mortgage lender

Apache is functioning normally

Kris Lindahl

According to the Mortgage Bankers Association, just under four million American homeowners are in forbearance. Meanwhile, negotiations over a new stimulus package have yet to culminate in an agreement. Property owners impacted by the COVID-19 housing crisis are struggling to pay mortgages, and the imminent risk of foreclosure and bankruptcy looms large over the industry. Ironically, the housing market seems resilient.

Last week we took an opportunity to talk with Kris Lindahl, the CEO and Founder of Kris Lindahl Real Estate and a key expert in the Twin Cities real estate market.

About Kris Lindahl

Kris Lindahl is one of America’s most successful real estate professionals. Known for being an innovative pioneer he’s a nationally sought-after speaker, a bestselling author, a popular podcast host, and the leader of the #BeGenerous Movement. Names to the Business Journal 40 Under 40 list, Kris is a phenomenal entrepreneur and philanthropist.

The Q & A 

Realty Biz News: So many people in the industry are talking about how a new stimulus package to help homeowners is much needed. Can you share with us your views on the need and the possible negative effects should the stimulus not arrive soon?

Kris Lindahl: The housing market is red hot right now. Historically-low interest rates and a low inventory of homes for sale have helped the housing market remain robust. We have very serious buyers who have more purchasing power competing for the low number of homes on the market. The competition is helping sellers get top dollar in the middle of a pandemic and economic uncertainty. It’s a win for both sides.

Realty Biz News: Do you advise homeowners to refinance in lieu of foreclosure, and if so what is your advice?

Kris Lindahl: Banks are more proactive than ever when it comes to offering solutions for people struggling to make their mortgage payments. I encourage anyone struggling to make that payment to immediately reach out to their mortgage lender. Your lender may offer refinancing or selling your home as one of the many options to help. Refinancing can help lower your monthly payment to something more manageable while selling your home ensures you get a return on your investment and frees you of that mortgage payment. Again, those are just two of many options that your lender may provide to help you.

Realty Biz News: The pandemic has caused a paradigm shift for every sector of the economy. What does the real estate landscape look like post-pandemic for the long term?

Kris Lindahl: I believe this pandemic has changed how people house hunt moving forward. Post-pandemic we are going to see a lot more technology. Traffic on real estate apps is at an all-time high and that is going to continue. 3D tours and virtual stagings are making it easier to house hunt from your couch. You can look at dozens of homes in a short amount of time, hone in on the ones you love and only visit those. It saves so much time and I think we’ll continue to see the benefits.On the commercial side, I think we are going to see a lot more innovation. Some businesses are realizing they may not need such a big footprint and they may downsize that office space. This moment could truly change the way we know working from an office.

Realty Biz News: What other advice can you give homeowners for staying afloat if the stimulus negotiations drag on? 

Kris Lindahl: I encourage homeowners to communicate with their mortgage company. Waiting until the last minute to tell your lender about financial problems could leave you with fewer options. If you’ve communicated with your lender and you’ve exhausted all possibilities, reach out to a real estate agent to determine if selling your home may be the best option for you.

The Takeaway

While the pandemic and the ensuing economic upheaval are unprecedented and certainly a tragedy, low-interest rates and other factors give the looming dark clouds a kind of silver lining. This is especially true for those who are somehow able to pull things together to buy. Kris also pointed out in our conversation that right now is a great opportunity for first time homebuyers to enter the market. He says current homeowner can also benefit by refinancing with lower interest rates and lower monthly bills.

Phil Butler is a former engineer, contractor, and telecommunications professional who is editor of several influential online media outlets including part owner of Pamil Visions with wife Mihaela. Phil began his digital ramblings via several of the world’s most noted tech blogs, at the advent of blogging as a form of journalistic license. Phil is currently top interviewer, and journalist at Realty Biz News.

Latest posts by Phil Butler (see all)

Source: realtybiznews.com

Apache is functioning normally

Looking to buy an investment property, but can’t afford a 20% down payment? Well, welcome to the party.

Source: Giphy.com

Thankfully, like Bruce Willis in Die Hard, we Millennials and Gen Z have some tools at our disposal to defeat the evil cash investors, get approved, and get the keys to our new home.

One such tool that’s making a comeback is the piggyback loan, which cuts your down payment in half (to 10%) and lets you pay off the other half over time, alongside your first mortgage.

What’s Ahead:

What is a piggyback loan?

A piggyback loan is a second mortgage that you get at the same time as your first mortgage, hence the name.

