Your Questions About Check My Mortgage Status

Linda asks…

Based on this information about my credit status, do you think I am in a good position to buy a car?

I checked my credit scores yesterday and they are as follows:

Equifax = 491
Experian = 595
TransUnion = 601

I have been paying on a mortgage for a year and have never been late with the payments. I have been paying on my current auto loan for two years, and have never been late with a payment. I have obtained various credit cards (approximately four) in the past six months or so, and have never paid any of them late. However, I have 21 collections on my credit report – the majority of them are from medical bills, and most of them are a few years old. I have one large medical bill on there for a little over $33,000. I am not sure what’s pulling my Equifax credit score down so much, but either way I want to get a car.
I currently have a 2006 Isuzu Ascender and I do not like it. It has horrible gas mileage and not very many amenities. I want to trade into something with a rebate, preferrably a Honda Accord or Toyota Camry. I have also thought about getting a BMW 300 Series, but don’t know if luxury cars offer rebates. Right now I owe about $21,000 on the Isuzu and it’s probably worth $14,000 or $15,000. They do not have a good resale value and I didn’t know that at the time. My current interest rate is about 17.9% – that’s outrageous, but I am hoping to get a lower rate since I have built some positive credit history. We got a fixed interest rate on our home (5.5% through FHA), but we got hosed with my car. I guess our credit wasn’t that great at the time. My husband is a co-signer on my car and his credit is a little bit better than mine. He’s probably in the mid 600’s.
Do you think I stand a good chance of getting a better car with a better interest rate? I am planning to have my husband co-sign again. Do you have any suggestions? Serious answers only please. Thanks in advance.

admin answers:

Can hubby sign on the loan by himself? If his credit score is much higher than yours, he has a greater chance of getting financed.

However, your situation is all too common in today’s market. Isuzu doesn’t carry much weight when it comes to resale value (and you’ll find that the dealers will NOT give you top dollar for an SUV, as their lots are full of them right now). As you know, you’re going to be upside-down, and in a huge way. And, honestly, none of the Hondas, Toyotas, etc (and certainly not BMW) are going to be having rebates that even come close to covering your negative equity. You’re lucky to see $2000 off a Honda or Toyota, and that might be on a high-dollar model at year-end. BMW almost never gives rebates that high. The reason? Demand. These makes are always in high demand, and do not need to give such incentives. And, being $7-10,000 upside down would kill any rebate as it is (and then some), so the new negative equity would just be added back to your new loan. Hence, you start the cycle all over again.

And, if you choose to try the used route by going to a “buy-here, pay-here” dealer (due to your credit situation), be VERY CAREFUL about how much you’re going to pay for the new car, as these dealers have no issue with adding that negative equity to the loan. They’ll show you a tolerable payment, but it’ll be based on extended terms (so more finance charges in the long run), high interest rate (no explanation needed), and a down payment that’ll probably be half what the new car’s worth.

Also, if you keep that Isuzu and pay it off, that’ll reflect more positively on your credit report than trading after 2 years.

Advice given before is correct: “keep the Isuzu and ride it out”. Gas prices and a bottoming SUV market have killed your wants and desires. Unfortunately, it’s reality at this time.

EDIT – DO NOT reply to the poster below (“Mark”). It’s a scam. – And it looks like Yahoo took care off his post, anyway…

Lizzie asks…

Under what circumstances would a seller contract with a buyer that sets the closing date 4 months later?

I was interested in a property that came on the market in late February but it when from active status to pending in about two weeks. There was no change to option pending or anything in between. It was there and then gone from MLS.

I visited the house. It was completely updated and ready for move in. The house was empty. The current seller never lived in it at all. Apparently, the house was an investment property for seller because I found that he owns three other homes and his primary residence is one of those.

I finally got my PIA realtor to check into it and she said that the closing date is scheduled for the end of July for an offer that was accepted by mid-March. Why would the seller wait this long to close? Under what circumstances would the seller pay the mortgage costs for several more months to make a sell that could possibly be made with a 30-day close?

admin answers:

Because perhaps it’s the buyer that wanted it later. If someone offered the seller the price that he wanted, but couldn’t close for a few months. They could have worked something out. If the buyer is giving him a good price, it could be worth it to keep for a couple more months.

James asks…

Help with a legal issue please?

