and suddenly they have discovered that you can't refinance ANYTHING if you have mortgage insurance.

      WTF is the point of any of this then?

      "Good news, we're allowing people to refinance above 100% LTV. Oh, you have mortgage insurance? Sorry can't help you...."

      We're thinking if buying another property now and either renting our townhouse long term or just letting it go after we close on a new property.

    5. Member 1.8jettie's Avatar
      Join Date
      Oct 11th, 2007
      Location
      Bodymore, Murdaland
      Posts
      5,396
      Vehicles
      2013 Corolla S 2012 Rav 4 v6 Sport
      01-15-2012 11:53 PM #280
      I had a question about mortgage insurance. As long as you have 20% equity in the home you can REFI right? Our mortgage insurance would be $197 and we would like to get that off asap. Working on a short sale, it's been about 4 1/2 months so far.
      Quote Originally Posted by PassSedanGLX View Post
      I'm in MD. I need three forms of ID and a police referral just to buy a Super Soaker.
      Orioles

    6. Member ruetzal's Avatar
      Join Date
      Dec 17th, 2007
      Location
      Wisco
      Posts
      3,151
      Vehicles
      '13 WRX, 2009 A3 sold, '03 GTI sold
      01-16-2012 09:05 AM #281
      Quote Originally Posted by Shawn O View Post
      Tried to refinance over the last 2 months. We are a bit under water (about $20k). Have owned house since 2005. 30 year fixed at 6.375%. Credit is 750+

      Anyways, we waited for these new guidelines and they are out now. Scheduled an appraisal and suddenly they have discovered that you can't refinance ANYTHING if you have mortgage insurance.

      WTF is the point of any of this then?

      "Good news, we're allowing people to refinance above 100% LTV. Oh, you have mortgage insurance? Sorry can't help you...."

      We're thinking if buying another property now and either renting our townhouse long term or just letting it go after we close on a new property.
      the new program is just starting to get going I would wait about another month or so. Also just cause you have MI doesn't mean you can't refi into the new program. The 2 major guidelines is that you obtained your mortgage prior to Jan 09 and that it was sold to Fannie Mae/Freddie/Ginnie those are the 2 major ones. Your new mortgage would follow the terms of your old one. IE if you had MI on your old one you will have it on the new one. If you did not have MI on your old one you would not have it on this one.

    7. Member ruetzal's Avatar
      Join Date
      Dec 17th, 2007
      Location
      Wisco
      Posts
      3,151
      Vehicles
      '13 WRX, 2009 A3 sold, '03 GTI sold
      01-16-2012 09:10 AM #282
      Quote Originally Posted by 1.8jettie View Post
      I had a question about mortgage insurance. As long as you have 20% equity in the home you can REFI right? Our mortgage insurance would be $197 and we would like to get that off asap. Working on a short sale, it's been about 4 1/2 months so far.
      you can refi even over 80% and with the new program you can refi over 100% so LTV has nothing to do with refi'ing these days.

      Think your question means that you want your MI off your mortgage and yes if you are under 80% LTV you will not have MI. Now if you are on the edge of 78/80% most likely your lender will force you to have MI because all they will do is get a field review of value. Since the LTV is so close to 80 essentially they don't believe the appraisal. Its BS but in this market the lender knows that appraisals vary and all it usually takes is a field review to come back 10k under. So if you can I would wait until about 75% LTV to refi.

    8. Member ruetzal's Avatar
      Join Date
      Dec 17th, 2007
      Location
      Wisco
      Posts
      3,151
      Vehicles
      '13 WRX, 2009 A3 sold, '03 GTI sold
      01-16-2012 09:10 AM #283
      Shawn never get foreclosed if you can avoid it, always rent first! its way more beneficial to find a renter....trust me I see it to often. People get frustrated and say f it.

