Jumbo Loans - The Quality Source

True Jumbo Loans up to $2.5M in California & Washington

2010-02-27T14:32:00.000-08:00

VanDyk Mortgage offers our new enhanced Jumbo Loan Programs. We call it our Premier Jumbo Line. We offer True Jumbo Loans up to $2.5M in California & Washington. These are also called Non-conforming or Non-conforming jumbo loans.

Here are the basics:

> Available in 3yr ARM, 5 yr ARM, or 7 yr ARM (+ 15 yr fixed & 30 year fixed rates).

> Principal & Interest or Interest Only (10 yr period)

> Loan to Value ratios up to 80% (no reduction for Declining Markets such as California)

> Loan amounts up to $2.5 million

> Competitive Jumbo rates, unlike most Jumbo programs that are well over 8-9%, these are typically under 6.25% and sometimes even lower.

> Full Income & Asset Documentation is required.

We can beat virtually all major banks on loans over $417,00. You won't find this loan at Bank Of America, Chase, Citi, Wells Fargo, or Suntrust. You can only find it at VanDyk Mortgage.

Get out of your Option ARM or Adjustable Rate Jumbo Loan before the index rises back up or your payment recasts into fully amortized (usually after 5 years).

VanDyk Mortgage - Call Brian Skaar - 760-752-4480 or online at www.vandykfunding.com

VanDyk Mortgage is Direct Lender and Broker offering Conventional, FHA, VA, Jumbo, FHA Jumbo, VA Jumbo, and USDA Home Loans. We serve California and Washington from our office.

FHA, VA & Conventional Loan Limits for 2010 announced

2009-10-30T12:09:00.000-07:00

FHA, VA & Conventional Loan Limits for 2010 have been approved by congress.

Today, Congress approved an extension of higher loan limits for FNMA, FHLMC, and FHA (Fannie Mae, Freddie Mac & FHA) that will extend the current loan limits in place for 2009 to the end of 2010. This will help avoid any disruption in the mortgage market as the housing sector tries to recover.

The loan limits for your area can be found by clicking on the following links:
FHA Loan Limits for high cost counties
Fannie & Freddie Loan Limits for high cost counties
VA Loan limits for high cost counties

VanDyk Mortgage offers FHA Jumbo, Conventional Jumbo (Fannie & Freddie), and VA Jumbo loans in all areas that we service. The VA Jumbo Loan limits are not official yet, but they are based on the GSE Loan limits approved by this bill, so we anticipate no changes to VA limits.

The extended 2009/2010 FHA/Fannie Mae/Freddie Mac loan limits retain the high end at $729,750 in higher cost counties such as Los Angeles, Santa Clara, San Francisco, Orange County, Bay Area cities, and more. San Diego County remains at a max 2009 FHA Loan Limit of $697,500 for a single family residence.

The extended 2009/2010 VA loan limits retain the high end at $737,500 in higher cost counties such as Los Angeles and Orange County, $1,094,625 in San Francisco, San Mateo, Marin, Alameda, & Contra Costa Counties, $937,500 in San Benito & Santa Clara counties, $805,000 in Santa Cruz county, and more. San Diego County remains at a max VA Loan Limit of $593,750 for a single family residence for 2010. Here is a post on the 2009 VA limits that may be helpful.

We are very excited about these enhanced possibilities for our Veterans & Active Duty Military Personnel. VanDyk Mortgage has been making FHA & VA loans since 1987. We are a HUD recognized Full Eagle FHA DE underwriter and FHA Direct Lender. VanDyk Mortgage is also a Proud VA Direct Lender. Go with the Government Loan Pros, go with VanDyk. Visit us at http://www.vandykfunding.com/ or call Brian Skaar direct at 760-752-4480 for help with your VA or FHA loan. We are your VA Jumbo Direct Lender and FHA Jumbo Direct Lender and we offer FHA, FHA Jumbo, FHA Manual Underwrite, FHA Jumbo Streamline refinance, FHA Jumbo Purchase, FHA Streamline, VA, VA Streamline, VA Jumbo purchase, VA Jumbo Refinance, VA Cashout refinance, FHA Rehab 203K, VA, Conforming & Jumbo Loans.

