Quotations by Gary W. Eldred

Portfolio lenders include many banks, savings institutions, credit unions, pension funds, and life insurance companies. Portfolio lenders can tailor any type of loan that can find a market. [2003] - Gary W. Eldred

In Vancouver, British Columbia, for example, more than 100,000 homes include basement suites. They not only boost owner borrowing power, they also provide an essential supplement to the super-tight housing market in Vancouver. [2003] - Gary W. Eldred

The most expensive loan product on the market is the 30-year fixed-rate mortgage popularly offered by mortgage companies, banks, and savings institutions. [2003] - Gary W. Eldred

For most borrowers in most markets, the 15-year mortgage, even on a lower-priced home (holding payments the same), will give larger and safer returns. The 30-year fixed-rate loan on a higher-priced house proves superior only during periods of extraordinary high rates of appreciation. [2003] - Gary W. Eldred

If you're going to own a home for only a few years, you should select an ARM (adjustable rate mortgage) to benefit from its lower start rate. You can nearly always find an adjustable that will cost you less than a 30-year fixed-rate loan if you plan to sell within seven years. Typically, ARMs apply margins that range between 2.25 and 2.75 percent. [2003] - Gary W. Eldred

In California and other sometimes volatile urban markets such as New York City, Boston, and Washington, D.C., ARMs give homeowners an advantage over fixed rate loans. [2003] - Gary W. Eldred

when some lender offers you loan rates or terms that sound too good to be true, look for the strings. [2003] - Gary W. Eldred

As a minimum, put your proposed in writing as part of your overall offer to buy the property. [2003] - Gary W. Eldred

Sellers who agree to carry back a second mortgage frequently insist on a payoff term of seven years or less. When you use a balloon mortgage, you typically pay small monthly payments. You then pay the full outstanding balance owed after perhaps five or seven years. [2003] - Gary W. Eldred

Many lending institutions won't write mortgages on condominiums or townhouses where more than 30 or 40 percent of the units in the complex are occupied by renters instead of owners. [2003] - Gary W. Eldred

Buy a rundown property on contract and then create value through improvements. Next, refinance based on the now-higher value of the property. [2003] - Gary W. Eldred

Each time a lender sues for foreclosure, the country clerk where the property is located files that suit in the public records. Local newspapers or specialty newsletters often publish the borrowers' names and addresses. You can also go to the county courthouse. Some counties make it easy to find pending foreclosures; others make you search. Either way, the information is always available to the public. [2003] - Gary W. Eldred

In nearly every instance, you can say one thing for certain about an REO: The lender wants to sell the property as quickly as possible. Buying an REO directly from a lender typically presents no more risk than buying directly from any other property owner. Normally, you can buy an REO much more safely than you could have bought the same property at its foreclosure sale. You might even be able to buy at a lower than market value price. You can find REOs in three different ways: follow up after a foreclosure sale; cold call lender REO personnel; locate Realtors who typically get REO listings. Rather than ask for a complete list of REOs, narrow your focus. Tell lenders what you're specifically looking for in terms of location, size, price range, floor plan, condition, or other features. In that way, a lender can answer your request without disclosing the full number of REOs within its inventory. [2003] - Gary W. Eldred

Although most often you must guard against appraisals that come in too high, sometimes you might encounter a lender's appraisal that comes in too low to justify the amount of your mortgage loan. In some instances lenders have used low appraisals to turn down loans they didn't want to make. At other times lender appraisers give low appraisals in response to tightened government regulations. [2003] - Gary W. Eldred

To protect yourself from paying too much, ask to see the loan officer's rate sheet. On most loans, commissions typically should run no more than 1 percent of the amount you borrow. [2003] - Gary W. Eldred

Because many people believe banks to be a safe harbor in the cutthroat world of commerce, their loan departments charge a premium. They rarely offer the lowest interest rates or fees; however, credit unions often prove the exception, especially for plain-vanilla products. [2003] - Gary W. Eldred

With rental properties, you win when inflation runs rampant; and you win as it declines. Your interest costs (at today's rates) should total less than 7 percent, but the rental income from your property should yield (after expenses) 8 to 11 percent. [2003] - Gary W. Eldred