CheckMyMortgage.com

Your Questions About Mortgage Loan Process

admin — Fri, 03 Feb 2012 18:00:07 +0000

Ken asks…

How to become pre-approved for a mortgage loan?

I am interesting in buying a townhouse/condo. What’s the process of being pre-approved for a mortgage loan? How do I select a mortgage provider? Will they tell me how much I can afford?

admin answers:

A “Pre-Approval” can be done over the phone with just a few questions asked from a mortgage broker. Getting “Pre-Qualified” is a little bit different. Depending on what state you are in, they will ask you for as many as 3 months of bank statements, the last 2 years of W-2′s, and 30 days of pay stubs from your job. If you haven’t been on your job for long, don’t worry, they just want to make sure that you have been working steadily for the last 2 years, preferably within the same industry.

It is important to gather these documents now. When do you need to move by? Are you in a lease? It will take about 90 days from the time that you begin to look for a home until you close. Take the time to find a Realtor and a Mortgage broker that you will like. Begin to ask your friends who already own homes, who may have purchased recently with a Realtor, or who may have refinanced lately that has a mortgage broker.

Stay away from no-name, mom and pop mortgage brokers. If you find a Realtor before you find a mortgage broker, then 9 times out of 10, your Realtor can help you with your financing needs. You will need to get pre-approved for a loan before your Realtor can take you out and show you houses. This is because the mortgage broker will tell you how much you can qualify for. This will also be helpful to your Realtor so that they don’t show you houses that are outside of your price rage.

HUD is running a program now where you can put down $100 as a down payment. This is the website we use in GA but I am sure that you can find one in your area: http://www.hudpemco.com/

You can always email me with any more questions. Hope this helps and good luck with your purchase.

Nancy asks…

HELP! On a mortgage loan, what is the difference between a fixed rate and the APR?

I have a loan in process and even though the fixed rate is less than 4.9%, the APR may be somewhere near or over the 6%.What is this? What will the aftermath of 6% APR be on a $165,000 loan? And what does the fixed rate do? Thank you community in advance.
The mortgage is 1480, which includes: insurance, PMI, ect… What will the APR and Fixed rate have to do in this mortgage? What’s the difference between both?

admin answers:

You’re gonna borrow $165,000 at 4.9%. That’s the interest rate. Let’s say the payment is $1,000 / month.

However, there will be fees deducted from the loan (let’s say $4,400). Therefore, you will be paying $1,000 / month on ($165,000 minus $4,400 = $160,600). Thus, the APR is higher than 4.9%.

Maria asks…

Can a conventional home mortgage loan be refinanced using FHA?

I know that if a person already has an FHA loan, they may refinance using the FHA Streamline process. If a person currently has a conventional mortgage loan, can they refinance using FHA? If posible, can you please provide me the resource where I can read this information. Only if that’s not to much trouble. I looked on the HUD website but locating that particular information was far to cumbersome. Thank you

admin answers:

Yes you can but the correct answer is…you can financing a FHA mortgage, but ONLY up to 95% loan to value for refi’s cashouts, and it depends on the COUNTY limits…not the state limits. They have county limits….not state limits.

Streamline FHA refinance is for those who dont plan on taking money out, but those who just want a lower rate.

Jenny asks…

I plan on buying a house in Aug/Sept in New Mexico. When should I start the loan application/process?

I want to buy a house in Rio Rancho, NM in the end of August/ beginning of September and need to know when I should start the the loan application process for my mortgage. I want this experience to be as smooth as possible

admin answers:

Go ahead and get praproved. You might find a house you want and lose it if you wait,

James asks…

Can my mortgage loan be reinstated if I bring the payment up to date within a reasonable time??

I’ve been late on my mortgage for many times and am 2 months being. Can my mortgage loan be reinstated during the foreclosure process if I bring my payments current within 2 months???

admin answers:

Certainly.

Remember this – lenders DO NOT WANT TO BE IN THE REAL ESTATE OWNERSHIP/SALES BUSINESS! If they can avoid a foreclosure, they will. Usually, the mortgage that you have given to the lender (the mortgage is the LIEN, not the LOAN) has a clause that interrupts the “acceleration” process if the mortgagor (the borrower) brings his payments up to date and also pays the legal and other foreclosure costs the lender has incurred up til then.

There might also be some other fee/fine that the lender will tack on – just because! The Golden Rule definitely applies here. But you will get to keep your home.

Talk to your lender. Your original loan officer there is a good place to start. The lender will be happy to hear from you. Possibly they will even offer you a favorable deal to get you properly reinstated. It is when the borrower does NOT talk with the lender that problems “snowball” out of control.

Your Questions About Mortgage Rates News

admin — Fri, 03 Feb 2012 06:00:08 +0000

William asks…

If you redesigned high school curriculum, what kinds of classes would you create?

For example, kids graduating high school these days have no training in how their credit rating works, how to get a mortgage, how to invest. They don’t know how to advance their careers, how to hold a marriage together, how to raise children.

Thinking about the recent cover story in Time magazine, they don’t know how to assess risk in the modern world. Judging by the popularity of some conspiracy theories, they haven’t learned to think carefully about events in the news.

Our educational curriculum was designed in the 19th century and hasn’t changed much since. Back then, young adults didn’t have as many choices, they had more support from family and community, and were less likely, for example, to move a few thousand miles from where they grew up.

What kinds of classes would you suggest to bring our education system into the 21st century?
Sorry, the main question should have read “If you redesigned *the* high school curriculum…” Yes, I did take English classes in high school, but I didn’t do that well at proof-reading!
ProfessorMaddie – I agree. Back in the 19th century, no one needed to tell us to exercise more and avoid junk food. And it seems like Physical Education could be redesigned to have less emphasis on sports and more on nutrition.
namowal – I agree with the intent of your suggestion, but the implementation details may need more work.

In the past, some of this was accomplished through classes in debate an philosophy. Perhaps these classes could be reworked to accomplish your suggestion.
linlyons – I agree that, in order to add new classes, some existing class must be shortened.

We could re-tune existing classes to make them shorter while retaining the core.

For example, I love math and have a degree in it, but I recognize that most people don’t get much out of their classes.

In fact, the main thing they should get out of math is the ability to apply math to every day situations. I doubt many people have used trigonometry recently.

The math-related ability I find most lacking today is the capacity to quantify things in everyday life, and then use those numbers in some meaningful way.

In short, I think math education today fails to transmit its most useful feature, while emphasizing specialized aspects.

To sum up, perhaps we could shorten our math curriculum so that most people emphasize applied math. We could spend the time thus freed on new classes, while people, with an interest and talent for math, like me, could to take more classes.
magpiesmn – I totally agree that choice is key to motivating students. Particularly since kids of that age have a natural rebelliousness that can backfire on them in school.