Piggyback loans are designed to help homebuyers who can’t afford a 20% down payment avoid having to pay for expensive private mortgage insurance (PMI).

While your first mortgage will typically be a traditional mortgage, your piggyback loan, aka second mortgage, will likely come in the form of either a home equity loan or home equity line of credit (HELOC).

Read more: What Is A Home Equity Loan & Home Equity Line Of Credit (HELOC)?

There are two common types of piggyback loans, and each has its pros and cons. 

The 80-10-10 loan – for single-family homes and townhomes

The 80-10-10 is the classic piggyback loan structure right for most situations. As illustrated above, in an 80-10-10, you’ll get 80% of the home covered by your first mortgage, 10% covered by your piggyback loan, and you’ll pay the remaining 10% out of pocket.

The good ol’ 80-10-10 is a great fit for single-family homes and townhomes, but condos are another story.

The 75-15-10 loan – for condos

Unlike single-family homes and townhomes, condos typically require 25% down to qualify for the best mortgage rates. That’s because lenders, even at the federal level, consider condos to be riskier, with more factors outside of their control (HOA fees, maintenance, etc.).

Therefore, the 75-15-10 loan emerged to help prospective condo buyers hit that 25% down payment. The only major difference is the amount you’re paying off with your first versus second mortgages – you’ll still have to put down 10% cash.

Now that it’s pretty clear which piggyback loan is right for you, what do the qualification criteria look like?

How do piggyback loans work?

Source: Giphy.com

Let’s say you want to buy a $300,000 house, but you can’t afford a 20% down payment of $60,000. So, your lender requires you to get private mortgage insurance (you can learn all the ins and outs here).

PMI protects your lender, not you, by helping them recoup their costs in case you default on your mortgage during the first few years of your loan. You typically don’t have to pay PMI any longer once your loan-to-value ratio (LTV) hits 78%, i.e. you’ve paid off 22% of your home.

Now, the reason folks try their darndest to save 20% is because PMI sucks.

PMI typically costs around $30 – $70 per month for every $100,000 borrowed.

Now, you can save some money on PMI by paying it all upfront – so you’ll pay several thousands of dollars of PMI because you can’t afford tens of thousands of dollars of down payment – and none of that money goes into your home equity.

Like I said, PMI sucks.

Thankfully, piggyback loans emerged as a popular, 100% legal way to avoid having to pay for PMI.

Here’s a classic example of a piggyback loan (known as the 80-10-10 loan)

  1. Get a traditional mortgage to cover 80% of the cost of the home.
  2. Get a HELOC to cover 10%.
  3. Make a 10% down payment out of pocket.
  4. Avoid having to pay PMI, do a little dance.

To be clear, piggyback loans aren’t being “sneaky” or going behind your first lender’s back. In fact, many lenders are happy to underwrite your piggyback loan themselves, or at least refer you out to another lender specializing in piggybacks.

How can you apply for a piggyback loan?

The how is actually pretty straightforward – you’ll simply want to ask your first mortgage lender for suggestions on a second mortgage. Sometimes they’ll underwrite it themselves, and other times they’ll refer you out to multiple financial institutions to rate shop with. We don’t really curate a list of the best piggyback lenders because it all depends on where your first lender sends you.

If you’d like to explore your options for a piggyback before you commit to a first mortgage, you can simply ask your prospective lenders what their piggyback process looks like. Even better, if you’re able to connect with a loan officer, you can take a step back and ask if a piggyback is even your best option. That particular lender might have its own program that’s a better fit for your unique financial situation.

For a curated list of the best lenders with the lowest rates, check out our article: Best Mortgage Rates – Mortgage Rates Updated Daily.

Why would you get a piggyback loan?

Here are the three most common circumstances prospective home buyers consider a piggyback loan:

  1. You can’t afford a 20% down payment, and you want to avoid PMI.
  2. You’re looking to buy a new house before your old one sells.
  3. You’re considering a home whose value exceeds your local mortgage limits.

Chances are, if you’re reading Money Under 30, you fall into the first category: you can only afford a 10% down payment but don’t want to pay for PMI.

Will getting a piggyback loan save you money?

Possibly.

You’ll need to talk to your lender and do some math, because there are multiple money-saving options out there.

The chief advantage to piggyback loans is that they let you avoid PMI. However, piggyback loans still incur some costs of their own. It’s a second, tiny mortgage, after all, so you’ll be on the hook for:

  1. A second round of closing costs.
  2. A second monthly payment in addition to your first mortgage.
  3. Higher interest rates than your first mortgage.

