Mortgages Made Simple with Rick Gundzik

Purchasing a Home, Credit Scores - July 9, 2009

mortgagesmadesimple@gmail.com (Rck Gundzik) — Thu, 09 Jul 2009 10:00:03 PDT

In Part 2 of our "Purchasing a Home" series we're going to discuss credit score requirements.

The good news is FHA loans don't require much of a credit score at all. However, the major lenders require a 620 credit score. So keep that number in mind. You'll have more options available if your credit score is above 620. On a conventional loan you can also go as low as 620, BUT, it's a big but, your interest rate will be higher if your credit score is lower than 720. So if your credit score has got the blues, think FHA.

Also, if you have a bankruptcy or foreclosure they must be 4 years old. And a short-sale counts as a foreclosure with most lenders.

Collection accounts and charge-offs can sometimes create problems and may need to be paid off if they're not already taken care of.

When it comes to credit it's pretty straight forward. But if you need help reviewing it we're here to help.

Join us in our next "Purchasing a home" series for Appraisals, what's up with those.

Listen to "Purchasing a Home, Credit Scores"

If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email mortgagepodcast@gmail.com.

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Purchasing a Home - July 2, 2009

mortgagesmadesimple@gmail.com (Rck Gundzik) — Fri, 03 Jul 2009 08:53:54 PDT

We're making a few changes to our blog to better serve all of you. We're going to be moving toward a more text based blog. And we'll also be increasing the number of weekly posts as we're getting a new sponsor.

Today we are starting a "Purchasing a Home" series and what things to consider now that so many things have changed in the real estate industry. We'll cover qualifying for a loan with the new guidelines, appraisal issues, credit score requirements and many other issues.

The podcast version will contain much more wit but if you find it more convenient to read our blog you'll receive all the main points we want you to grasp to navigate your way through the mortgage market.

The first major change over the past year has been the elimination of "stated income" loans or "liar loans" as people not familiar with the mortgage industry call them. When these loans first became available that I remember was in the early 1990's, they served a useful purpose; they allowed people with excellent credit to obtain a loan quickly and easily. There was no need to get tax returns, w2's and paystubs. We asked the borrower how much money they made and we believed them. We didn't increase their income if it was too low, we simply told them to buy a cheaper house they could qualify for. Unfortunately, the subprime industry changed that mindset.

Now if you're self employed and write-off a lot of your income, you will have a hard time getting a loan today. So if you're planning to buy a home in the future, you must claim your income on your tax returns.

To qualify for a loan make sure your house payment is no more that 1/3 of your income. The house payment includes your taxes and homeowner's insurance or HOA dues if you're buying a condo. This is a real conservative rule-of-thumb but it's easy to calculate quickly. If you find that this qualifies you for too small of a loan, give us a call and we can fully pre-approve you for a loan. Here is a handy calculator to help you out.

Join us next time in our "Purchasing a Home" series for credit score requirements.

Listen to "Purchasing a Home - Stated Income"

If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email mortgagepodcast@gmail.com.

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4.5% Mortgage Rates, Get Over it - June 25, 2009

mortgagesmadesimple@gmail.com (Rck Gundzik) — Thu, 25 Jun 2009 22:40:45 PDT

We're making a few changes to our blog to better serve all of you. We're going to be moving toward a more text based blog. And we'll also be increasing the number of weekly posts as we're getting a new sponsor. The podcast version will contain the same content but if you find it more convenient to read our blog you'll receive all the main points we want you to grasp to navigate your way through the mortgage market.

Today's topic is "Why aren't mortgage rates at 4.5% like somebody promised", or as I titled it "4.5% Mortgage Rates, Get Over it." Attempting to avoid a political debate, because there is no winner here, I'll suffice it to say that everyone thinks President Obama promised 4.5% mortgage rates. I don't think he did, maybe Ben Bernanke did, but I don't remember either of them quoting an exact interest rate. One man, nor government can control the free market, especially the bond market. Granted, Bernanke wields a lot of influence when he says the Fed is buying mortgage backed securities, but once the Fed stops buying, rates go up. And ever since the Fed announced they would be buying mortgage backed securities early this year, rates have gone up and up. (A lot of people buying mortgage backed securities lowers rates, while selling raises rates due to supply and demand influences. Sorry it's Economics 101 all over again.)

