How to Save Thousands of Dollars on Your Home Mortgage
Posted in Loan
How to Save Thousands of Dollars on Your Home Mortgage
Few home owners are aware of all the types of mortgages available to them. This very reader-friendly resource enables them to explore the many alternatives that are out there–and save a sizable amount of money in the process.
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(out of 34 reviews)
List Price: $ 19.95
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Review by BookGuy for How to Save Thousands of Dollars on Your Home Mortgage
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This is one of the books I bought when I bought my first house. It’s a fine reference source if you want to know what all the different mortgage options are (e.g., what’s the difference between a fixed-rate mortgage and an adjustable-rate mortgage, what indexes are ARMs tied to, etc.). And the author–Randy Johnson–makes honest recommendations on which mortgages best suit certain typical lifestyles or income scenarios. Also, one of the books great strengths is the discussion of how many discount points to pay. The one thing I found missing, though*, was at least one real-world scenario that you’re likely to see used if you visit a mortgage broker in my neck of the woods [Silicon Valley], or other high-priced regions. And that is the use of a ‘first’ and a ‘second’ mortgage in a so-called “piggyback financing” or “80-10-10 financing” arrangement which can help you eliminate Private Mortgage Insurance (PMI). There’s no in-depth discussion of this technique–which is very common–which I found incredible. There’s all this advice on getting an ARM tied to the CD index vs. the LIBOR index with a balloon payment if you stay in your house for 3 years instead of 10 years and so on and so forth…but nothing about getting a conforming, fixed-rate, 30-year first mortgage and a smaller second in a technique to reduce your overall payments during the lives of the loans. It’s a simple technique, and very worth a detailed analysis, but I couldn’t find it. Anyway, like I said, if you want to know esoteric information about mortgages, then this is a worthy book. It helped me, it’s just a little shy of a full-fledged 5-star effort.*Please Note: The review written above pertained to the 1st edition which I initially gave a 4-star rating. The second edition–which I now own also–has effectively covered “Piggyback” loans (i.e, 80-10-10 transactions), which I think propels this book into a solid 5-star work. The second edition also has updated information on shopping for a mortgage on the Internet, and some [though not all] of the examples that show different types of mortgages have had their interest rates brought more into line with present-day (i.e., 2002) rates. This is an excellent book for folks who want to know all about mortgages.
Review by Sadiqa L. Dickens for How to Save Thousands of Dollars on Your Home Mortgage
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Randy Johnson is very informative and contains alot of useful information…once you understand what he is trying to explain. In my opinion this is not the book to read if you have absolutely NO idea how the mortgage process works and how and what lenders do in that process. If you are a total novice , the terminology Mr. Johnson throws around may sound very cryptic; and his examples might make sense to you if you were either a finance major in college or have some minor experience with terms of finance. In my opinon, the total novice should read another book for the basics before coming to this one . I recommend Eric Tyson’s Mortgages For Dummies. It is very concise, clear, easy to understand and concentrates solely on the basics. After you have acquired some basic knowledge of the lending process, then come back to Mr.Johsnon for some serious nuts and bolts tips and strategies. To me, that is the best way to maximize the insider info and stratagies mapped out in Mr. Johnson’s book. However, for those of you versed in the lending lingo and who have been around the block a time or two when it comes to the home buying process, this book is definitely a must read. You need look no further for info that really will help you to save money on your next loan or refinance(but I still recommend MFDs , it can compliment or elaborate on alot of the info mentioned in Randy’s book). So, all in all, a good read for the novice and for the semi-pro.
Review by J. Grattan for How to Save Thousands of Dollars on Your Home Mortgage
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This book is written by a mortgage industry insider and makes the claim that it will reveal the inner workings or even secrets of the process of obtaining a mortgage. And there is some interesting detail concerning ARMs, lender rate sheets, zero-point loans, etc. But I think the book lacks organization and consistency. Like a lot of “insider” books it needed to have been read by a lot of “outsiders” for coherency before publishing. The author is not consistent in using the terminology that he defines at the start. He often is not clear about when he is talking about the firm originating your loan or the ultimate buyer of the loan. He creates as much confusion as clarity in his sloppy use of the terms: rebates, points, loan discount points, or loan origination points. Furthermore, for a detail-oriented book I was surprised that section numbers of a standard settlement form, 800, 900, 1000, etc, were not referred to when discussing closing costs.I would have like to have seen more realistic discussion about the ability of a consumer to force a loan originator to reveal or discuss the profit margin on a loan as the author suggests one do. As far as I know American businesses are not in the habit and in fact resist revealing markups to consumers.For some readers this book may be just what they are looking for, but I suspect that for most the detail is just not presented in a way that makes it particularly understandable or usable.
Review by B. Love for How to Save Thousands of Dollars on Your Home Mortgage
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The difference between a NO-NEG-AM at 8.86% and a 30 year Fixed at 7.75% saved me $128,000 on my mortgage. Thanks to Randy’s book I knew what questions to ask my lender. I knew the right answer too – NO – no negative amortization loan for me. This book gives you the knowledge you need to make an informed decision. No matter how “nice” and “helpful” your lender’s may appear, YOU need to know what they are telling you is accurate. Don’t buy a house without knowing what the terms being offered really mean for you. Thanks LoanWolf!!
Review by Cynthia C. Stickney for How to Save Thousands of Dollars on Your Home Mortgage
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Before purchasing my first home I purchased and read many books on the homebuying process including:
-The 106 Common Mistakes Homebuyers Make
-100 Questions Every First-Time Home Buyer Should Ask
-The 106 Mortgage Secrets All Homebuyers Must Learn–But Lenders Don’t Tell
-Home Buying for Dummies by Eric Tyson
-How to Buy a Home When You Can’t Afford It by Robert Irwin
-Mortgages for Dummies by Eric Tyson
-Complete Idiots Guide to buying and selling a home
-How to Save Thousands of Dollars on Your Home Mortgage, 2nd Editionby Randy Johnson
Randy Johnson’s book was by far the most helpful and informational about the mortgage process. This books provides insights and tips to avoid the pitfalls of the mortgage process. The authors website also has many useful free programs and worksheets to help you analyze loans and the mortgage market. This book will truly save you thousands of dollars on your next mortgage. Educate yourself to the process. Put this book at the top of your reading list before you buy a house.