Your Questions About Check My Mortgage

Carol asks…

do you need authorization to do a credit check?

I recently found out that a Mortgage company did a credit check on me, without my knowledge or concent. Do they have to have this to be legal? My my boyfriend was thinking about buying a house and used my information, to see if i could get the mortgage, dosent the leander need my authorization?

admin answers:

Yes the mortgage company needs your authorization to run a credit check, but at the same time what did your boyfriend think was going to happen when he supplied your information to the mortgage company ? They are going to run a check,

my bet the mortgage company is going to claim that your boyfriend since he had all your info, and was doing this with your knowledge had quasi authorization to approve the check

Sharon asks…

Credit checked/PreQual Mortgage – worried still?

Hi! I was prequalified for a mortgage earlier this month. They ran my credit and info through the fannie mae/freddie mac underwriting system. I was told I would have to pay back two debts. Credit scores are mid at 640. I have outstanding old collections. I wonder if this will fall through? They told me not to worry as they already ran the credit, but it freaks me out. They said based on the info I provided to them coupled with the credit report it went through. I am making an offer on a house this weekend. I just would like to ease my mind. Any thoughts on if this can fall through still?

admin answers:

Okay… Im thinking what they told you. I would think you should be fine. If they said they ran it through the system. These are the systems.

Fannie Mae = DU
Freddie Mac = LP

They would have ran it through one of the two systems. They will get a return. This will be an approval through the systems. This is not a prequal. It will list all conditions that a human underwriter must approve. A human underwriter can add more, but its rare.

To ease your mind, just ask for a copy of the DU, or LP findings. That will show you are approved and all conditions. There is absolutely nothing wrong with the lender providing those to you. It will give you a case number and it wills how you are approved, pending conditions. The conditions will be listed.

If they cant give you a copy of the DU or LP, the lender is lying if they told you they ran it through the system. If that is the case, find a new lender that will give you a copy. It takes 15 minutes tops to have this ran. Most brokers dont run it because they dont know what they are doing or dont have inhouse underwriters. Call them on their word and get a copy of the DU or LP. If they say you cant have a copy. They are lying. Move on.

Just say okay im a bit worried you said you sent it though the system. Can you please send me over a copy of the DU or LP findings? I want to make sure I can clear conditions. If they say anything other then *want me to fax that to you or email it to you?* thats where you know.

Paul asks…

Is there a way to find out how much you would pay on a mortgage each month without checking your credit score?

I’m not quite ready to purchase a house. I would like to know what I would pay each month on a home that is approx. $250,000. My credit is fair-good. My state is Virginia and I live 10 blocks from the ocean and would like to stay in my area. I don’t want to run the credit check in case that lowers my credit score. Is there anyway to find out APPROX. what I would pay??
Thank you to everyone who answered.

admin answers:

Your credit score WILL effect this number in some manner, as well as whether you have a down payment, bankrucpty’s and other factors.

But a 100% financing on a loan of that amount should cost you approx $2100 (or below I highballed the interest rate some).

You can run other scenarios through mortgage caluclators on the web, Y! Finance section has a few. Http://finance.yahoo.com/loan/mortgage/calculators_index

Linda asks…

Mortgage: 1 Year Fixed 2.80% VS 5 Year Fixed 3.89%?

I was checking the mortgage rates at a financial institution, and I found they offer a 1 year fixed for 2.8%, and 5 years fixed for 3.89%

I heard from someone that I can renew my mortgage term, so if that’s the case, why would someone go for the more expensive 5 years term if they can go with a 1 year term and renew annually? or am I missing something here?

I hope someone can explain.

Thanks

admin answers:

If the 1 yr term expires, then you would need to refinance. Depending on your financial situation you may not qualify to refiance to a better rate. Then you’re left with an adjusting rate. Plus each time you refinance your mortgage, you still need to pay the fees. You maybe saving on the monthly mortgage on the lower rate, but the fees you’re paying may not add up to the savings.

That’s why so many people were messed up with the housing crash.
People went for the lower rate, but when it’s time to refinance, their debt to ratio was higher than their loan, therefore, banks would not let them refinance to a lower rate and the people are left with a very high rate and a very high monthly mortgage.

If you are thinking of keeping your house for more than 5 years, I would say to go for the 5 yr fix rate. But if you for sure know you can sell or pay off your loan within 1 yr, then you go with the 1 yr fixed rate. Also, you have to make sure the mortgage you’re paying is with interest and principle, and not just interest.

Donald asks…

can i check to see if my discharge of mortgage is recorded with my county on line?

admin answers:

IN some counties in some states.

Since we don’t know where you are, check with the county clerk’s office in yours

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Your Questions About Mortgage Loan Rates

Mandy asks…

Should I refinance my interest only mortgage loan?

We have a 5/1 ARM with interest only mortgage currently. Got it at 5.25% 3 yrs ago. We have been making interst only payments so far with no payments towards the principal. But our home price has gone up by above 50k over the same period which I guess would count as equity. I expect my income to increase in the next few years substantially but as we get closer to the 5 yr mark, I am getting very nervous that our payments are going to get sky high and was looking at a 30 yr fixed rate loan at abt 5.8%. We plan to stay in this house for atleast another 3-4 yrs. Do you think it is wise to refinance at this point?

admin answers:

Honestly, no I don’t. You have two years of security left at a rate that is currently pretty hard to find. If you are planning on being in your home only 3-4 more years, then find out what your adjustment cap is. All 5-year ARM’s have an adjustment cap that limits what the loan can adjust to initially, and depending on what that is, you may find it in your best interest to ride it out until you decide to sell. You have to consider the cost to refinance versus the monthly savings you’ll get by refinancing. So, let’s say that you decide to stay in the home for three years. You’re rate is fixed for the next two years, and depending on it’s adjustment cap, let’s say two percent, your rate would be fixed for the third year at 7.25%. Depending on the size of your loan amount, your payment may only increase by $100 a month. Let’s say the cost to refinance is $2000, it would then take you 20 months to break even on your costs, and if you were only in the home for 12 more months it would not make sense to refinance.

