Nick Pakulla - Mortgage Lender Loan Officer in MD, DC, VA

Alternatives to FHA - 5% down conventional and 80/10/10 in VA, DC, and Rockville MD

Fri, 30 Mar 2012 14:05:39 -0700

FHA has announced several changes in the past few weeks leading to increases in the required mortgage insurance premiums making FHA much more expensive. This will significantly impact areas such as Bethesda and Rockville MD.

There are some very good alternatives that our Rockville Community Bank offers. For loans below 417k we offer a 5% down conventional option, and for loans above the high-balance loan limits ($625,500 – DC metro area, $494,500 Baltimore metro area) we offer our 80/10/10 second mortgage option.

With the recent increase in mortgage rates and impending FHA increases it will be important to ensure that all options are considered to find out what makes the most sense. Below are two examples of way we can help save Rockville Maryland borrowers a significant amount of money with a small increase in down payment.

FHA vs. 5% down Conventional, $400,000 financed:

FHA

1.75% (effective after April 6) upfront mortgage insurance = $7,000 rolled into the mortgage
$407,000 @ 3.875% = $1,914, Plus new FHA MIP (effective after April 6) = $400
Total monthly = $2,314

5% Conventional with monthly MI

$400,000 @ 3.99% = $1,907, Plus Monthly MI = $197
Total monthly = $2,104

5% down conventional represents a savings of $210 per month, plus $7,000 savings from upfront MI or $17,600 over 5 years!

FHA vs. 10% down 80/10/10, $650,000 financed:

FHA

1.75% (effective after April 6) upfront mortgage insurance = $11,375 rolled into the mortgage
$661,375 @ 4.00% = $3,157, Plus new FHA MIP (effective after June 8) = $785
Total monthly = $3,942

10% Conventional with First Place Bank Second Mortgage

$577,000 @ 4.375% = $2,881, Plus $73,000 Second Mortgage = $498
Total monthly = $3,379

10% down 80/10/10 represents a savings of $563 per month, plus $11,375 savings from upfront MI or $45,155 over 5 years!

You can view the full mortgagee letter with all the details here - FHA MIP Changes 2012. As always we are available via phone or email to answer any questions you might have. Have a great day!

Nick Pakulla / Loan Officer / NMLS# 728211 / First Place Bank Mortgage Lender / 15400 Calhoun Drive, Rockville MD 20855 / 301.585.7283 / http://www.nickhomeloan.com

Click Here to go to my Bank Website

Call Me Direct: 301.585.RATE (7283)

Proposed Changes for FHA Mortgage Insurance - Rockville MD Mortgage

Wed, 29 Feb 2012 11:40:49 -0800

Yesterday FHA announced an increase in Mortgage Insurance premiums (the 4^th time in 3 years) beginning on April 1, 2012. This will have a big impact for locations like Rockville MD, or Bethesda MD. Also, FHA posted a notice in the Federal Register last week regarding the implementation of a decrease in the maximum closing cost assistance from sellers (right now maximums are at 6%).

The Mortgage Insurance Premium Changes, planned for April 1:

FHA upfront mortgage insurance will increase from 1.00% (now), up to 1.75% April 1.
FHA annual mortgage insurance will increase from 1.15% (now), up to 1.25% April 1.
FHA mortgages above $625,500 will be subject to an additional 0.25% annual mortgage insurance fee, or 1.5% April 1.

Proposed Closing Cost Credit Changes, implemented in the near future after comment period:

FHA is proposing that the closing costs be limited to the greater of $6,000 or 3% of the sales price.
FHA is also proposing to narrow the definition of acceptable concessions. FHA proposes to eliminate payment supplements offered by sellers, such as a year’s worth of homeowner association fees, as they are viewed by HUD as inducements to purchase.
Comments on this proposal can be made at http://www.regulations.gov

Anyone planning on obtaining a FHA mortgage in Rockville or Bethesda MD and who is on the fence about buying may find this important information to know so they can get in before the changes. Remember our bank’s 80/10/10 financing or 5% down conventional products offer alternatives to FHA.

Please note: This information is subject to change by the FHA. It is based on an initial FHA announcement made February 27, 2012. It's unofficial until FHA releases a mortgagee letter.

Nick Pakulla / Loan Officer / NMLS# 728211 / First Place Bank Mortgage Lender / 15400 Calhoun Drive, Rockville MD 20855 / 301.585.7283 / http://www.nickhomeloan.com

Click Here to go to my Bank Website

Call Me Direct: 301.585.RATE (7283)

Mortgage Industry Update / Time to get pre-approved! Rockville Mortgage

Tue, 21 Feb 2012 08:44:54 -0800

There are some very positive signs in the economy are emerging and Fed policies are keeping Rockville MD mortgage rates near historic lows.

We strongly encourage spring buyers to get fully-approved now to avoid missing out on “the one.” Without having an approval letter buyers could risk missing out on their dream home, or at the minimum be under high-stress to gather and send the required approval documentation last minute. Our bank approvals are good for up to 1 year, there is no cost or obligation, and approvals can be turned around in 1 hour.

Mortgage News Headlines of Interest:

US Jobless Claims fall to 4-year low, consumer confidence up, Bloomberg: http://buswk.co/wQBtva
Mortgage delinquencies hit 3-year low, Wall Street Journal: http://on.wsj.com/x4QdRs
Standardization proposed for monthly Mortgage Statements by CFPB, New York Times: http://nyti.ms/yuaEuN
$25 Billion Mortgage settlement deal FAQ (not to be confused with the HARP refinance program), Bankrate: http://bit.ly/xCfRF4
Murmurs that FHA Mortgage Insurance Premiums will be increasing again this year, Reuters: http://reut.rs/AcpNUH

Our Community Bank is here to support you and your buyers, with our ability to close loans in 2 weeks, 10% down second trust products above the loan limits, and 5% no monthly mortgage insurance products we are ready to get you and your buyers to settlement on time with ease.

As always, we are accessible anytime to go over payments, closing costs, and issue approval letters at any time. 301-585-RATE (7283). I hope you had a great holiday weekend!