For these reasons, a piggyback loan might not end up being your cheapest option.

FHA loans with PMI might still be cheaper than a piggyback loan

When you factor in the costs listed above, you might find that getting a Federal Housing Administration (FHA)-backed loan and paying for PMI actually ends up being cheaper overall.

That’s especially true if you qualify for one of your state’s housing assistance programs, which may offer down payment loan assistance or subsidized PMI.

In the end, you should definitely still consider both a piggyback loan and an FHA loan as cost-saving options. 

Read more: First-Time Home Buyer State Programs – What You Need To Know As A First-Time Buyer

Piggyback loans: pros and cons

Let’s recap the advantages and disadvantages of getting a piggyback loan:

Pros

  • Save money on PMI. A piggyback loan helps you put 20% down so you can avoid paying thousands in private mortgage insurance.
  • Make a lower down payment. By cutting your down payment in half, piggyback loans can help you to afford more house.
  • Pay off piggyback loan anytime. Most lenders will let you pay off your piggyback loan anytime, leaving you with only a low, monthly mortgage.

Cons

  • Steep requirements. Piggyback loans typically require a 700+ credit score and a debt-to-income ratio of 28%, meaning you’ll likely only qualify with excellent credit and high income.
  • Double the closing costs and paperwork. When you apply for a piggyback loan, you’re essentially applying for a second mortgage and all that entails – double the paperwork, closing costs, and of course, another monthly bill (with higher interest than your first mortgage).
  • Not always cheaper than a traditional mortgage plus PMI. You’ll want to do the math with your loan officer, because piggyback loans don’t always save money. You may get a better deal with an FHA-backed loan, state assistance, or even biting the bullet and paying for PMI.

Summary

In a competitive housing market, our generation can use every tip, tool, and strategy we can get. The piggyback loan is one such tool, helping eligible borrowers slash their down payment in half so you can get the keys to a new home faster.

You should consider a piggyback loan if you have consistent income, excellent credit, and can currently only afford 10% of a down payment on a house within your budget. Even then, it may not be your best money-saving option – you should also check out an FHA-backed loan and state- and lender-specific programs.

Read more:

Source: moneyunder30.com

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Today we’ll check out “Carrington Mortgage,” a top-50 mortgage lender nationally that is based in Anaheim, California.

They recently launched “Vylla Home,” which is their take on a modern all-in-one experience for home buyers and mortgage seekers.

It’s a single brand that encompasses everything from mortgage lending and loan servicing to a real estate brokerage, title, escrow, and settlement services – all under one roof.

Let’s learn more about this full-service real estate and mortgage company.

Carrington Mortgage Fast Facts

  • Retail direct-to-consumer mortgage lender
  • A top-50 mortgage lender nationally
  • Founded in 2007, headquartered in Anaheim, CA
  • Offers home purchase loans and mortgage refinances
  • Funded more than $7 billion in home loans last year
  • About two-thirds of their total loan volume consisted of mortgage refinances
  • They also operate wholesale and correspondent lending divisions and are a loan servicer
  • Currently licensed in 48 states and the District of Columbia

Carrington Mortgage Services is one of the largest mortgage lenders in the country, and also a major loan servicer as well.

Aside from running a billion-dollar retail direct-to-consumer channel, they operate wholesale and correspondent lending divisions.

This means you might be resold a Carrington Mortgage at a credit union or via one of their mortgage broker partners.

The company got its start back in 2007 in Anaheim, California (home to Disneyland), and since then has increased its footprint to 48 states and D.C., with North Dakota and Massachusetts the two exceptions.

While they mostly operate online, there are six physical locations, including offices in Scottsdale, AZ, Anaheim, CA, Windsor, CT, Jacksonville, FL, Westfield, IN, and Owing Mills, MD.

They appear to be most active in their home state of California, along with Florida and Texas.

Last year, roughly two-thirds of total production consisted of mortgage refinances, with nearly 40% resulting in cash out to the borrower.

Nearly half of all their lending was made up of FHA loans, with another 20% in VA loans, so it’s clear they specialize in government-backed mortgages.

But they offer a lot more than just the basic loan programs all the other guys have.

How to Apply for a Home Loan with Carrington Mortgage

  • It’s possible to visit a physical branch if one is located near you
  • You can also simply call them up or navigate to their website and search their loan officer directory
  • Once at an individual loan officer’s personal webpage it’s possible to apply online
  • They appear to offer a digital home loan process powered by L.O.N.

