mortgage loan advice

Andre Savoie asked:




Mortgage Takeover of Fannie/Freddie: Good For Borrowers?

Government officials dropped a bombshell last week when they announced the seizure of mortgage giants Fannie Mae and Freddie Mac. Wall Street rallied, interest rates dropped and the politicians and pundits are claiming this will mark the end of the suffering brought on by the mortgage mess.

This is good news, right?

In the short term yes but everyone should stop and consider what the long term implications are of the government running the mortgage industry.

What’s Really Going On?

In a nutshell – Uncle Sam just co-signed for all of our loans.

Officials announced the move would involve placing these mortgage operations into a “government conservatorship” in hopes of stabilizing the housing / credit markets. In a conservatorship, like bankruptcy, common stockholders are expected to lose their investments.

Essentially this is the equivalent of a giant “bail out.” Investors have been scared to death of a worsening “meltdown” and this move basically puts the governments money (your and my money) behind the mortgage industry to make sure it doesn’t fall down.

With the housing and credit markets continuing to slump and with fears of the “meltdown” getting worse this move was the governments best bet to shore up markets.

Impact For Borrowers:

Good News:

1. Lower interest rates in the short haul. Who doesn’t like lower rates?
2. Investors get a shot of confidence. Now that Uncle Sam is the co-signer investors feel more confident that the mortgage backed debts will remain solvent.
3. The government owns your loan. How bad can that be?

Bad News:

1. The government owns our loan – uh, oh. Ever tried negotiating with the IRS? While the government has had FHA, VA and other programs it does not have experience managing the type of operations that Fannie and Freddie run.
2. Future uncertainty about management / guidelines. Our inside sources are telling us that the future of guidelines……
3. Long term implications…..

What Should Borrowers Do?

Borrowers should be looking to capitalize on the temporary drop in rates and stabilization of credit markets. In the week since the announcements rates have steadily declines as investors are feeling the relief of the government bailout.

Our suggestions:

1. Make sure your mortgage in process can drop down to the new rates
2. Make sure your loan officer is fully educated about the changes and how it might impact your loan.
3. Check your Good Faith Estimate (GFE) and Truth in Lending (TIL) to make sure your mortgage company is not “up selling” your loan to take advantage of the lower rates to make a higher commission.

What Does the Future Hold?

We believe that the housing market recovery will probably determine when the credit markets regain their health. Why? Because decreasing home values resulted in the inability of homeowners to sell or refinance their house to get out of financial trouble – which is how this mortgage issue all got started.

Here are some recent facts:

Maybe the housing marketing isn’t so bad in many areas. The Office of Federal Housing Enterprise Oversight’s (OFHEO) House Price Index (HPI) reported in May that 35 states saw a positive home value price change in the first quarter of 2008. In addition, 164 MSAs showed positive first quarter appreciation when compared to the same quarter of 2007.

California, Florida, Nevada, and Arizona are still the largest statistical problem areas for home prices. Industry experts acknowledge that these markets were the most speculative during the 2000 – 2005 mortgage mayhem. And because the values in these areas are very high relative to the rest of the country it has a larger impact on the overall numbers.

Just because four states are still falling, and 11 other states continue to try and stabilize doesn’t mean the entire market will continue to take the plunge. According to PMI Mortgage Insurance Company’s “Economic & Real Estate Trends” recent report, almost 68% of the nation’s 322 remaining MSAs experienced positive appreciation everywhere other than California, Florida, Nevada, and Arizona.

So while no one has a crystal ball it appears things are not quite as bad as the media would have us believe. If the credit markets can begin to stabilize and home prices hold steady we may yet see the end of this “mortgage crisis.”

Joe

Ryan asked:


I am a graduate student nearing graduation and have a heafty student loan around 160k. In addition, my credit score is poor because of a few missed payments. I would like to talk with someone who can give me unbiased advice on how to tackle my student loans as well as provide insight on possibly buying a house, consolidating my debt and raising my credit score.

Tamara

Leslie Gonzalez asked:




In the past, the mortgage loan originator never used to get a license. This was because there was no need for them to have the license. But those days are gone. Now the people realize that they are taking such a huge mortgage which is going to happen only once in the whole lifespan. Thus they definitely require the mortgage loan originator. However the government has also understood the situation and hence they are now asking them about the license. It is now compulsory that you as an originator should have the license. However you will have to follow some steps in order to get the license.

