To pay points or not to pay points, that is the question! In today’s article we discuss what points are, and if you should pay them or not. The one thing I have not been able to find out, it why they are called “points” in the first place. In simple terms, paying points will…

If there’s one dominant theme I deal with more than any other is the planning or result of parents leaving their largest nest egg to their children. Today we’ll discuss the realities of this practice with my over 22 years of originating mortgages to the people of Hawaii. Have you given much thought as to…

After the meltdown in 2008, all of the goofy loan products that got us into the financial mess that tanked the real estate market, and our economy as a whole, disappeared. The pendulum swung way too far from “let’s give anyone a mortgage” to the other extreme of “only the best of the best will…

Do you know what a non-conforming property is, and more important, how it may affect your chances of getting financing? The information I will present today is taken from Honolulu’s building codes, but in almost all cases, the same holds true for Kauai, Maui, and Hawaii counties. I recently had a transaction where there was…

A client I helped finance a few years ago forwarded me some information about an issue at his condo complex that should be a wake-up call for anyone who currently owns a condo, or wishes to someday own one. Hawaii is a geologically young place. Our islands were formed only a few million years ago.…

Qualifying for a mortgage is easy to understand if you think about the 4 legs of a chair. Each leg is equally important. A longer leg cannot compensate for a shorter leg. A lender needs stability from each leg in order to feel comfortable giving you a loan. It’s no different than feeling uncomfortable sitting…

Where do self-employed borrowers earn their money? From the business they own. It’s that flow of money that not only determines their income, but is also in almost all cases their source for the money they have in the bank. How and when they money flows from the business to you personally will make all…

How does an impending hurricane affect real estate and lending? While we are all waiting out the effects of Hurricane Lane, let’s highlight some of the issues that arise. Let’s first start with the news a hurricane is on track to our islands. Except for those already in the midst of a transaction, most people…

One of the cornerstones of mortgage financing is determining your income. What on the surface seems like a fairly easy task can often times get bogged down in complex formulas. While some people do have complex income streams, for most the process to determine one’s income is fairly simple. This might seem shocking to you,…

This designation is important to anyone who is interested in buying, selling, or refinancing a condo. In short, almost half of the people out there should pay notice. If a condo project is determined to be non-warrantable, it could lead to difficulties in obtaining financing. Let me first tackle where the term non-warrantable comes from.…