However, I also think educators have a duty to broaden students’ outlooks and expose them to things they might not otherwise have considered.
robertmindriver – When the American education system was designed, it was totally focused on practicality. It was also designed for different times, so yes, I think there should be more emphasis on the real world as it exists today.

After re-reading my original question, I’m not sure why you think I advocate teaching morality, but we could consider adding it. Why? Because life today has more complicated moral choices, and some kids don’t get the moral education they once received in church.

As far as the two-track system you seem to be endorsing, there is some merit it that. But I also would like to see new classes, for example some practical economic education. As a young adult, I personally could have benefited greatly from a class in practical finance.

And with regard to more vocational training, we also need to keep in mind the dwindling need for blue-collar workers on today’s global economy.
“Mr. Wise” – it has become an unthinking mantra today that kids receive a poor education in math and science.

And yet we rarely think about what parts of a math and science education are genuinely useful for most people. In other words, studying math and science is not an intrinsic good, it must serve some broader purpose.

IMHO, the current math and science program alienates many while failing to convey the parts which could truly help people cope in a modern world.

I’m surprised at your assumption that a system designed to server a dramatically different society should not be re-evaluated.

I think you should ask yourself 1) what purpose should an education accomplish, 2) how well is our system achieving those goals, and if it is failing any goals, 3) what changes could we make to improve it.

Simply defending the status quo, when so much has changed, strikes me as an excuse not to think critically about where our society is headed.
Magpiesmn – I understand your concern over the government being responsible for broadening student’s horizons. Perhaps that is one reason why it might have been a mistake switch from local control over schools to our current model, wherein the federal government is responsible for probably too much.

Yet I can’t help that feel that while perhaps you do a good job at this, on average most of us fail dismally. In fact, I’d bet that the average parent wants to make a little clone of themselves.

And most of us don’t have the degree of specialization necessary to expose children to diverse topics such as dramatic arts, visual arts and the performing arts, or to teach them about foreign cultures or different ways of thinking. This is what broadening horizons is about, not, as you may fear, political indoctrination.

admin answers:

Morality
sex education
financial management
computers
media analysis
interpersonal skills (communication etc.)
how to take care of your body
yoga, etc. Fitness & nutrition i agree

Daniel asks…

The Fed is Going to Reduce the Rate Close to Zero – Is This Good News?

This is ominous, because this is being done to ward off the worst of all scenario’s, DEFLATION.

Which means drastic reduction in living expenses.
Which sounds really good, right? WRONG

Because factories and business will take it in the teeth because they will not be able to cover the cost of doing business. They will have to drastically reduce their payroll and operating expenses, which means layoffs, and even going out of business.

Which means
Wage cuts
Benefits cuts
Even lose your job and most everyone else you know is in the same boat.
What is your lender going to do about your mortgage, your car loan, student loan, credit card?
Your stock portfolio is going to plummet too
So is your 401K and all your other retirement funds.

Remember all the people telling people to stop whining and be responsible?

This is a last ditch effort by the FED.

Who is the FED—-Federal Reserve System?
They are the people who control all aspects of our money
AND
It is a private organization that not even our congress knows who all the players in that system are.

They got us into this mess, they are destroying your life and America.

Are you getting mad?

========
WASHINGTON (AFP) – Federal Reserve policymakers were expected to lower key rates close to zero Tuesday in the latest effort to battle a crippling credit crunch and stave off deflation, analysts said.
BILLY.

Listen, the fed goes to zero and that doesn’t work, then what will they do, go to less then zero, or print more worthless money, or what?

admin answers:

I’m not a economy expert, but it seems to me if the interest rate were up a bit, banks would be charging that rate for loaning their money, thus making money off it’s loans, and so be more inclined to loan it in the first place. Does that make sense? They make more money, and more money, bailouts are paid back…….hhmmmmmm

Ken asks…

How has the Eurozone crisis affected Britain?

It’s on the news all the time about it affecting Britains economy, but what effect has it had on us? I haven’t noticed any- other than low interest rates meaning mortgages, loans, etc. are been payed off faster

admin answers:

At a very simple level.

It all started late 2007 when the financial institutions started going bust due to appalling financial gambling and Labour ran out of money trying to bribe us (from our own taxes) to vote for them. Same basic thing was happening in most countries. Live now and pay later is alright – until you can’t pay later!

Most of Europe is bankrupt (other than Germany which will not bail the rest out!).
Europe is our biggest trading block.
Europeans are broke so not buying things – including our goods/services.
If we aren’t selling them “things” we are hit financially so as we are also bankrupt, not only aren’t they buying things but we aren’t either so firms have to cut back!
So lots of people have not had pay rises for several years.
Lots more have lost their jobs.
Look at all the empty shops / empty industrial units.
Lots more are going to lose their jobs.
We are so deep in debt (thanks Gordon Brown) the Government is going to have to apply austerity measures to balance the books – no they haven’t really started yet.
So at a time when we should be spending (to support industry etc.) sane people are hording
their cash and paying down their debts as they are worried / scared of the future.

The political “leaders” (that’s a joke) cannot solve the problem because the only real way is to become the United States of Europe with one Government and one Central Bank to control everything. The alternative is to admit the Euro project was wrong / is a failure and let ir fall to pieces (which is political suicide for the”leaders”. They are of course only interested in their own skins and not losing face so do nothing and hope it will go away!

So on a final grim note read this report below. How do we get out of the mess…..the politicians know (but it would be political suicide to admit) and so let it just ride while they fiddle around the edges!

One of the problems with Democracy is voting for your leaders. They will never take the right decisions for the country as they then lose their own jobs as the electorate then don’t vote for them! So preserving the 600 jobs of our politicians becomes their priority and the 60 million of the rest of us will suffer instead.

One thing is certain. We are in for a very hard 10 years (not 1 or 2)……probably much longer!

20 Aug 2011
SIR – The dire state of debt in the United Kingdom was put firmly into perspective by John Hawksworth, the chief economist of PricewaterhouseCoopers’s.
He notes that in 1987 total debt was 200 per cent of GDP, and in 2009 it was 540 per cent of GDP. Most disturbingly, he states that by 2015 the nation’s total debt will have climbed to £10,000 billion, or £264,848 for every man, woman and child.
This nightmarish debt level cannot be sustained, and with a projected stagnant economy for many years, Britain is on the very edge of bankruptcy.
Therefore, what the Coalition Government is saying about our living beyond our means and capabilities is perfectly true. There will inevitably be a day of reckoning.
Dr David Hill
Huddersfield, West Yorkshire

Hope I haven’t upset/scared you too much! Reality is often not nice!

