About Scott Hill
Background
Scott Hill resides in Dublin, CA with his wife and three children. After over nine years in the Navy, Scott started his career in the Mortgage industry in 1997. His professionalism, integrity, and dedication to his clients cannot be matched. He and his team perform quarterly and annual check up calls to their clients to ensure that their financial goals are still being achieved.
Contact
Email: Scott Hill
Website: http://www.scotthillteam.com/
February 19, 2012 | 
1 Comment | Topics: Local Issues · Opinions
As a lending industry professional serving Dublin, CA and the greater Bay Area, I get questions about mortgage rates all the time. Lately, with interest rates at an all-time low, people want to know if the cost of borrowing will head up, down, or sideways. I can definitely tell you the rates are headed up. Now, the rock bottom could be tomorrow, in three months, or in six months. Who knows? I stopped trying to predict that long ago. This country has printed almost as much money in the last few years as all the drunken sailors have spent overseas since the first fleet was assembled. With inflation on its way, the return of higher interest rates is only a matter of time.
People love a good deal. Prospective borrowers want to wait for the rates to hit rock bottom before they pull the trigger. Why pay more to borrow than you have to? I can understand and respect where these customers are coming from, but people who are fixated on getting the lowest interest rate often forget to account for the cost of waiting. They may still be paying rent when owning could very well be cheaper after they take advantage of the tax deductions. As they sit on the fence, the only outcome they are guaranteeing is missing out on the terrific rates available today.
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December 26, 2011 | No Comments | Topics: Opinions
When working with homebuyers in Dublin, Livermore, San Ramon, and Pleasanton, I am often asked to explain the difference between a pre-qualification letter and a pre-approval letter. If you visit the forums on Zillow and Trulia on loans, you will frequently see comments from disappointed consumers on how they have been pre-approved or pre-qualified for loans, only to be rejected by a later step in the process. While no legal definition exists for either term, a pre-qualification is, in general, a loan originator’s guess as to your ability to qualify for a home loan and the pre-approval is an underwriter’s signature that you are approved, subject to conditions. Lenders are not always forthcoming about how the process really works, because telling their customers that they have been pre-qualified or pre-approved is often easier.
When you are ready to check out the homes, you want to work with a lender that is ready to do more than simply pulling your credit report. The lender should be willing to invest the time and effort to assemble all of your financial documents, verify the information on the loan application, and submit everything to an underwriter for review. The underwriter will either approve the loan with conditions or deny the application. The underwriter typically will not look at your loan, unless you are already in contract for your home. This requirement puts the homebuyers at a disadvantage, because often they have already become emotionally attached to the homes. Either way, you will know where you stand and can plan accordingly.
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August 26, 2011 | No Comments | Topics: Local Issues · Opinions
In our current tighter-than-ever mortgage lending market in Dublin, CA and the greater Tri-Valley area, an FHA loan is still one of the best at getting people into their dream homes. Many people seem to think that FHA loans are only for first-time home buyers. They cannot be more wrong.
The Federal Housing Administration (FHA) was created as part of the National Housing Act of 1934. It insured loans made by banks and other private lenders for home building and home buying. The goals of the FHA were to improve housing standards and conditions, provide an adequate home financing system through insurance of mortgage loans, stabilize the mortgage market, and make home buying within reach for the masses.
While the FHA does not lend money directly, it does insure loans made by private lenders. The first step in obtaining an FHA loan is to ask lenders or mortgage brokers if they originate FHA loans. As each lender sets its own rates and terms, comparison shopping is important in this market. The potential lender then assesses the prospective home buyer for risk. The analysis of one’s debt to income ratio enables the buyer to know what type of home can be afforded based on monthly income and expenses and is one risk metric considered by the lender. Other factors such as payment history on other debts, are considered and used to make decisions regarding eligibility and terms for a loan.
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June 26, 2011 | No Comments | Topics: Local Issues · Opinions
Recently, both renewed problems in Greece and inflation news dominated the headlines and led to some volatile trading. Will Greece default on its debt obligations? How will this fiscal uncertainty impact home loan interest rates in Dublin, CA and the greater Tri-Valley?
The Greek government tried to close its unsustainable budget deficit with some unpopular austerity measures, and its people responded with riots. As the Greek people continued their protest against cuts to their entitlements and increases in their taxes, the European Union and the rest of the international community seemed divided on what to do. The Greek government recently announced some reshuffling within the Parliament. News of that reshuffling appeared to have been well received by the rest of the world, since news got out shortly after that Greece may be some sort of bailout to meet its near-term financing needs. With more than 20,000 people rioting in the streets, the Greek government had to do something to calm the markets, but the story of Greece’s failing fiscal health is far from over.
Shaking up the Parliament will not fix Greece’s long-term debt problems, nor will the short-term bailout, if it happens. Greece has not done anything substantive to address the unsustainable spending that led to the current crisis, so it ha simply delayed the inevitable debt restructuring, re-profiling, or outright default.
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May 10, 2011 | No Comments | Topics: Opinions
A good credit score is the key to one’s economic well-being. Simply stated, a good credit score saves money. In fact, the potential savings with better interest rates and other fees can quickly add up to thousands of dollars; however, even the slightest drop in your credit score can translate into interest rate hikes that cost thousands of dollars over time and increase your monthly expenses significantly.
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March 25, 2011 | No Comments | Topics: Local Issues · Opinions
You have found the perfect home in and around Dublin, CA. You have negotiated the right price or arranged a great refinancing opportunity. As I had described in my first article on the Around Dublin Blog, one option is the No Closing Cost option. No Closing Cost mortgages are also referred to as No Point No Fees loans, and they have existed in the mortgage industry for over 15 years. Before you can fully appreciate how No Closing Cost mortgages work, you have to understand that all loans have associated costs, and these costs generally fall into three different categories.
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March 17, 2011 | No Comments | Topics: Opinions
You have found the perfect home in and around Dublin, CA. You have negotiated the right price or arranged a great refinancing opportunity. Around that moment is when most people would ask, “Scott, what is the best way to structure our financing?” My answer usually is that it depends on the particular situation. One option for some borrowers is the No Closing Cost mortgage. No Closing Cost mortgages have existed in the mortgage industry for over 15 years, and they have gained popularity across the country in recent years as a result of swelling property values and rising loan amounts. Many lenders will not do a No Closing Cost Loan for loan amounts under $250,000, because smaller loans may not generate enough Yield Spread Premium to cover the costs.
No Closing Cost mortgages are billed as the perfect method for homebuyers to eradicate the pain of closing costs, but much confusion exists about how they actually work. No Closing Cost mortgages are based on higher rates than other mortgages that require borrowers to pay all the closing costs. Typically, the loans have interest rates at least 0.25 percent higher than other loans. This extra interest is reworked as a Yield Spread Premium for lenders and acts as a funding source to pay the usual and customary costs of a loan. In other words, if you want to pay less upfront, the lender will cover costs for you.
The closing costs for a $200,000 mortgage at 5%, for example, may be around $5,000. A normal mortgage will require buyers to pay these costs out of pocket. With a No Closing Cost loan, buyers will not pay any closing costs out of pocket; however, the loan rate may be raised to 5.5%, resulting in higher monthly payments for the duration of the mortgage.
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