Nick Pakulla / Loan Officer / NMLS# 728211 / First Place Bank Mortgage Lender / 15400 Calhoun Drive, Rockville MD 20855 / 301.585.7283 / http://www.nickhomeloan.com

Click Here to go to my Bank Website

Call Me Direct: 301.585.RATE (7283)

Maryland Mortgage Loan Limit Summary / Seller Closing Cost Credit Summary

Fri, 20 Jan 2012 16:48:36 -0800

Happy New Year! Hope you had a great Holiday and were able to enjoy time with your family.

As the 2012 spring market is getting started off with pre-approvals and buyer inquiries, there were several changes (and re-changes) near the end of 2011 that may have led to some confusion and will likely impact your buyers. Below is a current recap of loan limits, minimum down payments, and maximum seller contributions for all loan options available.

Mortgage rates continue to stay at all time lows! Let’s make 2012 the best year yet!

Location Loan Limit Min. Down Payment Max. Closing Concessions

Below 417,000 Conventional:

Baltimore $417,000 5% 3%

DC $417,000 5% 3%

Investment $417,000 20% 2%

Above 417,000 High-Balance Conventional:

Baltimore $494,500 10% 6%

DC $625,500 10% 6%

Investment - 35% 2%

10% Down Jumbo ** Using First Place Bank Specific Second Mortgage Product:

Baltimore $900,000 10% 6%

DC $1,100,000 10% 6%

FHA Loans:

Baltimore $560,000 3.5% 6%

DC $729,750 3.5% 6%

VA:

Howard $478,400 0% ~4%

Baltimore $494,500 0% ~4%

DC $625,500 0% ~4%

*VA is now very specific per county, please consult the VA County loan limit site: http://www.benefits.va.gov/homeloans/loan_limits.asp

** borrowers can purchase above the VA loan limits by putting down 25% of the difference of the maximum loan limit and the sales price.

Nick Pakulla / Loan Officer / NMLS# 728211 / First Place Bank Mortgage Lender / 15400 Calhoun Drive, Rockville MD 20855 / 301.585.7283 / http://www.nickhomeloan.com

Click Here to go to my Bank Website

Call Me Direct: 301.585.RATE (7283)

FHA Loan Limits and VA funding fees Update November 2011

Mon, 28 Nov 2011 16:24:46 -0800

FHA Updates Loan Limits as of November 18, 2011

On November 18, 2011, the President signed into law H.R. 2112, Consolidated and Further Continuing Appropriations Act 2012 (HR2112). Section 238 of HR 2112 re-establishes the FHA loan limit at the higher of the dollar limit in Section 203(b)(2) or the dollar limit prescribed in Section 202 of the Economic Stimulus Act of 2008 for Forward mortgages.

Therefore, effective for all Forward mortgages with a case number assigned on, or after, November 18, 2011 through December 31, 2011, the loan limits referenced in Mortgagee letter 10-40 shall be in effect.

The Department will be issuing a Mortgagee Letter by mid-next week that will include more detailed guidance and applicable updated loan limit tables for 2012. We expect supporting system changes to be completed within that same time frame.

VA Funding Fees Revert Back to pre-change levels

FUNDING FEE UPDATE AS OF NOVEMBER 22, 2011: On November 21, 2011, the President signed H.R. 674. Section 265 of the law raises funding fees to the pre-November 18, 2011 levels. The fees specified in Section 265 are valid through September 30, 2016.

First Time Use

< 5% down = 2.15%
5-10% down = 1.5%
10% or more = 1.25%

Second and Subsequent Use

< 5% down = 3.3%
5-10% down = 1.5%
10% or more = 1.25%

Nick Pakulla

First Place Bank

Loan Officer

15400 Calhoun Drive Suite 170

Rockville, MD 20855

Direct: 301.585.RATE (7283) | Cell: 443.956.8774 | Fax: 301.560.6303

NMLS# 728211

Email: NPakulla@fpfc.net

Apply now: http://www.firstplacebank.com/NickPakulla

Nick Pakulla / Loan Officer / NMLS# 728211 / First Place Bank Mortgage Lender / 15400 Calhoun Drive, Rockville MD 20855 / 301.585.7283 / http://www.nickhomeloan.com

Click Here to go to my Bank Website

Call Me Direct: 301.585.RATE (7283)

FHA loan limits increase! But not conventional

Fri, 18 Nov 2011 14:51:45 -0800

It was just announced today that a bill has been approved that will raise the FHA (FHA only) mortgage loan limit back to $729,750 for the DC area and $560,000 for the Baltimore metro area. Unfortunately, they did not raise the Fannie / Freddie conventional mortgage loan limit and they still remain at $625,500 and $494,500 respectively. Although the conventional limits are not raised, this will still help buyers who don’t have 10% down and are looking to buy above the conventional limits.

Below is the link to an article if you would like to read more about the change. Remember, for borrowers with 10% down our bank’s 2^nd Mortgage can bridge the gap between conforming and true jumbo, and will be much more cost effective than going FHA (see example below). Please call us with any questions. Thanks and Happy Friday!

http://www.bloomberg.com/news/2011-11-18/u-s-congress-votes-to-raise-top-limit-for-government-insured-mortgages.html

Example – FHA with 10% down vs. First Place Bank second mortgage:

$800,000 purchase with FHA 10% down:
$720,000 financed @ 4.25% = $3,542 per month
FHA MIP = $660 per month ($0 going towards principal / not tax deductible)
Total = $4,202

$800,000 purchase with First Place Bank Second Mortgage 10% down:
$625,500 first mortgage @ 4.25% = $3,077 per month
$94,500 second mortgage @ 7.25% = $645 per month (tax deductible and part of payment is going towards principal)
Total = $3,723 – much better option!

Thanks,
Nick

Nick Pakulla
First Place Bank
Loan Officer
15400 Calhoun Drive Suite 170
Rockville, MD 20855
Direct: 301.585.RATE (7283) | Cell: 443.956.8774 | Fax: 301.560.6303
NMLS# 728211
Email: NPakulla@fpfc.net
Apply now: http://www.firstplacebank.com/NickPakulla

Nick Pakulla / Loan Officer / NMLS# 728211 / First Place Bank Mortgage Lender / 15400 Calhoun Drive, Rockville MD 20855 / 301.585.7283 / http://www.nickhomeloan.com

Click Here to go to my Bank Website

Call Me Direct: 301.585.RATE (7283)

Haunting Rockville MD mortgage rates - will history repeat itself for the 3rd year in a row?