    9. Member
      Join Date
      May 28th, 2000
      Location
      Maple Grove, MN
      Posts
      6,879
      Vehicles
      8V, 16V, 20V, 30V
      01-16-2012 07:12 PM #284
      If we can't refinance to get a lower rate (and hence payment) it doesn't make financial sense to get a renter as in our market we'll come up short about $500/month for what we can rent it for (approx $1200) and what our mortgage and HOA payment is ($1440 + $195).

      Stupid HOA monthly payment was about $120/month less than 2 years ago and will break $200/month in 2012 I'm sure. And the development was built in 2004, not like they need alot of work...

    10. Member ruetzal's Avatar
      Join Date
      Dec 17th, 2007
      Location
      Wisco
      Posts
      3,151
      Vehicles
      '13 WRX, 2009 A3 sold, '03 GTI sold
      01-17-2012 08:48 AM #285
      yep but you can always try to get a renter for a bit more per month. Rent has gone up over the last few years so it doesn't hurt to try. You will be much worse off letting someone foreclose. Also if you decide the foreclose route you might as well live there for free for 1 year to 1.5 years.

    11. Semi-n00b
      Join Date
      Jan 16th, 2012
      Location
      Swampscott, MA
      Posts
      14
      Vehicles
      2011 VW Golf
      01-17-2012 03:50 PM #286
      I wanted to chime in as I am a licensed loan officer in MA and NH. I have found one of the best programs to get rid of MI is a program offered by Fannie Mae and Freddie Mac. The main criteria is that you must have either a Fannie Mae for Freddie Mac loan that was SOLD TO Fannie or Freddie before June 1st, 2009 and not currently paying mortgage insurance. In this case we can refinance a loan with no MI (for Freddie mac up to 110% of your loan amount, it is unlimited for Fannie Mae). Rates are still in the low 4's for these programs.

      Kicker is some banks suck when it comes to processing, and the government is not much better. Some loans may have been started in 2006, but took 4 years to be sold.

      These are the lookup tools to find if you loan is a Fannie Mae or Freddie Mac

      http://www.fanniemae.com/loanlookup/

      https://ww3.freddiemac.com/corporate/



      Pics of the car for the hell of it!


    12. Member ruetzal's Avatar
      Join Date
      Dec 17th, 2007
      Location
      Wisco
      Posts
      3,151
      Vehicles
      '13 WRX, 2009 A3 sold, '03 GTI sold
      01-17-2012 04:49 PM #287
      ^^welcome man, nice to have some more expertise in here!

    13. Member 1.8jettie's Avatar
      Join Date
      Oct 11th, 2007
      Location
      Bodymore, Murdaland
      Posts
      5,396
      Vehicles
      2013 Corolla S 2012 Rav 4 v6 Sport
      01-17-2012 10:09 PM #288
      Thanks for the response ruetzal. It's just a waiting game for the final approval, paperwork, and settlement date.
      Quote Originally Posted by PassSedanGLX View Post
      I'm in MD. I need three forms of ID and a police referral just to buy a Super Soaker.
      Orioles

    14. Member ruetzal's Avatar
      Join Date
      Dec 17th, 2007
      Location
      Wisco
      Posts
      3,151
      Vehicles
      '13 WRX, 2009 A3 sold, '03 GTI sold
      01-18-2012 04:29 PM #289
      3.875 % on a 30 year, 3.25% on a 15 year and 2.875% on a 10 year