We serve the following areas for VA, FHA and Conventional loans: California,Southern California, Northern California, Washington, Texas, Georgia, Florida, San Diego, San Marcos, CA, WA, GA, FL, MO, MI, TX, Carlsbad, Oceanside, Vista, Escondido, Fallbrook, Bonsall, Riverside, Los Angeles, Orange County, Irvine, Corona, Anaheim, Santa Ana, Seattle, Washington, Bellevue, Kirkland, Redmond, Lynnwood, Olympia, Tacoma, Puyallup, Buckley, Auburn, Kent, Federal Way, Seatac, Seattle, Bellevue, Sammamish, Issaquah, San Francisco, Oakland, Fremont, San mateo, santa clara, San Jose, Carson, Gardena, Hawthorne, Lawndale, Inglewood, Ladera Heights, View Park, Windsor Hills, Baldwin Hills, Fox Hills, Culver City, Beverly Hills, Malibu, Santa Monica, Brentwood, Calabasas, Encino, Oakland, Bel Air Estates, Palos Verdes Estates, Rancho Palos Verdes, Rolling Hills, Rolling Hills Estates, Manhattan Beach, Redondo Beach, Hermosa Beach, Torrance, Sacramento, Stockton, Bakersfield, Fresno, San Marcos, San Diego, Rancho Bernardo, Carlsbad, Escondido, Poway, Oceanside, Vista, Encinitas, Carmel Valley, Scripps, Tierra Santa, El Cajon, La Jolla, Chula Vista, National City, San Ysidro, Santee, Eastlake, Ramona, Long Beach, Artesia, La Palma, Cerritos, Compton, Lynwood, Bellflower, Temecula, Murrieta, Southern California, Northern California, Washington, Everett, Lynnwood, Tacoma, Kent, Federal Way, Auburn, Renton, Bellevue, Redmond, Kirkland, Whittier, Santa Fe Springs, Downey, Irvine, Newport Beach, Los Angeles, San Bernardino, Riverside and Orange County. VanDyk Mortgage is your FHA Lender & VA Lender of choice.

VA Jumbo Loans available to $1,094,625

2009-10-25T11:29:00.000-07:00

VA Jumbo Loans available to $1,094,625.

VanDyk Mortgage offers VA Jumbo Loans up to $1,094,625 in all areas that we service. Many VA Jumbo Lenders cap their VA loans at $417,000, or $650,000. We offer VA Jumbo Loans up to the full county limit for your area, and even go above the county limit when there is sufficient down payment and entitlement to reach your minimum 25% guarantee for the loan. Here is another post that covers that subject: The VA 417K myth.

VA Jumbo's are the best way to purchase a million dollar home with less than 20% down payment in many California counties and areas. In fact, VA Jumbos are the best way to buy a home that is over $417K in most California Counties. Here is a list of County VA Loan Limits: VA Loan Limits by county. Call to find out how much downpayment you will need for your home purchase - 760-752-4480, ask for Brian Skaar.

We offer VA Jumbo Loans for Purchase, Refinance, and Cash-out Refinance. VanDyk Mortgage is a VA Direct Lender (since 1987) offering VA Loans such as VA purchase loans, VA Streamline Refinance, VA IRRRL, VA Refinance Loans, VA Mortgages of all types. As a Government Direct Lender, VanDyk Mortgage is also a HUD Full Eagle FHA Direct Endorsement Underwriter, ie FHA Direct Lender offering FHA Loans such as FHA Purchase loans, FHA Refinance, FHA Streamline Refinance, FHA 203K Streamline Rehab loans, FHA Jumbo, FHA Jumbo Purchase, FHA Jumbo Refinance, FHA Jumbo Streamline Refinance, FHA mortgages of all types. We offer FHA & VA loans in California, Georgia, Texas, Washington, & More. Visit us at http://www.vandykfunding.com/ to get started or just find out more.