One June 11, 2008 at 3 pm, my mother was taken off life support and died. She had an inter-cranial hemorrhage, and was on life support for a week, before life support was ended she was able to donate her liver and her kidneys. At the time of her death I was 17. My eldest brother Adam was made executor of her will and estate. When I turned 18 that August, I inherited 38 thousand dollars from my mother’s life insurance policy. As soon as the money was in my bank account, my father Robert told me to write him a check for the amount so I did. And he did the same thing to my brother Jacob, and my other brothers.

At the time I was attending Kent State University at the main campus branch in Kent Ohio. Adam and Robert told me to sign a paper so Adam could speak for me in court, thinking that since they were my family, they would have my best interest at heart I signed the paper. I also signed the paper because I was afraid of what Robert would do if I didn’t.

After my mother passed away I more or less became the house’s personal servant. I did all of the cooking and cleaning while being a full time student. Robert would sit up in his room all day either watching CNN or blowing the money into the stock market on E-Trade. Also by getting horses, cows, chickens, and a pig. When “we” started the “farm” Robert would still just sit in his room. During this time I wasn’t allowed to have a job or get my driving permit.

In July of 2009 Robert informed me that I have an older half-sister named Trisha. He told me this only a few minutes before she showed up at our home, I was also told that I have another brother (half) named Luke, whom is only a a month or so older then Adam. A few days later I decided that I was tired of the mental and sometimes physical abuse, so I told Robert that I was going to hang out with my friend Sara for a while and he allowed me to go.

After a few hours I called Robert to inform him that I wasn’t coming home. I decided to move out this way because Robert had always been a loud and violent man. I know that if I had told him I was leaving while still at the house that I would have never gotten out, and I would have probably been hit.

When I called Robert to inform him that I was not coming home, he began to scream at me through the phone. He yelled at me that the next time he saw me, I better have cops with me because he was going to beat me bloody. So my friend Sara took me to the police department and I was police escorted to my home so I could get my clothes.

My Aunt called my Grandmother on my mom’s side when she found out what had happened, my grandmother then got a hold of me and she flew me out here to California to live with her.

I have been trying to get my inheritance back from Robert so I can finish school like my mother wanted me to. According to him the money is all gone. I also received a letter stating that there is going to be a hearing about the status of the mortgage. And debt collectors are calling me aswell. I was a minor when my mom died and don’t understand how they can come after me for the house. Also I haven’t even lived in said house in over a year. I am wondering what I should do legally to get the money Robert took from me, and what to do in regards to the mortgage.
@ Jeff Smith

Many questions need to be answered here first.
1) Is Robert your father or step father??
—- Father
2) was an investigation done into your mothers intra-cranial bleed? Was it a stroke or was it due to trauma?
—-There was no investigation, it just happened. One day she was fine and the next she was brain dead and on life support.
3) why was Adam executor of the will and not the husband? Most states (even when no will is in place) the spouse gets 50% unless specified by a will.
—-My parents were not married at the time of her death, they just lived together. Adam is the oldest of us kids so he was exectur. Also I think it was in her will.
4) was the house paid for at time of death, and who was it titled in? Being a minor (unless emancipated) there is no way that you could have been on the title.
—–No it wasn’t paid for, we were in the 2nd or 3rd year of the morgage.
5) There are some very suspicious things surrounding Robert and your half/step siblings. Do you even know that they are his children??? Was any DNA or family history done?
—–It’s been confirmed through other family members that Robert slept around on my mom. But no DNA has been done.

admin answers:

Many questions need to be answered here first.
1) Is Robert your father or step father??
2) was an investigation done into your mothers intra-cranial bleed? Was it a stroke or was it due to trauma? It sounds like Robert is abusive, and if it was not a stroke did he hit her as he hits you? (There is NO STATUTE of limitations on murder.
3) why was Adam executor of the will and not the husband? Most states (even when no will is in place) the spouse gets 50% unless specified by a will.
4) was the house paid for at time of death, and who was it titled in? Being a minor (unless emancipated) there is no way that you could have been on the title.
5) There are some very suspicious things surrounding Robert and your half/step siblings. Do you even know that they are his children??? Was any DNA or family history done? It sounds as if Robert has ripped off you and your family. The papers you may have signed may had been powers of attorney, and now he pretty much has bled your family dry during a very tragic time.
I can not foresee anyway that you were on the deed to the home, however, if in fact you signed papers that you did not read, and you were an adult at that time, he very well could have done a quick deed throwing you on the deed, and taking advantage of your naivety along with your grief ripped you off.
I would find the answers to the above questions, then contact your FBI field office. From the way things sound you were not only ripped off but there is a good chance that some foul play was involved surrounding your mothers death. If this is in fact the case put robert where he belongs….in PRISON