In any case, my point is this....if you can benefit from refinancing your home now, do it! I've seen predictions for mortgage rates to go as low as 3.5% or as high as 8% in the next 12 months, the fact is nobody knows.

Do this simple test, rates are essentially 5.5% today for a 30 year mortgage for a loan amount of $417,000 or less. Take your rate now, let's say 6.75%. Take the difference in those two numbers in 1/8ths. In our example, there are 10 1/8ths between 5.5 and 6.75. For each 1/8 difference in interest rate, there is about an $8 difference in your monthly payment for every $100,000 of money borrowed. So if you have a $300,000 mortgage at 6.75% you could save approximately $240 per month by refinancing. (8 x 10 x 3 = 240) For most people that makes sense, and if rates go to 3.5% you can do it again. But by all means don't miss the boat if you can save money.

P.S. You can use a mortgage calculator too, but this is more fun.

If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email mortgagepodcast@gmail.com.

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Upside down on Your Mortgage and Jumbo Loans - June 18, 2009

mortgagesmadesimple@gmail.com (Rck Gundzik) — Fri, 19 Jun 2009 22:17:54 PDT

This week we're replaying a podcast where we answer 5 more questions from loyal listeners.

1. If someone is upside down in there mortgage, what advice would you give them?
2. Could you explain what it means to be upside down in a mortgage?
3. Can a person use the equity from there property as a down payment on another property?
4. Is there capital gains on borrowed money?
5. Why is difficult to get jumbo loans today? What are they?

Listen to "Upside down on Your Mortgage, Jumbo Loans and More Listener Questions Answered"

If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email mortgagepodcast@gmail.com.

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FHA Streamline Refinance - April 23, 2009

mortgagesmadesimple@gmail.com (Rck Gundzik) — Thu, 23 Apr 2009 07:10:00 PDT

FHA Streamline refinances are the best thing since sliced bread. They allow you to refinance with no appraisal, no paystubs and essentially no qualifying. Make sure your loan officer isn't charging any points and you'll be lowering your monthly payment in a pretty easy, hassle free loan refinance.

To find out if your loan is eligible email us and we'll help you out.

Listen to "FHA Streamline Refinance"

If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email mortgagepodcast@gmail.com.

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Refinance vs. Loan Modification - April 16, 2009

mortgagesmadesimple@gmail.com (Rck Gundzik) — Thu, 16 Apr 2009 08:18:01 PDT

Is it better to do a simple refinance or a loan modification? I, of course, prefer a refinance. It's straight forward, actually cheaper and it's a sure thing. And with President Obama's MakingHomeAffordable.gov plan, refinances should be easier if you have a loan that is owned by Fannie Mae or Freddie Mac.

To find out if your loan is eligible visit
MakingHomeAffordable.gov
Fannie Mae Lookup
Freddie Mac Lookup
or email us and we'll help you out.

Listen to "Loan Refinance vs. Loan Modification"

If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email mortgagepodcast@gmail.com.

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$8,000 Tax Credit and More - March 26, 2009

mortgagesmadesimple@gmail.com (Rck Gundzik) — Thu, 26 Mar 2009 07:32:00 PDT

Is the $8,000 tax credit going to help you out? Find out on today's podcast if it will and we give details on California's new home tax credit.

$8,000 tax credit details:
Must be a 1st time homebuyer, haven't owned a home in the prior 3 years
Must live in house 3 years, or you must pay it back
Dollar for Dollar tax credit on income tax owed
Eligible on homes purchased between Jan 1, 2009 and December 1, 2009
Tax credit is 10% of value of home purchased or $8,000, whichever is less

Listen to "$8,000 Tax Credit and More"

If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email mortgagepodcast@gmail.com.

