All Forum Posts by: Zach Wain

Financially - Dollar cost average in multiple asset classes.  Small chunks at a time.  Equities, Crypto, Gold/metals, and maybe grab a piece of Land if the right opportunity presents itself.

 Yes, that is going to be challenging

In my experience, it is extremely difficult to remove someone off of a conventional loan.  The loan was underwritten with both people, so removing someone would make the entire underwriting process invalid.  Maybe with an extenuating circumstance, but even though its going to very tough sledding on that one.

I will beg to differ.  Credit Unions, in my experience, are slow and give poor customer service.  You want someone doing your loan that will make a commission, because that person is going to be 100% dedicated to getting your deal done and to make sure you are completely happy.

I will go price to price with credit unions all day and win the vast majority of the time.  If they have some specialized product, that's awesome and great for them.  Apples to Apples, I will beat their pricing.

@Brad Cook - stable income is most definitely not part of the mortgage industry.  It is a great career, you can make a lot of money and have a great impact on peoples life and business.  But, its not stable at all.  The most important qualities are sales ability, being uncomfortable (when marketing), being analytical, and being ethical.

Its a sales job at the end of the day, so its great when its great.  When its not, it can be rough

To each their own.  I am a proponent of basic diversification in asset classes to reduce inherent risk.  Or, put all your chips into one bucket and hope that its the right one.  I prefer to spread risk.  

@Dominique Guinnane - Temporary buydowns are helping our clients and realtor partners a lot right now.  It took me a bit to appreciate their value, but I am a big fan.  Explore them and let me know if you have any questions.  IMO  - permanent buydowns are a waste of money on primary homes right now.  A high rate environment means those clients will refi in 1-2 years and lose the majority of the benefit of a perm buydown.

@Dominique Guinnane - Comparing a permanent rate buy down (standard rate buydown) vs a temporary buydown are two different scenarios.  Did they cover both of those in the presentation?

Permanent rate buy down is not that great IMO, especially in a high rate environment when a lot of people will refi within 1-2 years of owning the home if/when rates come down.

Temporary rate buy downs are great right now - The seller funds a 2-1 temporary rate buy down.  The borrower gets a 30 yr fixed at 6%, but the first year they only pay 4% instead of 6% (that is the 2), the second year of the loan the borrower pays 5% instead of 6% (that is the 1).  Years 3-30 its 6%.  With our lenders, if the borrower refi's or sells the home they get refunded the remaining balance that the seller paid for the temporary buydown, since the lender holds it in their own escrow account.

Its a dollar for dollar subsidy basically, seller funded to help the borrower the first couple years in the loan.  It makes things more affordable now, with the goal being to hopefully refinance in a year or two.  Of course, the borrower must be comfortable with the 6% for the life of the loan.

For some situations, this is perfect.  One spouse is getting out of nursing school in 6 months and will start making money, or one spouse is expecting a raise shortly, etc etc.

@Matt Allen - you can do a cash out conventional loan and get access to the money you need quickly. You can do that with a DSCR loan with a 0 or 1 yr Prepayment penalty as well if you can not get approved for a conventional loan. Easy stuff either way!

 What Scott said!  Diversification is the right play IMO