Now that you answered the questions;
SINCE YOU ONLY HAD HOUSE 3 YEARS ODDS ARE VERY GREAT THAT THERE IS ZERO EQUITY IN IT. IF YOU ARE ON THE DEED AND ROBERT IS JUST SQAUTTING YOUR ONLY HOPE FOR ANY KIND OF MONEY RECOVERY IS TAKE HIM TO SMALL CLAIMS COURT AND SUE FOR THE MAX ($5000.00) FOR BACK RENT. THEN TAKE THAT MONEY AND GET AN INVESTIGATOR TO LOOK INTO YOUR MOTHERS DEATH, ROBERT SHOULD PAY FOR THE CRIME. KICK HIM OUT OF THE HOUSE ASAP, AND LET IT GO INTO FORCLOSURE. IT IS UNFORTUNATE, BUT ROBERT SOUNDS LIKE A REAL DIRTBALL AND THIS LATE IN THE GAME (MOST HOUSE VALUES HAVE TANKED 40%) THERE IS WAY TOO MUCH OWED ON HOUSE. AT LEAST YOU WILL RECIEVE SOME CASH AND HOPEFULLY GET HIM ARRESSTED FOR MURDER

Joseph asks…

My credit score is 579? need advice…?

i am going apply for mortgage in couple of months so checked my credit score. when check report 3 money laundering company as runned credit checked which i never applied there are only two account one is from my bank and another one is Shop Direct Finance Company Ltd which i never applied.. it shows the status as t settled what is it??????????? what should i do……. pls need some good advice

admin answers:

Dispute those entries with the credit reporting agencies. All have an online form for that

Michael asks…

Buying a new house- can’t get a loan?

My husband and I put an offer on a house and when we went to talk to our mortgage broker about a FHA loan he told us his apprasier told us that because the house did not have a ‘public’ septic system that we would have tp purchase that in order get obtain the 3 1/2 loan which might cost us a few thousand more dollars. We have three options:

1) get an apprasial for the sewer and if its 3% more than the asking price of the house then they will not make us pay for it
2) take out another loan but we would have to put 5% down which we dont have unless we didn’t pay our bills for a amonth
3) have my husband take out a ‘my community’ loan without my name on it.

my questions are:
– are there any other suggestions?
– for the my community loan, is there a way for him to find out if he is married, like do they check your taxes ( we filed together) or ask his marital status? If so, it wont work.

thanks for the advice.

If i made less money and had bad credit, I would be able to get a house! what the heck!

thanks!
I’m not trying to be dishonest, trying to get a loan.

admin answers:

Yes, of course they check taxes and credit. Maybe your problem is you are dishonest and what comes around goes around.

Sewer hook up is about 1200, if it is on that side of the street. It could be impossible otherwise.

Powered by Yahoo! Answers

Your Questions About Mortgage Loan Rates

Sandy asks…

Mortgage Loan?

I’m plannig to buy a house in about 6 months, Does it cost anything to apply to a Mortgage company and see How much Can you get from them? Does it help on the interest rate the fact that I have 100K available for a downpayment?

Thanks for your help.

admin answers:

If you can make a 20% down payment with that 100k, you have all kinds of advantages in getting a loan, including better interest rate. That would enable you to get a conforming loan.

The mortgage industry seems to be eager for low-risk buyers like yourself. When you go to a broker, be careful to read everything put before you, and not sign anything that commits you to a fee if you don’t use them. When I went in for a loan before, there was this paper they had that said I agree to pay them their fee if they find a loan for me, but I decline to take it. I said no, I can’t do business like that. They waived it.

You might even go to more than one broker or bank to see what’s out there. Never hurts to shop. If a broker doesn’t want to help you because you are shopping around, go elsewhere. There are plenty of others.

Charles asks…

How do we make Student Loan Interest Rates go back down?

At this point in time, I can get a mortgage at a fixed 6.75% interest rate. Why is the national average for a new Student loan higher than that? What can we do to change it?

admin answers:

Elect a Democrat. The House just recently passed legislation to lower student loan interest rates from 6.8% to 3.4%. Bush opposes it.