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Upside down on Your Mortgage and Jumbo Loans - March 19, 2009

mortgagesmadesimple@gmail.com (Rck Gundzik) — Thu, 19 Mar 2009 07:04:00 PDT

This week we answer 5 more questions from loyal listeners.

1. If someone is upside down in there mortgage, what advice would you give them?
2. Could you explain what it means to be upside down in a mortgage?
3. Can a person use the equity from there property as a down payment on another property?
4. Is there capital gains on borrowed money?
5. Why is difficult to get jumbo loans today? What are they?

Listen to "Upside down on Your Mortgage, Jumbo Loans and More Listener Questions Answered"

If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email mortgagepodcast@gmail.com.

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Seller Financing, What is it and More Listener Questions - March 12, 2009

mortgagesmadesimple@gmail.com (Rck Gundzik) — Fri, 13 Mar 2009 23:27:23 PDT

This week we answer 6 more questions from loyal listeners.

1. There are 3 phases of development, undeveloped, pre-construction and developed. What type of financing is available for the purchase of raw land. If there's financing available, what do lenders look at?
2. There's so many ways to fund real estate today using creative thinking, one that I can think of is seller financing. What is it?
3. You have spoken before about using the equity out of one's property to add value. Why is it that one can't take out more than 80% loan to value when doing a cash out refinance? The money is going right back into the property to increase it's value potential.
4. When does one pay PMI,(Private Mortgage Insurance)? Is it bad or good for the borrower ? Once you have it, can it be removed?
5. In your previous episode of "Mortgage Made Simple",you mentioned the wrong ways to use equity such as purchasing an RV, ,jet skis, boats, cars, etc. These are clearly a depreciating asset. Now, if I decided to use the equity from my property to purchase an appreciating asset, such as investing in real estate. Would this be a good idea?
6. If I ever got into the wrong loan product. Would I be able to refinance?

Listen to "Seller Financing, What is it and More Listener Questions Answered"

If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email mortgagepodcast@gmail.com.

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FHA, VA origins and Low Down Payment loans - March 5, 2009

mortgagesmadesimple@gmail.com (Rck Gundzik) — Thu, 05 Mar 2009 07:38:00 PST

This week we answer 6 more questions from loyal listeners.

1. Will FHA Loan limits apply when house prices start to stabilize?
2. How Did FHA and VA loans develop?
3. In pre construction is a construction loan used by developers?
4. Are there any high leverage loans available that require a low down payment?
5. What is the difference between stated income and "No Doc" loans and are they still available?
6. There have been a lot of changes made recently in the mortgage industry, what changes have you seen?

Listen to "FHA, VA origins, Low Down Payment loans and More Listener Questions Answered"

If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email mortgagepodcast@gmail.com.

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Building Wealth, Negative Amortization and More Questions Answered - February 19, 2009

mortgagesmadesimple@gmail.com (Rck Gundzik) — Thu, 19 Feb 2009 07:47:00 PST

This week we answer 7 more questions from loyal listeners.

1. How can one build wealth through real estate through mortgage payoff?
2. What are Negative Amortization loans?
3. Is it better to use a HELOC, credit cards or your own cash for any renovation work done to any property?
4. When choosing between long term and short term financing, what loan products are available?
5. What would be considered long term financing?
6. What would be considered short term financing?
7. Can you transfer equity out of one property to another?

Listen to "More Listener Questions Answered"

If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email mortgagepodcast@gmail.com.

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Real Estate Tax Breaks, Cash out and Mortgage Backed Securities - February 12, 2009

mortgagesmadesimple@gmail.com (Rck Gundzik) — Thu, 12 Feb 2009 07:25:01 PST

This week we answer 7 more questions from loyal listeners.

1. How do you calculate the appreciation potential on a property?
2. What tax breaks are available in real estate?
3. Banks leverage money, but they make money on the spread. Could you explain what that means?
4. When should one consider a cash out refinance?
5. What are mortgage backed securities?
6. When choosing a loan product, what must one consider first?
7. Are interest only loans good? What's there primary purpose?