You’ve actually got quite a few options here. You can either give them a call on the phone or get started on their website. And I suppose visit an office if one happens to be located near you.

While they do have six physical locations across the United States, there’s a good chance you’ll be working with your loan team remotely.

If you choose the online route, you’ll need to provide some basic loan information like loan amount/purchase price, down payment, along with basic contact info.

At that point, a Carrington Mortgage loan officer will reach out to learn more about your situation and discuss loan options and mortgage rate pricing.

Alternatively, you can browse their online loan officer directory and find someone nearby to work with.

If you go in that direction, you’ll be able to start the digital loan application right from the individual loan officer’s personal webpage.

They appear to offer a digital app powered by Loan Originator Networks, LLC (LON). It allows you to input most loan details electronically and scan/upload supporting documents.

Ideally, you can also complete the rest of the process paperlessly as well, though that’s unclear because they don’t provide all the details.

Carrington does say you can get same-day mortgage pre-qualification letters if you’re buying a home

Loan Programs Offered by Carrington Mortgage

  • Home purchase loans
  • Refinance loans: rate and term, cash out, and streamline
  • Conventional loans backed by Fannie Mae and Freddie Mac
  • Jumbo home loans up to $3 million loan amounts
  • FHA loans
  • USDA loans
  • VA loans
  • Mortgages for first-time home buyers
  • Proprietary loan programs for low credit scores, high DTI ratios, etc.
  • Fixed-rate mortgages: 30-year fixed, 15-year fixed, and more
  • Adjustable-rate mortgages: 5/1, 7/1, and 10/1 ARMs

One plus to using Carrington Mortgage is their huge array of loan programs.

Like all other lenders, they offer both home purchase loans and refinance loans, including cash out and streamline refinances, on all types of properties including condos.

They also offer the usual stuff like conforming loans backed by Fannie/Freddie, FHA loans, USDA loans, and VA loans.

But what sets them apart might be their jumbo home loan offerings, which allow for loan amounts as high as $3 million.

Or their proprietary suite of lending options known as “Flexible Advantage.”

Carrington Flexible Advantage

I dedicated an entire section to “Carrington Flexible Advantage” because they offer so many different loan options.

This is basically their proprietary home financing solution that allows borrowers with less-than-perfect credit, a high DTI ratio, or past credit events to qualify for a mortgage, even if they wouldn’t otherwise.

These types of mortgages are known as portfolio loans because instead of being sold off, they are retained in the lender’s portfolio.

You can get one of these loans for a home purchase, rate and term refinance, or even a cash out refinance.

Some of the features include:

  • Credit scores as low as 550 (subprime)
  • Loan amounts up to $1.5 million with cash-out up to $250,000
  • Recent credit events like bankruptcy, short sale, foreclosure, or late mortgage payments
  • Bank statements instead of tax documents for self-employed borrowers
  • High debt-to-income ratios OK
  • No mortgage insurance required

Carrington Mortgage Rates

One downside to Carrington Mortgage is the fact that they don’t mention their mortgage rates on their website.

It’d be nice to know where they stand pricing-wise since you’ll be paying the home loan for possibly the next 30 years!

Like plenty of other lenders, they choose not to advertise their interest rates online, which is fine, but make sure you call and get pricing first before proceeding to the loan application.

You should inquire about both mortgage rates and lender fees, which together make up the loan’s mortgage APR.

Once you know their rates, and what they charge, such as an application fee and/or loan origination fee, you can better gauge how aggressive they are relative to other banks and lenders out there.

Carrington Mortgage Reviews

On Zillow, they’ve got a very impressive 4.5-star rating out of 5 from roughly 900 customer reviews.

You can filter the Zillow reviews by loan officer, which might be a helpful tool to decide who you want to work with. Since they’re a large company, experiences can vary from one loan officer to the next.

On LendingTree, they’ve got a more average 4.1-star out of 5 rating from nearly 100 reviews. They also have an 80% recommended rate, which isn’t terrific.

They also have over 500 Google reviews with a 4.5-star rating at last glance.

Finally, Carrington Mortgage is an accredited business with the Better Business Bureau, and have been since inception in 2007.

They currently have been assigned an ‘A+’ rating based on customer complaint history.

To sum things up, Carrington Mortgage might be a good choice if you have a unique or hard-to-close loan scenario that other lenders might not go for.

Thanks to their vast array of available loan programs, they might be able to find a home for your loan where others have failed.

