Jason Sardi, Mortgage Banker

At the time, it was indistinguishable as a moment I would recognize down the line. After being down the line, I knew exactly what that moment meant.

Some of the questions that we get asked as folks working in the Real Estate Industry seem rudimentary... at least to us.

"Should I refinance" is a question I get often. Personally, I'd love to answer with a resounding, "YES!" each and every time. But I can't. It's just not the way it works. For eight years now, I've heard a bunch of folks answer that question in different markets, with different motives, with different companies... and I'm sure with different results in whether their particular client benefited from it and how much?

Here's my bullet points on that very question:

• This is an easy one but how long do you plan on owning that abode you want to refinance? To me, that's as crucial a part of the application process as asking what debts you have and what your social security number is. By the way, I better get your immediate contact info too;) Why? You got the chance to consult me and I want at least, the chance, to consult you before you disappear.
• Ideally, what are you looking to accomplish? Do you want to save money and/or consolidate debt, broaden the array of Investors holding your Real Estate Portfolio, lower your interest rate, shorten your term, or skip a month's mortgage payment because you are buying time? All are good reasons but the last. The last is simply wasting equity... and time. *1A
• If you can get a rate that is fixed in the four percent range (higher or lower 4% range) at a decent cost... one to two points at least... then you know something I don't. Is it worth that cost? See question number one. If it is long-term (let's say 5-years plus) then you might want to jump as long as you have a lending source who is good with the vertical leap. *1B

(If I'm boring you to death with this interview of sorts, let's spice it up a bit. How's the weather? You look like you've lost a heck of a lot of weight from when this photo was taken on your Driver's License? Do you like David Bowie?)

• Back to the bullet points, here. It's tough times, in the Media & the Reality of it all. But let's say I'm a 45 year-old man who has 15 years left on his mortgage. Let's also say that I can refinance into a 10-year term and keep the same or a very similar, payment. Should I do it? If that's the situation, I think you should. As long as your cash-flow and reserves (liquid assets) are in good order, you'll save a bundle of money in interest along the way. And having a home that is paid off by the time you are 55 years of age is rarely a bad thing.
• I'm a Real Estate Investor and right now I don't have a whole lot of cash, yet I have a whole lot of Resume. Do you have a branch that actually considers Common Sense Lending? To keep this simple, "No." I've thought about this and spoke about it with many individuals... opening up credit to legit Real Estate Investors may be a core stimulus in getting this rock rolling. Hang on and talk to your lender of choice regularly.

(I promise the torture is ending soon)

* "I think of myself as a smart consumer, what does my credit score mean now?" Rule your Credit Score. If you are affording it, keep on keeping records of affording it. It's like a GPA, doesn't mean much unless you know the system... or at least already mastered it. The system loves a good GPA and a good Credit Score. It means everything, right now.

* "I hear of the President's Plan, and I want that rate (whatever it was/is) for my Mortgage. I'm seeing this one a lot. Let me first say that I'm as bipartisian (hate that term, as there should be more than two;) as they come. I have no my political agenda. That written, please quit even wanting to rely on the government for anything. Rates are what they are. Seriously, if you can get a fixed rate in the 4% to 5% range on a 30-year mortgage... you won. Trust me on that one. Wait and opt for a better deal if you choose to roll the dice. Personally, I've never been successful in Atlantic City and have never been to Vegas.

Act Now; Think Later;)

1A - I'll write about loan modifications down the road. Unfortunately, they seem a necessity at certain points in the current atmosphere.

1B - I'm 6'1" and can't dunk a basketball at this moment in time. A tennis ball is eye candy, though;)

I came across a link recently on facebook that my biggest supporter, loving fan, brother from another mother, buddy of mine Dan Cummings posted.

In actually sharing it, I was a tad hesitant. As a matter of public record, I have mixed feelings on it. While the concept holds a ton of merit in my opinion and from what I've gathered from those who have been in this industry much longer than I; there is a strong part of me that doesn't particularly like loopholes. Without further ado, here's the link.

Let me add that I'm heavy on personal responsibility. Let me also throw in that all the blame that has been thrown around pointed at this reason and that reason can probably also be pointed in the mirror we look into every now and again. The tactic described in that news story of "Produce The Note" is a clever way of using the system to your advantage. God knows the system has used us to their advantage. What's fair is fair, right? Well, I don't really like to look at things like that. Actually, sometimes I do:) But let's get rational here...

Yes, there is a lot of wrongs in this world. There always will be. Yes, there are a lot of folks who will take advantage of you when you are in the confines of the fetal position. There probably always will be. And while we are still a young civilization, we have accomplished a lot. I do believe we will get through this and while I don't necessary think we will be smelling of roses after the fact... petunias aren't a bad door prize. Shoot for the roses, just don't ignore the other flowers along the way.

