Market Niches Priced on Line
All UMLs fill out this form and display it on their web site.
| Comments by Mortgage Professor | Loan Programs | Priced On-Line by LENDER X |
| Fixed-rate programs are usually identified by their term. | Fixed-Rate Programs | |
| 40-years | ||
| 30-years | X | |
| 25-years | ||
| 20-years | ||
| 15-years | X | |
| 10-years | ||
| Balloon-loan programs are identified by the period for which the quoted rate holds. The balance is due at the end of that period. | Balloon-Loan Programs | |
| 5-year | ||
| 7-year | ||
| The first figure is the initial rate period, the second figure is the rate adjustment period after the initial rate period ends. ARM programs are also identified by the interest rate index that they use, and other features. See Requirement 4. | Adjustable-Rate Programs | |
| 1 month/1 month | ||
| 3 month/3 month | ||
| 6 month/6 month | X | |
| 1 year/1 year | X | |
| 3 years/1 year | X | |
| 5 year/1 year | X | |
| 7 years/1 year | X | |
| 10 years/1 year | X | |
| 3 years/3 years | ||
| 5 years/5 years | ||
| FHA Programs | ||
| VA Programs | ||
| Second Mortgage Fixed-Rate Programs | X | |
| Second Mortgage Adjustable-Rate Programs | ||
| State Coverage | ||
| Not all lenders operate in every state. | All states except Alaska and Hawaii | |
| Property Types | ||
| Few lenders make loans on all types of properties | Single-family | X |
| 2-4 family homes | X | |
| Condo, less than 5 stories | X | |
| Condo, more than 5 stories | X | |
| Co-ops | ||
| Manufactured homes | ||
| Land | ||
| In a planned unit development (PUD) | ||
| Farms | ||
| Commercial | ||
| Alternative Documentation | ||
| The precise details of alternative documentation requirements may differ a little from one lender to another. | “ Stated income”, “stated assets”, or both: income and/or assets are disclosed but not verified by lender. | |
| “No ratio”: maximum ratios of housing expense and total expense to income are ignored by lender. | ||
| “No income”, “no assets”, or both: income and/or assets are not disclosed. | ||
| Options | ||
| Shoppers should expect to pay more for a waiver of escrows or a float-down, less for accepting a prepayment penalty. A float-down is a lock plus the right to a lower rate if market rates decline. | Waive escrow of taxes and insurance | X |
| Prepayment penalty | X | |
| Float-down | ||
| Interest-only | X | |
| Temporary buydown | ||
| Special Loan Purposes | ||
| All of these cost more than loans taken out to purchase a home for permanent occupancy, or to refinance with no cash out. | Cash-out refinance | X |
| Use house as vacation or second home | X | |
| Rent out house | X | |
| Borrower a non-resident alien | ||
| Construction loan | ||
| Bridge loan | ||
| Maximums and Minimums Across All Programs | Max & Min of Lender X | |
| Warning! The maximums and minimums vary for different programs. For example, the longest lock might be available for ARMs but not FRMs. Further, the stated maximums and minimums are not likely to be available on the same loan. Don’t expect to get a 107% loan, for example, if you have a 540 credit score. (Note: you can get your credit score on www.myfico.com) Housing expense is the sum of the mortgage payment, property taxes and homeowners insurance. | Maximum ratio of loan to value | 107% |
| Minimum credit score | 540 | |
| Maximum loan size | $4 million | |
| Minimum loan size | $10,000 | |
| Maximum ratio of housing expense to income before taxes | 65% | |
| Maximum ratio of housing expense plus other debt payments to income before taxes | 65% | |
| Longest lock period available | 60 days |
