Joe Bartolotta The Upfront Mortgage Broker

What Interest Rate Can I Get?

2008-10-28T10:03:00.003-04:00

What are your rates?

Part 1 of 2
By far, this question often comes up within 2 minutes of talking to someone for the very first time. It is the most asked question I get from my clients. Most people assume that everyone gets the same mortgage rate which is a common misunderstanding.

After reading this post, I am sure you will have a better understanding of why each rate quote is a custom rate quote. You should also know that there is much more to making a decision on your mortgage than just finding the lowest rate available. Getting the lowest rate isn't the best if you pay fees that are thousands of dollars higher than someone else who received a rate close to yours.

Why is it important to go through all of this work before quoting a rate?

To be honest, as The Upfront Mortgage Broker I don’t want you to be telling your family & friends that the rate you ended up getting on your loan was higher than you were told in the beginning. It won’t happen if the questions are asked upfront.

What Goes Into a Mortgage Rate?

Every lender, be it a banker, broker, or private equity, have multiple questions that require answers before a rate quote can be offered. It is similar to making a loaf of bread, if you mix on more of one ingredient than another, the bread will taste differently. Here’s a quick list of some questions that MUST be answered before I can begin to properly serve you:

Where is the property located? (City, State, Etc.)

How will this property be occupied? (Owner occupied, second home or investment property)

Is this a purchase or refinance?

What is the condition of the property?

What type of property is it? (Single family home, condo, town home, high rise, duplex, triplex, etc)

How much land is the property being sold with? (if it’s a huge acreage, it won’t be a conventional loan)

If it’s a condo - is this condo project approved? (I don’t expect clients to know, but we have to find out!)

How much is the property worth? (Sales price AND appraised value)

How much money will you be putting down? (…is it your own? Is it gift funds? Is it seller down-payment assistance?

How many properties do you already own? How many of those are financed? By whom?

How long of an amortization would you like on the loan? (10 years, 15 years, 20 years, 30 years, 40 years, 45 years?)

What terms would you like to have? (fixed or adjustable?)

What type of loan are you looking for? (fully amortizing, interest only or negative amortization)

What is your credit score? (We need a full credit report. I won’t issue a pre-approval unless I have pulled your credit report. I can’t close a loan for you using another companies credit report.)

Can you document your income? (and make the numbers work doing so!)

Can you document your assets? (some programs require certain reserves, etc.)

In addition to the above questions, the questions listed below are also helpful:
* What are taxes on this property?
* What is insurance on this property?
* Is this property located in a flood zone?
* What would you like the loan amount to be?
* How long of a note would you like? (for balloons… 7 year, 10 year, etc)
* If you’re considering adjustable, what length would you like to have it fixed? (6 months - 10 years)
* If you’re considering adjustable, which index would you like to have your ARM tied to?
* How quickly are you looking to close on this loan? (lock period and picking the right lender..especially in today’s market)
* Do you have a preference on which bank services your loan? (some clients like some banks and hate others
* What’s your debt to income ratio? (We will calculate this for you when we have your income and expenses fully documented).
* Do you plan to escrow for taxes and insurance?
* Will you be getting private mortgage insurance (PMI)?
* If you’ll need PMI - which type will you get?
* Will you be getting a second mortgage or Home Equity Line of Credit (HELOC) with this new first mortgage

Keep in mind that most lenders will ask you 3-5 questions and then spit out a rate that they think you want to hear. This isn't the case with myself or other registered upfront mortgage brokers. If you are looking at a property outside the state of Florida, please visit the Upfront Mortgage Brokers website for a broker that can help you.

Click here to subscribe to The Upfront Mortgage Broker

If you have any questions about this post or need to talk about a specific situation, I encourage you to contact me today.

Respectfully,
Joe Bartolotta
The Florida Upfront Mortgage Broker
No Charge Mortgage Consultations
Residential, Commercial & Reverse Mortgages
Direct 407.340.0220
Joe (at) the upfront mortgage broker (dot) com

Home Buying Tips

2008-04-04T21:26:00.005-04:00

Posted by The Upfront Mortgage Broker

ethical and professional Realtors

Making Your Home Into a House

In order to sell your home, one of the most important steps to take is to de-personalize it. When you are shopping to buy a home, you want to find a house you can picture yourself living in. The same is true for your prospective buyers. They need to be able to see themselves living in it.

In order to de-personalize your house, you should remove knick-knacks and other items of a personal nature. In addition, if you have transformed the main purpose of any room to other than what it was originally intended, change it back now. Otherwise, potential buyers may have a difficult time seeing the room as something other than what you have turned it into.

Adding Curb Appeal to Your Real Estate

To improve your chances of selling your home in the shortest period of time, you need to take steps to improve the curb appeal. Curb appeal is the first impression the potential buyer sees from the road. In order to improve curb appeal, you might need to invest a bit of cash. The investment has historically been well worth it. Some simple ways to improve curb appeal include:

- * pressure clean apply a fresh coat of exterior paint,
- * add shutters, window boxes or other decorative elements to the outside of the house and
- * repair any broken windows, hanging address numbers or other noticeable problems.

Each of these improvements are simple and cost less than a few hundred dollars. Yet, taking these steps can increase your profits while also helping you sell the property faster.

Picking the Best Real Estate Agent

Your agent is going to play a very important role when it comes to selling your home. You want to take care in selecting the agent to work with you. It is best to interview a few different real estate agents. Don't be swayed into going with the agent who appraises your home at the highest value. Go with the agent who seems to be the most honest and you are the most comfortable with.

By taking the steps to improve the appearance of your home and by selecting the right real estate agent, it shouldn't be long until you sell your house and move into a new place you can now call home.