They’re also a one-stop shop, so third-party services like title insurance and escrow could potentially be cheaper when bundled together.

Carrington Mortgage Pros and Cons

The Good Stuff

  • Can apply for a home loan online
  • Tons of loan programs to choose from including their own unique portfolio products
  • Mostly good reviews from past customers
  • A+ BBB rating, accredited company
  • They service their loans (as opposed to transferring them)
  • Free mortgage calculators and how-to guides on their website
  • Free smartphone app to make payments and manage your loan
  • MooveGuru (third-party savings program for new home buyers)

The Maybe Not

  • Do not publicize mortgage rates or lender fees
  • Limited physical locations
  • Not licensed to lend in North Dakota or Massachusetts

Source: thetruthaboutmortgage.com

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Both Wells Fargo and Bank of America, the top two residential mortgage lenders in the nation, have raised minimum credit score requirements on FHA loans, according to Bloomberg.

The pair raised the minimum Fico score to 640 from 620 on FHA-insured loans they buy from other mortgage lenders.

Per Fico, there are roughly 6.3 million Americans that have credit scores between 620 and 640, or about 3.7 percent of the population.

As a result, correspondent lenders like Quicken, which is a top ten mortgage lender, have stopped making many of their FHA loans.

And FHA commissioner David Stevens told Bloomberg the move would exclude as many as 15 percent of FHA borrowers, who often have no other place to turn for home loan financing.

However, Wells Fargo will continue to offer FHA loans with Fico scores as low as 600 via its own loan officers.

And Bank of America still offers FHA loans to its direct customers with Fico scores as low as 620 for purchase money mortgages, though they now require 640 for refinance applications.

Chase, the third largest lender in the nation, had already raised its credit score requirements on FHA loans a while back.

Credit Quality Improves on FHA Loans

But credit quality has improved immensely at the FHA, largely because more creditworthy borrowers have turned to the agency for financing.

And the FHA recently imposed a minimum credit score of 500, while also requiring that borrowers have at least a 580 credit score to qualify for the flagship 3.5 percent down payment program.

At the end of the third quarter, just 3.8 percent of FHA loans had scores below 620 or no credit score, compared to 50.4 percent as of the end of 2008.

Nearly 40 percent of home purchase mortgages and nine percent of refinances were insured by the FHA during the nine-month period ending June 30.

Update: A reader informed me that Wells Fargo will still buy FHA loans with Fico scores as low as 620 if they come from correspondents and mortgage bankers.

Source: thetruthaboutmortgage.com

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Today we’ll check out “Blue Sky Financial,” whose goal is to save you time and money so you can get outside and enjoy those beautiful blue skies a little bit more.

The young company (formed in 2020) refers to itself as a discount mortgage brokerage, meaning they work with third-party lenders to find your loan a home.

Apparently they also offer low mortgage rates, which they say are possible thanks to “digital efficiencies” aka the latest technology and less overhead.

Let’s find out more about them.

Blue Sky Financial Fast Facts

  • An independent discount mortgage brokerage
  • Offers home purchase financing and mortgage refinances
  • Founded in 2020, headquartered in Boise, Idaho
  • Has three physical locations: Boise, Sun Valley, and West Palm Beach
  • Employ about two dozen loan officers nationwide
  • Currently licensed to do business in eight states

As mentioned, Blue Sky Financial is a mortgage brokerage, meaning they link up borrowers with a wholesale mortgage lender, which actually provides the financing.

While that means they need to turn to another company to get your loan to the finish line, it gives them the advantage of offering more loan programs because they’ve got multiple lending partners.

Like other mortgage lenders, they offer home purchase financing, along with mortgage refinances.

They have three physical offices, including locations in Boise and Sun Valley, Idaho, along with a branch in West Palm Beach, Florida.

At the moment, they’re only licensed in eight states nationwide, including California, Colorado, Florida, Idaho, Illinois, New Jersey, Ohio, and Washington.

It’s unclear if they plan to expand to additional states soon, or focus on those specific states for the time being.

How to Apply for a Home Loan with Blue Sky Financial

  • They refer to their loan process as the “10 Minute Application”
  • It is a digital mortgage platform powered by Ellie Mae
  • You can apply online, upload income and asset documents, and eSign disclosures
  • Their online borrower portal allows you to keep track of loan progress and receive updates along the way

Blue Sky Financial is big on making it easy to apply for a home loan, and they’ve partnered with fintech company Ellie Mae (ICE) to make that possible.