VanDyk Offers new Jumbo Loan Program

2008-12-02T21:10:00.000-08:00

VanDyk Mortgage is proud to introduce our new Jumbo Loan Programs. We call it our Premier Jumbo Line.

Here are the basics:

> Available in 3yr ARM, 5 yr ARM, or 7 yr ARM
> Principal & Interest or Interest Only (10 yr period)
> Loan to Value ratios up to 80% (70% in declining markets)
> Loan amounts up to $2 million
> Competitive rates, similar to Conforming Jumbo Rates (unlike most Jumbo programs that are well over 9%, these are typically under 6.375% and sometimes even lower)

We can beat virtually all major banks on loans over $625,500. This loan product isn't available at Countrywide, Bank Of America, Chase, Citi, Wells Fargo, or Suntrust. You can only find it at VanDyk Mortgage.

Get out of your Option ARM before the index rises back up or your payment recasts into fully amortized (usually after 5 years).

VanDyk Mortgage - Call Brian Skaar - 760-752-4480 or online at www.vandykfunding.com

New 2009 Loan Limits for Fannie & Freddie

2008-11-07T11:52:00.000-08:00

Fannie Mae & Freddie Mac have new loan limits for 2009, as released today. The standard conventional loan limit remains at $417K accross the USA. High Cost Areas have new limits based on the new formula in the 2008 housing bill passed in July.

We expect to see some updates to the current Fannie Mae & Freddie Mac guidelines for loans that exceed the standard limit of $417K which will keep these larger sized loans affordable & attainable. We will keep you posted as we hear updates.

We also expect to see updates soon from HUD regarding the 2009 FHA loan limits, extension of the FHA Secure loan program, and updated guidelines on Hope for Homeowners.

Here are some highlights of the new loan limits:
Alpine County, CA $463,450
Bellevue, WA $506,000
Carlsbad, CA $546,250
Chula Vista, CA $546,250
Escondido, CA $546,250
Everett, WA $506,000
Greene County, GA $515,200
Key West, FL $529,000
Kirkland, WA $506,000
Long Beach, CA $625,500
Los Angeles, CA $625,500
Lynnwood, WA $506,000
Mono County, CA $529,000
Napa, CA $592,250
Naples, FL $448,500
Oakland, CA $625,500
Oceanside, CA $546,250
Orange County, CA $625,500
Petaluma, CA $520,950
Pierce County, WA $506,000
Riverside, CA $417,000
Sacramento, CA $474,950
Salinas, CA $483,000
San Diego, CA $546,250
San Francisco, CA $625,500
San Jose, CA $625,500
San Juan County, WA $483,000
San Luis Obispo, CA $561,200
San Marcos, CA $546,250
Santa Barbara, CA $603,750
Santa Cruz, CA $625,500
Santa Rosa, CA $520,950
Seattle, WA $506,000
Snohomish County, WA $506,000
Tacoma, WA $506,000
Truckee, CA $477,250
Ventura, CA $598,000

Access the 2009 High cost area loan limits here PDF: 2009 Loan Limits

We believe that these loan limits are ample enough to help out millions of Americans Purchase new homes and Refinance their homes into safe affordable fixed rate loans.

VanDyk Mortgage is a Nationwide Direct Lender. Visit us on the web at www.vandykfunding.com.

FHA - Stimulus Size and FHA Jumbo - what should we call it?

2008-05-18T21:03:00.000-07:00

There is some confusion out in the media about the new FHA loan limits and just what to call these new loans. We have several investors that call these Stimulus Size FHA loans, and some call them FHA Jumbo loans. We just call them great loans. These loans can qualify borrowers in high cost areas for much higher loan amounts for safe, secure FHA loans with just 3% down payment or 3% equity for refinance. The available loan amounts in areas such as Los Angeles & Orange County, & San Francisco (and much of the Bay Area) now allow loans up to $729,750 with just 3% down. San Diego allows up to $697,500, Seattle up to $567,500.

