Mortgage Meltdown! What Does It Mean to Homebuyers?

Not long ago, mortgage companies started to offer a smorgasbord of programs to make home proprietary nothing else but ready to roughly everyone. Some of the common terms we have come to be accustomed to hearing include:

• Low-Doc
• No-Doc
• Full-Doc
• 100% Ltv
• Interest Only
• Arm
• Conforming
• Non-Conforming

Va Loan 125 Ltv

The housing shop has been red-hot for many months, but we are realizing that all these short-term "solutions" have come to be long-term "problems". For instance, if a inherent borrower had a decent reputation score, they could accumulate a "No-Doc" loan...which meant that they didn't have to submit documentation proving employment, income or debts.

Not only that, but there were the "interest-only" loans, where habitancy could qualify at a very low "teaser" rate...only to find themselves faced with the higher rate within just a few months.

And, can you even dream giving person a loan at 125% of the value of their home? It's crazy! This is a formula for bankruptcy if I ever saw one. Once they have used this money, it's gone. And when they get into trouble, they can't even sell the home without bringing a astronomical whole of money to the closing table. Since most habitancy don't have a huge whole of cash laying around, they are a candidate for bankruptcy or foreclosure. These loans should never have been allowed in the first place.

Many mortgage companies offered "adjustable teaser rates" - which meant that the borrower started out with a low interest rate (perhaps for the first year or so)...then jumped to the higher rate, which meant that any times while the life of the loan, their mortgage cost would increase dramatically.

It's so easy to buy a new home with low payments, and many borrowers just don't perceive what the higher payments will do to their budget. I wonder who was there to counsel these homebuyers? Who was there to remind them of what was going to happen in a few months? I think it my obligation to discuss this with my homebuying clients to make sure they understand the ramifications of this type of financing. As an Exclusive Buyer's Agent, part of my job is to counsel my clients in every aspect of their purchase.

Now, because of many of these loan programs, we are facing major foreclosures. Mortgage companies are folding and the entire industry is undergoing a major meltdown.

The bills are advent due! The delinquency rate on low-quality mortgages is at 13.8%, and the rate has doubled on medium-quality mortgages. Foreclosures are at an all-time high! Many areas of the country have real estate markets in the tank...and may take years to recover.

At least 82 high-risk lenders have re-organized or folded, resulting in huge loan losses. Many lenders are not closing on loans they have committed to. If you are in the process of purchasing a home, it would be to your benefit to check with other lenders in case your chosen lender cannot close on your loan. Many companies are simply cancelling loans and in many cases the homebuyer has to start over with a new lender. This can result in the homebuyer having to pay for other evaluation if the new lender won't accept their current appraisal.

The bottom Line! Basically, if you are purchasing a new home and have solid employment, a good Fico score and at least 5% of the buy price as a down payment...you should be fine. But, at this time, borrowers will have to prove that they can afford the home. The days of lenders giving borrowers the benefit of the doubt seems to be over. everything must be documented.

Until this meltdown settles, many of the loan programs that we have been accustomed to will no longer be there. Actually, this will mean that a bit of "common sense" has returned to the mortgage industry. person that can't afford a particular home shouldn't buy it in the first place. Borrowers will have to qualify at the normal rate instead of the "teaser" rate. The mortgage industry is simply advent down to earth.

But, on the flip side, inherent homebuyers and investors will be able to buy foreclosed properties at a astronomical discount.

Remember, if you plan to buy a home in the near future...follow these guidelines for a victorious transaction:

• Keep your reputation score as high as possible. Check it often and take care of any discrepancies. This can mean a huge difference in your interest rate.
• Maintain your employment. Lenders will want to see at least 2 years of steady employment history.
• Save your down-payment money. Make steady deposits into your savings account because lenders will want to see the "paper trail". And they want "seasoned" funds, which means that the money must be in the account for any months prior to loan application.
• Don't buy a car just prior to your loan application. This greatly reduces your income to debt ratio and could prevent you from purchasing your new home.
• Plan considered and try to accumulate a fixed-rate mortgage. This will insure that your principal and interest will not increase at any time in the future.

For more information, please feel me. I look send to hearing from you soon!

