Property Taxes in Chicago

I just wrote a big ole fat check to pay my second installment of Cook County property taxes so I thought it would be an opportune time to shed some light on property taxes.  Property taxes are just a fact of life when it comes to owning a home.  As such, lenders consider the annual [...]

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Rate Locks Explained

One of the most confusing aspects of mortgages is the rate lock.   In its simplest form, a rate lock essentially means the lender is setting money aside to lend to you at a specific interest rate.  Basically, a rate lock is a guarantee of the interest rate assuming you are approved for the mortgage.  It is very [...]

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Low Rates Won’t Fix the Housing Market

USAToday has a front page article today discussing how the increase in interest rates over the past week are threatening the turn around of the housing market.   I take issue with the article because it oversimplifies some of the issues the market is facing right now and also shows how disconnected people who don’t write [...]

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Show Me the Money! How Loan Originators are Compensated

Loan Originator compensation is one of the world’s last big mysteries.  Fortunately for you, I am here to provide the answers.   When I say Loan Originator, I am referring to mortgage brokers and loan officers at banks.  The term is being used generically.
For the most part, all Loan Originators work on 100% commission basis and [...]

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Jumbo Mortgages Don’t Mean Jumbo Rates

It is no secret that anyone getting a mortgage above the conforming limit of $417,000 is in for some sticker shock as the rates on non-conforming mortgage loans have gone through the roof.  For instance, a typical 30 year fixed rate mortgage is about 6.375% (no points) right now versus about 7.5% (no points) for [...]

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