William asks…

What is a good fixed interest rate for a Mortgage Loan?

admin answers:

I would say 6.25% Fixed if its a 30 year loan and 6% Fixed if its a 15 year old. It actually depends on every single thing

LTV (Loan to value)
Fico Score (The better the lower your rate will be)
DTI Ratio (Debts to income ratio)
Downpayment (The more, the lower your rate will be)

Apart from this, shopping around with 2-3 companies is always a good idea. Actually, you need a good Loan officer whom you can trust and who you think can shop for you alot because loan officers have access to more than hundreds of banks and they can always get you the best rate, making sure they are not taking too much in their pocket!

I am a loan officer and can get you some good rates if you want.
Mohit Madaan
Loan officer
Mohit@ImpressiveLeads.com
7187753226

Ken asks…

What are all mortgages loans for first time buyer? What is the current interest rate on mortgages loan?

I am looking for some personal experience from the first time buyer.
Where is the best place to get mortgages loan?

Is there a federal mortgage loan?
I am looking to buy in the next few months and I need some one to guide me on loan and everything about home buying for the first time.

admin answers:

There are no “first time home buyer” loans as such. There are loans available from FHA, VA and the USDA which don’t require as a big of a downpayment as a conventional loan. For example, the FHA only requires 3.5% down as compared to a conventional which wants 10%.

If you’re looking in a few months for a house, start saving for a downpayment NOW. The more you can put down, the lower your mortgage payments will be. If you can put 20% down, you don’t pay private mortgage insurance (PMI). Also, pull your credit reports from the 3 credit rating agencies. If there are any errors, get them cleaned up.

When you’re ready, get pre-approved for a mortgage. This will require the lender pulling your credit report, checking your last two years tax returns, last two months bank and investment statements and a month’s worth of paystubs. If you are approved, they will give you a letter with your approved amount. This way you don’t look at houses out of your price range.

Next, get a buyer’s agent. This is a realtor that works on YOUR behalf. Ask other people you know who have bought houses recently to see who they use and if they’d recommend them. They will show you houses in your price range with features you’re looking for. When you find the house you want, they will help you write the purchase agreement and make the offer. They will negotiate with the seller’s agent and help make you stay on schedule with items that need to be taken care of when buying a house. You don’t pay anything out of pocket for them as they split the commission with the seller’s agent.

When the seller accepts and signs the purchase agreement, go back to the lender who gave the pre-approval and officially apply for a mortgage. They will have the property appraised and if the sell price is less than the appraised price, they should approve the loan.

Also, you need to contact your insurance company and get homeowner’s insurance for the property. Mortgage lenders require this.

One thing you will want to do is get a home inspection. Your buyer’s agent should be able to recommend some home inspectors to you. They will go through the house inside and out and tell you of potential problems and things that will require maintenance.

If everything checks out, then all you’d have to do is sign the papers, get the keys and officially become a homeowner.

Donald asks…

Anyone have experience with Quicken loans who offer great mortgage rates over the radio?

Is this a bait and hook?

admin answers:

I work for Quicken Loans and I can assure you that the rates in our advertisements are not “bait and hook.” In fact, we never offer rates that are ridiculously low (known as teaser rates, which usually last for a month or two and then jump up to normal rates).

I’m going to make an assumption that you aren’t referring to “rates” at all, but I’m thinking that you are talking about low monthly payments. Such as “get a $150,000 loan for $450 a month.”

My guess is you are referring to the ads for our Secure Advantage loan, which allows you payment flexibility (in other words, you pay how much you want to each month in a range from a minimum payment to however much you want to pay). For example, if your minimum payment is $450 a month, you can pay that amount or any higher amount you want to.

The more you pay, the less you owe on your mortgage. If you only make minimum payments, you are only paying a percentage of your monthly interest and the amount unpaid gets added to the principal of your loan.

It’s pretty complicated to explain here and I would need a lot more space to really explain how it works, but it’s not a bait and switch. Everything is up front and legit and in writing. There aren’t going to be any surprises. Our customers who choose Secure Advantage are fully made aware of how the loan works and what happens depending on the amount you pay each month.

But, bringing this around full circle, the reason the amount in the advertisements seem so low is that they are the minimum amounts you could choose to pay each month. And the secure advantage offers a fixed-rate (getting back to your original questions about rates), for either 5 or 7 years.

I’ve added a link below to a page that gives more information about Secure Advantage.