Mortgage Meltdown! What Does It Mean to Homebuyers?

Forex Tipps Führers Forex Factory Blog

Read More

Fannie Mae and Freddie Mac May Help Underwater Homeowners

The Obama supervision is reportedly pressuring Fannie Mae and Freddie Mac to sell out mortgage balances of underwater homeowners.

The supervision wants the two mortgage giants to underwater homeowners, underwater mortgages, Fannie Mae, Freddie Mac join the Federal Housing supervision program that lowers mortgage balances of homeowners with first mortgages larger than their home values, The Wall street Journal reports, citing "people well-known with the situation."

Current Fannie Mae Refi Plus Programs

That would be a big deal if it happens - Fannie Mae and Freddie Mac own or warrant about half of the first mortgages in the country. But then again, based on the Fha's experience, you'd have to wonder if it will work.

Obama's population evidently believe that reducing mortgage balances will help the housing shop and sell out foreclosures. But the problem is that you don't get something for nothing, and lenders and investors owning mortgages lose money when they sell out mortgage balances.

Fannie Mae and Freddie Mac are now under government conservatorship, so if they lose money U.S. Taxpayers lose. And their regulator, the Federal Housing Finance Agency, is charged with rescue the taxpayers money. As it stands now, the mortgage giants already owe the government 4 billion.

If they cut mortgage balances, they can't try to force the lender to buyback the loan and can't file a claim with the mortgage guarnatee company. That's why Fannie Mae and Freddie Mac don't do sell out mortgage balances now, or at least rarely do.

Its effectiveness is someone else issue.

Federal officials say 500,000 to 1.5 million homeowners could benefit from such a program, agreeing to the Wsj. Even if that's true, it would be a drop in the bucket. Some researchers assessment that roughly a quarter of households with mortgages might be underwater.

And would it for real prevent mortgage defaults and foreclosures?

Don Bisenius, a Freddie Mac menagerial vice president, told the Wsj that "the vast majority of borrowers - even borrowers who are underwater - continue manufacture their payments."

Second mortgages pose someone else problem. Lenders might refuse to sell out the mortgage critical if the second-mortgage lenders balk at cutting critical balances on their loans.

So far, the Fha Short program, which refinances mortgages of underwater homeowners, has prompted more controversy and commentary than revision in the housing market. Although up to 1.5 million homeowners were supposed to be eligible for the program, it has refinanced high-priced few loans. Lender participation is voluntary and few lenders are participating. Combined loan to values, or the first and second mortgage combined, must be no more than 115 percent, under the program's rules, which limits participation.

Second-mortgage lenders have commonly been unwilling to take losses. Homeowner applications to the program have been limited, probably because of the program's guidelines and paperwork requirements.

Borrowers commenting on our blog have expressed dissatisfaction about the program.

Underwater homeowners can also apply for the Home Affordable Refinance Program (Harp) to refinance into current mortgage rates.

Fannie Mae and Freddie Mac May Help Underwater Homeowners

Forex Factory Blog Forex Tipps Führers

Read More

The Many Advantages Of Home Equity Loans

Home equity loans have speedily come to be the estimate one way to get your hands on cash that you need to pay down bills or add an increasing onto your home.

A home equity loan is a lump sum loan for the estimate of equity in your current home. It's determined by taking your homes current value and subtracting the mortgage balance.

Mortgage Refinance 125% Ltv 2011

These types of loans will commonly have a fixed interest rate and be for 5, 10, 15 or 20 years. There are also numerous tax benefits with home equity loans that are very advantageous to the home owner.

Funds from the loan can be used for things such as:

Debt consolidation

Medical bills

Home remodeling projects

College expenses

People will also use this money for new vehicles and even lavish vacations. However, unwise that may be. You can precisely find yourself getting into serious financial troubles by production outlandish purchases that you would never ordinarily make.

Even with the many great benefits of home equity loans, there are some downsides. Some of these include:

- You're putting your home up as collateral. If you were to happen to default on the loan, you could face losing it.

- If you take out a ,000 home equity loan and pay it down to ,000, but need more money later, you'll have to refinance in order to get the supplementary cash. This will most likely lead to loan end fees and other charges.