They say they offer a better mortgage experience via their “10 Minute Application,” which sounds fast enough, even if Rocket Mortgage claims you can do it in just eight minutes.

Anyway, to get started you simply visit their website, then click on “Blue Skies Start Here.”

That will take you to the digital application page where you begin filling out personal and financial information online.

When prompted, you can link financial accounts and/or upload things like pay stubs and bank statements to verify your information.

You can also eSign important disclosures with the click of a button to breeze through what is often a painstaking process.

Once submitted, a loan officer and processor will discuss pricing and prep your file to submit to the underwriting department.

Those who are looking to get pre-qualified for a mortgage can follow the same instructions listed above.

If you want to work with someone specific, you can click on the loan officer bios on their website as well, then get in touch before you apply.

It may make more sense to get loan pricing with an actual loan officer first, then proceed to the application if you’re happy with what you hear.

All in all, it appears to be pretty easy to get started with Blue Sky Financial, and you can price a loan on your own via their website as well if you don’t want to speak to anyone.

Loan Programs Offered by Blue Sky Financial

  • Home purchase loans
  • Refinance loans: rate and term and cash out
  • Conforming loans backed by Fannie Mae and Freddie Mac
  • FHA loans
  • VA loans
  • Jumbo loans
  • Fixed-rate mortgages: 30-year fixed, 15-year fixed, etc.
  • Adjustable-rate mortgages: 5/1 ARM, 7/1 ARM

While they don’t list individual loan programs on their website, my guess is they offer the full suite of offerings you’d expect to find with any big lender.

Because they’re a mortgage broker, they can send your loan to one of a variety of their partners depending on its attributes.

For example, they may have a certain partner that accepts jumbo loans, and another that’s a good fit for FHA loans or VA loans.

You can take out a home purchase loan or a refinance loan, including a rate and term refinance or a cash out refinance.

They lend on all common property types, including single-family homes, condos/townhomes, 1-4-unit investment properties, and more.

It’s unclear if they offer USDA loans or any specialty options like interest-only loans.

It would be nice if they provided more information on their website regarding available loan programs so we don’t have to guess.

Blue Sky Financial Mortgage Rates

One benefit to using Blue Sky Financial is the “Loan Pricer” found on their website.

It allows you to plug in your loan details to see today’s mortgage rates, without having to sign up or log in.

It will show you both an interest rate and price, which is the associated lender credit or points required for said rate.

You can play around to see different rates and prices across different scenarios if you’re simply shopping around, then get in touch with a loan officer to confirm pricing.

It’s a nice touch of transparency as not many lenders actually publicize their mortgage rates online.

Additionally, you may come across Blue Sky Financial’s mortgage rates on popular home loan comparison websites like Bankrate or Zillow.

So they do seem to lead with their pricing, which is a great sign if you’re shopping for the lowest rates out there.

That being said, they don’t mention anything about lender fees, so it’s not clear if they charge an application fee, loan origination fee, and so on.

Be sure to inquire about those fees as well when comparing different lenders.

Blue Sky Financial Reviews

On Zillow, Blue Sky Financial has a very respectable 4.83-star rating out of 5 from about 60 customer reviews.

Similarly, they’ve got a 4.8-star review at Bankrate from about 30 reviews, with most perfect 5-star reviews.

They’ve also got a 5.0-rating on Google from 21 reviews at last glance. While the sample sizes aren’t huge, they appear to be making customers happy thus far across all ratings sites.

Blue Sky Financial isn’t an accredited company with the Better Business Bureau, nor does it have a rating, perhaps because they’re pretty new.

In summary, while relatively young, they’re a well-liked company and seem to employ the latest technology while offering attractive mortgage rates.

That means they could be a good fit for existing homeowners looking to refinance, or even a prospective home buyer looking to make their first purchase.

Blue Sky Financial Pros and Cons

The Good

  • You can apply for a mortgage quickly and easily from any device
  • Their digital mortgage application is powered by Ellie Mae (ICE)
  • They let you see today’s mortgage rates via their loan pricer
  • Excellent customer reviews from past customers
  • Free mortgage calculators on site

The Perhaps Not

  • Not licensed in all states
  • No BBB rating
  • Unclear what lender fees they charge

(photo: Blake Matheny)

Source: thetruthaboutmortgage.com

Apache is functioning normally

If you don’t mind, let me beat a dead horse.

Mortgage rates are at or near record lows and you could save a ton of money by refinancing your mortgage.

