With over twelve years of experience as processor manager, loan officer, and executive management, Michael Yi has a proven record of honesty and professionalism. Michael Yi is a graduate of College of William and Mary (Class of 1989). He grew up in Northern Virginia. He was also a former software developer bringing many technological tools to First Belmont Mortgage. Michael Yi formed First Belmont Mortgage with the sole purpose of bringing the utmost quality in mortgage origination service while providing the most competitive rates.
At First Belmont Mortgage, we help you find the best mortgage loan with the right financing plan to meet your budget. First Belmont Mortgage was founded on basic principle of providing superb service with excellent rates.
Our goal is to make the loan process as simple and worry-free as possible. We pride ourselves in offering the highest level of customer service, and appreciate the opportunity to earn your business. Whether you want to refinance for a lower mortgage rate, get a new home mortgage, home equity loan or second mortgage, our purpose is to satisfy your needs. By putting you first, we assure you a pleasurable transaction.
Mortgage Questions and Answers1. I have an excellent credit, income and savings. If I am in the market for a mortgage, should I look for the best rates from companies advertising on the internet or newspaper? On any given day, you are bound to find a rogue company who will beat any other mortgage company. However, be wary of these type of companies as their main objective is to rope you in and move the process along until it is too late for you to cancel (i.e. - purchase deals). Remember that because the market is constantly changing, the rate that is being quoted is not guaranteed until you have a signed written confirmation from the broker/lender. Unless you are comparing all broker/lender on the same day (sometimes within a few hours) AND they all have the same exact information from you, you are not getting an "apples to apples" rate quote.
Also, low rate quote does not equate to good service. Remember that most brokers/lenders that low ball the rates are relying on volume business. Most borrowers would be relegated as just a number in their loan pipeline. In many cases, unless you ask a specific question, they will rarely volunteer any helpful advice or guidance.
2. When is it worth it to do a rate and term refinance?To save money on refinance, you must stay in your house longer than the "break-even" period (the period in which your interest savings covers the refinance "hard"/non-escrow costs).
However, the "break-even" point is NOT the "hard" settlement costs divided by the difference in the old and the new mortgage payment. There are other factors to consider such as:
1. any change in loan terms
2. changes to loan programs
3. how many years left on the current mortgage
3. How much down payment should I make on a home purchase?The market has tightened up quite a bit in the last few years. Here are some general guidance for down payment decisions:
Must make at least the minimum down payment for qualified loan program whether going Conventional or Government depending on your credit rating and Debt to Income ratios (DTI).
If Conventional, you should at least make a 10% down payment. However, note that mortgage insurance (MI) will be required. Furthermore, most MI companies had more restrictive guidelines than Fannie Mae or Freddie Mac guidelines. Thus, the lender may approve your loan, but can ultimately deny your loan because the MI company rejected your loan application. In order to avoid MI, you must put at least 20% down (of which all of it can be a family gift).
If Government Loan (FHA or VA), on put enough down payment to qualify for the mortgage because you must pay MI no matter how much you put down. VA loan does not require a down payment unless your loan amount exceeds the max guaranteed amount (417k in Northern Virginia areas).
If your loan amount is an "Agency" Jumbo (Fannie Mae and Freddie Mac Jumbos), which are up to $625-729k, then you should put at least 20% down. Although some MI companies will insure these Jumbos, many have highly restrictive guidelines that make it really difficult to qualify for MI.
4. On my refinance, why is my loan payoff amount higher than my current balance?Your mortgage interests are paid in arrears which mean that your current mortgage payment pays for the previous month's interest. Thus, the loan payoff includes a prorated interest due amount. Furthermore, your current lender may include additional fees associated with the payoff process.
5. Could you give me some advice on choosing a loan modification company to negotiate my current mortgage terms?First of all, my advice is to seek a loan modification company that is part of a reputable law firm. Many loan modification companies utilize former loan officers that are inexperienced and may do more damage to your chances for loan modification. These companies charge typically thousands of dollars to basically talk to your mortgage company for you. Ultimately, the best negotiator for you is an attorney. You may pay similar cost with an attorney, but wouldn't you rather have an attorney negotiate your loan modification rather than a former loan officer?
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