Helen asks…

How am i ever going to be able to afford to buy?!?

After hearing on the news this morning that interest rates will yet again be rising i cant help but seeing my moving out next year to be nothing but a pipe dream!

Me and my Boyfriend both earn good money for our age, we dont have any debts hanging over our heads, but how can we seriously be able to afford to move out when Mortgages and house prices keep going up and it prices us out the market!

We just want somewhere to settle down and start a family! Too much too ask? Obviously yes!

Anyone else got this sort of problem?

admin answers:

You have my sympathy, we were lucky, got on the ladder a few years back and had a substantial sum given to us

But, top tips:
1. Try buying in a different (cheaper) area and commuting
2. Anyone in family who is in the same boat? Get together and jointly buy somewhere and let it
3. Remember that rent is effectively ‘dead’ money-you never get to ‘own’ the capital. But DON’T view any property as a way to make money, too risky in the short term (but a safe long term bet (5 years +))
4. There are hints that the market may slow down or reverse a little soon
5. Buy somewhere really tatty in a potentially good area – look for a nice set of houses occupied by older folk, don’t wish to be grim but friend bought a basket case where the owner had died, in a street full of oldies. Gradually the ‘old’ owners moved out (ahem) and new folk moved in, sending prices rocketing. But it was a cheap area at first – look for skips, the occasional nice car in a ropey area, etc…
6. Keep saving
7. Don’t despair, as long as you are safe and warm, that’s all that matters, really. We rented until we were in our 30s…

Ruth asks…

Isn’t Fannie Mae in the process of creating ANOTHER subprime-esque crises?? (ask for additional $23B)?

On Friday, the U.S. government said the unemployment rate rose to 8.9 percent in April, the highest since September 1983.

Fannie Mae’s guaranty business, “including loans with lower risk characteristics, has begun to experience increases in delinquency and default rates as a result of the sharp rise in unemployment, the continued decline in home prices, the prolonged downturn in the economy” and the rise in loan balances relative to property values, it said.

What’s more, Fannie Mae said its role as a linchpin in President Barack Obama’s program to boost refinancings and modifications of risky mortgages will likely have a “material adverse effect” on its business and net worth.

The programs, which can reduce interest rates on loans and defer payments, lend credence to speculation the U.S. is increasing its reliance on Fannie Mae and rival Freddie Mac (FRE.P) to stabilize housing, even if it’s at the cost of shareholders.

Fannie Mae said it will probably have to return to Treasury for more capital in the future.

“All the signs indicate that Fannie Mae coming out of conservatorship and becoming a public company again are close to zero,” said Gary Gordon, a managing director at Portales Partners in New York.

The $23.2 billion loss compares with deficits of $2.2 billion in the year ago period, and $25.2 billion in the previous quarter.

http://news.yahoo.com/s/nm/20090508/bs_nm/us_fanniemae_results;_ylt=AppVDEfBGcAq8PDUFdEBMI5H2ocA;_ylu=X3oDMTJub2JhZHRpBGFzc2V0A25tLzIwMDkwNTA4L3VzX2Zhbm5pZW1hZV9yZXN1bHRzBGNwb3MDNQRwb3MDNQRzZWMDeW5fdG9wX3N0b3JpZXMEc2xrA2Zhbm5pZW1hZXRhcA–

Everyone knows how loose mortgage underwriting led to the go-go days of multitrillion-dollar subprime lending. What isn’t well known is that a parallel subprime market has emerged over the past year — all made possible by the Federal Housing Administration. This also won’t end happily for taxpayers or the housing market.

Last year banks issued $180 billion of new mortgages insured by the FHA, which means they carry a 100% taxpayer guarantee. Many of these have the same characteristics as subprime loans: low downpayment requirements, high-risk borrowers, and in many cases shady mortgage originators. FHA now insures nearly one of every three new mortgages, up from 2% in 2006.

http://online.wsj.com/article_email/SB124139474675481713-lMyQjAxMDI5NDAxNDMwOTQ0Wj.html

Today, Fannie Mae operates under a congressional charter that directs the company to increase the availability and affordability of homeownership for low-, moderate-, and middle-income Americans. Fannie Mae is authorized to buy Federal Housing Administration (FHA) insured mortgages, thereby replenishing the supply of lendable money.

Freddie Mac is also a publicly held corporation, chartered by Congress in 1970. Freddie Mac came into being as the Federal Home Loan Mortgage Corporation (FHLMC) with the mission to create a continuous flow of funds to mortgage lenders. By supplying lenders with the money to make mortgages and packaging the mortgages into marketable securities, Freddie Mac also helps to sustain a stable mortgage credit system which in turn, reduces the mortgage rates paid by homebuyers. Over the years, Freddie Mac has been responsible for opening the door to homeownership for one out of six home buyers in America who would not have qualified otherwise.

http://realtytimes.com/rtpages/19981116_fanniefred.htm

admin answers:

Hey, let’s throw another $23 billion down the rat hole! The fraud-ridden money pit known as Fannie Mae needs more of your money.
Who among the Fannie-kissers in Congress will say no?
Say goodbye to another $23 billion.

Http://news.yahoo.com/s/nm/20090508/bs_nm/us_fanniemae_results;_ylt=ArS1IUDx_5TiD7TkDNvvR4Cs0NUE;_ylu=X3oDMTJtbjg5MGxyBGFzc2V0A25tLzIwMDkwNTA4L3VzX2Zhbm5pZW1hZV9yZXN1bHRzBGNwb3MDNQRwb3MDMTMEc2VjA3luX3RvcF9zdG9yeQRzbGsDZmFubmllbWFldGFw

Almost seems like small potatoes nowadays.

Your Questions About Reverse Mortgage

admin — Thu, 02 Feb 2012 18:00:06 +0000

Chris asks…

What are the pros v. con on getting a reverse mortgage?

I believe her thinking is that the equity paying off the house would be a good idea. I’ve tried to see the advantage in it, but for some reason I just can’t make the numbers work. Also, if the equity is paying off the house who then “owns” the house since she is no longer paying the mortgage anymore. Any and all advice is greatly appreciated! Thanks and HAPPY NEW YEAR!!

admin answers:

The most popular Reverse Mortgage is the Home Equity Conversion Mortgage (HECM) which account for over 90% of Reverse Mortgages done to date. The HECM is Federally regulated and insured (FHA—HUD) They set the rules and regulations. AARP just released a study
(12-12-2007) here’s the web address that will link you directly to the report on AARP website…

Http://www.aarp.org/research/credit-debt…

You can also go directly to www.HUD.gov to research Reverse Mortgages. Seeing it’s their program why not go right to the source. Part of the Reverse Mortgage process is that you have to talk to an independent HUD approved third party counselor to make sure you understand the program and that it was explained to you correctly. (government safeguard). There is no charge for this and you can do this anytime you want. Just another avenue to answer your questions. I hope these resources help in your decision making. If I can be of any other assistance let me know. For disclosure purposes……I have been in the Reverse Mortgage business for over 2 years and I am a Reverse Mortgage Consultant for EverBank Reverse Mortgage. Also Federal law requires that the homeowner MUST remain on title, thus maintaining ownership of the home.