Even with that being the case, a home equity loan can be a huge advantage to getting the funds you need for leading purposes.

All ownership Reserved Worldwide. Reprint Rights: You may reprint this record as long as you leave all of the links active and do not edit the record in any way.

The Many Advantages Of Home Equity Loans

Forex Factory Blog Forex Tipps Führer

Read More

Mortgage Loans - Ltv (Lending Risk Ratio)

When buying your home, it is imperative to have as much money as possible for your down payment. Not only should you save for your down payment, but also tap your personal savings, any stocks, bonds and real estate, and gather your house gifts. Customarily, lenders require a down payment of at least 20% of the home's purchase price, as well as require a ratio of at least 75% for your loan to be approved.

What is the Ltv Ratio?

125 % Ltv Loans In 2011

The Ltv, or lending risk ratio, is thought about by dividing the mortgage loan number (after subtracting your down payment) by the value of the property. The higher your down payment, the lower this ratio will be. The lower the Ltv the economy your mortgage costs in the end, and the great chances you have at securing your loan.

High Ltv Disadvantages

If your Ltv is high, it can influence your ability to gather the loan in a myriad of ways. A high Ltv is a risky situation in the lender's perspective, because high Ltv loans are more at risk to default. If you are competing with other buyers, the lender will most always go with the lower Ltv and a larger cash down payment. It can influence your chances of buying.

If you have a high Ltv, you are also most likely going to be dealing with higher interest rates and added insurance costs to safe the lender. These extra costs will growth the cost of your mortgage in the long run and make your payments higher. If you don't have the 20 percent cash down payment, some lenders will require you to have a larger monthly income to qualify for a 95 percent Ltv mortgage. The loan number is the same, but if your down payment is low, they will need more security.

Prepare When Obtaining a Mortgage Loan

With a small preparation, and possibly some patience, you can save 20 percent or more of the home's purchase price and steer clear of the hassle and extra costs. If you find this is not possible, it may be time to look at a home with a lower price. It's great to be able to afford your home, than to tie yourself in a situation with a opening of default.

Mortgage Loans - Ltv (Lending Risk Ratio)

Forex Factory Blog Forex Tipps Führer

Read More

Buy To Let Mortgages Face Negative Equity

Tens of thousands of property owners may be at risk of negative equity this year if the prediction of falling house prices comes true. Leading organisations are estimating that property prices will fall by about five percent while the year which leaves practically no margin for error for the thousands of would-be property investors who bought properties with 95% buy-to-let mortgages while the past few years.

The buy-to-let property boom of the early 2000s has made hundreds of thousands of investors asset rich due to short term increases on property prices. Unfortunately for many new investors who jumped on the bandwagon at the tail end of the boom, thousands of property owners now face ruin. This is because lenders were still contribution buy-to-let mortgages with high loan to value ratios to amateur investors despite the fact the property market was cooling.

Loan-to-Value Ratio

Securing buy-to-let mortgages against properties with high loan to value ratios was less of a risk five years ago. This is because property prices were skyrocketing, meaning that the margin in the middle of the value of the mortgage and the value of the property would swiftly grow due to natural appreciation. This feature of the property market has since disappeared. Lenders of buy-to-let mortgages, however, prolonged to approve high loan to value loans, such as 95% mortgages, despite the fact that property prices were no longer growing at high rates.

This has lead to a situation in which thousands of property investors have purchased properties within the past year or two with 95% buy-to-let mortgages. Instead of their properties expanding in value, as they had done while the preceding years, they have whether remained stagnant or decreased. This means that the 5% equity held in the properties on the date of buy whether remains the same or has eroded. If the value of a property falls below the excellent equilibrium of a mortgage then the property goes into negative equity.

This is the situation faced by many property owners this year as house prices begin to decline as part of a wider revising in the world property market. Prices had been pushed to description levels while the past few years due to easy passage to reputation and low interest rates. Buy-to-let investing also became a fad and it seemed that every person was buying speculation property. Although the property market is not in freefall it is safe to say that the bubble that has built up over the past few years has ultimately burst.