Listen to "More Listener Questions Answered"

If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email mortgagepodcast@gmail.com.

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Interest Rates, HELOCs, and Leverage - February 5, 2009

mortgagesmadesimple@gmail.com (Rck Gundzik) — Thu, 05 Feb 2009 07:00:01 PST

This week we answer 6 more questions from loyal listeners.

1. What influences interest rates?
2. How can one lower their debt service?
3. Whatʼs the difference between fed funds rate and the prime rate? How does it affect the lender and the borrower?
4. How should one use there HELOC, there home equity line of credit?
5. Could you explain how leverage works and how it magnifies through the purchase of real estate?
6. Whatʼs the difference between commercial and residential financing?

Listen to "More Listener Questions Answered"

If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email mortgagepodcast@gmail.com.

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Equity, Hard money, and More Listener Questions - January 29, 2009

mortgagesmadesimple@gmail.com (Rck Gundzik) — Tue, 03 Feb 2009 08:39:05 PST

This week we answer 6 questions from a loyal listener.

1. Are there different types of equity?
2. What types of real estate deals would use hard money?
3. What do lenders look at to determine if a person qualifies for a loan?
4. On a commercial property, How do lenders qualify the loan?
5. In the past you have spoken on short sales, How are they structured and How does it benefit both parties?
6. When determining the type of loan product one should use for a property,there's short term and long term financing. What should one consider first?

Listen to "Listener Questions Answered"

If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email mortgagepodcast@gmail.com.

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203k loans and Loan Mods, Listener Questions Answered - January 22, 2009

mortgagesmadesimple@gmail.com (Rck Gundzik) — Sat, 24 Jan 2009 12:35:37 PST

This week we answer 6 questions from a loyal listener.

1. What's a 203(K) Rehabilitation Program?
2. How does a loan modification work?
3. Could you explain the process of doing a cash out refinance on a property?
4. Could you explain how a wraparound mortgage works?
5. What's a balloon mortgage?
6. Could a property owner lose there equity to the market?

Listen to "Listener Questions Answered"

If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email mortgagepodcast@gmail.com.

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Mortgage rates and the Bailout - January 1, 2009

mortgagesmadesimple@gmail.com (Rck Gundzik) — Sun, 04 Jan 2009 15:54:38 PST

Have any of the bailout plans worked? We discuss the past few bailout ideas and why we think the Fed's latest attempt to push mortgage rates down will work. We have touched on this plan before but we add some more commentary and delve a little deeper. Nothing but the best for our listener's on New Year's Day. Get ready for an exciting 2009!

Happy New Year!

Listen to "Mortgage Rates and the Bailout"

If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email mortgagepodcast@gmail.com.

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Merry Christmas to All!!!

mortgagesmadesimple@gmail.com (Rck Gundzik) — Thu, 25 Dec 2008 10:00:02 PST

Merry Christmas to you all. We hope this Christmas season brings you all the joy and blessings you deserve. We at Mortgages Made Simple wish you the best of Holidays.

If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email mortgagepodcast@gmail.com.

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FHA Streamlines - December 18, 2008

mortgagesmadesimple@gmail.com (Rck Gundzik) — Thu, 18 Dec 2008 07:35:00 PST

The hot topic lately has been FHA Streamline refinances. We explain what they are, how you qualify for a streamline refinance and what you need to do to get an FHA streamline refinance. The most important thing, you must currently have an FHA mortgage.

Listen to "FHA Streamlines"

If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email mortgagepodcast@gmail.com.

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Mortgage Rates at 4.5%??? - December 11, 2008

mortgagesmadesimple@gmail.com (Rck Gundzik) — Thu, 11 Dec 2008 07:00:01 PST

Today we answer another listener's question. Mike in Santa Barbara wanted to know how The Fed can lower mortgage rates to 4.5%. We explain how The Fed could do this and if it will last long. We don't think it will last long, so start preparing now to take advantage of it.