The Florida Upfront Mortgage Broker

Xbox 360 Contest

2008-04-03T01:59:00.002-04:00

Hello Everyone,

I don't normally post about a contest but I thought you should know about this contest. It is for a xbox360 plus a GTA4 game. Take a look at John Cow's site http://www.johncow.com/win-an-xbox360-elite-and-a-copy-of-gta4/ and enter. Don't forget to head over to the sponsor, Top Hosting Center http://www.tophostingcenter.com/and check out what they are all about.

The great thing about the contest is that it is short, it ends at the end of the month. It also offers numerous ways to get entries into the contest to better your chances of winning.

Here are some of the rules:

Write a short post about the contest on your own blog linking to the contest post and gain 250 “tickets.”- I did this already
Become an affiliate of Top Hosting Center, receiving 50% commission for each sale you refer, as well as 250 “tickets” in this contest.
Every comment you leave on another blog’s latest post talking about and linking to this contest page will get you 25 tickets.- I did this already,see Erica DeWolf's site
Leaving this contest link in a new forum thread will gain you 25 tickets
Mass message your MySpace or Facebook or Twitter friends and gain 25 tickets- I did this already
Subscribe to John Cow.com and Top Hosting Center’s blog feeds and get 25 more tickets- I did this already
Give the contest post a thumbs up on StumbleUpon and receive 10 tickets.- I did this already

Here is some more info:
You can gain entries in this contest until April 30th, when the winner will be picked in a lottery type contest. There seems to be a lot of potential for gaining entries into the drawing, so get started now! You only have 28 days left to generate a thousand entries…so go promote it, and good luck!

If you aren't in it, you can't win it so get on over there now and enter.

New FHA loan limits

2008-04-01T20:24:00.004-04:00

FHA announced a new loan limit and it is nearly $100,000 higher than before. What does this mean to you? If you were contemplating buying your next home or refinancing your present one, now may be the time. Cash-out refinancing is available up to 95% of your current value.

NEW FHA LIMITS

For a list of all counties in Florida, please click here.

If any of these scenarios describe you, then an FHA loan may be right for you. Why? FHA-insured loans offer many benefits and protections that you won't find in other loans including:

Lower cost

Smaller down payment

Easier qualification

Less than perfect credit

More protection to keep your home

Call me today and let's talk about your options with these new loan limits.

Another Florida Property Tax Cut

2008-03-20T20:47:00.003-04:00

I read a great article by Bill Kaczor, an Associated Press writer, today. I pose the question, "Will the tax cut do any good?" because one the one hand, I would love to have another tax cut but on the other hand, what services will be cut because of the lack of revenue generated by this tax cut?

Our local governments are now accustomed to bloated budgets and are saying that they cannot survive with cutting their income. I'll let you decide if the budget cut is worth it or not. Don't forget to look for it on the November ballot.

click here

My own blog domain is up

2008-02-17T20:15:00.010-05:00

There are a few people who are subscribed to this blog still even though I do not update it often, please go to www.theupfrontmortgagebroker.com and sign up for the RSS there or sign up by clicking on the RSS icon below. I am now using my own domain and updating it regularly. I am also using Wordpress software and have a design that was created by Milo at www.3oneseven.com.

You can subscribe to the RSS here if you would like.

Subscribe in a reader

I'm looking for comments and suggestions, please email me.

Thanks,
The Upfront Mortgage Broker
Joe Bartolotta

It is official, I have moved and the site is up and running!

2008-01-25T21:29:00.000-05:00

Hello Everyone,

Just a note to say that my site, www.theupfrontmortgagebroker.com is fully up and operational. It took longer that I thought but that was because I thought it would be a click here and a click there and boom, instant site.

Milo from www.3oneseven.com was gracious enough to hold my hand throughout it all. She is the best out there so if you are looking for web design or anything to do with the net, contact her.

Anyone interested in being a guest writer? Contact me.

Joe at theupfrontmortgagebroker dot com
cell 407.340.0220

I am moving to www.theupfrontmortgagebroker.com

2007-10-17T23:37:00.000-04:00

Hello Everyone,

I have a new domain name, it is www.theupfrontmortgagebroker.com and will be moving all posts over to it in the next few weeks. I currently am using a standard run of the mill template but was lucky enough to win a contest whose prize was a custom theme from Milo. I am looking forward to what he can do, his maintains a website called www.peety-passion.com, check it out if you are looking for a new theme to your blog or website.

Over the next few weeks, the new domain www.theupfrontmortgagebroker.com, will be undergoing a few changes so please bear with me as I make them. I know the changes will be for the better and it will make the posts visually appealing as well.

I always welcome any constructive comments so please feel free to make any as you see fit. I am always looking for guest writers so if you know anyone who can offer some good, usable information, have them call or email me. Some guest writers could be:

Realtors
Home Inspectors
Moving Companies
Insurance Agents
Credit Repair Experts
Title Company Agents

Lastly, if you know someone that is looking to purchase their next home or desiring to refinance, have them call or email me today.

Interested in Blogging? Here is my tip.

2007-10-03T21:07:00.000-04:00

Posted by The Upfront Mortgage Broker in Florida Joe Bartolotta

Have you thought about blogging but don't know where to begin? Here is what I have learned from my 6 weeks in blogging. My tip for you is to look at both Blogger and Wordpress and explore the free options. You should think about what your intentions are for the blog, is it to make money, offer professional advice, or is it a place to write out your thoughts? If you intend to have a professional site, you should consider a self hosted Wordpress site. If your intentions are to create a journal or use the blog to keep in touch with family and friends, use blogger. Blogger is totally free and very easy to use, it can be up and running in minutes. Wordpress offers two versions, one is hosted at wordpress.com and offers the basics needed for a blog. They also offer a the self hosted version which is more robust and offers more custom ability.