I hope this answers your question. Quicken Loans doesn’t get a 94% satisfaction score from it’s customers by ripping them off. Seriously. We couldn’t be where we are today (just had our best month ever in the history of the company), if we used tactics like bait and switch.

I do appreciate the question though. It allows me a chance to set the record straight. Good luck with your home loan.

Powered by Yahoo! Answers

Your Questions About Mortgage Loan Modification

Sandy asks…

Will I be given a loan modification on my condo if I’m two months behind in my mortgage and unemployed?

Will I be allowed a loan modification if I’m two months behind in my mortgage? Will it be that I pay less $ a month than before? What if I am unemployed? What if I have a temp job only? I’m unemployed now and may get a temp job soon. What about a short sale? Thanks.

admin answers:

You will not qualify if you do NOT have a full time job. Unemployed or temp work guarantees you still will not pay back the mortgage loan.

Mandy asks…

what is loan modification or mortgage modification?

admin answers:

Exactly what it says. Modifying the terms of a loan, usually lowering the interest rate, thus lowering the payment.

Ken asks…

is anyone waiting for a mortgage loan modification???

did you go thru a specific agency, or request it on your own. how long has it taken??

admin answers:

Yes i am…. It can take up to 90 days.. But stay on top of them.. And make sure they received everthing that ahs been requested.. Alot of the companies are outsources everything.. And your modification will come from them with information on how much and the modifcation to send back to the mtg co…
Try this site…if you need immediate assistance http://www.mizna.com/community.php

Thomas asks…

Has any one used america’s mortgage professionals for a loan modification?

If so did they help? I have already tried doing it myself and was denied. I then went through a local HUD counselor with the same results.

admin answers:

Looking at their web site its hard to tell if they are reputable or not, but it looks like they get very little traffic to their site so you should take that into consideration.

Whether you go with them or another company, make sure that you:
1) Do not pay them any money up front – only pay if you get the loan mod you are looking for
2) Do not accept a new loan with pre-payment penalties

I would suggest you contact your servicer (the company you currently make mortgage payments to now) and ask again about a loan mod. The economic stimulus bill has some new programs that may have not been available when you first reached out to them. Good Luck!

Nancy asks…

Citi Mortgage Loan modification question?

I have a Citi Mortgage payment of $2525 a month. I am behind on my mortgage. I am currently not living in the home. It was a rental home when I was transferred out of the area. I am now back home and want to move back into the home but with bad renters who never paid I am behind on the payments and foreclosure is right around the corner.

I am making on average of $5000 a month. My total bills with out the mortgage payment is $2200 a month. Do you think Citi will work with me and if so in what way?

My current interest rate is 5.5% on a 30 yr fixed rate.

admin answers:

I work in loss mitigation for a major lender (could be citi I cannot say) this what you need to do. Call the lender apply for hardship assistance complete the application online or call citi at 866 989 2089. You cannot get the ham(govt mod) but can apply for a suplemental modification or traditional modifcation the rep you speak to can tell you what one you can apply for(dependin on the investor of your loan) Move into the home before you apply if you do this you may even qualify for the govt mod which could possibly lower your payment as low as 1550 based on your income if you qualify. As far as the traditional or suplemental modification make sure your expenses are not higher or lower than 300 per month from your net income. For exmple this is what you need to show
example
Net Income 5000
Total Expenses-4700-5300

also depending on the investor unless you are within these guidelines you may not qualify so this would help your chances if this means cutting off cable or not paying a credit card so be it…it saves your home right?

Expenses you can see the application online but includes for example, food, gas, insurance cost(other than whats taken out of your check) credit card(min pmts) auto loans, other mortgages, personal loans, childcare. Child support and ANYTHING you spend money on at all during a one month period.

If you follow these rules you are sure to qualify. They do pull credit to see some expenses but really you can adjust the other numbers accordinly to make yourself qualify. Nobody is suppose to tell you this so they wont give you a answer as to what the guidelines are they will just tell you after reviewing your application if you qualify.

Good Luck.

I forgot to say the lowest rate can be is 2% on a 480 month term(40yrs)

Powered by Yahoo! Answers

Your Questions About Mortgage Loan Modification

Helen asks…

What does it mean to when you do a loan modification thru your mortgage company?

My current interest rate is adjustable and extremely high. I don’t know what this entails and/or what I should be aware of with this mortgage company.

admin answers:

Usually a loan modification means they are going to change the term of your loan. I.e. Interest rate, term of payment.