Some speculation property owners have even exaggerated their problems by funding the 5% deposit required with added borrowings from reputation cards and personal loans. This has exacerbated the problem as the properties they own are effectively financed to 100% of their value - and this value may be declining. Therefore, even if they are able to sell their properties and redeem their buy-to-let mortgages they may be stuck with thousands of pounds worth of unsecured borrowings to pay off.

Only time will tell what happens to these borrowers over the next few years. The telling factors will be interest rates and property values. If interest rates climb too high then the buy-to-let mortgages and other borrowings may become unaffordable. If property prices decline then many thousands of would-be property millionaires will fall into negative equity and will not be able to pay off the equilibrium of their buy-to-let mortgages - even if they are lucky adequate to sell their properties.

Buy To Let Mortgages Face Negative Equity

Forex Factory Blog Forex Tipps Führer

Read More

comprehension Fannie Mae, Freddie Mac, and the Housing shop

In order to understand the relations between the Government Sponsored Enterprises and the Housing Market, it may be best to start with a little report of Fannie Mae and Freddie Mac's historical background. It all started when Franklin D. Roosevelt's New Deal came into effect. The federal government established the Federal National Mortgage Association, better known as Fannie Mae, in order to help reform the financial theory while the Great Depression. 

Fannie Mae's purchasing authority began with the Federal Housing Administration's (Fha's) insured mortgages. In 1944, it vast to include loans guaranteed by the Veteran's administration (Va).   In 1968, the Vietnam War caused a strain in the national budget, which forced old president Lyndon B. Johnson to sign an amendment to Fannie Mae's lease Act. This new Act was to free up space in the government's national budget by turning Fannie Mae into a private, shareholder-owned company. However, Fannie Mae was and is still currently a government sponsored firm (Gse). This means that Fannie Mae has the benefits of being confidentially owned, publicly traded, and operated by shareholders while also having the benefits of tax exemption and government support.   

Current Fannie Mae Refi Plus Programs

In 1970, the Federal Home Loan Mortgage Corporation (Freddie Mac) was established to operate any additional monopolization exercised by Fannie Mae. In the same year, Washington authorized the two Gses to buy approved loans, which is currently comprised of prime and subprime loans. Prime mortgages are designed for borrowers with good reputation who typically receive lower interest rates and more affordable mortgage options. Subprime mortgages are typically offered to borrowers who have low reputation scores and/or fit into the lower income bracket.   Fannie Mae and Freddie Mac were designed to open opportunities for homeownership. Therefore, they need to produce the firm principal to make homeownership affordable for borrowers. These two Gses are not lending institutions and therefore do not lend money to borrowers directly. Instead, they contribute funds to the lenders straight through their secondary store functions. The secondary store constitutes some of the top buying authority with purchases being exchanged between lenders, banks, and savings institutions.   

Foreign investors have helped Fannie Mae and Freddie Mac receive the principal funds for the U.S. Housing store in exchange for the guarantee that the principal and interest will be paid back regardless of borrower defaults. The added relax for foreign investors came from the government backing that these two Gses have. Fannie Mae and Freddie Mac have written guidelines that set the limit for conforming loans. These guidelines are set to minimize the reputation risk of borrowers, who go straight through a series of paperwork and qualification process in order to settle their likelihood of mortgage default.     

How do Fannie Mae and Freddie Mac make money? They fee lenders who in turn fee the borrowers a guarantee fee on loans that it has securitized into mortgage-backed protection bonds. In addition, Fannie Mae and Freddie Mac behalf from the variation between the interest rate they fee the homeowners and the rate their investors fee them.   

Subprime lending turned into an avenue of increased possibilities for the two Gses. Higher risk borrowers meant higher rates charged. The higher the rates expensed the less likely the borrowers were able to qualify. Therefore, programs that increased the borrower's capability to qualify became more available. Such programs include adjustable rate mortgages, balloon mortgages, interest only, and increased amortization periods. The increased available programs produced more competition between the mortgage giants. In the 1990s, the two Gses began their participation into subprime lending with A minus bond purchases. Over time, the competition within the subprime mortgages that were offered to high risk borrowers caused an increase in home values, which in turn caused an increase in equity available to borrowers. This led to equity liquidation, which in case,granted temporary available funds for homeowners. Many high risk borrowers accepted adjustable or negatively amortizing programs in order for them to qualify for their mortgages. These programs made it temporarily affordable for borrowers to pay their mortgages.   However, after a sure period of time (typically three to five years), the mortgage programs that were accepted by these borrowers forced them to find an alternative to their mortgage term as their mortgage's adjustable rate caused their payments to increase.  

