Kevin Tinsley Tacoma's #1 Mortgage Expert

Irene, I'm sorry to hear about your daughter & son-n-law's situation. This is a perfect example why everyone should get a second opinion on the mortgage product they select. Relying on one mortgage professionals recommendations or the "Builder's Lender" or the "Real Estate Agent's Favorite Lender" limits your ability verify you are getting the best loan product. Also take the time at loan closing to thoroughly review the loan papers before the loan closes. That way you know exactly the type of loan you are getting, how it works, and any unusual features. If something seems out of place or has changed since you first applied for the loan, ask to have it corrected before you close. Best Wishes, Tacoma's #1 Mortgage Expert All Tech Mortgage.com 7403 Lakewood Dr W, STE 2 Lakewood, WA 98499 http://www.alltechmortgage.com

The first thing Fannie Mae & Freddie Mac should do is eliminate the Adverse Market Delivery Charge and Loan Level Price Adjustment (LLPA) Fees that were put in place earlier this year. This is a behind the scenes look at how mortgage's get priced at the retail level. On a $300,000 Cash out refinance, 80% Loan to value, with a 699 credit score, take a look how these charges/fees impact the cost of the loan: Adverse Market Charge -.25% $750 Credit Score LLPA - 1% $3,000 Cash Out LLPA - .875% $2,675 That's $6,375 in extra fee borrower's are paying on a typical mortgage. So how do these fee's get paid? It's included in your interest rate. Before all these charges went into effect, your rate would have been 5.875%, but with these new fees in place your rate is now 6.375% or $97 more per month... If Walmart can Roll Back their fees....So should Fannie & Freddie... All Tech Mortgage.com 7403 Lakewood Dr W, STE 2 Lakewood, WA 98499 www.alltechmortgage.com

Originally the Option ARM loan was a product created for self employeed or commission borrowers who could benefit from the flexible payment options. The thought was the self employeed & commission borrowers were more financially savvy and could grasp the concept of the loan and manage it during it's life. Plus to get this loan you had to put down 20%, eliminating most first time homebuyers. As the housing market heated up during the 2004-2007, WAMU and others were trying to keep market share and started offering this product to all borrowers at substantially highter loan to values- up to 95%. Here's the big problem: most loan application appointments are 45 minutes - 1 1/2 hours, there is NO possible way, with all the fancy charts, brochures, and mumbo jumbo, a first time home buyer or most borrowers for that matter, could truly understand how the loan program worked... Index, margin, recast periods, negative amortization, etc. Hell, I've been in the business 22 years and it's still tricky to understand. So, when the loan officer said would you like your payment to be $1,608 or $2,997 on your $500,000 loan? Guess which one most people selected? alltechmortgage.com