The FHA loan allows home buyers to get into homes with much less cash versus Fannie Mae or Freddie Mac "stimulus size" or "agency jumbo" loans. These loans require 10% down payment for the higher loan amounts. They also require much higher fico scores to qualify.

FHA loans look at the overall credit character of your file, not just your fico. Give us a call at 760-752-4480 direct, ask for Brian Skaar to see if this is the right loan for your next home.
Or just see if it is a good option to refinance your home into a safe, secure fixed rate loan.

Visit us on the web at www.vandykfunding.com

Some of the areas that we can help with FHA loans include: Carson, Gardena, Hawthorne, Lawndale, Inglewood, Ladera Heights, View Park, Windsor Hills, Baldwin Hills, Fox Hills, Culver City, Beverly Hills, Malibu, Santa Monica, Brentwood, Calabasas, Encino, Bel Air Estates, Palos Verdes Estates, Rancho Palos Verdes, Rolling Hills, Rolling Hills Estates, Manhattan Beach, Redondo Beach, Hermosa Beach, Torrance, San Marcos, San Diego, Rancho Bernardo, Carlsbad, Escondido, Poway, Oceanside, Vista, Encinitas, Carmel Valley, Scripps, Tierra Santa, El Cajon, La Jolla, Chula Vista, National City, San Ysidro, Santee, Eastlake, Ramona, Long Beach, Artesia, La Palma, Cerritos, Compton, Lynwood, Bellflower, Temecula, Murrieta, Southern California, Washington, Everett, Lynnwood, Tacoma, Kent, Federal Way, Auburn, Renton, Bellevue, Redmond, Kirkland, Whittier, Santa Fe Springs, Downey, Irvine, Newport Beach, Los Angeles, San Bernardino, Riverside and Orange County.

New Stimulus Size loans FHA or Fannie?

2008-04-16T20:31:00.000-07:00

Well, The new Stimulus Package loan limits are here, and we have had a couple weeks to see how the banks would digest the new loan limits. For instance, the new loan limit in Los Angeles, CA is $729,750, while the limit for San Diego, CA is $697,500. The Seattle area in Washington, including King, Pierce & Snohomish Counties are now capped at $567,500.

So what is the difference between the larger FHA loans and Fannie Mae's new Jumbo offerings.

Well for starters, FHA only requires 3% down payment vs Fannie Mae's 5% minimum. There is another advantage to using FHA when the property is in a "declining market" such as most of California, Florida, or Michigan. In the Declining Market, Fannie Mae requires another 5% down for a total of 10% down payment required. Regardless of credit score. This is the minimum.

FHA guidelines are far more predictable than Fannie Mae's are right now due to problems for Banks to sell loans in the secondary market. These problems have resulted in constant changes in qualification guidelines & parameters for Fannie Mae loans. Meanwhile, FHA loans remain true to form, since they are guaranteed by HUD, paid for by the Mortgage Insurance on each loan, these have not had to change as dramatically to keep up with the secondary marketability and the all mighty bank liquidity requirements. (IE, bad loans on the banks books hurt liquidity since they can't sell them for what they paid for them or their original value).

Stay Tuned for more FHA updates in the days to come.

FHA Jumbo loans are finally here

2008-04-02T23:00:00.000-07:00

They are now here. FHA Jumbo loans. The new stimulus bill allows FHA loans up to $729,750 in the highest cost markets. Even if you are not in one of these markets, your loan limits have increased. Click here to access the limits for your area. (pdf will take a moment to load).

The FHA jumbo loan is fast becoming our most popular loan with the wider range of qualifying rules, (lower fico's, credit hiccups, etc), but also for the sheer economy of the loan.

>FHA Mortgage Insurance is cheaper on a monthly basis
>FHA loan are the most affordable loans on the market today
>FHA loans still go to 97% loan to value (require just 3% down payment)

There is no "declining market" hit for FHA (other loan programs have increased the down payment to 5, 10 or 20%)

And FHA loans are 30 year fixed rates.
>no Rate Adjustments
>no Interest Only
>no Negative Amortization.