I wasn't very knowledgeable about blogging 6 weeks ago but have learned enough to know that the professionals use a self hosted format for their blog. Self hosted is where you own the domain name and control the data on it. That is precisely why I have moved my blog from blogger to wordpress and I bought the domain, www.theupfrontmortgagebroker.com to host the blog. Check it out when you have some time just keep in mind it is brand new and I need to fine tune it as I go.

Feel free to contact me if you have any questions, I'd welcome your comments.

Exciting news

2007-10-03T20:37:00.000-04:00

Posted by The Upfront Mortgage Broker in Florida Joe Bartolotta

Have you heard the news? I am moving away from Blogger and into a Wordpress blog that I am hosting myself. The new blog is up and running although it does need some fine tuning. I haven't created any new posts for the blog yet but I am working on some presently. I'll be using this blog and my new blog site, http://www.theupfrontmortgagebroker.com/ simultaneously for the month of October and then I'll probably stop posting here so stay tuned. But while I have your attention.....

Have you heard about Problogger Birthday Bash give-away? If you haven't you need to visit Problogger and check it out, they are giving away over $54,000 in prizes and it is now running. Here is the link to the birthday bash. Go on over and enter now.

What is an FHA loan? And why should I look into them?

2007-09-29T22:04:00.001-04:00

Article posted by Joe Bartolotta, a Florida Upfront Mortgage Broker in Orlando Florida

Many people, especially first time home buyers, do not know what FHA can do. Let me give you a little history on FHA. Let's begin with what FHA stands for, it stands for the Federal Housing Authority. FHA provides insurance to lenders for single family, multifamily and manufactured homes throughout America. FHA was created by Congress in 1934 to assist Americans with the dream of home ownership.

What doesn't the FHA do? The FHA does not give the money to people for a home and it does not set the rates on mortgages. FHA insures loans for lenders against homeowners defaulting. For the best rate and terms on a mortgage, you should compare mortgages from many lenders. Make sure the lenders are FHA approved. To date, the FHA has helped over 34 million people, are you going to be next? Below are some of the commonly asked questions about FHA.

Why choose an FHA loan?
There are lots of good reasons to choose an FHA loan, especially if one or more of the following apply to you:

You're a first-time homebuyer
You don't have a lot of money to put down
You're worried about qualifying for a loan
You don't have perfect credit
You're worried about what will happen if you fall behind on your payments

If any of the above items describe you, then an FHA loan may be right for you. Why? FHA-insured loans offer many benefits that you won't find in other loans including:

Lower cost: FHA loans have competitive interest rates because the Federal government insures the loans for lenders. Always have your mortgage professional compare an FHA loan with other loan types.
Smaller down payment: FHA loans have a low 3% down payment and the money can come from a family member, employer or charitable organization as a gift. Most other loan programs don't allow these options.
Easier qualification: Because FHA insures your mortgage, lenders may be more willing to give you loan terms that make it easier for you to qualify.
Less than perfect credit: You don't have to have perfect credit to get an FHA mortgage. In fact, even if you have had credit problems, such as a bankruptcy, it's easier for you to qualify for an FHA loan than a conventional loan.
More protection to keep your home: The FHA has been around since 1934 and will continue to be there to protect you. Should you encounter hard times after buying your home, the FHA has many options to help you keep you in your home and avoid foreclosure.

What kinds of loans does FHA offer?
FHA offers both fixed rate and Adjustable rate loans in addition to those types, they also offer a rehab loan. Below is an excerpt from the FHA website.

Purchase/rehabilitation loans - These loans are becoming more prevalent in our current market. Sometimes you might see a home you'd like to buy, but it needs a lot of work. FHA's solution is called the SF Rehabilitation Loan program (203k). You can get just one mortgage loan which includes the mortgage and the cost of repairs combined. The mortgage amount is based on the projected value of the property with the work completed, taking into account the cost of the work. The advantage of this loan is that you can buy a home that needs a lot of work, but you still have only one mortgage payment, and you can complete the repairs after buying the home.

How do FHA loans compare to conventional loans?

Conventional loans require a larger down payment, typically 5% or more. If you have less than perfect credit you may not qualify for many conventional loans and find yourself being offered loans with higher interest rates and/or fees than you expected. The best thing to do is compare the cost of the conventional loan to an FHA loan line-by-line. What are the fees on each? What is the interest rate? How much is the mortgage insurance on each? How much down payment is required? For some borrowers, a conventional loan may be less expensive. For many others, it will be more expensive than FHA.

Compare the cost of FHA over the life of your loan and how much it costs monthly to subprime and conventional types of loans. With the protection you get with FHA - it's a fantastic deal.

The DSCR and Commercial Mortgages

2007-09-26T22:45:00.000-04:00

Article by Joe Bartolotta, a Florida Upfront Mortgage Broker with Fidelity Mortgage Services

How does an investor know if they are purchasing a property that will give a positive cash flow? How does a lender know if the property is a wise investment for them to lend on? While there are numerous factors used to answer both questions above, one answer that is used by both is the Debt Service Coverage Ratio formula. I am sure most people do not know what a dscr is, by reading this post, I will explain how to calculate it and if the property you are interested in is a wise investment.

Debt Service Coverage Ratio

What is it?

Definition:
The debt service coverage ratio, or debt service ratio, is the ratio of net operating income to debt payments on a piece of investment real estate. The higher this ratio is, the easier it is to borrow money for the property. The phrase is also used in corporate finance and may be expressed as a minimum ratio that is acceptable to a lender…

Here’s what you need to know:
Divide your Net Operating Income (NOI) by the Total Annual Debt Service or simply stated, divide your income over your mortgage payments for the year.

Note -- Net Operating Income on a property can have numerous variables depending on the property type. If you are purchasing a commercial NNN (triple net) property, then the tenant pays for all expenses, the Net Operating Income would be the total rent.