Regards,

Stephen

Sandra asks…

WHY VARIOUS CONDOS IN PUERTO RICO ARE OUT OF REVERSE MORTGAGE TRANSACTIONS?

I am 64 years old, i have an apartment that not cualifian to a Rverse Morgage transaction.

admin answers:

You might not have enough equity (money) in your home.
They are getting much more strict.

Did you know that a reverse mortage is one of the top 10 worst financial mistakes a person can make?
If you ever decide to move out, you will have nothing – absolutely nada to your name.
You may want to move out around age 80 if you fall and break a hip and can no loger move around to cut grass or drive around. Chances are VERY slim you will stay in your home forever.
Plus reverse mortgages are super, incredible expensive.

Why not sell your home, and move into a very small apartment instead.
That way you will have plenty of cash that you can retire more comfortably on.
Talk to an investment company like Charles Schwab or Fidelity and ask them about CD annuities.
They pay out monthly into your checking account and are super low cost.
/

Laura asks…

Can you sell a reverse mortgage and still have your name on the loan?

Can the title be in someone else’s name? Some retired lady, wants me to give her $30K and I keep paying her mortgage of $850. It’s a good price for the area, but can it be done? Is there anything I should do (besides leaving) to protect myself, I don’t have an agent or anything, should I get a lawyer? Please answer any and all questions you can!

Thanks

admin answers:

No. If she has a reverse mortgage, she gets paid by the mortgage company and she does not make payments on the mortgage at all. She would then be getting paid by the mortgage company from the reverse mortgage, collecting money from you and you would be giving her 30k up front that she would be getting. If you are seriously interested in this home, I strongly recommend you retain an attorney to help you. You can probably get an attorney to help you out for as little as a couple hundred dollars. Once ownership interest in a home changes at all for a person with a reverse mortgage they have to immediately notify the lender at which time. Wells Fargo specializes and is an industry leader when it comes to Reverse Mortgages. Contact someone at Wells Fargo and explain the exact situation and see what they think if you want to save the attorney fee.

Michael asks…

What problems can I encounter with a reverse mortgage.?

I need repairs to my home, which I intend to stay here. But I cannot afford the expense at this time.

admin answers:

This is an excerpt from Smart Money.

“The problem with reverse mortgages? First, they don’t come cheap. There are origination fees of up to $6,000 on a Fannie Mae loan, for example, and closing costs as high as $12,000 on a $150,000 loan. Also, your folks will face a lengthy application process that includes, among other things, mandatory counseling. Diana E. Watkins, a professor in Santa Clarita, Calif., had to wade through streams of paperwork to help her mother,

Esther Ormston Sell, pull $135,000 from her home last year. Then, on the day of the signing, they couldn’t close because Sell had no picture ID (she had never worked or driven a car). “The banker told me that this is one of the biggest problems with women of my mother’s generation,” says Watkins, whose mom’s attorney had to vouch for her identity.

You’ll also have to use good judgment when considering a reverse mortgage. Given the costs of the loan, it is not a prudent way to cover short-term cash-flow needs. And sometimes it simply makes more sense to sell the house. For example, if your parent is diagnosed with a terminal illness and has only a couple of years to live, selling the house would provide more cash than a reverse mortgage, says Tom Scabareti, vice president at Financial Freedom. ”

This one is another informative one: http://itsjustmoney.blogs.com/its_just_money/2006/08/reverse_mortgag.html

Donna asks…

is there a minimum loan amount in a reverse mortgage?

My dad wants to take out a lump sum of like 4 grand or 5 grand maybe 10 grand at most. We own the house, I want to talk him out of it, this was one of his questions. Also if you can supply me with a whole bunch of really good reasons why this is a bad idea, that would be great. Thank you!

admin answers:

He wants a home equity loan, not a reverse mortgage.

In a reverse mortgage the bank basically buys the home from you with monthly payments. They do not just give you some money and not expect it back.

Because he wants so little a personal loan would be easier then a second mortgage.

Your Questions About Mortgage Rates

admin — Thu, 02 Feb 2012 06:00:09 +0000

Helen asks…

Are mortgage rates on condos generally higher than houses?

I locked a rate of 5.25% earlier this week and my mortgage broker mentioned this was the rate for a condo. Are the rates for a condo different than a house? I’m wondering if I got a good rate, especially since rates have recently gone up.

admin answers:

If that;s a 30 year fix, thats a good rate.

Ruth asks…

Will I get less than the average mortgage rates if I have great credit?

We are thinking about buying a house, and I just want to know if we have enough for a 10% down payment, decent income, and a great credit score ; can we expect to get below the average mortgage rates that are listed online? Thanks.

We will be get pre-approval before we decide to go house shopping, but I am just wondering this right now.

admin answers:

Great credit scores get the best rates.

A lender told me that many online calculators put on a rate for an average credit score, but some quote the best rate available.

Do not forget to compare more than interest rate between lenders. Closing costs, especially with online lenders, can be very different from shop to shop. Ignoring closing costs and only looking at interest rate can cost you thousands of dollars.

Susan asks…

What is the largest site for published mortgage rates?

Is there an independent site (besides bankrate.com) that publishes daily mortgage rates? Ideally, I am looking for a datafeed I can integrated into a project.

admin answers:

Probably not.
Most sites, Including bankrate use rates offered by many lenders.
And although they are all in the ball park, might differ a bit.
I do this for a living. If you want a feed, you may be stuck picking one you trust, else you can get historical data from some FNMA, or government sites. But not streaming daily or hourly data.

Donna asks…

Are large local banks less likely to give great mortgage rates to borrows with great credit scores?

I’ve been shopping for a low interest rate (30 year fixed). I have excellent credit but it doesn’t seem to help me much when I go into large local banks. It seems like they just run the basic numbers to make sure I qualify for a conforming loan. They then tell me their printed rate on their website. My experience with smaller mortgage companies is that they collect more information and they have quoted lower rates.

Is this typical?

admin answers:

You are best off securing a great mortgage from a Credit Union or a Community Bank.

James asks…

Why would the failure (or need for government support) by Fannie or Freddie cause mortgage rates to rise?