Call the FHA loan pros to help with your safe, secure, affordable FHA loan. Call me at 866-900-2342 (toll free) or apply online at www.vandykfunding.com

Congress & HUD to the rescue - New loan limits released

2008-03-08T16:27:00.000-08:00

HUD has finalized the new 2008 loan limits for FHA, FNMA & FHLMC backed loans. The new limits increase the max loans for FHA from just over $368K up to $729,750. Although the highest amounts are for high cost metropolitan areas such as Los Angeles, New York, & San Francisco, Every county in America benefits from an increase in the FHA loan limit from $200K to a new minimum limit of $271,050. This helps to increase the number of US households that can qualify to purchase and refinance their homes.

You can find the new limits for your area here: 2008 Loan Limits .

FNMA & FHLMC, AKA Fannie Mae & Freddie Mac, are both GSE's or Government Sponsored Enterprises that purchase loans made by Mortgage Banks that meet their criteria. The new loan limits for Fannie & Freddie rose from $417K up to $729,750 as well in many areas, depending on Geographic area based on housing prices. Many areas did experience a significant increase in this amount, even if it didn't go to the max ceiling. For instance, Seattle homes can now qualify up to $569,500, and San Diego homes now qualify up to $697,500.

No Point, No fee options are available. Call for details.

Call us to find out if the new loan limits can help with your financial plans.
Our toll free number is 866-900-2342.

You may also apply online to get your home loan quote at http://www.vandykfunding.com/ , simply click on the Loan Application button at the top of the page.

Government Help for Homeowners is finally here

2008-02-16T17:06:00.001-08:00

Help for US homeowners came this week in the form of Increased Loan limits for Fannie Mae (FNMA), Freddie Mac (FHLMC), and Ginnie Mae (Government loans such as FHA, VA, & FHA Secure). This week the United States Congress, Senate and our President, G.W. Bush all came to an agreement on an economic stimulus bill that includes a very important set of provisions for Homeowners. It increases the loan limits for the above entities from a cap of $417,000 for Fannie & Freddie and $362K for FHA to as much as $729,750 in high cost areas such as Coastal California, parts of Florida, New York, and select markets. Overall, it is likely to help hundreds of thousands of homeowners attain affordable, secure financing for their homes during the next year. The increases are temporary (until December 31, 2008) for some of the programs, so those looking to refinance should contact us very soon to get started. We anticipate that this will not only result in lower rates for many loans formerly considered "Jumbo", but will increase the ability to get qualified as these loan programs allow financing up to 97% of a homes appraised value without large penalties or rate increases.

This is welcome relief for thousands of Adjustable Rate Mortgage holders who are worried about rate resets and would like to lock into a more secure 30 year fixed rate mortgage. VanDyk Mortgage is ready to meet the increased demand with our streamlined, simple process for application & documentation handling. Consumers can apply direct at http://www.vandykfunding.com/, then go to the secure "loan application" button at the top of the page. Our processes are largely paperless, which will reduce the timelines for your loan approval and closing.

VanDyk Mortgage is a privately owned Mortgage Banker offering loans accross much of the nation. We have been in business over 21 years, offering FHA, VA, and Conventional financing direct. We are considered experts at FHA loans due to our large volume with HUD. We also have achieved "Full Eagle" FHA Direct Endorsement from HUD, an accomplishment that we are very proud of.

Please visit us online at http://www.vandykfunding.com/ or give us a call at 866-900-2342 to ask us any questions you may have about your loan, the mortgage market, or just to say hello.

Relief for Jumbo Mortgage Loan holders

2008-02-08T09:29:00.000-08:00

The Senate passed the Economic Stimulus plan this week, it just awaits confirmation on amendments by congress and a signature from the President. The biggest winners in this economic rescue plan are middle to upper-income Americans who can refinance their jumbo home loans at cheaper rates. The stimulus package temporarily raises the maximum size of mortgages that Fannie Mae and Freddie Mac can purchase and market as securities from $417,000 to as high as $729,750 in expensive parts of the country like New York City and California. The increased loan amount limits could save borrowers as much as 1% on their mortgage, which would translate to $300-500 per month for the average jumbo borrower.

