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mortgage lending: A Few Reasons Why Now May Be The Least Expensive And Easiest Time To "Go FHA" - 04/15/09 01:13 AM
Shopping for low mortgage rates is a game of luck.
Some days, mortgage rates are favorable. Other days, they're not. And while you can sometimes make an educated guess about where rates might be headed, you're not always going to guess right.
Even the experts get it wrong more often than they'd like.
But some parts of the rate shopping process can be predicted and one of them is the future of mortgage guidelines.
In general, the more often homeowners default on their respective mortgages, the harder it is for future mortgage applicants to be approved.
This is why "now" may … (1 comments)
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mortgage lending: How To Know If You're Eligible For A Making Home Affordable Refinance - 04/07/09 07:55 PM
April 4, 2009, marked the official start of the Making Home Affordable refinance program.
Expected to help 5 million homeowners, the Making Home Affordable program "looks the other way" with respect to falling home values, approving mortgage applications based on borrower payment history and benefit to the homeowner.
Not every homeowner is eligible for a Making Home Affordable refinance, however. There are 3 basic criteria that must be met.
First, your existing home loan must be backed by either Fannie Mae or Freddie Mac. Thankfully, both companies provide online lookup services. Start with the Fannie Mae site because Fannie has a … (0 comments)
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mortgage lending: County-By-County: The 2009 "High-Cost" Conforming Loan Limits - 02/24/09 03:07 PM
As part of the stimulus package passed last week, Congress authorized a temporary increase to conforming loan limits in certain high-cost parts of the country.
"High cost" is defined by a regions' median sales price.
With the temporary increase, a greater share of Americans can now qualify for Fannie Mae- and Freddie Mac-backed loans, usually the least expensive source for mortgage money.
Higher loan limits can be good for the housing market and the broader economy for two reasons:
Cheaper money can spur new home demand, supporting home values. Higher loan limits render more homeowners refinance-eligible, freeing up cash for spending, saving, or investing. … (0 comments)
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mortgage lending: How Mortgage Calculators Can Be Misleading - 10/16/07 09:38 PM
Mortgage calculators are ubiquitous on real estate-related Web sites but that doesn't mean that they're helpful.
See, Internet-based mortgage calculators take three figres into consideration when determining "how much home can you afford".
Income Debt Downpayment/Equity Next, the calculator figures in your downpayment, multiplies your income by a factor of .38 and spits out an answer: "You can afford x amount of a home."
By contrast, a true mortgage approval takes twenty-six factors into consideration.
Mortgage calculators like the one above specifically don't ask about:
Credit score Recent bankruptcies Collection items Outstanding judgments or liens Intended use of property (i.e. investment property) Type of … (3 comments)
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mortgage lending: FHA Bans Seller-Financed Downpayment Assistance Programs - 10/03/07 03:45 PM
Effective November 7, 2007, the Federal Housing Administration is expected to ban home buyers' use of most seller-financed Downpayment Assistance programs. The Nehemiah program has been granted an exception through March 31, 2008.
DPAs are (were?) very popular in FHA mortgage circles as a way to help buyers finance their new homes.
FHA loans currently require a downpayment of at least three percent on a home purchase. That three percent, however, is not required to come from the buyer's own funds; it can come from a "gift" as long as the gifter is a family member or a non-profit organization.
… (6 comments)
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mortgage lending: How Credit Cards May Be Replacing Home Equity As A Funding Source - 08/29/07 12:40 PM
As mortgage guidelines loosened between 2002 and 2006, homeowners often used their home equity to retire credit card and other consumer debt. They did this by increasing the size of the mortgage and taking "cash out" from their home.
As you'd expect, this type of mortgage transaction is called a "cash out" refinance.
Well, now that mortgage guidelines are tightening, it's growing more difficult for a homeowner to engage in this type of home loan.
Mortgage lenders are restricting the total amount of equity that can be withdrawn from a home, usually as a percentage of the home's value.
This … (4 comments)
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mortgage lending: The Week In Review (August 27, 2007) : What To Watch For - 08/27/07 11:00 PM
This week is data-heavy so markets will finally get to focus on fundamentals instead of fear.
For the past two weeks, uncertainty about the economy has led to psychologically-driven mortgage interest rate movements.
Rising defaults devalue mortgage holdings and many investors are now expecting the defaults levels to rise even more.