How does that correlation work?

How do mortgage rates respond to the circumstances of Fannie and Freddie?

admin answers:

There is a risk correlation. The more and bigger failures there are, the higher rates will go. The higher rates serve to help pay the off the bad debts from all the other bad loans.

Your Questions About Mortgage Loan Modification

admin — Wed, 01 Feb 2012 18:00:05 +0000

William asks…

Mortgage modification loan question?

If my income level is just above what my mortgage payment is each month and I am applying for a modification loan can the bank take my house?

admin answers:

They will not modify your loan as your income is too low. Bringing down the interest will not help you if it does not bring the payment under 40% of your income.

They will not foreclose because they are unable to help with a modification though, they only foreclose if you are not paying the mortgage.

Nancy asks…

Is there a difference between a loan modification and a mortgage modification?

My husband and I just got into a huge fight because I was supposed to ask for a Mortgage Modification instead of a Loan Modification for our mortgage loan…is there a difference? I thought they were the same.
In regards to us “having huge issues,” YES, we do have huge issues when it comes to our mortgage (we are 30% underwater, my husband is in Afghanistan so that we can pay our mortgage, etc) but that is NOT what I was asking and to make a statement like that is inappropriate, inconsiderate, and judgemental. Please just answer the question.

admin answers:

Semantics. Loan mod, mortgage mod – basically it is a loan on your property, not much room for interpretation there. If you got in a huge fight over this, you have huge issues.

Sandra asks…

has anyone been late with mortgage payment after loan modification?

I’m just wondering if there is anyone out there who has been late with their mortgage payment after a loan modification? and if so, how did your bank handle it? My bank considers you late after the 15th of the month, but doesnt report anything negatively to the credit bureau until after 30 days late.
good lord @ all the answers, Im not looking for credit help, I might be late this month only on my payment just wanted to see if anyone else had that same situation

admin answers:

Your bank is treating it per industry standards for ANY mortgage. There is nothing unique about your bank’s handling of that.

Susan asks…

Has anyone qualified and BEEN APPROVED for Obama’s mortgage loan modification?

Just curious, I should hear from my lender in 30 or so days… we certainly qualify for it.

admin answers:

My niece in Florida is doing a modification under this plan. The bank is going to modify her mortgage from the $235,000 purchase price to current appraisal which is about 119,000. All she has to do is pay $775 for the next three months, (her original payment was close to $1900), and they will modify it for her. She got scammed by her real estate agent, who was trying to short sale her house to a relative. She told my niece she had to move out of the property, which she did Jan 2008. She just got a call a couple weeks ago from the agent saying she couldn’t sell the house and her contract was up.

My niece called her mortgage company, who was surprise my niece was not longer living in the house, and they were the ones who told her the agent was trying to short sale to a relative (of the agent) who couldn’t get financing. They told her move back in, get the utilities back on in her name and make the three monthly payments of $775.

The realtor also attempted to get a low ball appraisal on the house by dumping cola on the carpets in two of the bedrooms, removing and hiding a kitchen cabinet door and the linen closet door and removing all the faucets in the house.

I told her she should report the agent to the Board of Realtors.

Ken asks…

Mortgage loan modification?

Do you think a mortgage co. is likely to do a loan modification on a commercial property to avoid foreclosure?

admin answers:

They can be beneficial if you are dealing directly with the institution that is servicing the loan. The 3rd parties are just scheming of what you can do for yourself. I have been a direct GNMA lender/servicer for 17 years. I have seen more modifications ( legit ) in the last year then in all the last 17.

We do not want to foreclose. No matter the MI (mortgage Insurance) we will still lose 12-25% depending on the type of loan market area esc.

Contact your lender directly.

Your Questions About Mortgage Rates News

admin — Wed, 01 Feb 2012 06:00:04 +0000

Lisa asks…

What exactly does the Fed’s recent rate cut mean?

“On Friday, the Fed’s move to cut its discount rate by 50 basis points to 5.75% was seen as an attempt to help distressed banks borrow money”

I have read so many news articles about banks getting lower rates (like over-night lending to other banks) but what types of loans do they effect?

1) Will ARM mortages adjust lower?
2) Will traditional 30-yr mortgages fall? If so, to what APR?
3) Will my student loans change?
4) Will credit card companies be giving better interest rates?
5) Will the interest rate on my online savings account go down?

admin answers:

The answer to all your questions (1-5) are NO.

The discount rate effects very short-term loans by regular banks, and it does not effect any consumer or business loans or savings.

Sharon asks…

If someone in Real Eatate, a loan officer wrote this what in the world does this mean for buying a house??????

The good news is that rates early this week hit the lowest point since mid 2005 with 30 year fixed rates to be had for under 6 Percent. This is huge, as over the last 50 years there are very few times that rates have dropped to this level. I can still remember fixed rates in the 80′s of over 15 Percent. What do you think that would do to your housing expense and disposable income?
The employment numbers which were released this morning were much more positive than anticipated. This has put pressure on mortgage backed securities causing their yield to rise. This movement has increased rates a little, but still leaving us with historically low home mortgage interest rates. The 10-year bond is currently up 20 basis points from Monday of this week, trading at 4.08 Percent -up from 3.88 Percent. Our feeling is that despite the market gyrations we will enjoy these favorable rates over the near term, making this a great time to purchase or refinance.

admin answers:

The interest rate is low compared to as in the past. It talks about employment, since employment means people are able to perhaps pay bills etc… Thus changing the economy, therefore changing real estate slowly since it is slow in adjusting to the economy. In other words, is a great time to buy real estate before rates increase!

Sandy asks…

Where is private money found for Real Estate investing?

I’m looking for a private equity type of lending outfit.
While I’ve heard about private mortgage brokers and such things like that – there is no evidence, none that I have seen, that they actually are out there (though I know they must be)

Being stranded out in the middle of Kansas is making it difficult for me to find any lenders who will work with me. I can work with a >60%LTV and rates as high as 22%, the problem here is my personal credit is bad news and I’ve not got any cash right at this moment here.

The right lender will make quite a bit of money with me as I don’t play games or come up with any stupid ideas. I simple haven’t found him/her/them/it (something/someone with enough brains to work with me) so far!
wolfgang007,
I am not going to let bad credit stop me. Forget it!
Thank you Mr. Gee..
Don’t worry I don’t let being turned down bother me and I certainly won’t worry about what someone who can not spell “you’re” has to say PS: I’m looking at rehab projects.. fix and flip type of a story.

admin answers:

I am a mortgage specialist. I do know a gentleman who will lend only on the equity of the property. He will lend you 50% of the property value. He doesn’t even want to pull your credit. It doesn’t matter. He must be able to put a lien on 50% of the property. He must be in first place should there be other liens on the property. You must pay an up front fee. You must be able to produce an appraisal (doesn’t have to be a new appraisal). In the case of commercial property, you must provide rent rolls. In most cases, the people who use this option use it on income producing property where the income will make the mortgage payments and produce revenue for the mortgage holder. If you need further information, contact me at wwi_2@yahoo.com

James asks…

Was S&P downgrading U.S. rating retribution for Federal mortgage probe?