Mon, 31 Oct 2011 16:36:33 -0700

With Rockville MD mortgage rates still near all-time lows many buyers will have significantly higher payments and may qualify for less if they head back up (like they did last spring). Please pass the example below to your buyers to show how beneficial low interest rates are!

$417,000 borrowed
@4.125% = $2,020 per month
@5.125% = $2,270 per month – this is $90,000 in wasted interest paid over the life of the same $417,000 loan!
@5.125% a $2,020 principal and interest payment would equate to a mortgage of only $371,000! This means that in this example buyers today can finance $46,000 more for the same exact principal and interest payment due to low mortgage rates.

If you look at the chart above, for the past 2 years mortgage rates have been in the low 5%’s during spring…. Will history repeat itself again? Even scarier, look how quickly mortgage rates shot up from November 2010 to January 2011.

HAPPY HALLOWEEN!

***About First Place Bank

First Place Bank is an established community bank new to the MD/DC/VA market. With all the struggles of the “large banks” the community banking model has proven to be much more efficient. We still offer 80/10/10’s, in-office underwriting, and have a group of local bank approved appraisers (no 3^rd party appraisal system). My entire group made the move to First Place Bank after thirteen years at a large bank mainly because we believe in a higher level of service. We work with some of the best Realtors in the area and our goal is to create a new, higher standard in the mortgage business. All top Realtors should have a community bank option to rely on. Please consider us for your next buyer. Thank you.

Nick Pakulla / Loan Officer / NMLS# 728211 / First Place Bank Mortgage Lender / 15400 Calhoun Drive, Rockville MD 20855 / 301.585.7283 / http://www.nickhomeloan.com

Click Here to go to my Bank Website

Call Me Direct: 301.585.RATE (7283)

Mortgage Industry Update, Silver Spring and Bethesda MD

Fri, 21 Oct 2011 17:40:49 -0700

Some encouraging mortgage headlines that all point for positive signs for the housing market in the coming months for buyers in Silver Spring and Bethesda Maryland, DC, and Virginia:

For buyers across the country and locally here in Bethesda MD, monthly payments based on median home prices and mortgage rates are now lower than they’ve been in 40 years! Marketwatch.com http://bit.ly/o21FAN
There is beginning to be a reversal in the trend towards renting in the Washington area – landlords have raised rents an average of 3.7% per year since 2006, low mortgage rates and home prices are driving purchases for young professionals: Washington Post http://wapo.st/o7AyFa
Up to 2 million people are waiting to jump into the housing market in the next 2 years, and the typical American still places a high value on home ownership: http://bit.ly/peqpOz

In other news the Senate voted late last night to restore the high-balance loan limits ($729,750) through 2013 and the vote passed 60-38. This still needs to go to the House of Representatives, but will be positive for the DC Metro area, especially places like Bethesda and Silver Spring. Wall Street Journal http://on.wsj.com/pVnppa

Mortgage Rates continue to bounce near all time lows!

Have a great weekend! Keep us in mind for your next buyer, with our in-office operations and appraisal system our loan packages arrive to the title company days before settlement. 301-585-7283

Nick Pakulla / Loan Officer / NMLS# 728211 / First Place Bank Mortgage Lender / 15400 Calhoun Drive, Rockville MD 20855 / 301.585.7283 / http://www.nickhomeloan.com

Click Here to go to my Bank Website

Call Me Direct: 301.585.RATE (7283)

FHA, VA, and Conventional mortgage loan limits September / October 2011

Thu, 29 Sep 2011 19:12:21 -0700

September 30^th and October 1^st are important in our industry as several government loan limits are set to change:

Conventional Fannie Mae loan limits will be changing,
FHA mortgage loan limits will be changing, and
VA loan limits will not be changing yet, however, VA funding fees will be changing

Fannie Mae loan limits: https://www.efanniemae.com/sf/refmaterials/loanlimits/xls/loanlimref.xls

Use the above referenced table to check the Fannie Mae loan limits. Additionally, if your home purchase is affected by the loan limits going down utilize our bank’s second trust mortgage to allow you to purchase your home above the loan limits with as little as 10% down. See my 80/10/10 second mortgage blog post and an article in the Wall Street Journal referencing our bank

FHA:

FHA loan limits https://entp.hud.gov/idapp/html/hicostlook.cfm

The FHA loan limits will also generally follow the change in the Fannie loan limits, but you can search by state via the link above.

VA:

VA Loan limits http://www.benefits.va.gov/homeloans/loan_limits.asp

The maximum guaranty for VA guaranteed loans closed October 1, 2011 through December 31, 2011 will remain unchanged. The Veterans’ Benefits Improvement Act of 2008 provided a temporary increase in VA loan limits for loans closed January 1, 2009 through December 31, 2011. Because of this legislation, VA loan limits will remain the same for the remainder of the calendar year. Please note that VA does not have a maximum loan amount. Loan limit refers to the maximum loan a lender could make and still receive a 25% guaranty from VA, assuming the veteran has full entitlement.

VA Funding Fee Changes

VA Funding fees going down: http://activerain.com/blogsview/2514838/va-funding-fee-changes-going-down-effective-october-1st

Nick Pakulla / Loan Officer / NMLS# 728211 / First Place Bank Mortgage Lender / 15400 Calhoun Drive, Rockville MD 20855 / 301.585.7283 / http://www.nickhomeloan.com

Click Here to go to my Bank Website

Call Me Direct: 301.585.RATE (7283)

Wall Street Journal article mentions First Place Bank's 80/10/10 to stay out of Jumbo

Thu, 29 Sep 2011 19:11:54 -0700

First Place Bank’s 80/10/10 loan program was recently mentioned in the Wall Street Journal Online as an example of a creative way to assist buyers (and sellers) above the lowering Fannie Mae county loan limits!

September 16, 2011, Will Expiring Loan Limits Kill My Sale? By June Fletcher. Link: http://on.wsj.com/rd289k

Q. My house is for sale for $878,000. I have already dropped the price three times, and can't afford to drop it any lower. I am very worried about the upcoming expiration of conforming loan limits, and what that will do to the pool of buyers that can get a mortgage to buy my house. Your thoughts? --Arlington, Va.