If you would like further details, or if you would like me to take a look at it, email me directly, I would be more than happy to. Hope this helps.

Helen asks…

What interest rate can I expect on a 80/20 mortgage loan?

Me & my husband are trying to purchase our first home. We should be pre-approved in the next few days. My middle credit score & my husbands are each 580, we make $75K combined. We are looking to purchase a home for approx $140K…any ideas on what rates we should expect? Thanks!

admin answers:

Probably in the low 7’s

Robert asks…

Which mortgage lender in Northern VA has the best rates and fees for an FHA loan?

I just had a contract accepted, just wondering which lender is best around here as far as rates and fees go. I’ve looked at bankrate.com, but I’d like someone to recommend perhaps another website or a particular lender who is good with the rate and fees.
Thanks!

admin answers:

Rates will vary by day right up until you lock in. A bank that is a little high today might be the lowest in a few days or weeks. The closing costs are pretty standard and you can negotiate a lot of them, so even if the fees seem high, you may be able to talk them into lowering some of them.

Donald asks…

can i transfered my mortgage loan with another bank to get a lower interest rate. my bank is taking forever?

i currently have gmac mortgage for my loan. they are taking forever on this “modification” plan and what i wanted to do was transfered my 30 year fixed rate to another bank with the same 30 year fixed but at a lower rate…is that possible?

admin answers:

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Richard asks…

what are the mortgage rates right now. Would it be bad to go a head and lock on my loan?

admin answers:

Mortgage rates are pretty good right now. Yestaerday I was quoted a rate of 6% for an FHA loan. However, I wouldn’t lock the rate unless I was absolutely sure that settlement was going to happen within the lock period. If you have to extend the lock due to missing a settlement date you will have to pay even more money.

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Your Questions About Mortgage Rates Calculator

Maria asks…

Will the APR always be higher than the quoted rate for a 30 year mortgage?

I’ve noticed in some APR calculators specifically for fixed rate products that when a higher APR is chosen such that the mortgage company pays you points to take that higher rate, the quoted APR may be lower than the actual rate?
Is that correct or is there an issue with the APR calculation?

admin answers:

APR would always be higher because it also factors in the fees you pay to get the loan as part of the interest cost.

Robert asks…

I need help with what type of mortgage to get and interest rates?

I am considering getting a mortgage, but i don’t know which kind of mortgage would be best suited. I am inteding on borrowng between £45,000 and £55,000 over 20-25 years but i don’t know what type of mortgage is best to get and how much monthly repayments would be. If anyone can give me an estimate of a monthly repayment for the amount and time to repay that would help greatly. I tried using some online calculators but i was informed that they are not very accurate as i don’t know exactly what interest rates would be:)

Many thanks! 🙂

admin answers:

Try this link below they have a 10 yr fixed rate so for 10 years you know exactly how much you will be paying each month. A 45k loan over 25 years would cost £278 give or take a few pounds per month for example

www.westbrom.co.uk

George asks…

Which mortgage estimate is right?

My wife and I are looking into buying a house. Online mortgage calculators give us an estimate of about $700-800 (diff. interest rates) taxes added no PMI needed. Someone told us they have called a bank and got a quote of $980. Huge difference. 105K loan at around 5%, 30 yr fixed. Why the big difference and which is right?

admin answers:

Not knowing your taxes how could anyone tell.

Principal & Interest on $105,000.00 at 5% over 30 years would be $563.66 add your taxes and insurance and you have your mortgage payment.

I suggest you get a good faith estimate which your loan officer will give you at application. You will need to give them an estimate for the property taxes and insurance and they will estimate your payment based upon a interest rate they can lock in on that day and they will estimate your closing costs.

Why go on what “Someone says” when you can get the information from the loan officer themselves.

Charles asks…

Is there a simple way to find a monthly mortgage payment without taxes and escrow?

How do you solve: “the price of the home is $133,000 w/20% down, 3 points at a rate of 8.5% for a 30 year fixed mortgage. For this particular example, I don’t need Taxes and escrow is not required. Do I need a specific calculator? I have a TI-30xA scientific calculator

thank you

admin answers:

You need a financial calculator to solve these kinds of problems. There are a bazillion calculators on-line that would solve this problem, but I can give you the answer. I loved my HP-12C, but there are many others out there if you are looking for a handheld.

$818.13.

I hope the scenario is not an actual mortgage quote. That would be ridiculous; 8.5% paying 3%?

Laura asks…

How much will my £51,000 mortgage be in 5 years time?

I am a first time buyer buying a flat at £67,500, borrowing £51,000 with a 5 year fixed rate deal at 4.89% over 30 years with daily interest. The mortgage payment is £280 a month. Assume I don’t make any overpayments as these will be limited anyway. Please can you explain how it’s calculated or direct me to a website with an online calculator for this. Thanks.

admin answers:

My keyboard does not have a pound symbol, so I’ll use dollars:

Your principal balance after 5 years will be about $46,000.

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