I certainly wish I could tell everyone that everything will be okay, because I believe it will. I don't know that as fact, though. All I do know is that WE play a larger part in our destinies than WE may think. Don't stop the negativity, just stop buying into it as if it is the all encompassing facet to these times. It isn't.

We have it pretty damn good. I dare say that we are spoiled to a large extent. Let's move forward swimming in the reality that we need to work hard, help each other, and practice ethics over instant gratification.

Hell, it sure beats one of the alternatives... which makes for a good song but a smokey neighborhood.

Herein ends my "Gary Woltal" moment;)

Jason Sardi

Mortgage Consultant

Infinity Home Mortgage Company, Inc

610-439-2166 ext. 229

jsardi@ihmci.com

http://activerain.com/blogs/shears76

http://www.federalhousingtaxcredit.com/

This should lead it off quite nicely:)

Back in my early days of lending, I recall quite vividly the very first Rehab Loan I did. While I did some legwork in actually knowing the ropes of that particular product before advertising the bejesus out of a very niche loan, I still was caught like a reindeer in some oncoming car's speeding headlights when trying to get them closed in a streamlined sort of fashion. And then, I had it mastered. As my particular luck would have it, most of those programs disappeared shortly thereafter.

The echoes in the back of my head rang of a long-lost product I had only heard about and most of what I heard were borderline horror stories. The FHA 203(K) loan reared its mysterious head and stared me in my wide-eyed glance. I gotta admit, there was major hesitation on my part in even wanting to get involved in such a misunderstood product. I knew little about it and wanted to concentrate more on the Conventional sort of stuff that I grew up with in the industry... at least at that point. Hey, of course I want to corner the market, but not at the risk of looking like an incompetent SOB at the end of the day.

Then, I encountered experts in that very product. I figured, let's roll repair.

After doing more homework than my combined High School & College Education would vouch that I did back in the day, I chose to go after a market that just may make a dent in not only enhancing the housing market... but the very neighborhoods we live in.

This is just a taste of the FHA 203(K) Renovation Loan!

• Add a deck or porch, makes for one heck of a Summertime BBQ.
• Upgrade the electrical system and avoid reading overdue utility bills under candlelight.
• Modernize the kitchen and watch the The Food Channel in a comparable stadium.
• Replace a furnace and heck, it's a furnace. You really don't want that entity breaking down anytime soon!
• Paint the exterior and/or interior. Yours could be the only lavender house in the neighborhood:)
• Install new carpeting. There's nothing like getting rid of stained residue from a German Shepard you never owned.
• Remodel a bathroom. Hey, might as well let loose of your naked body in comfortable surroundings!
• Replace roofing and/or siding. There were 58 mile per hour winds in Pennsylvania today, that stuff may come in handy.
• Refinish wood floors. That's a big selling point for yours truly. I adore wood floors and have an aggressive amount of ShamWow merchandise to prove it:)

Program Features:

• Low down payment
• Buy and remodel a home with one mortgage! You can finance the purchase plus the cost of the improvements with one monthly mortgage payment.
• At least $5,000 in repairs needed to qualify for the 203(K) Loan.
• They can be used for owner occupied 1-4 unit family dwellings.
• Closing takes place before the improvements/repairs are made.
• Money for the repairs and renovations is held in an escrow account and paid out after each phase of work is completed, inspected and approved.
• By the way, they are fixed rates!

Consider this the teaser post to the taste buds of home renovation lending. Yup, I'm your proverbial appetizer.

Jason Sardi

Mortgage Consultant

1-866-262-8720 ext. 229

jsardi@ihmci.com

Located at our Allentown, Pennsylvania office. Pennsylvania Based Mortgage Banker/Broker whose area of service include PA, NJ, NY, CT, DE, MD, VA, SC, FL, MI and IN.

I was honored when Jeff Belonger asked me to write this week's Mortgage Pro Week in Review.

Let's face it. We live in interesting times. There will come a day when textbooks being taught to future generations cite these very times. Luckily, we have some savvy folks to learn from and to generate a pro-active way to not only survive, but thrive here forth.

Like many, I have much to whine about and much to be thankful for. I am in the Mortgage Business, after all. Given the general atmosphere of things, if you had told me eight short years ago that I'd be in this gig, I would of asked you "What exactly is in that pipe you are smoking?" But I wouldn't trade it for an autographed Mickey Mantle jock strap. It is, in many ways, a true honor to have the knowledge and experience of so many at my fingertips. Likewise, it is just as much of an honor to be able to wrap some of the better articles pertaining to the Mortgage Industry into a post such as this.