This is because your bank is afraid that if the interest rate keeps moving against you, you’ll default on the loan and they will have to foreclosure against you.

Who’s your lender?

Bob

Robert asks…

If I request a loan modification to my mortgage under the Obama plan is it temporary?

I read that after 5 years the mortgage holder can raise the rate of the mortgage to the prevailing rate.

admin answers:

It is not unusual for lenders to have a “fixed” rate for no more than 5 years, then market forces dictate the new “variable” rate ongoing for the remainder of the loan (unless you can fix it again). While rates are low, take advantage of this 5 year period and pay off as much as you can – you will save thousands in interest and take years off your loan

David asks…

Mortgage loan modification–what would you do?

Mortgage company approves your loan modification to an amount you can afford to pay but still higher than current market value. The modified loan agreement increases the principal on the home by $20k. Instead of owing $350k, you now owe $370k on a home with a market value of $210k.

My question is do you…

1. accept the modified loan agreement
2. reject the modified agreement and pursue a short sale
3. walk away from the home and let the mortgage company take it

What would you do and please explain your choice. Thanks!

admin answers:

A short sale will not be approved by the bank unless they believe you can no longer afford to make the current payments and they will soon have to foreclose.

If you walk away and it is a recourse loan they will come after you for the balance plus all late fees and legal costs.

So depending on what these answers are I might make any of the three answers.

Donald asks…

can i get a second mortgage if my first mortgage got a loan modification?

we got a loan modification on our house that we own right now but were wanting to move is there anyway we could get a 2nd mortgage if our 1st mortgage got a loan modification?
we want to rent out our house we have now

admin answers:

Sure, as long as you sell house #1 first.

Betty asks…

Can I claim the mortgage interest on a loan modification that is not yet completed?

I have two properties that are in default and I have been negotiating wth the bank for the past 24 months. I have not paid any part of the loan for those months. And I have not filed my 2010 and 2011 taxes yet. I intend to very shortly. My question: Can I deduct the mortgage interest from my taxes even though i have not paid on the loan for the past 24 months.

admin answers:

No, you cannot do so. You can deduct ONLY the amounts actually paid, and you must deduct them in the year paid. When you finally DO pay the interest, you cannot ‘go back’ to 2010 or 2011 and deduct them there. If you pay them in 2012, then you deduct them in 2012.

Powered by Yahoo! Answers

Your Questions About Mortgage Rates Today

Thomas asks…

what determines mortgage interest rates that banks charge? bankrate.com says 5.8% today, yet banks are 6.5%?

i am comparing a 30 yr fixed on bankrate to a the same in a bank. also, anyone know if there is a u.s. stock ticker symbol for the 30 yr rates?

admin answers:

Depends on the type of mortgage.

Some are fixed rate – and will not alter whatever the bank rate does. Some are LIBOR ones which track London bank rates. Some are capped – which means they vary – to a maximum but not higher.

Depends on the type.

Donna asks…

what company has the cheapest mortgage rate as of today’s date?

admin answers:

That question isn’t as easy to answer as it may seem. I’m a real estate agent, not a lender, but in my opinion, that question can’t be summarily answered by throwing out one rate. I’d shop around and while you are comparing rates, make sure the loan package is the same structure before deciding one company’s offer is better than another. 🙂

Paul asks…

when applying for a fha loan is there a web sight so i can wach the rates. iwas told to me that the mortgage b

rates? the mortgage broker said it was up to her to watch the rates, but i think its my job to watch for rates. she said today 3/25/08 that with a credit score of 750 my fixed fha rate was 6.25%. I FIND THAT HIGH? there has to be a web site i can find my own rates to lock in.
thank you

admin answers:

Sherri, that rate sounds about right for FHA today. The best indicator of mortgage rate movements is the 10 year treasury bond yield – currently around 3.5%. Watch for movements in this figure to see what the mortgage market will do on a daily basis. Be careful about rate quotes you get online and in newspaper ads. As a mortgage broker, I can tell you it is easy to sandbag a quote and then raise the final rate when you’re at closing. Then you’re stuck and basically have to pay whatever I throw in front of you. I won’t work that way, but plenty of mortgage people will so be careful.

If you have to look up rates online, try bankrate.com

Mark asks…

Is it possible for consumers to buy mortgage rate locks for ~12 months?