There. I won’t say it again because I know how cliché and annoying it is to talk about how much money you could save by doing “X.”

The funny thing is I tell my family the same exact thing, though they don’t bother looking into refinancing either.

They bring it up to me here and there, but don’t do much beyond that. And you can only tell someone something so many times before you give up.

Perhaps this explains why there are millions of homeowners out there with mortgage rates well above current rates that are indeed “refinanceable.”

Update: I finally convinced my sister to refinance and she’s savings hundreds every month. She has since thanked me repeatedly and told me she should have done it sooner. Better late than never! We all procrastinate, especially when it’s something as awful sounding as a mortgage.

Don’t Have the Time to Refinance?

  • While a refinance might take time
  • Consider the return on investment
  • For putting in a few hours of research
  • And a month of back and forth with a lender

For some reason, most folks I know haven’t bothered looking into a refinance. Maybe they don’t have any spare time to do so? Or it could be that the task is seemingly so daunting that they avoid it altogether.

It’s kind of like putting off a dentist appointment, but continuing to endure the pain every day, or only chewing with one side of your mouth.

Maybe they don’t want to deal with a shady mortgage lender or a crusty mortgage broker?

The reasons are probably endless, but it still blows my mind that more homeowners don’t take action, considering “how much money you can save!”

It could just be that it sounds so darn “sleazy” to refinance, given all the negative attention the mortgage industry has received over the past five years.

So, how many homeowners are actually missing out on this opportunity to save potentially hundreds per month and thousands over the life of the loan?

Do You Have an Above-Market Mortgage Rate?

  • Millions of homeowners pay more than they need to each month
  • Because their existing home loan interest rates
  • Are above current market rates
  • The only thing stopping them is not bothering to shop their rate

Well, a couple months back, a company by the name of CoreLogic noted that some twenty million borrowers with positive equity, or 53 percent of all “above-water borrowers,” had above market mortgage rates.

They defined an above market mortgage rate as 5.1% (or higher), which is more than a percentage point above current rates for the popular 30-year fixed-rate mortgage.

[The refinance rule of thumb.]

Pretty surprising, no? I thought the number was high, considering all the news about the “record low rates” that seems to permeate the airways these days.

But no, many of us still don’t bother, and instead continue making inflated monthly mortgage payments year in and year out.

It’s Not Always a No-Brainer

  • Contrary to advertisements you might come across
  • It’s not always the right move
  • Depending on your unique situaiton
  • But you should at least know where you stand

All that said, it doesn’t make sense for everyone to refinance all the time. Like anything else in the world, it can be a good or bad deal, depending on your unique financial situation and future plans.

On top of that, it’s a lot more difficult to actually get approved for a refinance these days, so it’s not the slam-dunk it was back during the boom. See 7 reasons why you can’t refinance your mortgage for more on that.

But if nothing else, you should at least look into refinancing your mortgage if you haven’t lately. Rates really have come down a lot, and there’s a decent chance you’re one of the lucky 20 million homeowners out there who stands to benefit.

Heck, there are few other things in life you can do to save so much money so easily, even if the process does seem painful and daunting.

Tip: Does refinancing hurt your credit score?

Source: thetruthaboutmortgage.com

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It’s time for another mortgage review, this time we’ll take hard look at Summit Funding Inc., which bills itself as “The Home Loan Experts.”

There might be some truth to that because the direct lender has been around since 1995, almost as long as the duration of a 30-year fixed mortgage.

The company started off small with just a few employees, known then as Sacramento Residential Mortgage, but has rapidly expanded into a national mortgage lender.

Today, they fund billions in home loans annually and are working to become one of the top lenders in the nation and a household name.

Summit Funding Fast Facts

  • Direct-to-consumer retail mortgage lender that offers home purchase and refinance loans
  • Founded in 1995, headquartered in Sacramento, California
  • Licensed to do business in 45 states and the District of Columbia
  • Funded more than $4 billion in home loans last year (a top-100 lender nationally)
  • About two-thirds of their business consisted of home purchase lending
  • More than half of their loan volume came from home state of California

Summit Funding, Inc. is a direct mortgage lender and loan servicer that was founded by current CEO Todd Scrima in the mid-1990s.

Since then, they have grown to be a top-100 mortgage lender nationally based on loan volume, and may even be close to cracking the top-50 today.

Last year, they originated roughly $4 billion in home loans, with about two-thirds of it driven by home purchase loans. That means real estate agents trust working with them to get the job done.