In commercial real estate, lenders on owner occupied properties usually require a 1.0 dscr, but have been known to go down to .90 dscr. This means that the property is actually covering only 90% of the debt. On the other hand, investment properties usually require a higher dscr, the range is typically from 1.2 to 1.5, the use of the property will be a main factor in determining the dscr required. For example, an A+ office building will have less risk associated with it and therefore would have a lower dscr while a property that can be used for a single purpose would have a higher risk and correspondingly a higher dscr requirement.

In summary, I hope I have given you an easy way to help decide if a property is a good investment relative to its cash flow.
If the DSCR is less than 1 - negative cash flow - most likely a bad investment
If the DSCR is equal to 1 - you have neither gains nor losses - you breakeven
If DSCR is greater then 1 - then you have a positive cash flow.

If you like the read, grab my feed!

Joe Bartolotta is a Mortgage Consultant with Fidelity Mortgage Services in Altamonte Springs, Fl. I am honored to be a charter member of the Upfront Mortgage Brokers Association. I offer a Lender Fee Guarantee, what I disclose in the beginning is what I deliver in the end. Contact me for more details.

Reverse Mortgage payment option pros and cons

2007-09-25T00:36:00.000-04:00

Posted by Joe Bartolotta, a Florida Upfront Mortgage Broker on September 25th, 2007

With today's cost of living increasing, a Reverse Mortgage might be a solution to some of the "baby boomers" who are not retired or retiring in the future. Most people do not understand how Reverse Mortgages work, in the article, I will explain the advantages and disadvantages of the 5 ways to receive payment from a Reverse Mortgage.

Before I begin, let me first say that a Reverse Mortgage is not for everyone, the Reverse Mortgage is designed for people within certain circumstances. As each client has a different set of circumstances, please feel free to contact me to talk in further detail about your situation and if a Reverse Mortgage is right for you.

Most lending institutions are encouraging senior citizens to look into getting a Reverse Mortgage. I feel that a Reverse Mortgage is great for the right people at the right time. Is it for everyone, no, but there isn't a loan that fits everyone all the time.

I'd like to educate the consumer on both the advantages and disadvantages of the Reverse Mortgages payment options. Let me explain the options of receiving Reverse Mortgage payments first. There are currently 5 options available to the person receiving the payments of the Reverse Mortgage. The options are:

Line of Credit - You access funds at your discretion

Term - You receive fixed monthly payments for a set period of time.

Tenure - You receive fixed monthly payments for as long as you live in the home.

Modified Term - Fixed monthly payments for a set period of time, plus access to line of credit.

Modified Tenure - Fixed monthly payments for as long as you live in the home, plus access to line of credit.

Below are the pros and cons to the above mentioned payment options.

Line of credit -Pro - 1) Flexibility- You can access funds as needed. 2) Growth feature-The unused balance grows. This does NOT mean you are earning interest. The growth factor takes into consideration that your home has appreciated in value over the past 12 months and that you are one year older.

Line of credit - Con - 1) The funds in the line of credit can be exhausted. If that happens, one option may be to refinance your reverse mortgage to gain access to additional funds. 2) To access funds, you must submit a written request to the loan servicer managing your account.

Term - You receive fixed monthly payments for a set period of time.
Pro - 1) Funds can be automatically deposited into your bank account. 2) You receive larger monthly advances compared to the Tenure payment option.
Con -1) The amount of funds you receive each month is fixed, so if you need additional funds, you will have to request a payment plan change. 2) Monthly advances are not indexed for inflation.

Tenure - You receive fixed monthly payments for as long as you live in the home.
Pro - 1) The monthly advances continue for as long as you live in your home, even if the total amount you receive exceeds the value of your home. Despite this, you will never owe more than what the home is worth.
Con - 1) The amount of funds you receive each month is fixed, so if you need additional funds, you will have to request a payment plan change. 2) Monthly advances are not indexed for inflation.

Modified Term - Fixed monthly payments for a set period of time, plus access to line of credit.
Pro -1) Provides two sources of available funds. 2) Combines Term and Line of Credit Advantages
Con -1) You receive smaller monthly payments because a portion of your equity has been set aside in the line of credit.

Modified Tenure - Fixed monthly payments for as long as you live in the home, plus access to line of credit.
Pro -1) Provides two sources of available funds. 2) Combines Tenure and Line of Credit Advantages
Con -1) You receive smaller monthly payments because a portion of your equity has been set aside in the line of credit.

If you enjoyed this read, grab my feed.

Upfront Mortgage Brokers article on Yahoo Finance

2007-09-22T16:55:00.000-04:00

This article was originally published on Yahoo Finance on September 20th, 2007 by Informa Research Services. It is a fantastic article about what consumers should do when looking for a mortgage.

Which Team is Your Mortgage Broker Playing For? by Informa Research Services
Thursday September 20, 6:15 pm ET

CALABASAS, Calif.--(BUSINESS WIRE)--As the popular sports saying goes, "The best offense is a good defense." The same can be said for using a broker to get a mortgage.

Navigating the terrain of mortgages--including terminology, conditions, and the process as a whole--can be a challenge, to say the least. Thus, to help alleviate some of the pain often associated with mortgages, many homebuyers seek the help of mortgage brokers to assist in making the process a little less daunting.

While most mortgage brokers do their work in the best interest of the homebuyer, here are a few tips to make sure you get the most out of your home financing experience.

Acquire basic knowledge about mortgages and how they work. Avoid meeting with a
mortgage broker or loan officer without any knowledge of your own. While brokers will take the time to explain the fine (and not-so-fine) print, having basic knowledge under your belt will help you better understand the terms to which you are committing.
Research available rates online. Brokers work with a number of lenders to offer you a wide assortment of financing options and competitive prices. There are a number of resources available online and in print that you can reference for the most current and up-to-date rates. By becoming familiar with the rates available, you will be able to better evaluate the rates you are offered by your broker.
All borrowers have the right to full disclosure of all fees, terms, and penalties associated with their loan, so don't be afraid to ask your broker questions. These questions can range from the details of the mortgages you are considering to the nature of their fees. Asking these questions should help establish a good working relationship with your broker. Also, this should help clear up any confusion concerning your mortgage. For example, ask your broker about prepayment penalties. You may not realize that the offer of a lower rate comes with potential restrictions.

