Friday, December 12, 2014

Fannie Mae, Freddie Mac Officially Announce 3% Down Payment Options For Homebuyers

The Fannie Mae announcement explains that the 97% loan-to-value (LTV) mortgages will still have to meet all of its other eligibility requirement including underwriting, income documentation, and (like all loans with LTV above 80%) some form of risk sharing such as private mortgage insurance. At least one of the co-borrowers has to be a first-time homebuyer, although some homeowners with a Fannie Mae-owned mortgage will be able to refinance their existing mortgages under the new rules on a limited cash-out basis.

Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) program is similar, although it isn’t limited to first-time homebuyers (who have to take part in a borrower education program to qualify for the program). Also, Freddie Mac is only allowing refinancing under the program on a no-cash-out basis. Freddie Mac estimates that borrowers should expect to pay between $40 and $80 per month for every $100,000 that they have borrowed until they have built up 20% equity in the home, at which point they can cancel their PMI.

Bob McCormick, President
Visit us at

AZMB#0903631 / CFL #603J043 / Nmls #175743 Equal Housing Lender

Wednesday, December 3, 2014

"Don’t Overpay for your Mortgage"

Having worked for a few of the large banks and mortgage banking firms prior to starting Mortgage Quest in May 2000, I learned how and why these mortgage companies need to mark-up their rates that are offered to the public: large overhead expenses including office salaries, commissions, large rent/office space, several layers of management, extra quality control costs due to large staffing, etc.
Mortgage Quest was established with a business model that has reduced these large expenses so that our operating margins are the lowest in the industry and the need to mark-up interest rates was eliminated:

  • By being the sole-owner/ loan originator for Mortgage Quest our pricing model is the lowest in the industry. Generally saving our clients up to .25%-.50% or more on their rate versus the competition.
The majority of conventional home loans are sold to Fannie Mae/Freddie Mac.  We receive wholesale rates which when not overly "marked up" to pay for the above expenses allow us to offer ultra competitive rates.

Feel free to contact me anytime at 800-328-0144 or with any questions or a quick mortgage quote.

Bob McCormick, President

Arizona/Orange County/San Diego

AZMB#0903631 / CFL #603J043 / Nmls #175743 Equal Housing Lender

In-House Bridge Loans Available (purchase before selling and remove contingency)

Mortgage Quest a dba of McCormick Lending Group, Inc. We offer In-House Bridge Loans for borrowers who want to purchase a new pro...