Standard & Poors is responsible for much of our economy tanking by inflating mortgage ratings packages so the Federal Gov FINALLY got around to investigating their culpability. Apparently this probe began BEFORE the U.S. August 5th downgrade to AA+, so is it possible this was payback message to show how vulnerable we are for targeting S&P?

http://www.nydailynews.com/news/national/2011/08/17/2011-08-17_sp_mortgage_ratings_probed.html?r=topnews

admin answers:

Yes. Unfortunately McGraw-Hill (S&P), World Bank and other financial groups have great economic leverage worldwide. Governments are controlled by their needs assisted by people who have been placed in government seats that have alliances with these institutions and prioritize their interests which is a conflict of interest. These biased emissaries are Influencing U.S. Legislative decisions which have had horrible ramifications because of these ties with special interest groups (such as Geithner’s prev employment with Goldman Sachs), and have plagued the U.S.which has helped weaken our economic security exemplified by our most recent downgrading for the 1st time in history. Basically the financial sector’s greed has too much power.

Http://www.moneynews.com/StreetTalk/TimothyGeithner-2008FinancialCrisis-FederalReserveBankofNewYork-WilliamDudley/2011/07/22/id/404538

Richard asks…

How come Obama has yet another of his “historic accomplishments” in the housing market?

Aug. 23 (Bloomberg) — Sales of new U.S. homes declined more than projected in July to the lowest level in five months, indicating the industry is struggling to stabilize two years into the economic recovery.

Purchases fell 0.7 percent to a 298,000 annual pace after a 300,000 rate in June that was slower than previously estimated, figures from the Commerce Department showed today in Washington. The median projection in a Bloomberg News survey of economists called for a 310,000 rate in July.

Builders are less inclined to start new projects as they face competition from cheaper existing homes and the prospect of foreclosures putting more unsold properties on the market. A jobless rate above 9 percent and limited employment growth indicate housing may keep weighing on the recovery even with mortgage rates at a record low.

http://www.businessweek.com/news/2011-08-23/new-home-sales-in-u-s-drop-to-lowest-level-in-five-months.html

Why attack me, I am just the messenger
Glass the ‘rich’ hire people, the poor don’t

admin answers:

Because there are no jobs , no job no house … Epic fail …o=fail

Your Questions About Reverse Mortgage

admin — Tue, 31 Jan 2012 18:00:33 +0000

Charles asks…

Who knows something about a reverse mortgage?

I know they are a government insured loan but I need information from someone who has had one and how it worked out.

admin answers:

These are very expensive loans.

If your house was paid off and worth $200,000, would you agree to sell it to me for $100,000? No? Then why would you agree to do it if someone called it a reverse mortgage?

Sandra asks…

My boyfriend’s mother got a reverse mortgage loan on her home. She passed away, my boyfriend is executor/heir?

I know i can get the loan for the amount but I’ve been reading about purchasing a house you need a down payment – does this apply on reverse mortgage payments?

admin answers:

When her son informs the lender of her death (by way of a death certificate), they will give him the option of buying the home (for what’s left of the mortgage) or they will sell it. You will have to qualify by way of credit, etc. Only your lender will determine how much of a downpayment you’ll be required to put down.

Lisa asks…

reverse mortgage — Where and how do I get experience in this field?

I saw a job that might interest me, where do i gain the experience?

admin answers:

On the HUD website….has all the info you need!

Lizzie asks…

Does the amount of loan from a reverse mortgage depend upon the equity in the home?

Can I get a loan based on age and the value of my house even if I do not have a lot of equity?

admin answers:

The maximum amount that you can get from a reverse mortgage is a function of the amount of equity in your property, your age, and the location.

HUD has a page with a wealth of information on the FHA insured reverse mortgage (aka HECM):
http://www.hud.gov/offices/hsg/sfh/hecm/hecmhome.cfm

James asks…

What are the advantages and disadvantages of a reverse mortgage?

admin answers:

The advantages are that you will increase your monthly net disposable income and will never have to make another mortgage payment. Disadvantages include the closing costs and your heirs will get less inheritance…

Rick Lanicek
www.primelendingonline.com

Your Questions About Mortgage Payment Calculator

admin — Tue, 31 Jan 2012 06:00:06 +0000

Helen asks…

Mortgage Payments?

Why is paying half of your monthly mortgage payment in the middle of the month and the half at the end of the month cuts the amount of total interest & years to the mortgage? I did not think the mortgage calculator is the same as a CC calculator. Can some please clarify.

admin answers:

You are not carrying the interest for the full amount of the mortgage since you are paying half during the middle of the month you are taking off an amount which can be used to tack on more interest. The larger the balance a month the more interest is tacked on. Therefore cutting your years down on paying it off. Also adding more to your payment and stating that the extra is soley for the principal will cut down on the years you pay as well.

Paul asks…

Mortgage Calculator with GUI input boxes?

calculate monthly payment based on input of loan amount, apr, and term.

admin answers:

It would help a great deal if you’d state the language, what you’ve done so far, what parts you already have solved, where you might be stuck, have you googled yet for such source code, etc. Chances are, there are any number of examples on the web already for something like this, in a variety of languages. More specifically, I’m sure there are Java script web pages that do this where you could extract the methods used.

That is, if you want to program this. However, I can’t even tell if this is homework or if you really just want a web page to do that for you (despite it being asked in a design forum, I can’t be sure.) So I’ll provide a page or two below, just in case.

Robert asks…

Mortgage Payment Planning — Math Homework?

Suppose you make payments of $884.61 for an $86,000 mortgage with a 12% APR for 10 years and then you make payments of 1050 until the loan is paid.

a.) When will the mortgage be completely paid off under these circumstances?
b.) How much do you save with the greater payments compared with the original plan?

It would be greatly appreciated if you could help me out. Showing work and what equation you need to put into a calculator would be EXCELLENT! Thanks in advance.

admin answers:

This calculator and table might help you.