      A little blurb on gov't interaction of LO Compensation: if you want me to clarify let me know
      Well, we know when we deal with the government their intentions may be good but the outcome is usually not what they expected. This is called unintended consequences. And guess what? There would be a lot of unintended consequences if we allow the government to actually regulate the Internet.
      Now – How does this relate to mortgages you ask? Well, the mortgage industry has been one of the biggest victims of the government’s over regulation. There are so many rules and regulations that are put in place to protect the consumer that it ends up hurting them. It’s no joke.
      Loan officer compensation is a great example of this. The intention of the government was to regulate the compensation of the loan officer so the consumer would get a better deal. Isn’t that what competition is supposed to be for?
      If loan office A gives you a rate of 3.875%, and loan officer B is giving you a rate of 4.25%, couldn’t you make an educated decision? The government thinks you are too stupid for that.
      The actual structure in which they put in place to regulate loan officer compensation also eliminated the loan officer from being able to cover any costs that happen during the loan process. From time to time, an inspection or lock extension pops up, and the loan officer used to be able to cover those costs for the client. This was a great thing for the consumer.
      Well, that is no longer allowed. NOW the company would need to cover that expense or pass the fee onto you the consumer. I know you don’t want to pay it! Well you can guess what that does.
      It’s the trickle-down effect. If the loan officer can’t pay it and you, the borrower, don’t want to pay it, the mortgage company – the loan officer works for – will have to pay it to keep the deal. In order for that to happen, margins need to go up. When margins go up, costs to the consumer go up.
      So let’s recap – the government regulated loan compensation in order to get you a better deal, and your costs went up. Let me hear you say it. Unintended consequences. You got it!
      So keep that in mind when your loan officer can’t pay that extra fee for you, and he or she actually has to do a change of circumstance form, add the fee to your GFE, and redisclose a new GFE and til three days before you can even close your loan. Oh and don’t forget … they have to show proof you got them as well.

    15. Member ruetzal's Avatar
      Join Date
      Dec 17th, 2007
      Location
      Wisco
      Posts
      3,151
      Vehicles
      '13 WRX, 2009 A3 sold, '03 GTI sold
      01-18-2012 04:34 PM #290
      to elaborate the above. With the new gov't regulations they require LO's to be under contract thru all lenders on how much they require to be paid. Some LO's require 1 point some require
      .25 points. No matter what the LO needs to be paid this amount (not over not less)

      So how this hurts you. Now you have to call essentially every mortgage broker in your area for rates! You have to find the low compensation guys vs. the higher compensation guys because one may be offering 4% since they only are required to make .25% vs a guy charging 4.25% that is required to make 1%

      Now they can charge you only 1 of 2 ways. Either being compensated by the lender which makes the above true or the other to charge you their required fee at the closing table (so essentially you pay)

      The latter of the 2 may be a better deal cause you will be credited by your lender the pricing that the LO is not getting. Although finding the LO with low compensation is ideal


      What we do is have low compensation LO's that we pay so we can credit the borrower the ysp back at closing making most borrowers to not have to bring any money to the table.


      Generally the best places to find are retail loan officers that work for the lender. Since they do not have any operation costs because the company pays everything. They can charge a .25 commission and credit you back the overages of the YSP and still make a pretty good salary since they don't have to cover operational costs.
      Last edited by ruetzal; 01-18-2012 at 04:38 PM.

    16. Semi-n00b
      Join Date
      Jan 16th, 2012
      Location
      Swampscott, MA
      Posts
      14
      Vehicles
      2011 VW Golf
      01-19-2012 02:54 PM #291
      I've had a lot of people come to me with credit issues that are limiting their ability to qualify for loan. There is an EXTREMELY easy way to improve your credit which is very often overlooked. Even if you have never had a late payment on any of your debt, payment history only accounts for 35% of your FICO score. Another 30% of your FICO score is based on amount owed! If you exceed 1/2 your credit limit on credit cards or charge cards this is a HUGE hit to your FICO score. Your score can increase in some cases by 40 points or more by paying down the balance on your card!

      I know Sears and other stores retail stores offer promotional cards and often have limits of $300 or so. REMEMBER, exceeding half of your credit limit no matter how low it is will adversely affect your credit!

      Just because you pay all your bills on time does not mean you have a perfect score. Check out this link for a breakdown of your FICO score, and how it is calculated.