Consider seeking out an Upfront Mortgage Broker® (UMB). According to the Upfront Mortgage Brokers Association (UMBA) website, "UMBs disclose their fees...in advance and in writing and disclose the wholesale prices passed through from lenders" (Source: www.upfrontmortgagebrokers.org ). This can help ensure that both you and your broker have a clear understanding of what is being agreed upon. The UMBA also states that UMBs represent the homebuyer and the homebuyer's best interest when shopping for potential loans. Furthermore, instead of increasing their commission from rebates or concessions they receive from third parties, UMBs pass along these credits to their clients.

By taking heed and completing your own pre-mortgage training, you and your broker can be a winning team.
_________________________________________________________________________________
Source: Informa Research Services, Inc.

This article is being published on my blogsite since I am a registered Upfront Mortgage Broker, I am not implying that I am the original publisher of this article.

Fed cuts rate, what does it mean to me?

2007-09-19T22:52:00.000-04:00

Article by Joe Bartolotta, Central Florida's Upfront Mortgage Broker
Posted September 19th, 2007

I was asked today what the Fed's interest rate cut would mean to most people. Below is my answer.

The rate cut should reduce payments on many home-equity lines of credit, credit cards and some car loans. From what I have read, some economists have said it could lead to higher rates on fixed-rate mortgages down the road if bond markets expect the Fed move will spur higher economic growth or inflation.

People with certain types of adjustable-rate mortgages will not see any relief. That's because the rates on their loans are tied to the London interbank offered rate, or Libor, which has jumped sharply above the Fed funds rate because of the continuing credit crunch in the markets. Just fyi, the Libor, which has drifted downward recently, is an interest rate charged by banks for short-term loans to each other.

Here what the reduced Prime Rate means for:

Homeowners - The rate cut is good news for borrowers with home-equity lines of credit, and savings could show up as soon as the next monthly statement. Borrowers looking for a new fixed-rate home-equity loan could also see lower rates.
Savers - Savers could soon see lower payouts on their savings accounts, certificates of deposit and money-market mutual funds.
Credit Cards - Many credit-card customers should soon see some relief. From what I have read, about 85% of all credit cards carry variable rates.

If you like the read, grab the feed (or sign up for email notification).

Home Buying Tips

2007-09-19T21:49:00.000-04:00

Posted by Joe Bartolotta, Florida's Upfront Mortgage Broker
September 19, 2007

Home buying tips that will make you view the home buying process through the eyes of the seller.

If you were the seller of a home and received two identical offers, which one would you take? With everything being equal, most sellers would probably accept the offer with the strongest pre-qualification letter from a reputable lender.

Understanding what an experienced home seller, and his/her agent, will be looking for during a negotiation puts you in position to control the negotiations. In today's market, home sellers will be looking for several items on your pre-qualification letter:

Proof of down payment and closing costs, the seller and their agent want to make sure you do not need to sell your existing home in order to purchase this one.
Sellers will look for a clause from the lender that says approved, subject to appraisal only. This shows that the buyer has taken the time to apply for a mortgage and get their loan underwritten by their lender and is a viable buyer, using a smart lender.
Don't let your lender's letter counteract your negotiations. You should require your lender to prepare two or three pre-qualification letters. Why you ask? Let's say you find a home listed at $350,000. After speaking to your Realtor and reviewing comparable sales in the neighborhood you feel the value is no more than $325,000. You decide to offer $300,000. If your pre-qualification letter shows you can afford up to $350,000, you just potentially negotiated against yourself. An savvy seller and their agent will know you can afford more. Have your lender write your letter to match your offer and not a dollar more. Also, have them write one for $325,000 to use if a counter-offer is needed.

Customize the numbers to your deal and you will get the home at your price.

Prime Rate reduced

2007-09-19T00:18:00.000-04:00

Another article posted by The Florida Upfront Mortgage Broker Joe Bartolotta.
Original post September 19th, 2007

The prime rate was lowered by .5% today in an effort to offer banks the ability to use mortgages as collateral. The mortgage market, as everyone is aware is flat right now, and banks cannot use their mortgage notes as collateral. The Fed put out a statement that said, in part, "Financial market conditions have deteriorated, and tighter credit conditions and increased uncertainty have the potential to restrain economic growth going forward." In response, the markets surged.

Just a note of interest, the prime rate is for short term loans and does not directly affect the traditional 30 year fixed rate mortgages. There may be some reaction by the mortgage backed securities (how 30 year mortgages are priced) but that is typically due to market volatility.

By lowering the prime rate .5%, most people with home equity lines of credit and some credit cards will benefit from lower payments. Let's hope this reduction is not a knee jerk reaction. I'll be sure to keep everyone posted.

Blog Review, weekend living

2007-09-18T23:32:00.000-04:00

Hello Everyone,

I came across a blog labeled everydayweekender, click here to go to the home page. I found it to be very enjoyable and an easy read. I highly recommend reading it when time permits. There was one entry that was especially useful, it deals with the ever important linkback and ways to increase your page ranking within Google. Go straight to the entry by clicking here and utilize the information supplied.

In general, the blog was created to celebrate the weekend! The articles and product information in the blog are geared toward leisurely living. Posts are written around things people like to do on the weekend and when they can set some time aside for themselves and not worry about the rat race.

The topics covered range from, spending time with friends and having fun, to enjoying the weekend at a cottage, and enjoying great food.

If you had a great read, grab my feed!

