Actually you can deduct interest of up to $1M in your principal amount… not your interest paid… so if you have a $1M loan that you paid $35k interest on… you can only deduct $35k and not a penny more even if you have another mortgage.
Thanks, you are right. The interest you pay on a $1M loan is the max you can deduct. You cannot deduct $1M from your income. Good clarification, my bad 
mortgages are tough 
the simplest and most basic advice is to shop around. I promise you the big banks can play ball and match online and cresit unions. They can also close fast - BofA closed my loan in 25 calendar days!
I disagree. Not sure how much you shopped around, but the big banks usually are not authorized to give better rates than the little guys. I had a mortgage broker that ended up going to a big bank. I really liked him and he always made every effort to give my family the best possible rate. Unfortunately every time I call him now, he’s not able to come anywhere close to the rates I got off zillow mortgages. I’m talking at least a half a point difference! I’ve found that negotiations are usually not very useful when it comes to mortgage rates. Your best bet is just to search through zillow and get the best possible rate up front. If there’s a broker you really like then see if they’re willing to match.
Hope you took my advice and jumped on locking in a rate!
How’d the condo work out for you? Get a good rate? I’m likely going to be looking for a loan soon for a home expansion (I’d like to build a second floor). Anyone have any thoughts on what to do for that?
This bank is in our building and they do pretty well as far as getting deals closed. Check them out.
Jason Alicea
Mortgage Banker
773-677-6647 - Mobile
630-448-3022 - eFax
NMLS - 769758
j.alicea@mybbmc.com
BBMC Bank, Bridgeview Bank
Thanks for the heads up 
I ended up getting 4.125% plus some lender credits, which was a good rate when I closed back in April 2017. Since then, it’s dropped to as low as 3.875%, according to the weekly update emails from my broker… but then again, if I waited, I would have lost a few months in property appreciation.
Moving forward, who knows what the growth in home values will be like – with the cap on property tax deductions and the increased standard deduction, the benefit of owning a home has been diminished.
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If you can get a half percent better, it might be worth refinancing! Rates have been fluctuating up and down lately, so you might be able to catch it at just the right time. Every 1/4 percent was about 30 bucks a month for me, so 1/2 percent could be as much as 60 or more. Not a huge amount each month, but over the life of the loan it’s not too bad! Just make sure your broker gives you a no cost loan (no points, no fees).
I’m a mortgage broker in Cali. Let me know if you guys want to run some numbers on rates and fees.
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Look at local credit union
Seems like you clearly didn’t read a single post here
i went with costco mortgage services at that time they had tie up with farmer’s bank ( no presence in NY area)
so everything was over phone. they easily beat the rates provided by Chase Bank to me.
Also chase was charging 2000+ in initiation charges while Farmers Bank charged a fixed approx 500 ( dont remember correctly) as they had some contractual binding with costco to charge a fixed amount no exceeding 650 i think. everything was over phone or emails and it was quick.
Good morning! I own a real estate company in Carlsbad, CA!
Here’s my “hack”:
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When representing buyers, I refer them to only a few select LOCAL lenders that truly know the ins and outs of the local properties and all the different particulars that can affect your loan. I currently have an escrow with a buyer who is using Quicken and their customer service is… well… friendly but clueless.
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You can buy down your interest rate!!! Even in a competitive market, there are ways to ask for seller-paid closing costs up to a certain amount. Included in those closing costs you can pay discount points on your loan. These discount points will give you a lower interest rate and will save you money over the long run.
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Rent a unit, room, or garage. I don’t mind having the conversation that you may want to spend some extra money to make some extra money. If you can, increase your budget to include homes with second units or extra bedrooms you can rent out. Right now, in my area, an extra bedroom easily gets $700-$1200 deepening on amenities and location. An extra unit can fetch anywhere between $1400 and $2500 depending on similar circumstances. By looking for a home that is larger than you need now, you can more than offset the increase in monthly payment with room-mates AND as your needs or family “grows” you can grow into the current space you already own, thereby saving you money on purchase and sale closing costs.
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Finally, buy a home that can rent out well. My philosophy is that your first home is your first investment. Try really hard NOT to sell it. And keep that mindset so you can start building your portfolio as soon as possible.
Hope this helps you and anyone else reading!
Feel free to reach out if you have any questions.
-Trevor
Owner
Engel & Völkers Carlsbad
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What kind of DSCR/rates are the local banks charging for commercial loans? I recently purchased a couple of multifamilies here in SD and in about 6-9 months I’ll have the requisite 12 months rental history in order to refinance.
HI there! Most of my commercial business is portfolio or privately financed.
Let me know if you would like any references for larger lenders.
Cheers!
Trevor
Hi Guys!
Shameless plug…
One of my closest friends is top 40 mortgage guys in the nation. He’s based at Leader Bank in Mass, but can finance a buy in any state.
Not only is he incredibly competitive and will beat big banks, but he is easily one of the nicest and most personable guys I have ever met.
20+ referrals of mine have used him and all love him.
PM me if you’re needing assistance but please only if serious. I don’t want to waste his time.
Thx
Mike
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Will keep this one in the back pocket!
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