The rest was comprised of refinance loans and reverse mortgages, and about half the overall total came from the state of California.

The company also appears to be very active in Oregon, Arizona, Michigan, and Nevada.

At the moment, Summit Funding is licensed to do business in 45 states and the District of Columbia.

They don’t seem to be available in the states of Alaska, Connecticut, Massachusetts, New York, or Rhode Island.

How to Apply for a Mortgage with Summit Funding

  • Visit their website and click on Apply Now to get started on your application
  • Browse their loan officer directory if you’re not currently working with someone
  • They offer a digital mortgage process along with a free smartphone app to track your loan progress
  • You can securely upload paperwork, eSign disclosures, and get in touch with your loan officer instantly

To get started, simply visit their website and click on apply. They’ll then ask if you’re working with a loan officer, and if not, prompt you to find one nearby using their online directory.

Once you locate the individual you wish to work with, you can apply directly online via a digital mortgage application.

It will allow you to get pre-qualified, securely upload paperwork, eSign documents, and message your loan officer instantly as you make your way through the process.

You’ll also be able to see your progress and get updates once your loan is submitted via the online borrower portal, which is powered by ICE Mortgage Technology (formerly Ellie Mae).

Those who wish to download the free smartphone app can also manage their home loan that way.

Before you do all that, it is recommended that you obtain mortgage rate pricing and inquire about lender fees.

Once you speak to a loan officer to determine if they’re competitive and/or have the loan program you’re looking for, you can proceed with the application.

Summit Funding embraces technology but also incorporates human touch to give borrowers the best of both worlds.

Loan Programs Offered by Summit Funding

  • Home purchase loans
  • Refinance loans: rate and term, cash out, and streamline
  • Conforming loans backed by Fannie Mae and Freddie Mac
  • Jumbo home loans up to $3 million loan amounts
  • FHA loans
  • VA loans
  • USDA loans
  • Reverse mortgages
  • Fixed-rate and adjustable-rate options available

One nice thing about Summit Funding is they offer lots of different loan options. You can get a home purchase loan or a refinance, including a cash out refinance.

Additionally, you can get a jumbo loan with a loan amount as high as $3 million, or a reverse mortgage if you’re aged 62 and older.

They also offer the full suite of government loan programs, including FHA, USDA, and VA loans.

You can get financing on a primary residence, second home, or an investment property, including condos and townhomes.

In terms of specific loan programs, you can take out a fixed-rate mortgage such as a 30-year or 15-year fixed, or a hybrid adjustable-rate mortgage like a 5/1 or 7/1 ARM.

Summit Funding Mortgage Rates

One slight negative to Summit Funding is the fact that they do not publicize their mortgage interest rates online.

As a result, it’s unclear how competitive they are relative to other lending options, and the only way you’ll be able to find out is to get in touch with a loan officer for pricing.

The same goes for lender fees – we don’t know if they charge a loan application fee, loan origination fee, underwriting/processing fees, and so on.

Be sure to inquire about all these important costs when you speak to a loan officer so you can compare their offer(s) to other lenders properly.

While customer service is great, so is a low-priced mortgage. You’ll want to make sure you get the best of both worlds.

Summit Funding Reviews

On SocialSurvey, the company has a very impressive 4.86-star rating out of 5 from about 60,000 reviews. Attaining a score that high from such a large number of reviews says a lot.

They’ve also landed in the top-10 for customer satisfaction in past years among a large group of like-sized lenders.

Over at Zillow, it’s an even better 4.97-star rating from about 2,000 reviews, with a lot of them indicating that the interest rate and closing costs were lower than expected.

The company also has a perfect 5-star rating on Google from about 300 reviews for their corporate headquarters, which is obviously also quite impressive.

While Summit Funding isn’t an accredited business with the Better Business Bureau, they do have an ‘A+’ rating based on customer complaint history.

In summary, the company could be a good fit for both first-time home buyers and existing homeowners looking to refinance a mortgage thanks to their local offices and plentiful online tools.

Summit Funding Pros and Cons

The Good Stuff

  • Can apply for a home loan instantly from any device
  • Offer a digital mortgage process powered by ICE
  • Also have brick and mortar locations in many states
  • Excellent customer reviews across all ratings websites
  • Lots of loan programs to choose from including jumbos and reverse mortgages
  • Free smartphone app
  • Free mortgage calculators and glossary on their website

The Not

  • Not licensed in all states
  • No mention of rates or fees on their website
  • May not service your loan

Source: thetruthaboutmortgage.com