Joe Bartolotta
Central Florida's Upfront Mortgage Broker

Federal Reserve & Prime Rate

2007-09-17T22:52:00.001-04:00

Wall Street is certain the Fed will cut rates to ease the pain of the credit crunch, but how will the market react if the cut by just a quarter of a point?

There is no mystery that the Federal Reserve is going to cut the prime rate on September 18.

Still, there is some unknown surrounding the September 18 meeting. The big question being, how much the Fed will lower interest rates.

The Fed cut the discount rate by a half of a percentage point, from 6.25 percent to 5.75 percent, on August 17, leading observers to feel that the Fed would also lower the fed funds rate by a half of a percentage point on September 18.

Still, what will happen if the central bank only lowers interest rates by a quarter of a percentage point? Fed watchers said it all depends on what the Fed says in its statement.

Chances are the market would probably not be too happy with just a 25 basis point cut at first. We will see what happens on Tuesday afternoon.

My picks for great blog sites on all topics

2007-09-17T10:57:00.001-04:00

Take a look at the blogs/sites below as they offer great information on many different and relevant topics. If you are on this list, feel free to distribute this post throughout your community.

Blogs I recommend:

www.theupfrontmortgagebroker.blogspot.com - Joe Bartolotta is central Florida's charter member of the Upfront Mortgage Broker Association. The UMBA is a consumer advocacy group that looks out for the best interest of the public regarding mortgages. Joe Bartolotta, a Florida based Upfront Mortgage Broker, has created his blog to educate the public on various topics about mortgages. He writes about Convention, Reverse and Commercial Mortgages. Recommended by: Joe Bartolotta
http://ethanol-business.com/ This site has been designed to more clearly communicate ethanol’s benefits and to provide insight into this dynamic renewable fuel. Ethanol drives economic development, adds value to agriculture, and moves nations toward energy independence. It cleans the air and offers consumers a cost-effective choice at the pump. Recommended by Joe Bartolotta
http://internetmastery.wordpress.com/ This site offers simple solutions on how to grow and build your business online. Recommended by Joe Bartolotta
http://www.fantasyfootballfreeadvice.com/ This is a great source of information for all fantasy league players. It's great advice at a great price, FREE. Click on over before you assemble next weekends team. Recommended by Joe Bartolotta
http://www.franchisetalk.net/ Want to be your own boss? A franchise or business opportunity may sound appealing, especially if you have limited resources or business experience. However, you could lose a significant amount of money if you don’t investigate a business carefully before you buy. This website was created to help. Recommended by Joe Bartolotta
http://www.adsensetrack.blogspot.com/ This blog is written by an advertising student in Iowa. I like the site and she blogs about different topics, her blogs are well written and are easy to understand and relate to. Recommended by Joe Bartolotta

Posted by Joe Bartolotta of http://www.theupfrontmortgagebroker.blogspot.com/ on Sept 17, 2007

No closing cost mortgages

2007-09-13T21:21:00.000-04:00

No closing cost mortgages and people are smart.

I see and read about these so called "no closing costs" mortgages and the commercials about how "people are smart". I don't understand how these companies can feel good about themselves with how they treat clients. In my opinion, the companies that offer the no closing costs mortgages are just ripping people off every month by charging a much higher interest rate. The companies that tout, "people are smart" commercials are the very same companies that put clients into the worst loans ever created.

Let's talk about "no closing costs". Who believes that a mortgage company is going to give away a mortgage for absolutely no cost? Who??? I certainly don't. The mortgage company is in business for the very same reason as every other company, to make money. How does a mortgage company make money, one way is by charging interest on the money the lend. Obviously, the higher the interest rate, the higher the profit.

Let's talk about the commercials that say, "people are smart". I can't get over the fact that this company is the very same company that offered the worst mortgages ever created. This company advertised extensively about getting a rate that began with 1%, did they really disclose the fact that the mortgage was having interest added on to it monthly? I do not think so. I am sure it was in the very fine print for legal purposes but did the "order takers" that answered the phone at the mortgage company make it known verbally? I doubt it!

Basically, there is no free lunch. In my opinion, you are best off by contacting an Upfront Mortgage Broker. An upfront mortgage broker will look out for your best interest and show you the wholesale and retail rates. Visit www.upfrontmortgagebrokers.org or if you are in Florida, visit www.joebartolotta.com for more information on the UMBA.

Upfront Mortgage Broker and why to choose them

2007-09-11T13:32:00.000-04:00

There have been numerous articles written on the Upfront Mortgage Brokers in publications like the WSJ, Time, Money, SmartMoney, etc to name a few.

In today's market, it is imperative to have someone looking out for your best interests. Someone who will work for you and deliver what they promised. Someone who will guarantee their fees in writing.

Visit http://www.upfrontmortgagebrokers.org/ or if you are in Florida, visit http://www.joebartolotta.com/ and look for a registered upfront mortgage broker to assist you with your next purchase or refinance.

We are here to help.

What is an UpFront Mortgage Broker®?
The UpFront Mortgage Broker® (UMB) concept was conceived by Jack Guttentag, the nationally syndicated columnist and well-known expert on mortgage loans. Professor Guttentag developed the idea as a result of his experience as a mortgage advisor to consumers. His website contains information on UMBs and other mortgage related topics and can be found at www.mtgprofessor.com. To be an UMB, the mortgage broker must operate under specific guidelines as set forth in the Upfront Mortgage Broker Commitment.

How does a UMB differ vs. a typical Mortgage Broker?
There are major differences between a UMB and a conventional mortgage broker: UMBs disclose their fees to customers in advance and in writing, and disclose the wholesale prices (rates and points) passed through from lenders. Customers of UMBs pay the broker's fee plus wholesale loan prices. In contrast, conventional mortgage brokers (MBs) add a markup to the wholesale prices, and quote the resulting “retail prices” to customers. Most MBs reveal their markup only in required disclosures after an application has been submitted.