Listen to "Mortgage Rates at 4.5%"

If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email mortgagepodcast@gmail.com.

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The Fed and The Treasury - December 4, 2008

mortgagesmadesimple@gmail.com (Rck Gundzik) — Fri, 05 Dec 2008 00:12:14 PST

Today we answer a listener's question. They wanted to know what the difference is between the The Federal Reserve and the Treasury Department. We explain how The Fed trys to control interest rates and inflation and The Treasury prints money. Overly simplistic maybe, but we put it all in perspective.

Listen to "The Fed and The Treasury"

If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email mortgagepodcast@gmail.com.

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Thanksgiving Wishes and a Top 10 Redux

mortgagesmadesimple@gmail.com (Rck Gundzik) — Thu, 27 Nov 2008 10:57:24 PST

Happy Thanksgiving! We would like to wish you all a Happy Thanksgiving and hope the economy is treating you well. Take this time to remember life is all about family and friends and be thankful for what you have. And now for a little economic humor we re-podcast our Fed Top 10.

Top 10 Things You Don't Want To Hear The Head of the Federal Reserve Say:

10. The systemic risk of the financial system is greatly exacerbated by how many big words I can use to confuse the public
9. If I follow the rainbow, there should be a pot of gold somewhere around here
8. Quick, get more ink for the printing presses
7. These dollar bills make great wallpaper
6. What the heck does systemic mean?
5. Which way to the soup kitchen?
4. Hey W, Do you have Alan Greenspan's cell phone number?
3. How do I start this helicopter?
2. Hi, I'm calling for the U.S. Government, can we get a loan mod?
1. Heads, I lower the discount rate...Tails, I raise it.

Listen to "Top 10 Things You Don't Want To Hear The Head of the Federal Reserve Say"

If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email mortgagepodcast@gmail.com.

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Fires and Your Homeowner's Insurance - November 20, 2008

mortgagesmadesimple@gmail.com (Rck Gundzik) — Thu, 20 Nov 2008 09:18:49 PST

This is a re-podcast of a show we did during the 2007 California fires. This year the fires were widespread but thankfully didn't destroy as many homes. The topics we cover are: Does your homeowner's insurance adequately cover you against loss? Do affected disaster victims have any chance for mortgage relief?

We also discuss disaster loans and what the Federal Government sometimes will provide to homeowners. And finally, if you were in foreclosure and involved in a disaster, what happens to your mortgage?

Listen to California Wild Fires and hazard insurance information

We'd love to hear your mortgage questions. Call the listener line at (714) 519-7833 and you might just end up on the podcast.

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Economic News coming out this week - November 16, 2008

mortgagesmadesimple@gmail.com (Rck Gundzik) — Sun, 23 Nov 2008 10:23:32 PST

Economic reports coming out during the week are always a good way to determine if mortgage rates may rise or fall The two most notable reports this week are PPI and CPI. They both measure inflation, PPI at the manufacturer level and CPI where it hits home, your wallet.

Watch the numbers, if they are better or worse than expected mortgage rates typically will move. In this case if inflation is high rates will go up, low inflation will help lower mortgage rates.

If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email mortgagepodcast@gmail.com.

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Current State of the Economy - November 13, 2008

mortgagesmadesimple@gmail.com (Rck Gundzik) — Thu, 13 Nov 2008 07:00:00 PST

We focus on the current state of the economy and explain why the Fed lowering rates doesn't directly affect mortgage rates. We also share some observations with you about the local economy in Orange County California.

Listen to "The Current State of the Economy"

If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email mortgagepodcast@gmail.com.

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Vote for a new kind of Mortgage Company - November 1, 2008

mortgagesmadesimple@gmail.com (Rck Gundzik) — Sat, 01 Nov 2008 11:22:30 PDT

We've had this idea for many years now, but the industry has always resisted us. Imagine if you could do your own loan with no interference from a loan officer? You would get a good loan at a great rate. That day is here, help us win the ideablob contest to make this happen.

If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email mortgagepodcast@gmail.com.

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