      With a conventional loan, most lenders will work with a FICO score of at least 630, FHA loans can go down to 580.

      http://www.myfico.com/crediteducatio...yourscore.aspx

    17. Senior Member 16vracer's Avatar
      Join Date
      Jul 12th, 1999
      Location
      By the Zoo
      Posts
      25,231
      Vehicles
      '14 Odyssey Elite, '10 RX350, '05 Evo GSR 509whp gone
      01-20-2012 10:50 AM #292
      Anybody have any WA state specific VA loan info, or even non-VA as long as it's zero down or maybe 10k or less down?

      Situation- Current homeowners(married), VA loan, owing ~$406k. Planning to selling next summer(2013). Home is in a desirable, ie"hot" neighborhood in Seattle. Won't have a problem selling, but it will probably only be for ~$20k over what we will owe by then.

      That means not a lot of down payment. How much of that will be eaten up by selling fees etc?

      So my next question is about VA loan limits in the Seattle Metro area. Can you go over $417k now?

      We are planning to move to the eastside, and will most likely be looking at homes in the $500-600k range. Can you do a VA loan in Seattle for that much, or do we have to go conventional?
      '05 Evo GSR 509whp gone 06 Evo RS 409whp gone '10 RX-350 '14 Odyssey Elite I just want to do Race car things with my race car friends teespring.com/race-car-friends

    18. Member ruetzal's Avatar
      Join Date
      Dec 17th, 2007
      Location
      Wisco
      Posts
      3,151
      Vehicles
      '13 WRX, 2009 A3 sold, '03 GTI sold
      01-20-2012 12:58 PM #293
      2012 Conforming Loan Limits for Washington State Homes
      Congress decided to keep the 2012 Conforming Limits at the existing 2008 levels instead of reverting to the higher "temporary" limits that we've experienced the past couple of years**. In their infinite wisdom, Congress did restore the higher loan limits to FHA insured loans. This means that in order to not have a jumbo loan in the greater Seattle area, your loan amount will need to be $506,000 and lower for conventional or $567,500 or lower for FHA insured mortgages. I'll be officially posting FHA insured loan limits soon.

      Four counties in Washington continue to have "high balance" loan limits above the "general" loan limits:

      King County, Snohomish County and Pierce County:

      •1 Unit: $506,000
      •2 Unit: $647,750
      •3 Unit: $783,000
      •4 Unit: $973,100
      San Juan County:

      •1 Unit: $483,000
      •2 Unit: $618,300
      •3 Unit: $747,400
      •4 Unit: $928,850
      The remaining Washington counties have "general" loan limits:

      Adams, Asotin, Bention, Chelan, Clallam, Clark, Columbia, Cowlitz, Douglas, Ferry, Franklin, Garfield, Grant, Grays Harbor, Island, Jefferson, Kitsap, Kittatas, Klickitat, Lewis, Mason, Okanogan, Pacific, Pend Oreille, Skagit, Skamania, Spokane, Stevens, Thurston, Wahkiakum, Walla Walla, Whatcom, Whitman and Yakima Counties:

      •1 Unit: $417,000
      •2 Unit: $533,850
      •3 Unit: $645,300
      •4 Unit: $801,950

    19. Member ruetzal's Avatar
      Join Date
      Dec 17th, 2007
      Location
      Wisco
      Posts
      3,151
      Vehicles
      '13 WRX, 2009 A3 sold, '03 GTI sold
      01-20-2012 01:01 PM #294
      for a VA loan they should mirror the conventional loan limits

      for that much you will probably have to go jumbo. Also the down payment varies on jumbo loans. We don't do a lot of them so I couldn't tell you the ins and outs.

      For a regular mortgage these days you need at least 5% down (I think only 3% on FHA). Also if you go over 80% on a jumbo loan I am not sure if you would be able to obtain mortgage insurance. You may have to call up a WA loan officer and discuss before you go forward with your plans to sell.

      Also for realtor fees on your sale it can vary from about 1-5% of purchase price. Its all negotiable but generally if the realtor is making less you get less service. IE no open houses etc.
      Last edited by ruetzal; 01-20-2012 at 01:04 PM.