Some of the requirements are as follows:

1. The first thing which you will have to make sure of is related to education hours. You need to make certain that you have at least 20 hours training period under your belt. This is definitely very important. Similarly you will also find out that this can be done through regular classes as well as through online training. However, the regular courses are supposed to be far better than the online courses.

2. The second point is related to the exam. Most of the state conduct the state exams. They are definitely required to pass this exam and this is certainly a must for you. You need to realize this fact. You will certainly find out that the loan originator are quite a great professionals and if you want to be one then you will have to pass the state exam. Passing the state exam is definitely not an easy task and you need to realize this fact. Only then you will come to know about the work which you will have to do. In fact if you will pass the exam then this will definitely mean that you have the right knowledge about various loan schemes.

3. When you will pass the examination then you will be required to do the internship in some company. Generally you will have to do at least 30 days of internship. You will get a certificate at the end of the course and this is very important thing for you. You will definitely find out that you are updated with knowledge as well as preparation. Once you will do all this then you will feel quite comfortable with all kinds of loan mortgages.

Thus after doing all this you will become the mortgage loan originator.

Ron

Dispirited asked:


I am 20 yrs old I bought a duplex 4 months ago for 147,600 its appraised at 148,000 so I got it at top dollar. I got financing on 80/20 80%@7.5 adjustable rate (will go up in 2 years guaranteed) and 20%@10.75 fixed rate. I will be paying interest for the first 2 months. I am losing $200 on this monthly w/ tenants living there. It’s suppose to be my primary residence. Refi penalty for the 80 loan is $3600 and no penalty for 20%. So my question is I got a loan on stated income, I figured I am losing $200/month*24=4800 in 2 years interest only from my own pocket. If I refi now $3600 penalty and maybe $3000 closing cost (estimation) so that’s $6600 loss which I can live with 6600-4800=1800 difference I can live with that. But if I refi 30 yr fixed rate I have very low income i am a college student can I get possibly better rates to lower my down payment, I want to refi 0% down fixed 30yr rate is that possible? I want some advice plz I don’t want to go bankrupt in 2 yrs when rates go up!
I’v been reading lately on the internet about
the dangrous 0% down ARM loans mortgage companies
give out so easily, I thought I was just a lucky one
pft, no way, I got caught into it. But I want to keep
the property I don’t want to sell. Are my numbers correct
or am I just a bad dreamin investor wannabe? My credit
score when I got the loan was 700, I’v been paying
everything on time so it should have gotten up there
I hope I can get the fixed loan. I deeply appreciate
your advice. Thank You in advance

Ron

lookingforajob asked:


Help, my parents are in deep trouble and they need help, with our mortgage and other debt. Im doing this for my parents, because they dont speak English. They can no longer afford to pay for out house, and would like to consolidate loans/lines of credit/credit cards…are there any non profit company that can help us for some advice.

Thanks in advance

Shannon

bela429 asked:


I originally applied for a loan and was able to qualify for only 70k since then I have made a few changes such as pay off some furniture I had financed and paid off my car loan and now I am looking to try again and my dad wants to gift me his 10 acres of land he owns if I pay off 1,200 so I want to do what is best either keep the cash as a down payment if its not gonna make a difference or pay it off and hope it makes me look better to the lender? Any advice that will help me get a better chance of getting approved for a better loan will be much appreciated, Thank you! by the way I’m looking for homes in the Hesperia area
I was wondering if having the land in my name take away the chances of getting the new homeowners credit?

Derek

John Paytten asked:




Many people wonder what they can do to qualify for a home loan modification, or whether they are even eligible in the first place. Recent legislation has loosened the rules governing a home loan modification, and as long as you are staying in contact with your lender, no matter what the situation, you should have a great chance at receiving a home loan modification.

Obviously the terms of the modification all depend on the situation surrounding your personal desire to refinance, but you do have certain rights and privileges guaranteed by federal and local statutes. By being aware of these statutes and following a few simple steps you increase the strength of your position.

Here are some tips to follow in order to be accepted into a home loan modification program.

1. If you are in good standing and wish to modify your loan for the sake of lowering your monthly payment or reducing your interest rate, be sure to remind your lender of your current status. Also be prepared to deal with fees associated with the refinancing; the bank is, after all, in it to make money.