A. “… buyers could find a lender who will provide a piggyback loan that allows a lower down payment. Such lenders generally are community or niche banks that keep such loans in their own portfolios. For instance, in your area, First Place Bank is offering an 80/10/10 loan that requires a 10% minimum down payment. The bank makes a first loan up to the conventional limit in tandem with a second.”

Thank you for helping to spread the word!

Nick Pakulla / Loan Officer / NMLS# 728211 / First Place Bank Mortgage Lender / 15400 Calhoun Drive, Rockville MD 20855 / 301.585.7283 / http://www.nickhomeloan.com

Click Here to go to my Bank Website

Call Me Direct: 301.585.RATE (7283)

VA Funding Fee changes (going down) effective October 1st

Mon, 19 Sep 2011 12:41:25 -0700

VA announces a decrease to the VA funding fee effective October 1st. For the full notice you can find it at: http://www.benefits.va.gov/HOMELOANS/circulars/26_11_12.pdf

Purpose: This circular announces changes in funding fees for Department of Veterans Affairs (VA) loans closed on or after October 1, 2011.

Fee Changes

For loans closed on or after October 1, 2011, the fee for subsequent use loans with less than 5 percent downpayment and subsequent use regular refinance loans will be 2.8 percent for both active duty Servicemembers, Veterans, and persons qualifying based solely on service in the Reserves or National Guard. This change is due to passage of Public Law 112-26, Restoring GI Bill Fairness Act of 2011.

Funding fees for loans other than subsequent use will also change for loans closed on or after October 1, 2011. These fee changes were already set to change based on previous legislation. The below table shows the upcoming changes.

Funding fees for Interest Rate Reduction Refinancing Loans and Assumptions will not change. They will remain at .50 percent.

Possibility of Future Funding Fee Changes: Should Congress pass legislation making additional changes to the funding fee structure, VA will immediately publish a notice on our website and the VA Funding Fee Payment System (FFPS), and soon afterward, issue another Circular. Lenders should closely monitor our website and VA FFPS for information on funding fee changes.

Rescission: This circular is automatically rescinded on October 1, 2012.

By Direction of the Under Secretary for Benefits

Michael J. Frueh
Acting Director, Loan Guaranty Service

Loan Fee Structure for Guaranteed Loans

First Time Use Veteran Reservist/National Guard Down payment: Less than 5 percent*: – October 1, 2004 until October 1, 2011 – On or after October 1, 2011

At least 5 percent but less than 10 percent:

– Before October 1, 2011 – On or after October 1, 2011

10 percent or more:

– Before October 1, 2011 – On or after October 1, 2011

2.15%
1.40%

1.50%
0.75%

1.25%
0.50%

2.40%
1.65%

1.75%
1.00%

1.50%
0.75%

Second and Subsequent Use

Down payment:

Less than 5 percent*: – October 1, 2007 until October 1, 2011 – October 1, 2011 until October 1, 2012 – October 1, 2012 until October 1, 2013 – On or after October 1, 2013

At least 5 percent but less than 10 percent

– Before October 1, 2011 – On or after October 1, 2011

10 percent or more

– Before October 1, 2011 – On or after October 1, 2011

Refinancing Loans: Interest rate reduction .5%

3.30%
2.80%
2.15%
1.25%

1.50%
0.75%

1.25%
0.50%

3.30%
2.80%
2.15%
1.25%

1.75%
1.00%

1.50%
0.75%

Nick Pakulla / Loan Officer / NMLS# 728211 / First Place Bank Mortgage Lender / 15400 Calhoun Drive, Rockville MD 20855 / 301.585.7283 / http://www.nickhomeloan.com

Click Here to go to my Bank Website

Call Me Direct: 301.585.RATE (7283)

Fannie Mae Loan Limits going down on September 30th 2011!

Tue, 23 Aug 2011 13:35:00 -0700

Just a reminder that the Fannie Mae loan limits are set to expire on Sept 30th and all loans must be settled on or before that date (the 30th is a Friday). Be cautious of the dates, we are hearing that some other lenders have already stopped taking new applications for loans above $625,500 in the DC Metro area and above $494,500 in the Baltimore Metro area (likely because their processing and underwriting departments are delayed). We keep everything in-office so if you are stuck on a file, we can help get it closed in as little as 2 weeks. We will be taking new applications up to about 2 weeks prior to the deadline to help with the fall out that will be coming from the big banks. As a Community Bank, the goal is to always help the local communities where we lend.

We already have a great solution in place for those of you that are affected by the loan limit changes. We are one of the only local banks that still do in-house second mortgages (we lend our own money) which will be used more as the Fannie Mae loan limits drop. Splitting the loans will become the product of choice for buyers that want to get the better conforming rates and are purchasing above the new limits. Taking the first mortgage down to $625,500 / $494,500 and then putting a second mortgage behind it (even up to $400,000 - $500,000) will be a great strategy for buyers that want to aggressively pre-pay the second. This will be great for buyers that get paid bonuses, commissions, only have 10% down, or need to use the second as a bridge loan to go non-contingent on the sale of their current home.

Check out my post on how to obtain a jumbo mortgage with 10% down: http://activerain.com/blogsview/2109479/how-to-get-a-jumbo-mortgage-with-a-10-low-down-payment-in-maryland-dc-or-virginia