    20. Senior Member 16vracer's Avatar
      Join Date
      Jul 12th, 1999
      Location
      By the Zoo
      Posts
      25,231
      Vehicles
      '14 Odyssey Elite, '10 RX350, '05 Evo GSR 509whp gone
      01-21-2012 11:14 AM #295
      Thanks for the information
      '05 Evo GSR 509whp gone 06 Evo RS 409whp gone '10 RX-350 '14 Odyssey Elite I just want to do Race car things with my race car friends teespring.com/race-car-friends

    21. Member ruetzal's Avatar
      Join Date
      Dec 17th, 2007
      Location
      Wisco
      Posts
      3,151
      Vehicles
      '13 WRX, 2009 A3 sold, '03 GTI sold
      01-25-2012 02:23 PM #296
      A few good tips for those buyers out there

      The U.S. News & World Report did a really good article on negotiation tactics. They interviewed several expert negotiators, and here’s what they had to say when it comes to the biggest mistakes homebuyers make in the process:

      1. Understand the seller’s point of view. Ed Brodow, author of Negotiation Boot Camp, said homebuyers often overlook seeing things from the opposite point of view. He advised leveraging the seller’s fears and asking yourself what the pressures are on the house seller. Maybe the seller is under enormous pressure to sell the house quickly because of a new job in a new city. Maybe the seller is facing financial hardship. Who knows? Just try to find out as much as you can to boost your negotiating position.

      2. Do your homework! That’s right, you heard me, settle down and do your homework. Important information might be right in front of you. For example, you can get the sale prices of comparable homes and find out how long certain listings have been on the market. The best place to find out that information is with an experienced Realtor in your area.

      3. Remain incognito. Your goal maybe to find out as much about the seller as there is to know. But at the same time, you need to keep yourself a mystery. Just as you’re digging for info on the seller, the seller could be doing the same thing. It’s a two-way street. Don’t let them know how bad you want it.

      4. Keep your options open. Don’t put all your eggs in one basket. Make sure you have a back-up plan in place just in case. Even if you’re certain you’ve found that perfect home, have another one in mind – this way you’re not desperate to buy the first home that caught your eye. If that happens, you may find yourself on the other end of the table trying to give the seller whatever he or she wants.

      So these are just a few tips to help you when diving into negotiations for a new home. If the seller doesn’t reduce the price as much as you wanted, it’s not the end of the world. If you really like the home and the price has been reduced enough to fit your budget, then consider it a win-win.

      Just make sure your decision to purchase your next dream home is a logical one and not an emotional one. Emotion can cloud your judgment, and make you do something you wouldn’t normally do.

    22. Member ruetzal's Avatar
      Join Date
      Dec 17th, 2007
      Location
      Wisco
      Posts
      3,151
      Vehicles
      '13 WRX, 2009 A3 sold, '03 GTI sold
      01-25-2012 02:27 PM #297
      the above points should really be looked into. I know first hand on how excited a first time homebuyer feels when they finally find the home they like. Its a super rush to get the deal done since you have the feeling someone is going to steal it away from you. You have to take the emotion out of it. Ask your realtor to pull some comps in the area and determine the right price for the home. Its pretty easy Ask you realtor for the recent sales in the area (it will have sq. footage and price sold for) compare it to the one your looking at. now you have a comparable price and know a target price to shoot for. As always try to give a appropriate offer initially, what you feel is fair. If you like a home you don't want t insult the seller but also don't want to pay to much.

