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Unfortunately, there are many ways to fleece a trusting buyer.
Who can you trust? Obliviously not the sleazy looking guy pictured but there are others who appear trustworthy who could be picking your pockets.
Most of us, when shopping, search for someone we can trust for good advice and a fair deal. Consequently, there are those who fulfill that need with a trustworthy appearance.
Often advertisements show them with Trust Symbols: holding a cute child or pet, surrounded by family.
Some appear trustworthy by company association, like starting a credit union or even better a military credit union.
On Friday, 11/27, I noticed a military federal credit union (FCU) advertising a Zero Point loan for 4.875% with an APR of 4.963% and the FCU would even pay lender fees.
Hmmmm... on Friday, at that rate, they should be paying their borrower's fees and a signing bonus.
The Zero Point APR seemed high to me so I used my APR calculator to find the fees.
The calculation required a loan amount and there was no loan amount disclosed beside the advertised rate and APR so I scrolled down to their detailed disclosure to see what I could see.
Below, in lots of small print, the FCU disclosed a $300,000 loan with a rate of 5.000%, 1-Point and an APR of 5.089. Hmmm... In this example, the APR contained 1 Point but no lender fees or prepaid interest.
So, based on their small print disclosure I also used a $300,000 loan amount and zero allowance for prepaid interest to find the fees on their Zero point 4.875% Rate.
Wow, based on the advertised Rate and APR, lender fees are a whopping $3,000. BUT WAIT.... There's more! Leave us not forget the small matter of 1.75% undisclosed yield spread premium (YSP) that, translated to dollars, is an additional $5,250. How do I know there is 1.75 Point YSP, you ask. Since you asked, on Friday, I know of at least two wholesale lenders offering their approved brokers 1.75 YSP on a 4.875% Rate. If a small, local mortgage broker can find that much YSP then a national FCU should be able to do that or better.
Did I mention that credit unions are not required to disclose yield spread premium?
To recap, let me count the ways this Military Federal Credit Union pissed me off.
The moral of this story? Let education, facts and figures be your guide... NEVER buy anything based solely on trust. You may choose a lender because you trust them for one reason or another but do not fail to always verify your trust.
Education is the Consumer's Only Real Protection.
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Are you looking for the perfect shutters for your Escondido home? Look no further!
Shutters are like furniture for your windows. They add beauty to any room in your home. They help keep out the heat from summer and the cool winter breezes and will not warp or fade. Treat yourself to these spectacular shutters, you will be so glad that you did.
To preview are other products, click here.
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We have the perfect blinds and shutters for your Escondido home.
It's so easy to update your home décor, just by giving us a call. We're ready to drop by at your convenience to show you how, together, we can add more value, beauty and comfort to your home. We'll help you do all that within your budget, too. We offer free in-home consultations, so you can shop in the comfort of your home.
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Wood Blinds
Woven Wood Blinds
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Rate Lock Advice and Mortgage Market Update
December 4, 2009, 11:45 PT
RATE LOCK ADVISORY
Lock Advice: LOCK
MBS prices are down -17/32. After the Employment data came in stronger than expected. The economy lost just -11K jobs in November, and the Unemployment Rate fell to 10.0% from 10.2%.
RATE NOTES:
When MBS prices are up, Rates are down.
Lock advice can change throughout the day .
Good economic news = Bad Rate News.
National Average Fixed Rate Mortgage
Unchanged at 4.87% on Dec.3
Fannie Mae Mortgage Backed Securities
MBS Opened at 4.544% Up 0.06%.
10 Year Treasury Currently 3.470% Up 0.08%
DJI Stocks $10,361.92, Down -4.23, -0.04%
European and Asian Markets Up 0.654%
Nymex Crude Oil Currently $75.40 Down $1.06
If you value your business then please watch this three minute video
See TBWS Video
President signs the First Time Buyer Tax Credit Extension Read Story Bill Introduced to Increase FHA Down Payment to 5.00% from 3.50 Read Story.
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I have many clients looking for homes who ask about short sales.
Short sales are properties that are sold for less than what is owed. A property owner's short sale agent asks the bank to accept a lower offer and allow their home seller to walk away.
Can you buy a property for less than it is worth if it is a short sale?

It depends if you hire a "short sale specialist" to handle negotiations for you.
Real estate agents have "specialties".
* Relocation * Luxury home
* Short sale * Residential (most common)
* Commercial * REO (Bank owned foreclosures)
* Estate/Trustee * Agricultural/Farm
Short Sale Nuances
* Qualified & experienced short sale specialists increase your chances of buying the property under market value.
* Experience is required to know which forms to file and more importantly when to file them.
* Short sale specialists get "priority" because they forge relationships with a banks short sale staff
* Laws and methods must be followed, timing of filing necessary documents is critical
If you are interested in listing or buying short sale property in Northern and coastal San Diego, contact Melissa Zavala.
Having worked for several years as an active Broker/Owner in San Diego County, Melissa has become a master at closing pre-foreclosure transactions. This is beneficial to owners of distressed properties, and other Realtors® as well.
Hundreds of real estate agents located in San Diego County and throughout California have hired her team to negotiate their short sales. These agents understand the value of outsourcing administrative tasks, and have tripled their income as a result.
If you are working short sales or would like to learn more about short sale negotiations, visit her website or give her a call today!
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Click our logo to visit our website, email me nevin@nevinloans.com or call
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