Mortgage Tidbits and Pondering Change




  • If the closing costs exceed 5% of the loan amount (Reg Z rule) the loan just became "high cost", said another way; denied! I have a 3 page excel spreadsheet detailing what does and doesn't count in the 5%. Bottom line, watch the small loans!
  • Home equity lines of credit (HELOC)...remember them? If a person has a home equity line of credit on their primary residence and they are purchasing a 2nd home or investment property, SOME, not all, investors take 1% of the high credit limit, regardless of balance or payment and use the 1% as their qualifying payment. I had a borrower this week that this issue made a difference between a $2000 vs.. a $10,000 payment!
  • Speaking of HELOC's, if someone has a heloc and they are going to draw on it to purchase a 2nd or investment home, they CAN NOT write the check from the line and bring it to the title company! There is NO seasoning, but the funds have to come from the heloc to their checking account, clear and then to the title company. Think about it...the line isn't really cash, it is a loan and until you take out the loan and it clears it isn't cash to close with. Awe..these &*(*& rules!


I Offer the Following Home Financing Options

  • Home Path Loans, 3% Down
  • Manufactured Home LoansFHA & Conventional Financing
  • Investor "Flip" Loans
  • Conventional Loans
  • FHA Loans
  • VA Loans up to $1.5 MILLION!
  • Jumbo Loans
  • Second / Vacation Home Loans

To Change or Not to Change...Ponder This Question

Only 5% of the human race believes in transformation. Simple math then says that 95% of us want, in many ways and at different times, our life to show up different. Yet we don't believe in change. Fair to say one then has to believe that doing the same things over and over will change that which one doesn't like in their life...that's called stress and frustration!

The ONLY certainty in life is CHANGE. Resist it (whatever "it" is) and it persists, lien into it, accept what is showing up in one's life and you open the door to change.

The initial change process, one has to ask themselves two questions. One, how teachable are you? One has to challenge their past values and beliefs. Not from a right or wrong space, rather from a space of being open to see how and where one's values where formed. Secondly, how open to change are you? One has to be open to change in order to be teachable.

Jim Hostler
Senior Mortgage Loan Consultant

Lenders Direct
a division of Gateway Business Bank

Direct: 928.225.7418

Fax: 928.527.7943

NMLS #6410200021



This is not the opinion of Brad Bergamini, Realty Executives Northern Arizona or any of its affiliates.  This post is for informational purpose only and is not guaranteed and does not render as legal advice.  Buying and selling Real Estate in Arizona or Prescott Arizona is a serious task and should be consulted with personally with Realtor or Real Estate Attorney.  Please visit my website for contact information or