State Name County Name New Limit After Oct 1 Temporary Limit Until Sept 30 DISTRICT OF COLUMBIA DISTRICT OF COL, DC $ 625,500 $ 729,750 MARYLAND ALLEGANY, MD $ 417,000 $ 417,000 MARYLAND ANNE ARUNDEL, MD $ 494,500 $ 560,000 MARYLAND BALTIMORE, MD $ 494,500 $ 560,000 MARYLAND CALVERT, MD $ 625,500 $ 729,750 MARYLAND CAROLINE, MD $ 417,000 $ 417,000 MARYLAND CARROLL, MD $ 494,500 $ 560,000 MARYLAND CECIL, MD $ 417,000 $ 420,000 MARYLAND CHARLES, MD $ 625,500 $ 729,750 MARYLAND DORCHESTER, MD $ 417,000 $ 417,000 MARYLAND FREDERICK, MD $ 625,500 $ 729,750 MARYLAND GARRETT, MD $ 417,000 $ 437,500 MARYLAND HARFORD, MD $ 494,500 $ 560,000 MARYLAND HOWARD, MD $ 494,500 $ 560,000 MARYLAND KENT, MD $ 417,000 $ 417,000 MARYLAND MONTGOMERY, MD $ 625,500 $ 729,750 MARYLAND PRINCE GEORGE'S, MD $ 625,500 $ 729,750 MARYLAND QUEEN ANNE'S, MD $ 494,500 $ 560,000 MARYLAND ST. MARY'S, MD $ 417,000 $ 417,000 MARYLAND SOMERSET, MD $ 417,000 $ 417,000 MARYLAND TALBOT, MD $ 417,000 $ 443,750 MARYLAND WASHINGTON, MD $ 417,000 $ 417,000 MARYLAND WICOMICO, MD $ 417,000 $ 417,000 MARYLAND WORCESTER, MD $ 417,000 $ 437,500 MARYLAND BALTIMORE CITY, MD $ 494,500 $ 560,000 VIRGINIA ARLINGTON, VA $ 625,500 $ 729,750 VIRGINIA CLARKE, VA $ 625,500 $ 729,750 VIRGINIA CRAIG, VA $ 417,000 $ 417,000 VIRGINIA CULPEPER, VA $ 417,000 $ 417,000 VIRGINIA CUMBERLAND, VA $ 535,900 $ 535,900 VIRGINIA DICKENSON, VA $ 417,000 $ 417,000 VIRGINIA DINWIDDIE, VA $ 535,900 $ 535,900 VIRGINIA ESSEX, VA $ 417,000 $ 417,000 VIRGINIA FAIRFAX, VA $ 625,500 $ 729,750 VIRGINIA FAUQUIER, VA $ 625,500 $ 729,750 VIRGINIA LOUDOUN, VA $ 625,500 $ 729,750 VIRGINIA LOUISA, VA $ 535,900 $ 535,900 VIRGINIA LUNENBURG, VA $ 417,000 $ 417,000 VIRGINIA MADISON, VA $ 417,000 $ 417,000 VIRGINIA NELSON, VA $ 437,000 $ 437,000 VIRGINIA NEW KENT, VA $ 535,900 $ 535,900 VIRGINIA POWHATAN, VA $ 535,900 $ 535,900 VIRGINIA PRINCE EDWARD, VA $ 417,000 $ 417,000 VIRGINIA PRINCE GEORGE, VA $ 535,900 $ 535,900 VIRGINIA PRINCE WILLIAM, VA $ 625,500 $ 729,750 VIRGINIA SPOTSYLVANIA, VA $ 625,500 $ 729,750 VIRGINIA STAFFORD, VA $ 625,500 $ 729,750 VIRGINIA SURRY, VA $ 458,850 $ 458,850 VIRGINIA SUSSEX, VA $ 535,900 $ 535,900 VIRGINIA TAZEWELL, VA $ 417,000 $ 417,000 VIRGINIA WARREN, VA $ 625,500 $ 729,750 VIRGINIA YORK, VA $ 458,850 $ 458,850 VIRGINIA ALEXANDRIA, VA $ 625,500 $ 729,750 VIRGINIA BEDFORD IND, VA $ 417,000 $ 417,000 VIRGINIA BRISTOL, VA $ 417,000 $ 417,000 VIRGINIA BUENA VISTA, VA $ 417,000 $ 417,000 VIRGINIA CHARLOTTESVILLE, VA $ 437,000 $ 437,000 VIRGINIA CHESAPEAKE, VA $ 458,850 $ 458,850 VIRGINIA COLONIAL HEIGHT, VA $ 535,900 $ 535,900 VIRGINIA FAIRFAX IND, VA $ 625,500 $ 729,750 VIRGINIA FALLS CHURCH, VA $ 625,500 $ 729,750 VIRGINIA FRANKLIN IND, VA $ 417,000 $ 417,000 VIRGINIA FREDERICKSBURG, VA $ 625,500 $ 729,750 VIRGINIA GALAX, VA $ 417,000 $ 417,000 VIRGINIA HAMPTON, VA $ 458,850 $ 458,850 VIRGINIA HARRISONBURG, VA $ 417,000 $ 417,000 VIRGINIA HOPEWELL, VA $ 535,900 $ 535,900 VIRGINIA MANASSAS, VA $ 625,500 $ 729,750 VIRGINIA MANASSAS PARK, VA $ 625,500 $ 729,750

Nick Pakulla / Loan Officer / NMLS# 728211 / First Place Bank Mortgage Lender / 15400 Calhoun Drive, Rockville MD 20855 / 301.585.7283 / http://www.nickhomeloan.com

Click Here to go to my Bank Website

Call Me Direct: 301.585.RATE (7283)

What is APR in Plain English Please, Maryland mortgage rates and apr

Fri, 15 Jul 2011 07:24:45 -0700

Mark Taylor gives an excellent overview of the seemingly confusing "APR." I agree, that it is generally a worthless metric when comparing lenders and loan options due to all of the room for interpretation and lack of timeline.

Personally I think APR should only take into account bank fees, rate, and points. (Currently the APR is made up of some Realtor fees, some title fees, some bank fees, but not others, etc.) Also, if used at all it should display the APR over several time periods, instead of assuming the loan is taken to term. Finally for an adjustable rate it should use the highest possible rate in the given time period...

Thanks Mark!

Via Mark Taylor FHA VA USDA HUD & Investor Loans (First Time Buyers Investors and move up buyers):

What Is Annual Percentage Rate (APR)?

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More commonly called APR, Annual Percentage Rate is a government-mandated mortgage comparison tool. It measures the total cost of borrowing over the life of a loan into dollars-and-cents.

A loan’s APR is printed in the top-left corner of the Federal Truth-In-Lending Disclosure, as shown above. When quoting an interest rate, loan officers are required by law to disclose a loan’s APR, too.

APR is meant to simplify the process of choosing between two or more loans. The theory is that the loan with the lowest APR is the “best deal” for the applicant because the loan’s long-term costs are lowest. However, the loan with the lowest APR isn’t always best.