The UMB's Interests are fully aligned with their customers. They can thus represent borrowers in shopping for loans. In contrast, MBs shopping the market are often in a conflict situation with customers. For example:

The loan type that best meets the customer's needs may not be the one that allows the largest markup for the MB.
MBs may profit by ignoring customer requests to lock the rate/points, putting the customer at risk.

MBs often increase their markup on customers who allow the rate/points to float by not giving them the best available rate (the float rate) when the loan is finally locked.

UMBs credit customers with any rebates they receive from third parties. Mortgage brokers sometimes receive rebates from lenders or concessions from home sellers. UMBs credit customers for any such payments that would otherwise increase the broker’s fee beyond what was agreed upon. In contrast, MBs may or may not credit customers for payments from third parties, depending on the circumstances.

Why should a consumer choose a UMB?
Most consumers are in the market for a mortgage loan only a few times in their life, and have limited time to learn the rudiments, never mind the many nuances, of an extremely complex transaction. The basic nature of the mortgage process allows non-UMBs the opportunity to “mark up” the interest rate and/or increase the fees. The net result is many consumers end up paying more than they should for a mortgage loan.

There is no guarantee that a consumer using a UMB will obtain lowest rate or lowest fees. But, consumers who utilizing a UMB will have the best opportunity to obtain the lowest price for a mortgage loan.

Steps to getting a Reverse Mortgage

2007-09-10T23:32:00.000-04:00

The Steps to Getting a Reverse Mortgage

1. Become Aware
You learn about reverse mortgages from a relative, friend, co-worker, news article, advertisement, word-of mouth, or by visiting www.joebartolotta.com, etc.

2. Receives Upfront Education
You contact Joe Bartolotta, Florida's Upfront Mortgage Broker or the National Reverse Mortgage Lenders Association to learn more about the advantages of reverse mortgages.

3. Counseling
You seek counseling from a local HUD-approved counseling agency, or a national counseling agency, such as AARP (800-209-8085) or the National Foundation for Credit Counseling (866-698-6322). Counseling generally takes 60 to 75 minutes and is required for all reverse mortgages. The counseling is conducted face-to-face or by telephone.
By law, a counselor must review

the options other than a reverse mortgage that are available to you, including housing, social services, health and financial alternatives.
other home equity conversion options that are or may become available to you, such as property tax deferral programs.
the financial implications of entering into a reverse mortgage.
the tax consequences affecting your eligibility under state or federal programs and the impact on the estate or your heirs.

4. Application
You fill out a loan application and selects a payment plan, the options are:

fixed monthly payments
lump sum payment
line of credit
or a combination of these.

I will then disclose to you the estimated total cost of the loan, as required by the federal Truth in Lending Act. Next, you will provide to me the verification of your Social Security number, a copy of the deed to your home, information on any existing mortgage or mortgages, and the original counseling certificate.

5. Processing
The processing is where the lenders order the appraisal, which you pay for, to place a value on the home. The appraiser makes sure the physical condition of the property meets FHA guidelines. If any structural defects are found, you must hire a contractor to complete the repairs after the reverse mortgage closes.

6. Underwriting
After receiving all pertinent information and data, the lender finalizes loan parameters with you and I. It can take anywhere from 4-8 weeks (sometimes sooner, sometimes longer) to underwrite a loan package. Once underwriting has started, the payment option you desire will need to be decided.

7. Closing Once the loan package is approved, the closing (signing) of loan is scheduled. Interest rates are calculated. Closing papers and final figures are prepared.

8.Disbursement All existing debt on the home is paid off. A new lien is placed on the home. You may use the loan proceeds for any purpose.

9. Repayment
You don't make any monthly mortgage payments during the life of the loan. The loan is repaid when the you cease to occupy the home as a principal residence. The loan may be repaid by the homeowner or the heirs/estate, with or without a sale of the home.

Important: The repayment obligation cannot exceed the home’s value or sales price, this is why you are required to pay for mortgage insurance which is included in the closing costs. The insurance releases your heirs from any any liability above the market value/sales price of your home. If there is equity left after the loan is repaid, your heirs will receive it. It's a win win situation for you.

Things to know before buying your next home

2007-09-10T13:12:00.000-04:00

How does someone know if they are being told the truth about the history of a house? Has the home had many claims reported on it because of natural disaster damage? Will the seller of the home disclose all the repairs done through insurance? These are all valid questions and the only way to find out is to obtain a C.L.U.E report, the bad news is, only the owner of a home can obtain the report. Before you buy your next home, especially in Florida or other natural disaster magnet states, ask the seller for a C.L.U.E. report.

Attention Home-Owners...Did you know that when you call and ask questions that some insurance companies will log it on your C.L.U.E. report? This tactic makes other insurers not want to do business with you. You can order your free C.L.U.E. report once a year just like you can with your credit report. If something on your report turns up false, you can challenge it. Visit to order your C.L.U.E. report or call toll free 1-866-527-2600. You will have to fill in some blanks and give your social security number so be prepared. Afterwards though, you can check out your personal auto and homeowners report. There is a charge if you need a homeowners report on more than one address.

Below are some of the FAQ's about C.L.U.E. reports, followed by the answers to those questions.

What is CLUE?
What information is included in a C.L.U.E. report?
Is there any other information besides loss history in the database?
How long is loss history kept in the C.L.U.E. database?
Who contributes to the C.L.U.E. database?
Who has access to C.L.U.E.?
Can I order a C.L.U.E. report on property I want to purchase?
How can I obtain a copy of my C.L.U.E. report?
How can I correct erroneous information on my C.L.U.E. report?
Can C.L.U.E. reports distinguish between an inquiry and a claim?

What is C.L.U.E.?
C.L.U.E. (Comprehensive Loss Underwriting Exchange) is a claims history database created by ChoicePoint that enables insurance companies to access consumer claims information when they are underwriting or rating an insurance policy.