2. If you are in a negative situation, or have missed payments in the past, have a detailed record of your payments available to remind the mortgage company of the payments that you have made. Also have detailed financial records available to demonstrate your current economic hardship. ” I lost my job” is not going to cut it. They will require a detailed list of your expenses and income in order to demonstrate that you are making a good faith effort to pay your bills, and you simply cannot afford it at your current payment schedule.

3. If you received your initial mortgage at a higher rate due to poor credit be prepared to demonstrate to the company that you have not only made your initial payments on time, but that you have worked to improve your credit score and pay off your negative debt.

4. Contact government counselors. The government has provided a plethora of resources to help you in your situation. Take advantage of them.

The process is relatively simple if you are a self-advocate and know your rights.

Duane

louie d asked:


I live in CA, will the bank go after me of my wife’s unpaid mortgage, I did a quit claim in our house, I am not in the mortgage loan, Will I face any legal recourse for putting quit claim? Can I buy another house, this time more affordable. Which way should we go, foreclosure or short sale? Pls give a sound advice….

Stacy

Bradley A. Barbee asked:




Many businesses nowadays require finance to achieve their business objectives. Whenever businesses do not have the necessary funds to finance a new project like construction of a new building or acquisition of property for commercial purposes, they resort to acquiring money from lending institutions. These institutions have now become extremely cautious when it comes to lending money and they will check a number of things before they approve the loan.

Commercial mortgage lenders nowadays are very careful with whom they give their money to and they perform a number of checks to make sure they will get their money back within the time period set.

Here is a list of things they look at before approving any mortgage loan:

Your Business Character: Commercial mortgage lenders will check how well you met past credit obligations. They will check if you have paid previous loans according to the terms agreed upon. How interested you are in meeting the business objectives and goals. They will also have a look at your management quality and capabilities and check to see whether your management will be able to handle the growth of the business.

The Businesses Ability to Pay the Debt: The Lender will also check to see whether your business is capable of paying the loan according to the terms and conditions given by them. They also check the debts that you owe to other people and see whether you are able to pay off those debts. The way they check this is by looking at your financial statement. Your financial statement will give them the total of your net profits. They also see if you are able to pay off the debt in an up-market.

Value of Collateral: In the event that you business defaults in payment, the lender sells the property given as collateral. For this reason the lender checks the value of the collateral you are offering for the mortgage. The value is checked at the time of loan approval, during the period of the loan and also at the end of the term.

Current Conditions: The Commercial Mortgage Lenders will examine the current economic conditions in order determine the viability of the credit. Economic conditions can affect companies depending on the sector they are in. This is why the commercial mortgage lender will have to foresee the conditions of your business according to the future economic conditions.

Because of all these checks it is quite hard to get a commercial mortgage for business purposes. But if you already have made a plan yourself, and complete all these checks yourself and find your business project viable, you will have no problem in getting a loan for your business projects.

Diane

Paul Hockney asked:




For first time buyers the financial commitment of a house purchase is both frightening and exciting at the same time. And this is even more so if you are working in an urban area where you will end up paying a premium for even the smallest properties.

So as a first time buyer what are the things you should watch out for to make the whole house buying experience that much easier.

Do your homework

With so many lenders offering mortgages there are literally thousands of mortgage deals on offer across the UK. So it’s important that you research the market thoroughly and don’t get drawn in by all the hype and marketing you see on the TV, Online, on the side of buses etc. You should also speak with friends and relatives who have also been through the process recently to get their valuable opinion on what you should and even more importantly shouldn’t do.

Mortgage Advisor

After having done your own homework you still feel that you are no closer to deciding on which company to use for the mortgage then you should consider the help of a mortgage advisor. Although they will cost you money for the advice they also have access to 100’s more mortgage deals from across the UK. Obviously you need to find one, which is not associated with any of the lenders so they can offer you truly independent advice. They will also be able to advise you on First Time Buyer Deals which may not even be advertised by some of the main lenders in their normal marketing drives.

Decision making

Once you have all the information in front of you make sure that you ask loads of questions before making the final decision. So whether you are speaking directly with the bank or using an independent advisor make sure and be thorough with your questioning.

You should also look at the fine print. For example are there any penalties for paying off or moving your mortgage early. For example on some mortgages there may be a ‘redemption penalty’, which is enforced if you move lender within 2-5 years of taking out the mortgage. This penalty can run into