APR makes assumptions in its formula that can render it moot.

First, APR assumes you’ll pay your mortgage off at term, at never sooner. So, if your loan is a 15-year fixed rate, its APR is based on a full 15 year term. If you sell or refinance prior to Year 15, the math used to make your loan’s APR becomes instantly flawed and “wrong”.

Example: Let’s compare two identical loans in Arizona — one with discount points and a lower interest rate; and one without discount points and a higher mortgage rate. The loan with discount points will have a lower APR in most cases. However, if the homeowner sells or refinances within the first few years, the loan with the higher APR would have been the better option, in hindsight.

Second, APR can be “doctored” early in the loan process.

Because the APR formula accounts for third-party costs in a mortgage transaction, and third-party costs aren’t always known at the start of a loan, a bank can inadvertently understate them. This would make the APR appear lower than what it really is, and may mislead a consumer.

And, lastly, APR is particularly unhelpful for adjustable-rate loans. Because the APR calculation makes assumptions about how a loan will adjust during its 30-year term, if two lenders use a different set of assumptions, their APRs will differ — even if the loans are identical in every other way. The lender whose adjustments are most aggressively-low will present the lowest APR.

Summarized, APR is not the metric for comparing mortgages — it’s a metric. For relevant comparison points, talk to your loan officer.

17 years of doing this APR is always what causes the most acid reflux for borrowers:"Hey you quoted me a 5% rate on FHA but the APR is 6.125% what gives Mark?" After a lengthy explanation of a mortgage metric of little value, clients usually calm down but always seem to leave with a smidgen of mistrust on their faces.

Here is the best advise especially as Realtors® can no longer proffer an opinion or help comfort the client by walking them through the TIL and explaining APR as they used to do pre-licensing days!

Show your client the rate, the closing costs and their payment - if they are happy and the payment works for them they will be very happy. All my clients want to know when they leave my office is; what exactly do I have to come in with for down, what are my closing costs to the penny and what is my payment to the penny. Lets give them that every time keep it simple and less of the aggregate adjusted UFMIP toleranced TIL and REG Z calculations right?

To get your free approval please call 602-361-0707

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Nick Pakulla / Loan Officer / NMLS# 728211 / First Place Bank Mortgage Lender / 15400 Calhoun Drive, Rockville MD 20855 / 301.585.7283 / http://www.nickhomeloan.com

Click Here to go to my Bank Website

Call Me Direct: 301.585.RATE (7283)

Banks vs Mortgage Brokers: Different types of maryland mortgage companies, broker, lender, banker

Sun, 10 Jul 2011 12:28:09 -0700

There are a few main types of institutions that provide mortgages, all have their pros and cons. For the average consumer purchasing a home it is my opinion that a small Community Bank is the best place to obtain a mortgage (and that is why I'm with First Place Bank). Below is an explanation of each of the types of mortgage lenders and my opinion on each.

Mortgage Bank (Large)

This is the Wells Fargo, Bank of America large banking institution type. These banks originate loans and hold them on their books or sell them in large pools to Fannie Mae, Freddie Mac, private investors, etc. All parts of the loan process stay within the company - origination, processing, underwriting, closing, and funding. These banks often follow the centralized approach, ie: where all underwriters are housed in the same location - which is different fromthe Loan Officer's location.

Cons:

With large mortgage banks Often when walking into your bank, or calling the 1800 number you may or may not be dealing with a skilled loan officer who is familiar with specifics in your local area, lending rules and regulations are different by state and by county. No one can be an expert in every state. This fact compiled with a centralized underwriting model where the loan officer has very little personal relationship with processing and underwriting staff can make "getting deals done" very difficult. From what I hear from the Realtor community and several "rescue" deals I have personally saved, it is common to have a settlement delayed at one of these larger institutions.

Pros:

Mortgage banks tend to have the ability to keep loans on their books, and therefore can offer unique loan portfolio loan programs (one that comes to mind is the 100% Doctor financing mortgage).

photo by ricardodiaz11

Credit Union

These can range in size from a small local operation to a national institution such as USAA, Pentagon Federal, etc. Credit unions are not for profit.

Cons:

Often when you call up a credit union for pre-approval you deal with whoever answers your call, there is not one specific person assigned to your case. In my experience the staff are not trained to analyze a borrowers information for an approval, they do not review documentation, and simply issue boiler plate approval letters. This is usually followed with major issues during the underwriting processes that are not brought up until last minute a few days before closing. (If you want to see for yourself check out USAA's reviews:
https://www.usaa.com/inet/pages/bank_loan_new_mortgage#reviewTab ** make sure you got to reviews and sort by date, the 1-star reviews are enough for anyone in my opinion to avoid these institutions)

Pros:

Credit unions often hold loans in their own portfolio and can sometimes lend when other banks cannot.

Mortgage Broker

Mortgage brokers can range in size, generally from someone operating out of their basement to very large companies. Mortgage brokers work independently and work with several wholesale lending institutions. Brokers originate the loans, but rely on the final lender to underwrite the file.

Cons:

Mortgage Brokers are relying on the wholesale institution for a large majority of the loan process. Personal relationship with the underwriting staff at several institutions is very difficult. There is a large lack of control over the loan process.

Pros:

Mortgage brokers may have access to unique loan programs offered by several lending institutions.

Correspondent Lender

A correspondent lender is similar to a type of broker, however, they fund the loans with their own lines of credit and after settlement immediately sell the loan to a wholesale investor. The correspondent is responsible for underwriting, processing, and closing the loan. Correspondents are very close to a small Community Bank in structure.

Cons:

Correspondents face one main concern, they cannot hold any loans on their books and face risk when underwriting every file. If several loans are required to be bought back by the end investor this can cause their ability to fund loans to be limited in the future. Therefore, the correspondent must follow very strict guidelines in order to prevent buy backs from occurring.

Pros:

Everything is controlled under one roof - underwriting, processing, and closing. Depending on the size this can be done in the same office, or for large correspondents they also follow a centralized approach similar to the big banks. Correspondent lenders may have access to unique loan programs as they generally work with several end investors.