    23. Senior Member jnm2.0t's Avatar
      Join Date
      Oct 2nd, 2005
      Location
      Sunnyvale CA
      Posts
      20,145
      Vehicles
      List your car(s) owned here
      01-25-2012 04:21 PM #298
      Quote Originally Posted by ruetzal View Post
      to elaborate the above. With the new gov't regulations they require LO's to be under contract thru all lenders on how much they require to be paid. Some LO's require 1 point some require
      .25 points. No matter what the LO needs to be paid this amount (not over not less)

      So how this hurts you. Now you have to call essentially every mortgage broker in your area for rates! You have to find the low compensation guys vs. the higher compensation guys because one may be offering 4% since they only are required to make .25% vs a guy charging 4.25% that is required to make 1%

      Now they can charge you only 1 of 2 ways. Either being compensated by the lender which makes the above true or the other to charge you their required fee at the closing table (so essentially you pay)

      The latter of the 2 may be a better deal cause you will be credited by your lender the pricing that the LO is not getting. Although finding the LO with low compensation is ideal


      What we do is have low compensation LO's that we pay so we can credit the borrower the ysp back at closing making most borrowers to not have to bring any money to the table.


      Generally the best places to find are retail loan officers that work for the lender. Since they do not have any operation costs because the company pays everything. They can charge a .25 commission and credit you back the overages of the YSP and still make a pretty good salary since they don't have to cover operational costs.
      My problem is that they get paid a commission in the first place. It should be an entry level data input position for some kid right out of college. The housing industry would be better off without them imo.
      I'm just a regular Joe, with a regular job. I'm your average white, suburbanite slob.

      Quote Originally Posted by Rabbit5GTI
      You have cornered the entire 'I hate Ford Fusions' market around here
      Quote Originally Posted by Turbio!
      Pure electric vehicles will never fully replace fueled (pure ICE or PHEV) vehicles.

    24. Member ruetzal's Avatar
      Join Date
      Dec 17th, 2007
      Location
      Wisco
      Posts
      3,151
      Vehicles
      '13 WRX, 2009 A3 sold, '03 GTI sold
      01-26-2012 08:39 AM #299
      well technically its a professional position, also a sales position. And most sales position is based on performance, ie commission based. There is a lot of strategy/knowledge a LO should be able to give an individual.

      You have to keep in mind most people in our country have no clue how to position themselves financially. Whereas it is essentially putting data into fields you have to keep in mind there is a ton of background activity to get a personal qualified for a loan.

      A lot of LO's in the past have created a bad name for themselves and the industry but being in the industry for all my years I would say its on par with a financial advisor role.

      The industry over the last 2-3 years has taken a comensurate hit to income per loan though, so the general audience has also agreed that most LO's were paid to much. For a good LO they should be making anywhere between 60-120k per year. Ofcourse the 120k guy would be considered a allstar in the industry today. However we do have 2 individuals that probably come close to that figure. Even back in the day the average LO compensation on a yearly basis was about 40-60k taking into consideration inflation.

      It is a technical position that requires licensing and knowledge and in the end its a sales position and they should be compensated accordingly.

    25. Member ruetzal's Avatar
      Join Date
      Dec 17th, 2007
      Location
      Wisco
      Posts
      3,151
      Vehicles
      '13 WRX, 2009 A3 sold, '03 GTI sold
      01-26-2012 08:51 AM #300
      also you have to think economically. If the industry as a whole went to high school data entry people, it would not create any market competition thus most likely driving rates up. you have to compensate appropriately for individuals to want to come in the market and get paid accordingly for their time.

      As for right now the industry is so competitive and more regulated that the cost per loan has gone up and the commission per loan has gone down. this can be viewed as good and bad. Everyone in this country has a direct interest in more and more industry competition. More competition/business the better a industry will perform. This generally lowers costs to individuals. As a smart consumer its your decision to shop around. Everyone will tell you that banks charge the lowest fees. This is mainly true but for the broker industry in order to compete has to offer a better rate which generally happens but with a slightly higher fee.

      I will say most Brokers today take home about .25% of the loan amount. they may charge you a bit more but the cost to operate today is higher so all they are doing is trying to cover their costs. With more regulation the higher cost goes to operate.

    Page 12 of 31 FirstFirst ... 2891011121314151622 ... LastLast

    Posting Permissions

    • You may not post new threads
    • You may not post replies
    • You may not post attachments
    • You may not edit your posts
    •