When defaults exceed expectations, it indicates that the risk of holding mortgage notes was estimated to be too low. As the risk is adjusted higher, mortgage rates are move higher, too.
This is a major reason why jumbo loans -- loans over $417,000 -- are suddenly … (0 comments)
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mortgage lending: Why Private Mortgage Insurance (PMI) Is Suddenly Popular - 08/22/07 09:02 AM
Suddenly, Private Mortgage Insurance is back in vogue. If only by default.
The story background is well-documented in this Bankrate.com article from 2002. The article is five years old, but it still raises some salient points.
What the article doesn't highlight is that second mortgages such as home equity loans are typically sold to Wall Street, bundled in with sub-prime and "near-prime" loans.
Today, as the number of buyers for these higher-risk loan pools shrinks, some mortgage lenders have stopped offering second mortgages in order to reduce their overall lending risk.
PMI payments tend to be higher than their piggyback … (10 comments)
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mortgage lending: The Week In Review (August 20, 2007) : What To Watch For - 08/20/07 10:27 AM
Again last week, financiers failed to answer the major question dogging Wall Street: What is the "right" risk model to use for mortgage lending? The models of the past are being proven to have been wrong.
So, why do risk models matter?
Because the basic tenet of lending states that the riskier the loan, the higher the interest rate that should be charged on the loan. If the risk is unknown, then there can't be an interest rate.
If there can't be an interest rate, then there can't be a loan.
This is one of the reasons why a … (2 comments)
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mortgage lending: 7 Things You Must Never Do When Applying For a Home Loan - 08/18/07 09:55 PM
This is a list of things to steer clear of when you are seeking to obtain financing for a home. The following items may prove to be a detriment when you wish to move forward with the loan process.
Don't buy or lease an auto! Lenders look carefully at your debt-to-income ratio. A large payment such as a car lease or purchase can greatly impact those ratios and prevent you from qualifying for a home loan.Don't move assets from one bank account to another! These transfers show up as new deposits and complicate the application process, and you must then disclose and … (14 comments)
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mortgage lending: Why Downpayments Are Investments, Not Cushions - 08/10/07 02:00 PM
When home prices are stable or falling, home buyers often mischaracterized their downpayment on a home, calling it their "cushion" against falling home prices.
Nothing could be farther from the truth.
Nobody wants to owe money when they sell their home. In fact, when asked, most people will answer that they just want to "break even" on their sale.
So, if that person later sells their home for $30,000 less than they paid for it plus the cost of improvements, $30,000 is their loss. If their initial downpayment happened to be $30,000 and they walk away from the closing table "even", it doesn't change … (3 comments)
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mortgage lending: Important Guideline Changes - 08/10/07 01:34 PM
****I saw this today and had a really good laugh! I just had to share this with you guys!****
Very Important- Guideline Changes Effective August 8, 2007
All borrowers must have one blue eye and one brown eye to qualify.LTV > 65% SIVA requires minimum credit score of 849.For all LTV > 65%, 360 months of payment reserves now required.Borrowers must have no previous bankruptcies in their family history going back three generations.A minimum of 25 years self-employment history now required for all NIV Programs (at same location).Minimum Credit Score for Subprime Loans raised to 720.All non-arm's length transaction borrowers (mortgage, real estate … (3 comments)
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mortgage lending: National City Mortgage Reiterates its Strong Position and Continuing Commitment to the Mortgage Industry - 08/10/07 09:59 AM
August 10, 2007 - Reflecting recent conditions in the mortgage markets, several media reports have questioned the strength of National City Mortgage and its future participation in the mortgage industry.
National City Mortgage derives strength from its status as a subsidiary of National City Corporation (NYSE: NCC), one of the largest banking companies in the U.S. National City Corporation is committed to the mortgage banking business, and National City Mortgage is and will continue to be a big part of National City Corporation's success.
“Like most other lenders, National City Mortgage has adjusted its product offerings and pricing to ensure that … (2 comments)
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Ilyce N. Powell, CMPS™ - Certified Mortgage Planning Specialist
Baltimore,
MD
More about me…
AmeriSave Mortgage Corp./ United First Financial
Address: Lending in All 50 States + DC, Eliminating Debt and Building Wealth in United States and Canada
Office Phone: (866) 814-2153 x 7103
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