Mortgage Bank / Community Bank (small)

Community Banks can vary in size from very small to regional, not all of them provide a high level of service with regards to their mortgage products. First Place Bank is a small Community Bank, and we have the ability to hold loans on our books and also sell to investors. All of the underwriting, processing, and closing is done under one roof - in the same office.

Cons:

The only con I can think of is that we may not have access to programs for borrowers who are completely outside of the box, ie: poor credit for example.

Pros:

This is the best of all of the lending options, big enough to hold loans on the books, offer unique portfolio products, and still small enough to work with other warehouse lenders as a correspondent. Everything is controlled under one roof - underwriting, processing, and closing - and this is all completed in-office. A personal relationship with underwriting and processing staff enables loans to always close on time. We have the ability to close loans in 2 weeks. Additionally, since we are a bank our bank has unique portfolio loan products, such as second mortgages, 80/10/10's, and bridge loans. Our appraisal process uses a local rotation of selected appraisers to ensure you receive a quality transaction throughout.

Yes I am biased, but in my opinion Community Banks, and ours in specific is one of the best mortgage operations in the Country. Ultimately, as a consumer you are concerned about getting a fair deal, and settling your new home on-time. You don't want to be stuck sleeping in a hotel room for a week because settlement was delayed. There is no excuse for a delayed settlement, and with our Community Banking model we are one of the only places to go to guarantee this does not happen. This is why we commonly get out closing packages out 1-2 weeks before settlement, while other lenders strive for the day before.

The quality of the Loan Officer or Broker also matters greatly. You could have a perfect bank / Broker but a bad Loan Officer and have a horrible experience, or the worst bank / Broker and a great Loan Officer and have a fantastic experience.... Bottom line, check with a few different types of lenders, get some recommendations, and see which one you feel most comfortable with, in my opinion for the highest level of service every time the choice is pretty clear.

Nick Pakulla / Loan Officer / NMLS# 728211 / First Place Bank Mortgage Lender / 15400 Calhoun Drive, Rockville MD 20855 / 301.585.7283 / http://www.nickhomeloan.com

Click Here to go to my Bank Website

Call Me Direct: 301.585.RATE (7283)

High balance jumbo super conforming mortgage loan limits by County 2011

Sun, 30 Jan 2011 11:44:45 -0800

For loans originated on or before September 30, 2011, the "temporary" high-cost area loan limits will apply and will be the same as the 2010 high-cost area loan limits, up to a maximum of $729,750. Presented below is a table detailing the County loan limits for Maryland, DC, and Virginia.

The limits are especially favorable to the DC Metro area, including Montgomery County, Frederick County, and Prince George's County with loan limits being $729,750. Howard County, Anne Arundel County, and Baltimore County get left out with a $560,000 loan limit.

What are the County loan limits?

The County Loan limits are somewhat like a speed limit in the mortgage market. Fannie sets the limits which means they will secure loans originated up to the specified amount. Anything above the specified loan limits and you are required to use a private backed Jumbo mortgage product with have higher rates and different terms.

** Don't forget about our second mortgages to allow you to go above the loan limits with only 10% down - keeping you out of jumbo mortgage rates.

Loans originated on or after October 1, 2011 are slated to go back to the "permanent" high-cost area loan limits up to a maximum of $625,500.