Most mortgage lenders give you a “free” 60 day lock for the application to process. I am interested in purchasing a lock for 12 months at today‘s rates as I will not be ready for a mortgage until next year. Any advice?
FYI The first answer does not help and appears to be spammy in nature.

admin answers:

No…

Mortgage companies barely give you enough time to close as it is to get a good rate, much less a 12 month grace period.

The silver lining here is—- Obama has this economy so damned screwed up, that you wont have to worry about “locking” the interest rate. The rates will be pretty much where they are now in a year’s time, as this economy isnt going anywhere anytime soon. The Feds are looking at buying up all the low-interest bonds as it is to retire the savings bonds they have out at 7%+…

My advice to you is to wait it out. In a year’s time the housing market will still be in the toilet, prices will still be at historic lows, as will interest rates. Dont believe me??? Look at the last 2 years. 20009 is 2 years AFTER the housing meltdown.. And things are STILL in the crapper in 2011…

William asks…

what is a good mortgage interest rate for today?

admin answers:

If you are seeking the current mortgage rate you will be able to find this in your local newspaper or on the internet. It would mean nothing to you knowing the current interest rate.

Your interest rate is determine by your credit score, the way you pay your debts on your credit report. Also if you are applying for a conforming or jumbo mortgage. Then the other is if you are applying for a conventional mortgage or a government (FHA or VA) mortgage.

There is a lot that goes into determining your mortgage rate. The way you find out the rate you are qualified for is to apply for a mortgage loan through a mortgage banker/broker, preferable one that does FHA and VA mortgage loans.

I hope this has been of some benefit to you, good luck.

“FIGHT ON”

Powered by Yahoo! Answers

Your Questions About Reverse Mortgage Rates

Carol asks…

Pro`s and Con`s of Reverse Mortgage for Senior`s- State of Ok?

Are some companies better to use-
different interest rates and fees
are there US goverment programs-
if you have spouse in Nursing Home can it affect Medicare payment of their expenses ?

admin answers:

There is plenty of info online, including the HUD website referenced below. A Yahoo or Google search will let you see the lenders etc. I am pretty sure that it will effect Medicare payments because Medicare is the senior lien holder on a house when someone goes into a nursing home.

Nancy asks…

In 2003 what did FHA Reverse Mortgages pay in interest on unused available cash?

In 03 the economy came back like gangbusters. Did money that seniors had in reverse mortgage equity reserves also benefit from rapidly rising rates? Did those rates go up and by how much? Or did they even go down?

admin answers:

Bag-Ten,

The reverse mortgage equity reserves or lines of credits grow at the same rate as the interest being charged against the borrower including the FHA mortgage insurance payment of .5% a year. So to figure out what someones line of credit growth rate was at any time you have to know what the current interest rate is being charged. FHA reverse mortgage interest rates are tied to the 1 year Treasury Bill plus 1.5%. In 03 the average T-Bill was around 1.25%. So to figure out what the return was in 03 for a reverse mortgage line of credit you would figure 1.25%(T-Bill) + 1.5%(Interest rate) + .5 (FHA mortgage Insurance) = 3.25% Growth rate for the Line of Credit. This return fluctuates accordingly so as the rate goes up it goes up or just the opposite. For example today that growth rate is 7.22%.

You can look at the history of the T-Bill here and calculate what the return was at any time with the above formula.

Http://www.erate.com/1_year_t-bill_index_adjustable_rate_mortgage_arm.htm

I hope that helps. This is all I specialize in so if you have any other questions please feel free to contact me.

Thanks,
Brandon

bburns@griffinloans.com

Mandy asks…

Reverse mortgage help?

Can anyone tell me how to work the following question out-

An elderly couple borrow $40000 with interest compounded monthly at a rate of 9% per annum. How much will need to be repaid on this loan 15 years later?

admin answers:

Not sure why you are calling this a Reverse Mortgage unless you are saying the couple does not make a single monthly mortgage payment on the $40,000 they borrowed over the next 15 years. Reverse mortgages, by definition, are a type of negative amortization loan. You borrow money from the equity in your home based on your age, and there is no prepayment penalty, and you are not required to make mortgage payments for as long as you live in that house. You can make payments if you want to, but each month that you do not make a payment, the accrued interest is added on to your loan balance. So you can look up one of the many online mortgage calculators to figure that out. P.S. Fixed rates for a reverse mortgage are as low as 4.5%.

Steven asks…

Has anyone you know used a reverse mortgage from FinancialFreedom.com?