Today, subprime lending is practically nonexistent. ;Lesser programs have become available to borrowers who have had their equity reduced and debts increased. Increased delinquencies have caused lending institutions along with other mortgage giants to tighten their guidelines and minimize programs that were once created to increase homeownership over the country.    

The Gse bonds backed with subprime loans may appear to be causing quite a stir, not only in domestic markets, but in foreign markets as well. As of the end of March, practically .5 trillion in securities were held by foreign investors. There is investment that the Gses might be request the U.S. Government for additional help in the matter. Will the government come straight through for these two companies? What will the additional costs be to taxpayers? How will Americans cope with higher buyer prices and less revenue due to higher taxes? Is it possible for the government to help both the Gses and their digressing economy?        

comprehension Fannie Mae, Freddie Mac, and the Housing shop

Forex Factory Blog Forex Tipps Führer

Read More

Cltv, Du, & Lp - What Is That?

I know about all the bad hype from the media about the mortgage market. And, of policy I have heard each of our presidential candidates run down the cheaper over and over again. This happens every selection year.

Unfortunately people with very busy lives hear and read all of this and begin to think it is true. We have all heard this: "If you tell a lie often sufficient people will believe it is true". There you go!

Va Loan 125 Ltv

Is our cheaper a minuscule slow right now? Yes, but it is not in the dumpster.

Are independent mortgage brokers and appraisers the cause of the mortgage scandals? of course Not. In fact, it is their integrity and concern for their client's well being that helped to fulfill the American Dream.

The real scoundrels are the large corporations, and giant lenders. Don't let me forget to mention the politicians like the New York Attorney General, Andrew Cuomo, who is using the situation to his benefit by "saving the consumer" with new laws that will only hurt the buyer by putting the independent appraiser and broker out of business. But of policy he is manufacture a name for himself. What does he care. Guess what his political asperations are?

Well, sufficient of that! I received a very simple query yesterday and I am writing about it here for a few reasons I think you will understand afterwards.

The query I was asked is: "What is Cltv and Lp?"

The answer is Cltv stands for Combined Loan To Value. This term refers to when there is more than one loan on a property. As an example, if the first mortgage is 80% of the appraised value and there is a 2nd loan of 15% of the value, the Cltv is 95%. In the commerce we call these aggregate Loans.

Lp is a term for Loan Prospector. Loan Prospector is a computerised schedule that reviews and approves or disapproves an Fha, Va, or Freddie Mac loan. Du, DeskTop Underwriting, is a similar schedule used for Fannie Mae, Fha, or Va loans. When an application has been run straight through these programs, they basically, ... Sort of, the live underwriter then only has to verify the documentation because the computer has given an approval. If a loan isn't beloved because of an unusual circumstance, a lender can chose to do a by hand underwriting in which case the loan may still be approved.

My first reason for writing about this is to let you know that Lenders Are lending money. The mortgage commerce is alive and well in spite of the media and presidential candidates.

As a buyer you should take full benefit of these unbelievably low interest rates. Refinancing to lower your interest rate will save you a ton of money.

In the case above, combining a 1st and 2nd mortgage is a very smart financial move and will also lower your payments.

If you are reasoning about buying a home there is no good time than now. I of course mean like, ... Now. As soon as a new president is elected, and it doesn't matter which one, the rates will go back up. I promise you this will happen. It happens Every selection year.

Just make sure you go to a reputable broker and don't buy more house than you can afford.

Cltv, Du, & Lp - What Is That?

