Latest Articles

WTF is happening with QM?

What is QM? In the aftermath of the global financial crisis, many new regulations were implemented designed to ensure that mortgage lenders made a reasonable good faith assessment at or before the closing of a loan that the borrower would have sufficient income to pay it back over time. Mortgages that complied were called qualified […]

WTF is the Total Interest Percentage (TIP)?

You see it staring back out at you on page 3 of the Loan Estimate. Big and glaring. Total Interest Percentage (TIP). And the percentage is huge! Something crazy like 69.45%. And you thought the interest rate was something in the single digits, right? Total Interest Percentage is the amount of dollars paid in interest over […]

Should I Escrow Taxes and Insurance?

As a homeowner, you are required to pay property taxes, homeowner’s insurance and flood insurance (if you’re in a designated flood zone).  Lenders give borrowers the option to pay 1/12 of the annual tax amount and/or insurance premium monthly with the mortgage payment.  These funds can get set aside in an “escrow” account and will […]