So, I have a theory as to how this company makes money. What they do is go through your personal belongings and make an estimate as to how much it is worth. They then give you a loan based on that amount and tell you that you have to keep those belongings for a certain period of time (the commercial says something to this effect in its fine print but I can’t read small print that fast). Now, here is how they make money. They only give these loans to people over 62 betting that the person will pass away before the loan is repaid. They then liquidate the persons assets to repay the loan (which probably has an incredibly high, almost insurmountable interest rate). Now that is of course assuming that they don’t give the person’s family a chance to buy back all of their family heirlooms to repay it.

So, is my theory right? Does anyone know if this is actually how they operate?

admin answers:

I have had many of my social work clients use Financial Freedom for reverse mortgages. They are one of the oldest and most respected companies in the field. All the mortgages are FHA and backed by the government. What they do is assess your home and then based on your age they will give you a percentage of the worth as a reverse mortgage. You will never outlive your mortgage and you never have to pay anything back. When you do pass away or move out for over 12 months, your estate is settled by selling the home and what value is left after the mortgage is paid will go to your estate. Reverse mortgages can be great for those who need additional income after retirement and who arent concerned with leaving the total home value as part of their estate. None of your personal possessions are included in the loan. This is just like any other mortgage – on the home only. You can take monthly income or a line of credit which ever you prefer. While these mortgages arent for everyone they can be a wonderful source of income for most. The interest rates are low and regulated by the govt. This week the fixed rate was 5%. You have obviously never really investigated reverse mortgages since you have much wrong information in what you wrote.

Mark asks…

Opinions on Reverse Mortgages?

My mom is 76 under a 67K loan with mo payments of 475 on 7.55 fixed rate. Is on fixed income total of 1,100 mo. Would reverse mortgage be a good option for her? In today’s financial climate, who can you trust? I know there are a lot of smart people out there and I need to know the pros & cons. Property value of approx 100K. I don’t want to steer her wrong, but I have limited knowledge of financial matters.

admin answers:

In most cases it is a great deal == but the way i read it she has only 33k clear in her home — it might not be worth it — but your best bet is go to a bank that handles reverse mortgages and get there opinions!!!

Powered by Yahoo! Answers

Bad Credit Mortgage Refinancing

Some people are so excited to own their first home that they jump on the chance to get a mortgage and even bad credit mortgage if they have low credit score – no matter what the interest rate. Others just accept their rate because they don’t know what they can do to get that rate lowered. The good news is that, if you are locked into a high interest rate, you can always look into mortgage and bad credit mortgage refinancing in order to save you money for the long haul. No matter what your reason for bad credit, you can achieve a mortgage refinance. There will be some fancy maneuvering by your lender in most cases but never the less a bad credit refinance can be done.

How long will it take to breakeven on bad credit mortgages refinance? That depends on a multitude of factors. These factors include your current interest rate, the new potential rate, closing costs and how long you plan to stay in your home. If you have an adjustable rate mortgage that will be resetting to a much higher rate, an avalanche of bills heading for collection, or too much outstanding credit card debt, you might be able to bail yourself out with a timely refinance. Fixing your rate before your credit gets worse, or getting cash out to consolidate debt and lower your total monthly payments may help you stay on your feet. Even borrowers with poor credit histories may benefit from refinancing. You owe it to yourself to rethink your situation and see if you’re one of them.

Bad credit refinance is necessary if you need to do a debt consolidation and in most cases can still save you money over time. If your credit history is less than sparkling the most important factor to getting a refinance approved is to disclose these unfavorable marks as soon as possible so we may design a game plan to overcome it. Giving your lender a complete written explanation of every negative credit account will help you and is usually relatively easy to handle.

However don’t forget, mortgage refinancing must be performed only when advantages are obvious, and in general a mortgage refinancing action concerning low and expensive credits instead of a cheaper and higher one and over a longer period of time is not efficient from the economic point of view except it is associated with an improved financial discipline, which means first of all expenses decrease!

While many people just focus on the interest rate they’ll receive on a mortgage refinance, there actually are other fees that you need to consider. Add up the cost of points, loan origination, the application, appraisals, private mortgage insurance, and other fees to see the total cost of refinancing your home loan. You’ll also want to evaluate how long it will take you to break even paying these costs. If you plan to sell your home before this break even point, refinancing may not make sense.

Helen Fix is a financier researching for bad credit mortgage market.