What information is included in a C.L.U.E. report?
The report contains consumer claim information provided by insurance companies. It includes policy information such as name, date of birth, and policy number, claim information such as date of loss, type of loss and amounts paid, and a description of the property covered. For homeowner’s coverage, the report includes the property address and for auto coverage, it includes specific vehicle information.

Is there any other information besides loss history in the database?
Only loss history information is stored in the database. No other sources of data, credit reports, criminal records, civil lawsuits, legal judgments are incorporated into C.L.U.E. reports.

How long is loss history kept in the C.L.U.E. database?
The database contains up to 5 years of personal property claims history.

Who contributes to the C.L.U.E. database?
Only insurance companies that subscribe to C.L.U.E. can submit loss data and access C.L.U.E. reports. Consumers can access C.L.U.E. reports on themselves and their own properties.
Some companies choose not to subscribe to C.L.U.E. Losses filed with nonparticipating companies will not appear on a C.L.U.E. report.

Who has access to C.L.U.E.?
Insurance companies that contribute loss data to C.L.U.E. can withdraw information from the exchange. In addition, some insurance agents, with the authority of the company they represent, can withdraw data.

Can I order a C.L.U.E. report on property I want to purchase?
No. Under the federal Fair Credit Reporting Act, C.L.U.E. reports can only be accessed by the owner, insurer or lender for the property. However, you can request that the current owner of the property order a C.L.U.E. report.

How can I obtain a copy of my C.L.U.E. report?
Under the federal Fair Credit Reporting Act you can request a copy of your C.L.U.E. report from ChoicePoint Consumer Disclosure, P.O. Box 105108, Atlanta, Georgia 30348-5108, or call toll free 1-866-527-2600.

How can I correct erroneous information on my C.L.U.E. report?
If you discover an error on your C.L.U.E. report, an invalid claim report or an incorrect loss payment, for instance, you can contact ChoicePoint directly and report the problem. ChoicePoint will then contact the insurance company on your behalf and ask for clarification on the matter. The company has 30 days to respond to ChoicePoint and provide evidence that the information on the C.L.U.E. report is accurate. ChoicePoint will follow-up with the insurer after 20 days if the company does not respond and again after 28 days without a response. If the company does not respond within 30 days, ChoicePoint will remove the information from the database.

Can C.L.U.E. reports distinguish between an inquiry and a claim?
C.L.U.E. reports indicate losses by type. Consumers should be aware that contacting their company or their agent to discuss an actual loss might be considered reporting a claim, even if the company does not end up making a claim payment. This is because when a loss occurs, the policy requires the company to take specific actions within specified time frames. Consumers should be specific as to whether they are filing a claim or only making an inquiry.
For instance, a consumer may contact his/her agent to report an event, such as a broken water pipe and to determine the extent of coverage in order to decide whether or not to go forward with the claims process with the company. The insurer might not indemnify the consumer for this loss for a variety of reasons; the amount of damage may be below the deductible; the consumer may decide to pay for the damage, or there may be no coverage for such a loss under the terms of the policy.
If the consumer filed an actual claim and the insurer made no loss payment on this claim, this information would be recorded by the company and may appear on a C.L.U.E. report.
An inquiry is generally regarded as a call by a consumer to a company representative or agent to discuss terms of coverage including the extent of coverage on a specific loss. Many insurers are working on ways to inform their policyholders about the important distinction between a claim and an inquiry.

Foreclosure Scam tips

2007-09-07T10:36:00.001-04:00

Tips on Avoiding Foreclosures, Delinquencies and "Foreclosure Rescue" Scams

If you are facing a mortgage payment that you cannot make or if you have fallen behind on your mortgage payments, the first step you should take is to contact your lending company directly.

Please do not ignore the letters or phone calls from your lender. Foreclosure on a mortgage and the loss of a home is an expensive process. The longer you wait to make the call, the fewer options you will have.

Going through the foreclosure prevention process can be complicated and you do not have to do it alone. There are legitimate organizations such as Non-Profit Housing or Credit Counseling Agencies that can help you with the following:

Analyze your situation
Go over your options
Prioritize your debts
Prepare information for your lender

For a list of HUD –U. S. Department of Housing and Urban Development approved housing counselors, please visit http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm or call (800) 569-4287.
Remember! Counseling services are usually free or require a small fee.

The following links provide information that may assist you.

Consumers

Industry

Tips For Consumers On Avoiding Foreclosure “Rescue” Scams

Many Americans who have fallen behind on their mortgage payments are being targeted for so-called foreclosure “rescue” or “prevention “scams.

If you are facing foreclosure you should be wary of solicitations that offer to assist you in stopping or preventing foreclosure. If the assistance sounds too good to be true or if it sounds too simple, it usually is. You should be cautious before agreeing to or signing anything from someone other than your lender or servicer, which states they can assist you in preventing or stopping a foreclosure.

What is a Foreclosure “Rescue” Scam?
Simply put - it is where a company or person promises to help save your home from foreclosure, but is actually intent on stealing your home or most of the equity you have accumulated in your home.

There are several types of Foreclosure Rescue Scams you should be aware of:

Foreclosure Prevention Specialist – phony foreclosure counselors.
Phantom Help - charges high fees for work the homeowner could do themselves.
Lease/Buy Back – homeowners are deceived into signing over the deed to their home.
False Bailout – the homeowner is lead to believe that they can rent their home from the new owners and eventually repurchase the home.
Bait and Switch - the homeowner thinks they are signing new mortgage documents, but are actually signing over the deed to their home.

Visit the following links for more information on Foreclosure “Rescue” Scams and how to avoid becoming a victim.

The information above was obtained from the
Florida Office of Financial Regulation
200 East Gaines Street · Tallahassee, FL 32399 Website