AboutJames Setters Expertise I can answer questions regarding residential home mortgages for both purchases and refinances. I have extensive experience in both prime, sub-prime and real estate investing. I approach mortgage lending with a focus on a client's overall financial life and worked for more than 10 years as a financial advisor and planner in the investment and insurance field. My specialty is debt elimination and providing systematic, disciplined plans that show families how to become debt free in 6-11 years, including their mortgage, with no increase in their monthly payments. Feel Free to ask me how!
I have access to over 130 of the nation's leading mortgage lenders and most national banks.
Experience I have more than 17 years of experience in financial services, and have worked in mortgage lending since 1992.
Organizations National Association of Mortgage Brokers.
Ohio Association of Mortgage Brokers.
Home Buiders Associations.
Education/Credentials Life Accident and Health Licensing, passed exam.
NASD Series 6 and 63 licensing, passed exam.
Licensed Mortgage Broker
Expert: James Setters Date: 7/9/2008 Subject: motgage
Question My brother owns a primary residence in Spring Hill Florida, it has a value of $400,000 and he owes $180,000. He wants to refinance this property .And he wants to move to Tampa and purchase the other property for 185k with another loan. The value of the second piece is Apprasial will come in with a value of 260k with a loan amount of 185k. Sun Trust is telling him that he needs Mi insurance on the second property. His LTV is about 70 LTV dose he need MI.? No dept ratio issue also has an 800 mid score. If you did the loan on the properties would there be MI on the second property?
Answer Russell,
Thanks for the question. I think the issue at hand is whether or not the lender, in this case Suntrst, is using the appraised value or the purchase price for calculation of loan-to-value.
Most consumers believe in a purchase transaction, the lender will use the actual appraised value, however, lender guidelines are pretty clear. They will use the lower of the two figures, in this case, your brother's loan would indeed require MI since they are using the purchase price as the appraised value.