Http://www.bankrate.com/brm/mortgage-calculator.asp?unroundedPayment=884.6068333559338&loanAmount=86000.00&nrOfYears=30&nrOfMonths=360&interestRate=12.00&startMonth=1&startDay=19&startYear=2009&monthlyPayment=884.61&submit.x=0&submit.y=0&submit=Calculate&monthlyAdditional=0&yearlyAdditional=0&yearlyAdditionalMonth=1&oneAdditional=0&oneAdditionalMonth=1&oneAdditionalYear=2009&paidOffDate=Feb+19%2C+2039

I can tell its math homework, I dont think anyone has gotten such a bad loan since the late 1970s.

Steven asks…

How much will I save if I make a mortgage payment daily totaling to my monthly payments?

Hello,
I have a FHA Mortgage 30 years fixed @ 6 % – Monthly payments every month of $584.25. This is including my taxes and mortgage insurance + home owner’s insurance.
The mortgage value is $54000.00

My question is how much will i save if I make a payment of $29.22 / Daily which totals upto $584.25 counting 5 working days in a week.

Thanks for your replies and do also let me know any links where I can find a calculator for the same to try out different scenarios.

Regards,
Shah.

admin answers:

Your mortgage company will not accept that. Very few will accept partial payments, and are certainly not going to take 30 payments a month. They generally will accept a partial payment if it is additonal principal added to a full payment. Also, they usually credit you for all payments on the Due Date … Even if you pay it early. This plan is a waste of your time and theirs.

If you want to save yourself money over the long haul, add $50 to each payment. It will make a huge difference in the number of years you pay out.

Jenny asks…

Can someone explain a daily compounded mortgage to me?

I got a mortgage on 1/24/07. Bank said our first payment was due on 4/12. I have paid on time (early actually) every month and the first 2 months payments went entirely to interest. Every mortgage amortization calculator I’ve found says that SOMETHING should be applied to interest. When I called the bank (Wachovia), they said my interest is compounded daily.
Should I look to refinance somewhere else??

admin answers:

This explains how your interest rate works:

http://www.investopedia.com/terms/p/periodic_interest_rate.asp

The more frequently your interest is calculated the more you will pay in interest for any given rate. Say you have a 10% mortgage for $1,000 (to make the maths easy). Your interest is $100 if you did the calculation, and paid, once a year. However if you did the calculation and paid every month, you would end up paying $1,104.70 over the year — an effective annual interest rate of 10.47% You need to compare the effective annual interest rate (APR) when shopping for a new mortgage.

Your Questions About Mortgage Loans For Bad Credit

admin — Mon, 30 Jan 2012 18:00:32 +0000

Betty asks…

If I choose to blow off a mortgage loan, how long will it take to regain credit?

BadGirl has an idea. What if I dump all of my student loans into a refinance and/or home equity (on property I own, but need to unload), and then I decide to bail on that property. It will take me a good 20 years to pay off my large student loan, but how long will it take to recoup my credit rating if I do this? BadGirl thinks it will take longer to pay off the student loan, than rebuild a bad credit rating (and get rid of the student loan debt for good).
Comments/suggestions?
BadGirl was not considering a bankruptcy, just giving the property back to the lender and dealing with the rest. You are right about the fact that I should be smarter, but I actually make about $40K less than I did before I became a teacher, and have more college debt because of it. I was thinking about refinancing with the same shitty company that talked me into the interest only rate to begin with-I thought maybe I could give them some of their “interest” back.

admin answers:

In your next lifetime.

Steven asks…

I need HELP what should I do about a mortgage loan? Can I receive one with bad credit and low income?

Hello! I am a single mother of 2 children. I currently am paying $1200 in rent and I can not afford it. It kills me to be paying so much when I’m not even going to own the house. My credit score is really low about 515. Are there any first time buyer loans that don’t look at your credit score? Also fix your mortgage payment according to your income. I need some credit counseling also at no cost and can not find any around my area. (Atlantic County, New Jersey) My student loans are in default. I honestly do not know what to do. If you have any advice please let me know. No bashers please I already know that the decisions that I made in the past now affected me I wish I would have known it then. Thank you so much for taking your time to read my problems. – Karen

admin answers:

Try habitat for humanity in your area they help low income people become home owners.house notes are about 500-650.00 a month.houses are much easier to buy now b/c of the economy.

You have to help build others houses while your house is being built that will be your down payment on the house,the work you’re doing building houses.

Laura asks…

a real place for loans for real bad credit?

i have been trying to get a personal loan and a mortgage and no place absolutely no place will give me one now i know there are people out there who has worse credit than me and i can’t get a second chance please don’t suggest payday loans prosper american general or citifinancial they all advertise for bad credit but you still get turned down

admin answers:

Start rebuilding your credit.
Begin by taking $500.00 in to a bank. Deposit it and make a loan using that account as collateral. Set up regular monthly payments and make every single payment exactly on time until the loan is paid in full. Credit is established/rebuilt by showing that you can make REGULAR monthly payments over a period of time (paying the loan back early won’t help your bad credit).

When you’ve paid back the first $500 loan, do the same thing over again, depositing more and borrowing more against the deposited amount (your collateral).

Do it again.

Don’t miss or be late with ANY payments with any creditor. If you see in advance that you’re going to be late on a payment, talk to the lender in advance. Many times they will help you figure out a way to keep your credit improving.

Don’t borrow more than you can repay. If you can, set up a payroll deduction amount to be paid to your loan automatically.

Helen asks…

Getting a Mortgage With Bad Credit?

Are there legitimate places to get a mortgage with marginal credit? I have some charge offs on my credit report from 5 years ago. I had a major health problem and used a credit consolidation service to assist me with some CC debt. It was a bad idea I know now. But I’d like to buy a house. I have above average income, so I don’t think I would qualify for a FHA loan. Does anyone know what the limit is on qualifying?

admin answers:

If you have a bad credit history still the loan market place is full of lenders who are ever willing to offer you a fresh loan. But you should be meeting some conditions laid down by the lenders. Loans for bad credit people are in fact easier to get then they were ever before, thanks mainly to cut-throat competition amongst the lenders. Lenders are giving loans to the bad credit people who have late payments, payment defaults, arrears, county court judgments or any credit problems. These loans are available for any purpose like home improvements, purchasing a new or used car of your choice, for wedding and holiday tour, debt consolidation or for paying child’s tuition fees.

Http://loan–house.blogspot.com/2008/03/bad-credit-loans.html

Every lender in approving loans surely likes to see if the bad credit borrower has sufficient capacity to repay the loan in timely manner. If the borrower earns well, has regular bank balance, has been an employee for some years and has a convincing loan repayment plan in place, then the lenders do not usually hesitate much. So ensure that you have adequate repaying capacity before applying for a loan. Also, you should first check your credit report for any errors. If your credit score is too low then you would be charged a very high rate of interest. So it is advisable to first pay off some easy debts to improved credit score and then you should apply for loan at better rates.