Caution. This is a sunset clause though, and it will expire an december 31, 2008. Do not wait if you are going to refinance your Jumbo loan or want to purchase a home with a Jumbo loan at the enhanced lower rates.

It makes a similar change for loans backed by the Federal Housing Administration, (FHA) which insures loans to borrowers with weaker credit. The limits on FHA will rise to the same amounts, based on geographic area and the average cost of housing. The increase with FHA is a much bigger benefit, as the increase has no sunset clause at this point, and these loans were capped at just over $362K in the highest cost areas. Combined with FHA secure, this initiative provides a welcome boost to help homeowners refinance out of troublesome ARM loans.

VanDyk Mortgage is a Privately held Mortgage Banker specializing in direct funding of FHA & VA loans, plus Fannie Mae & Freddie Mac Conventional loans. Call us first to work with the experts for your next home loan at 866-900-2342 toll free, or visit us at www.vandykfunding.com.

The Credit Crisis - Subprime Mortgages & Various Idiots

2007-12-24T11:10:00.000-08:00

Here is an Article that really educates and also pinpoints the root of the problems we are facing. It looks like the real villains have a Wall Street work address.

The Credit Crisis - Subprime Mortgages & Various Idiots
December 7, 2007 by Richard Whitworth, Morsystems CEO

We are in a credit crisis brought on by a lack of confidence – so what’s next?
The crisis has exploded beyond Wall Street, driving the Dollar to record lows - and now, it appears to be sending the prices of commodities, especially oil, to historic new highs. The results could be extremely destructive for the economy in general. The subprime crisis and the ripple effect in commodity and foreign exchange markets raise the odds of a recession.

Estimates from various sources show that the subprime mess will ultimately cause $250 to $500 billion of losses. It is inevitable that more players will have to revalue at least a portion of assets that are presently held. Another important point - the majority of these Collateralized Debt Obligation or “CDO” assets do not reside in institutions, they are scattered through various pension funds, insurance portfolios, hedge funds, etc. Those losses haven’t even been addressed yet.

The banks are not forthcoming with any detailed information on their true positions, making it difficult for anyone to assess what the future really holds. Uncertainty is holding the financial and real estate markets in a huge vacuum, where it is difficult to function normally.

So let’s see if we can get a clearer picture of the players, and the mistakes made by some of the most powerful institutions in America. How did the banks begin purchasing huge amounts of high-risk mortgage debt and Bonds that most investors and analysts thought the firms were selling to their customers?

Instruments of Doom: First on the list of instruments involved; the Collateralized Debt obligation, or CDO, a type of investment vehicle that buys and sell Bonds. Wall Street banks typically do not actually operate CDO’s; instead, they create CDO’s for their clients, take a fee, and then move on.

This is the main point of departure AND the critical mistake made by the Wall Street banks – greed and fear set in, and they began to change their normal mode of operation – they became huge investors in the funds they generated. A very risky move – more on this as we move ahead.

Here's how a typical CDO backed by subprime mortgages worked. The game begins when a client comes to a Wall Street bank and requests financing for a CDO that will hold, for example, $2 Billion worth of Bonds backed by subprime mortgages. The banks also created a variety of Bonds backed by the interest and principal payments the CDO collects. Wait – there’s more…the bankers also create tranches of securities with different interest rates and levels of risk.

The banks then peddle their wares to hedge funds, pension funds, Money Market funds and other investors. The appeal to investors is simple: The CDO’s pay better rates than corporate issues with identical credit ratings – which brings me to the rating agencies.

Here’s another genius move made by the banks – many of those instruments offered in essence guaranteed returns. The refund policies, technically known as “liquidity puts,” were crucial. Those guarantees allowed the credit rating agencies to bless the investments with AAA ratings. An example of the idiocy of this particular move: The two now defunct Bear Sterns hedge funds relied on guarantees from Citi to raise $10 billion from money-market investors for three CDOs, well derrr!!