DISTRICT OF COLUMBIA DISTRICT OF COL, DC $729,750 MARYLAND ALLEGANY, MD $417,000 MARYLAND ANNE ARUNDEL, MD $560,000 MARYLAND BALTIMORE, MD $560,000 MARYLAND CALVERT, MD $729,750 MARYLAND CAROLINE, MD $417,000 MARYLAND CARROLL, MD $560,000 MARYLAND CECIL, MD $420,000 MARYLAND CHARLES, MD $729,750 MARYLAND DORCHESTER, MD $417,000 MARYLAND FREDERICK, MD $729,750 MARYLAND GARRETT, MD $437,500 MARYLAND HARFORD, MD $560,000 MARYLAND HOWARD, MD $560,000 MARYLAND KENT, MD $417,000 MARYLAND MONTGOMERY, MD $729,750 MARYLAND PRINCE GEORGE'S, MD $729,750 MARYLAND QUEEN ANNE'S, MD $560,000 MARYLAND ST. MARY'S, MD $417,000 MARYLAND SOMERSET, MD $417,000 MARYLAND TALBOT, MD $443,750 MARYLAND WASHINGTON, MD $417,000 MARYLAND WICOMICO, MD $417,000 MARYLAND WORCESTER, MD $437,500 MARYLAND BALTIMORE CITY, MD $560,000 VIRGINIA ACCOMACK, VA $417,000 VIRGINIA ALBEMARLE, VA $437,000 VIRGINIA ALLEGHANY, VA $417,000 VIRGINIA AMELIA, VA $535,900 VIRGINIA AMHERST, VA $417,000 VIRGINIA APPOMATTOX, VA $417,000 VIRGINIA ARLINGTON, VA $729,750 VIRGINIA AUGUSTA, VA $417,000 VIRGINIA BATH, VA $417,000 VIRGINIA BEDFORD, VA $417,000 VIRGINIA BLAND, VA $417,000 VIRGINIA BOTETOURT, VA $417,000 VIRGINIA BRUNSWICK, VA $417,000 VIRGINIA BUCHANAN, VA $417,000 VIRGINIA BUCKINGHAM, VA $417,000 VIRGINIA CAMPBELL, VA $417,000 VIRGINIA CAROLINE, VA $535,900 VIRGINIA CARROLL, VA $417,000 VIRGINIA CHARLES CITY, VA $535,900 VIRGINIA CHARLOTTE, VA $417,000 VIRGINIA CHESTERFIELD, VA $535,900 VIRGINIA CLARKE, VA $729,750 VIRGINIA CRAIG, VA $417,000 VIRGINIA CULPEPER, VA $417,000 VIRGINIA CUMBERLAND, VA $535,900 VIRGINIA DICKENSON, VA $417,000 VIRGINIA DINWIDDIE, VA $535,900 VIRGINIA ESSEX, VA $417,000 VIRGINIA FAIRFAX, VA $729,750 VIRGINIA FAUQUIER, VA $729,750 VIRGINIA FLOYD, VA $417,000 VIRGINIA FLUVANNA, VA $437,000 VIRGINIA FRANKLIN, VA $417,000 VIRGINIA FREDERICK, VA $475,000 VIRGINIA GILES, VA $417,000 VIRGINIA GLOUCESTER, VA $458,850 VIRGINIA GOOCHLAND, VA $535,900 VIRGINIA GRAYSON, VA $417,000 VIRGINIA GREENE, VA $437,000 VIRGINIA GREENSVILLE, VA $417,000 VIRGINIA HALIFAX, VA $417,000 VIRGINIA HANOVER, VA $535,900 VIRGINIA HENRICO, VA $535,900 VIRGINIA HENRY, VA $417,000 VIRGINIA HIGHLAND, VA $417,000 VIRGINIA ISLE OF WIGHT, VA $458,850 VIRGINIA JAMES CITY, VA $458,850 VIRGINIA KING AND QUEEN, VA $535,900 VIRGINIA KING GEORGE, VA $417,000 VIRGINIA KING WILLIAM, VA $535,900 VIRGINIA LANCASTER, VA $545,000 VIRGINIA LEE, VA $417,000 VIRGINIA LOUDOUN, VA $729,750 VIRGINIA LOUISA, VA $535,900 VIRGINIA LUNENBURG, VA $417,000 VIRGINIA MADISON, VA $417,000 VIRGINIA MATHEWS, VA $458,850 VIRGINIA MECKLENBURG, VA $417,000 VIRGINIA MIDDLESEX, VA $417,000 VIRGINIA MONTGOMERY, VA $417,000 VIRGINIA NELSON, VA $437,000 VIRGINIA NEW KENT, VA $535,900 VIRGINIA NORTHAMPTON, VA $417,000 VIRGINIA NORTHUMBERLAND, VA $417,000 VIRGINIA NOTTOWAY, VA $417,000 VIRGINIA ORANGE, VA $417,000 VIRGINIA PAGE, VA $417,000 VIRGINIA PATRICK, VA $417,000 VIRGINIA PITTSYLVANIA, VA $417,000 VIRGINIA POWHATAN, VA $535,900 VIRGINIA PRINCE EDWARD, VA $417,000 VIRGINIA PRINCE GEORGE, VA $535,900 VIRGINIA PRINCE WILLIAM, VA $729,750 VIRGINIA PULASKI, VA $417,000 VIRGINIA RAPPAHANNOCK, VA $417,000 VIRGINIA RICHMOND, VA $417,000 VIRGINIA ROANOKE, VA $417,000 VIRGINIA ROCKBRIDGE, VA $417,000 VIRGINIA ROCKINGHAM, VA $417,000 VIRGINIA RUSSELL, VA $417,000 VIRGINIA SCOTT, VA $417,000 VIRGINIA SHENANDOAH, VA $417,000 VIRGINIA SMYTH, VA $417,000 VIRGINIA SOUTHAMPTON, VA $417,000 VIRGINIA SPOTSYLVANIA, VA $729,750 VIRGINIA STAFFORD, VA $729,750 VIRGINIA SURRY, VA $458,850 VIRGINIA SUSSEX, VA $535,900 VIRGINIA TAZEWELL, VA $417,000 VIRGINIA WARREN, VA $729,750 VIRGINIA WASHINGTON, VA $417,000 VIRGINIA WESTMORELAND, VA $417,000 VIRGINIA WISE, VA $417,000 VIRGINIA WYTHE, VA $417,000 VIRGINIA YORK, VA $458,850 VIRGINIA ALEXANDRIA, VA $729,750 VIRGINIA BEDFORD IND, VA $417,000 VIRGINIA BRISTOL, VA $417,000 VIRGINIA BUENA VISTA, VA $417,000 VIRGINIA CHARLOTTESVILLE, VA $437,000 VIRGINIA CHESAPEAKE, VA $458,850 VIRGINIA COLONIAL HEIGHT, VA $535,900 VIRGINIA COVINGTON, VA $417,000 VIRGINIA DANVILLE, VA $417,000 VIRGINIA EMPORIA, VA $417,000 VIRGINIA FAIRFAX IND, VA $729,750 VIRGINIA FALLS CHURCH, VA $729,750 VIRGINIA FRANKLIN IND, VA $417,000 VIRGINIA FREDERICKSBURG, VA $729,750 VIRGINIA GALAX, VA $417,000 VIRGINIA HAMPTON, VA $458,850 VIRGINIA HARRISONBURG, VA $417,000 VIRGINIA HOPEWELL, VA $535,900 VIRGINIA LEXINGTON, VA $417,000 VIRGINIA LYNCHBURG, VA $417,000 VIRGINIA MANASSAS, VA $729,750 VIRGINIA MANASSAS PARK, VA $729,750 VIRGINIA MARTINSVILLE, VA $417,000 VIRGINIA NEWPORT NEWS, VA $458,850 VIRGINIA NORFOLK, VA $458,850 VIRGINIA NORTON, VA $417,000 VIRGINIA PETERSBURG, VA $535,900 VIRGINIA POQUOSON, VA $458,850 VIRGINIA PORTSMOUTH, VA $458,850 VIRGINIA RADFORD, VA $417,000 VIRGINIA RICHMOND IND, VA $535,900 VIRGINIA ROANOKE IND, VA $417,000 VIRGINIA SALEM, VA $417,000 VIRGINIA STAUNTON, VA $417,000 VIRGINIA SUFFOLK, VA $458,850 VIRGINIA VIRGINIA BEACH, VA $458,850 VIRGINIA WAYNESBORO, VA $417,000 VIRGINIA WILLIAMSBURG, VA $458,850 VIRGINIA WINCHESTER, VA $475,000

If you County is not covered above, you can find the entire Fannie Mae Loan Limit spreadsheet. If you have any questions about your specific loan limit for your county, don't hesitate to contact me via email or phone. 301-585-7283.

Nick Pakulla / Loan Officer / NMLS# 728211 / First Place Bank Mortgage Lender / 15400 Calhoun Drive, Rockville MD 20855 / 301.585.7283 / http://www.nickhomeloan.com

Click Here to go to my Bank Website

Call Me Direct: 301.585.RATE (7283)