Adjustable Rate Mortgages (ARM) are not only very unpopular right now thanks to the media bashing them, but they currently (August 31, 2007) have higher rates than Fixed Rate Mortgages.   This poses a problem for people that want a lower payment but now are demanding the secure rate of a Fixed Rate Mortgage.  
The answer to this problem is found in Hyrbid Mortgages.  These […]

Right now, pretty much anyone in Residential Lending is on the hot seat.  Government Oversight is the demand du jour to rectify the problems in the current economy.  The problem is that there is no fixing the people that are already hurt in their credit… and there is a Teflon sheen on many of the […]

When I first moved to the State of Florida, I was very surprised to find Realtors and Mortgage Brokers that were so busy and so successful that they would limit their businesses to loans, listings and buyers of over a certain dollar value.  The reason it was so surprising was that the dollar amounts that […]

DEBT SERVICE COVERAGE RATIO or DSCR

What is it?
Who came up with this?
Why do we need to know another math equation?
How can it save a deal? or a client?

Wikipedia defines DSCR as this:
The debt service coverage ratio, or debt service ratio, is the ratio of net operating income to debt payments on a piece of investment […]

Residential Lending’s perennial pariah is YSP - Yield Spread Premium.   This single line on the HUD Closing statement is a bone of contention for basically everyone in the lending community.  Simply defined, YSP is the amount of commission paid to a Mortgage Broker by the lender.  It is broken down by a base interest rate called […]