The rating agencies may be the main culprit in the game. They were extremely lax in their initial ratings on subprime mortgages – none of those offerings EVER deserved an AAA rating. Never mind that now with the cat out of the bag, they are still slow to downgrade subprime paper and securitizations.

This should not be a surprise to anyone, because the ratings agencies also prosper from the rising tide of credit issuances. Moody's, Fitch, & S&P literally ignored the erosion in the credit quality of the offerings and they basically elected to give the issuers the ratings they asked for. Amazing that issues that were rated AAA just months ago are now being re-written at junk bond status. Sadly – the rating agencies are great at passing the buck when things go wrong and they will probably sneak by any SEC scrutiny.

Back to the Banks…as the fees kept rising through the good times, the banks got greedy, they began buying big chunks of AAA paper themselves, loading the debt onto their own books. Even when the markets began to sour – foreclosures, home prices dropping, etc. the banks continued on their buying binge – all of a sudden they found that they needed to feed those CDO’s in order to keep the game alive. That was the kiss of death for Merrill’s CEO, Stanley O’Neal and for Citi’s CEO Charles Prince.

Wall Street banks are now holding tens of Billions in risky securities on their own books. And at this point in the game, it is difficult to assign an actual value to them. The banks are changing their estimates of the value of these assets as frequently as they change their underwear.

The SEC is on the attack, requesting real numbers and information from Merrill and other banks on what they knew at the time they were telling investors and the public that all was wonderful and they were in control of the situation.

Bottom line - the subprime story is far from over…and it will likely take a few years for the whole thing to shake out.

Sadly, this is Richard Whitworth’s last economic report that you’ll receive, he was in a fatal motorcycle accident 12-8-07. Since he nearly finished this report the night before, we needed to share it with you. Thank-you for your support,

The Whitworth family business at morsystems.com where his dream lives on for
Richard Whitworth, CEO, MorSystems

The "No Cost Loan" from Countrywide

2007-12-20T16:59:00.000-08:00

We have all seen Countrywide in the news for the past few months for a variety of reasons, most not good. One that I would like to speak about today is their heavy advertising of the "No Cost Loan". They have been under fire from both state regulators and the media for pushing these. Many innocent borrowers are swept into this loan thinking it is the cheapest way to get a loan. The borrower feels (and Countrywide says) that because of their huge size, Countrywide can offer no fee, no point, or no cost loans with no whammies. NOT TRUE! The Borrower will always pay for the fees somehow, either in closing or in the form of a higher interest rate. Every Lender, Broker, or Bank will incur fees to write a mortgage loan. Most of these fees are third party fees paid to outside companies. The points are part of the "cost of Money" or in laymans terms, your rate will always be effected by how many points you pay up front (regardless of whether included in the loan or paid out of pocket).

How do they do it? They increase your interest rate. Yes. Is that bad? Many times it is, but not necessarily. You may end up paying tens of thousands of extra interest. KNOW YOUR OPTIONS. One Size does not fit all.

Why do they do it? Higher rate loans are more lucrative for Countrywide to sell in the secondary Mortgage Paper Market. Period. They get more bang for their buck.

The No Cost, No Fee, No Point loan is a great loan for some people. It is not for everyone, and just like many loan programs, it isn't for every situation. You have to consider the benefits of a no cost loan with a higher rate vs a lower rate loan with some fees. More often than not, it pays to go with option 2, paying some fees, and getting a lower rate. It doesn't make sense if you do not plan on having the loan for atleast 24 months, you won't recoup the fees with your monthly interest/payment savings. If you have a smaller loan (under $175K), you should take a very close look at the options, as your recoup period may be longer.

A great compromise is to look at many fee/point/rate options to measure the best overall fit for your situation. The best way to find the optimal fit for your loan is to work with a professional you can truly trust and rely on for sound financial advice. One who will review the options with you, show you the differences between the choices and guide you to the lowest overall cost. Hire a Professional, get professional results.