Without further delay, here we go:

1st Time Homebuyer Toolkit - Part II by Tracy Santrock

What a plethora of valuable information and resources Tracy put together with this one. Heck, Tracy's post is a Review in of itself. Nicely done, my fellow North Carolina friend.

Buyers say "NO" to Closing Costs. What will the Sellers say? by Christopher and Stephanie Somers

Well, I'm not sure what the Sellers will say... but the Somers Team said this quite well. Closing costs are still one of the more misunderstood phenoms in the Mortgage Industry. Reading that post will do wonders for one's understanding of the process.

The Hidden Agenda of Banks: Why Mortgage Brokers Will Become Extinct by Janet Guilbault

Few inspire conversation like this lady. The comment threads that are born out of Janet's posts can be quite awesome. This one is no different. Janet continues to be one of the more prolific writers on everything "Mortgage". I take no shame in admitting that she is one of my favorites.

There Is Always More Than One Way / Then And Now by Bill Archambault

I once referred to Bill as the "Babe Ruth of the Lending Industry" though when I found out he doesn't drink, that threw that particular analogy out the window. In my eyes, few are more wise than his soul. His take on the entire Real Estate Industry is nothing to sneeze at. God forbid, you may actually learn something.

Mortgage Loans Can Be ........... Like Whisper Down The Valley by Scott Geary

What was once a childhood game has turned into a bold-faced reality. With changes so rampant in the Mortgage Industry, it is not hard to get inaccurate information along the way. Don't fall prey to that Whisper, just get the facts. See your familiar expert.

Holding Fellow Lenders to a higher standard! Misinformation is the leading candidate for confusion! by Darin Osenberg

Speaking of which, I do believe Darin hits the proverbial nail on the head. And you thought I was a bit edgy:) Get this man some Diphenhydramine. On a serious note, well done Mr. D.

Okay, I have to stop here. I mean, who is really going to click on and read every link that is provided? I would bet my left earlobe that nobody will. None the less, what a vast resource for information we have going on. I suppose I will take comfort in that. Sorry, carrying on...

FICO No Longer Available To Consumers by Eleanor Thorne

Frankly, this stuff amazes me. I'm all for Transparency and I think it is long overdue that the Credit Reporting Modules follow suit. They are currently wagging the dog, which I don't agree with but can't much change anytime soon. To anyone who "wags" the dog, just be prepared to clean up the inevitable feces along the way.

Should we run our COUNTRY like a business or like a soup kitchen? - Food for thought.... by Jeff Belonger

Personally, I like soup but I smell what Jeff is cooking. Some very interesting things to consider for every tax payer and law maker out there reading the World Wide Web. Just consider what he is saying, that is all I ask.

Does a Tell-All Confession Make For The Best Resume' - Ever? by Ron Withers

I read the story in full, even before Ron wrote about it. It's sickening but was the inspiration for something I posted recently. On a sidenote, I was humbled in being able to speak to Ron when I gave him a call over the weekend. Good guy, smart man.

And lastly, though I don't always believe in happy endings... this one kind of stirred me. Jeff Geoghan wrote a post that may hit home for many in our industry, many more in this life. Folks, that is star-worthy on so many fronts...

The following is a legal bore. Be yourself and you won't have to worry about this jargon...

We really could use some new volunteers for the Mortgage Pro Week in Review. Even if you are a realtor, a title person, or someone else that is related to the mortgage/real estate industry..... please read below.

Mortgage blogs by loan officers Here is a list of Loan Officers. If you are not listed, please email Jeff Belonger to be added. This way the person doing the Mortgage Pro week in review can try and find most mortgage related posts in one section. ActiveRain is growing rapidly and it is difficult to keep up.... If you think you have been ignored, you have not. This is open to all!!! Update : 1/23/09 - The AR groups only show about 35 people, but hold an unlimited number. So just ask...

All About Mortgages/Mortgage Networking Here is a group that many loan officers post their mortgage related blogs in. A good place to learn more about the type of programs, new industry news, and sometimes some inside tips. Don't hesitate to join.

The FHA Mortgage Group - Here is a group that specifically talks about FHA, FHA updates, and what FHA can do for your buyers and sellers.

Mortgages - Another group with anything and everything about mortgages. A diversified group.

MORTGAGE PRO Week in Review A repository for the Mortgage Week in Review. Please don't hesitate in joining this group. And any volunteers for the mortgage week in review, please e-mail Jeff Belonger at jbelonger@ihmci.com

1. Volunteer 02/09/2009 through 02/15/2009

2. Darin Osenberg 02/16/2009 through 02/22/2009

3. Midori Miller 02/23/2009 through 03/01/2009

There will be no recreations of any type regarding the titles or content of this group or Review without the permission and expressed written consent of the Group's founder

Mortgage Pro Week In Review - Copyright 2009^©