Http://loan-house.we.bs/badcreditloans.html

Lisa asks…

My fiance has bad credit. I have been approved for a mortgage. Should I add him to the mortgage?

Will the rate increase if I add him to the mortgage after I have been approved and made a few payments? We make close to the same money and he will be paying at least half of the mortgage loan. I want him to be co-owner of the house even though he has 30K in credit card debt.

admin answers:

If you want to add his name to the mortgage, you will most likely have to refinance. With his poor credit, the rate on a refinance will be adverse for the both of you. You can have his name added to the title and that will provide the both of you with ownership. Be sure to check with your attorney to be absolutely sure though. There are ways for him to improve his credit and maintain ownership of the house with you without being named on the loan.

Your Questions About Mortgage Rates News

admin — Mon, 30 Jan 2012 06:00:11 +0000

Mary asks…

“Entrepreneurs find value and opportunity where others see only chaos and confusion??”?

The current US economy seems to be experiencing many changes that have been reflected in actual events …mortgage crisis, lowering prime rate, emerging economies, corporate layoffs/job reductions, globalization, and rising unemployment claims. It is not all negative news however.

How might one or more of the current changes in our economy be good news for smart and savvy entrepreneurs?

Are there any new business opportunities that are arising due to these changes?

admin answers:

With more businesses = more competition = less buyers = more wanting money = cant make money = looking for job = cant find job = tightened job market, computers doing all the work nowadays = unemployed people. = BAD ECONOMY FOR COUNTRY!

Charles asks…

The Fed is Going to Reduce the Rate Close to Zero – Good News?

This is ominous, because this is being done to ward off the worst of all scenario’s, DEFLATION.

Which means drastic reduction in living expenses.
Which sounds really good, right? WRONG

Remember all the people telling people to stop whining and be responsible?

This is a last ditch effort by the FED.

They got us into this mess, they are destroying your life and America.

Are you getting mad?

.
RT

You need to look into the federal reserve system, that is where the real problem lays.

information about the federal reserve system:

http://www.apfn.org/apfn/reserve.htm

And this audio from Senator Ron Paul

http://www.apfn.net/pogo/M001I060425193838-RON-PAUL-MONEY-4-25-06.MP3

And video

Other prespectives

http://www.tysknews.com/Depts/Taxes/fed_banking_fraud.htm

http://www.truthusa.org/articles/fed/fedtruth2004.htm

admin answers:

No. Changing the interest rate will not make any difference to the average person. The damage has all ready been done and it is irreparable. The Federal Reserve Bank has stolen trillions of dollars from the American taxpayer. Their books are not audited and we don’t know who all members are.

The accounting books of the US Treasury have trillion dollar adjustments. An adjustment is when there is money missing that cannot be accounted for. Makes it easy for people to take their share and just adjust the books.

Numbers you see on TV are cooked. For instance, the unemployment numbers are reported to be less than 7% but the real number is closer to 12% or even higher. They never tell us how bad it is.

Sandra asks…

Interest rates went up .6% in Canada and now saying real Estate is going to bottom out.?

Just finishing an update reno. on our house because we were planning on selling. Will be about 1 month until finished. Financial analysts on every news program I’ve watched for the past 2 days are saying this .6% hike in interest rates and the fact that houses are priced at about 25% more than they are worth is going to crash real estate market, Do not sell now you will lose your shirt is the gist of it. Is it really as bad as financial guys are saying? I know house prices skyrocketed a few years ago and have just started to level out in the past year. .6% does not seem like alot to me but as far as financial markets, interest rates etc. I am pretty much lost. Well actually I have no understanding of the markets at all hard as I try to grasp it. Are analysts overreacting? O r should a person actually reconsider selling? We have already been pre-approved for a mortgage about 5 weeks ago so do I need to go back and re-apply or something. If someone can tell me really how this will affect prospective sellers please help. I am totally freaking out and obsessing about this. My husband says this won’t make any difference to us and I am worried about nothing. Is he right?

admin answers:

Interest rates are like a big ship in the ocean, once they start heading in one direction it takes a lot to turn it around.

If you’re a seller right now, that’s a good thing, rates are still historically low.

I believe that once rates start really increasing (and they tend to increase on anticipation of higher rates instead of actual economic reality) then housing prices will come down because it will cost more for a buyer to own the house.

There is a formula, that I can’t remember, that shows how a 1 pt increase in rates decrease the amount of loan a buyer can get.

Steam forward with what you’re doing, you’re still in the sweet spot of low rates.

Donna asks…

Self-employed–how to qualify for a mortgage?

My husband has excellent credit score (816) and has never file bankruptcy, never had debt nor has made late payments on any of our bills. He’s been self-employed for 13 longs years. We have a good $62,000+ in liquid assets (savings, checking, mutual funds, stocks, etc…). We applied for a loan last week because we’ve been preparing for this moment for a loooong time, and we have finally decided to take the plunge to buy our very first home (a townhouse in Maryland). Basing on the current interest rates and the amount of the house we’re planning on purchasing, our would-be monthly mortgage would even be less than what we’re paying for now on rent (which we have never been late on either). This morning, we received a very disappointing news from the lender saying that we do not qualify for the loan. We’ve been more responsible than the majority of the population who are buying a house now. Just because my husband has a Form 1044 instead of W-2, he was denied. All of the assets and excellent credit standing have been set aside. Is it fair?–NO!!

So, we’re now beginning to wonder how we could ever qualify for a loan? My husband is not willing to give up his own small business and change his lifestyle to be able to get a W-2 and own a home. But it’s very discouraging. Can someone shed us some light on this? Is there a particular lender that’s liscenced in the state of Maryland to work with Self-Employed borrowers?
Being self-employed means you can write off a lot of your properties that you use towards your business. Obviously, the deductions make him look like he’s not earning enough even if we still have enough left after all our monthly bills and rent. We were told that it depends on the lender who’s willing to give work with self-employed borrowers.

admin answers:

All banks are being tight on approving mortgages – period. Just because one bank turned you down doesn’t mean they all will. Keep trying.

Maria asks…

I heard that the stimulus package would make fixed rate mortgages go down to 4%. I cant find any reliable?

news sources that state this. Does anyone have any links?

admin answers:

The Republicans put this on the table, allowing everyone who was credit worthy to refinance at 4%. The idea that all the refinancing would create activity at the banks, money flowing back and forth and it would help the average middle class American as well. However, the Democrats used their power over everything that the voters apparently thought was a fine idea to shot that down.

They have removed everything from the stimulus bill that would directly help the average family. For some reason I can not fathom they are targeting families who earn under 40k a year, which is none in CA, you earn that with minimum wage here.