If you would like to review your options with us, please feel free to contact us on the web at www.vandykfunding.com or toll free 866-900-2342.

The return of the Jumbo loan

2007-09-09T12:28:00.000-07:00

Finally this week, we are seeing the return to relative normalcy of the Jumbo Loan. Several of our investors are offering us competitive rates on Jumbo loans (those over $417K) again. We are seeing a reasonable spread between the conforming (<417K) and Jumbos again, with Super Jumbo & Ultra Jumbo once again being offered. Many of the Jumbo programs have been either suspended or priced through the roof by lenders in the wake of the August 2007 secondary market mortgage meltdown.

We have always felt that Jumbo Loans would return to normalcy, and return with reasonable rates & qualification guidelines. There is simply too much demand for these, and there are many low-risk, premium borrowers who banks should be happy to lend money to.

If you have a Jumbo Adjustable Rate Mortgage, we suggest you call us to review your position, and make sure you are in the most appropriate loan to match your taste for risk, affordability (avoid increasing ARM adjustments), and reducing Interest expense. We can help you sort out how, when & how much your ARM rate & payment will adjust. We can help you figure out the margin, index, recast point, payment options, etc. Call Brian Skaar at 866-900-2342 x106 or visit us online at www.vandykfunding.com.

The ARM quiz

2007-08-16T20:54:00.000-07:00

Do you know when your mortgage is going to adjust?

Do you know what your new payment will be?

Do you know what your options are?

If you do not know the answer to all three questions above, or are uncomfortable with the answers, Please don't hesitate to give us a call at 866-900-2342, x106 or visit us online at www.vandykfunding.com . We are here to help.

Sincerely,

Brian Skaar
Mortgage Banker
VanDyk Mortgage

Jumbo Help

2007-08-16T20:23:00.001-07:00

The Secondary Market for non-conforming mortgages has become very Volatile. This means all loans over $417,000 (excellent, good or poor credit alike) or with rough credit history have become more expensive overnight. Excellent credit Jumbo mortgages jumped from 6.5% to over 8% in the span of 2 days this month. Now that is Volatile. To quote Cramer from Mad Money, "Rich People like me can't get a loan" . Well that isn't quite the whole truth, he just doesn't know the right people. He should call us.

If you have a Jumbo Adjustable Rate Mortgage or ARM, it is imperative that you act now to get that converted into another loan product, as we do not know what the future holds, both for rates and will you qualify to refinance.

Many folks had refinanced into Pay-Option, Neg-Am or Option ARM loans in the past couple years thinking their rate was actually 1% (not even the Fed lends money that cheaply) and have found their interest rate accrual much higher than they thought, their loan balances climbing upwards with every "minimum payment" (Negative amortization), and many are dangerously close to their trigger point.

What is a trigger point? When your loan balance grows to a predetermined level, your minimim payment option, and your Interest Only options disappear, leaving you with Principal & Interest Option for your monthly payment. This is a huge payment increase that few can afford. If you don't understand or are concerned about your loan, please don't hesitate to contact us. (contact info below and in the profile).

If you want the best available options to refinance your mortgage, you must choose a Loan professional, one that is truly savvy with this market. A loan pro that knows what investor is offering that same Excellent Credit Jumbo Fixed loan at 1% below the rest of the market. (we know this) But more importantly, the Loan Pro who can get your loan done before things change again.

We are students of the Mortgage Market, The Investors that lend mortgage money, and our clients needs & wants. Summary, we are here to cover you, so call us, we can get it done. We bank loans, and we also broker. We are like a Quick Strike Tactical Mortgage Operation. We can get your loan done before things change.

Do you know when your mortgage is going to adjust?

Do you know what your payment is going to adjust to?

Do you know what your options are?

If you do not know the answer to all three questions above, or are uncomfortable with the answers, Please give us a call at 866-900-2342, x106 or apply online at www.vandykfunding.com . We are here to help.
Thanks, Brian Skaar