Forex Factory Blog Forex Tipps Führer

Read More

Don't Get Mortgage guidance From "Experts" on the Today Show

As I was getting ready for work Tuesday morning, The Today Show on Nbc had a segment with Barbara Corcoran, a "real estate expert", about refinancing. Being a loan officer, I watched intently, hoping Ms. Corcoran would dispense good guidance about the multitude of opportunities available for refinancing. While some of her guidance was accurate, she made a number of points in the allotted three-and-a-half minuscule segment that were so erroneous and misleading, I had to respond.

The video can be found on the Today Show website. I suggest watching it first.

Va Loan 125 Ltv

I suppose pointing out that getting any financial guidance in a three-and-a-half minuscule segment is not a good idea. Moreover, Ms. Corcoran sold her real estate firm in 2001 for seventy million dollars. While I respect her success, she is no longer involved in an industry that is vastly different now and her palpate was that of an real estate agent/saleswoman, not a mortgage professional. Hopefully, the segment prompts viewers to palpate a mortgage pro for more in-depth personalized advice. I know she meant well, but I have a real question with the following tips from Ms. Corcoran:

• 80% Ltv can "typically get refinancing"
  
While the statement is true, she seemed to imply that if your mortgage is more than 80% of the home's value (commonly referred to as Ltv or Loan-to-Value), you cannot refinance. Nothing could be further from the truth. In fact, there are government sponsored/supported programs that allow homeowners to refinance up to 125% of their homes value. Being over 80% does not automatically preclude anyone from refinancing.


• 720 Fico for best rates
  
Again, the statement is mostly true, except that the best rates are for those who have a 760+ reputation score. In fact, rates may differ at 760, 740, 720, 700, 680... You get the idea. However, mortgage interest rates are carefully by a number of factors together with Ltv, reputation score, your state of residence, comprehensive debt profile, and others.


• Ask for a term equal to that remaining on your current mortgage or "you'll get ripped off on that interest rate."
  
You will not get "ripped off" if you get a new 30 year mortgage. In fact, a new 30 year mortgage is likely the best way to gain the lowest monthly payment. Getting a new mortgage equal to that of your remaining term is accepted in some cases. Ask your loan officer to show you the cost differences of discrete terms and programs.


• Pre-payment penalties.... Don't get one and don't refinance if you have one.
  
This one is absolutely egregious, primarily because it can cost you a lot of savings. If you currently have a pre-payment penalty, refinancing now at a low rate may offer savings benefits that offset the penalty. If you wait for the pre-payment penalty to expire, interest rates will likely be higher. Ms. Corcoran made a good point about peak-even analysis, and a pre-payment penalty should be part of that. If anyone offers you a new loan with a pre-payment penalty, Run!!! Pre-payment penalties are virtually extinct, as they were part of the sub-prime mortgage world that is no longer in existence. This piece of guidance would have been helpful in 2005 but is misguided and irrelevant in 2010.


• No windup costs, no points. Lenders will bury the costs in the instrument.
  
The intimation is that a no windup cost/no points loan is a bad thing. Not true. A buyer choosing a no windup cost/no points loan will trade those costs for a higher interest rate. It's that simple. Once again, have a mortgage pro show you the dissimilarity in a former mortgage and a no windup cost/no points mortgage loan.


• It take 90 days to refinance.
  
Bogus. Typically, refinances are taking 45 days. I have heard bad dream stories from clients when they use a former pick-and-mortar bank where loans have taken six months. Possibly it's different in Manhattan but for the rest of us, there is no excuse for more than 60 days in a worst case scenario.


• Pmi 1.75% going up in April.
  
This is misleading and incomplete. Pmi is hidden Mortgage Insurance. The 1.75% Ms. Corcoran refers to is the Fha Mortgage assurance Premium, or Mip. Hud has proposed raising the Mip to 2.25% this year. Mip is typically financed into the loan. Fha insured mortgages do want Monthly assurance (Mi) of either.50% or.55% but it is commonly much less than Pmi. Pmi is required if you have less than 20% equity and a approved mortgage. Pmi rates vary depending on several factors and is typically paid each month as part of your monthly payment. Again, ask your loan officer to show you the cost differences.

What is comes down to is that a mortgage pro can help you decree if refinancing is is your best interest. Sometimes, refinancing is not the best choice for you right now. Don't make the decision based on sound bites from a Tv show. Ask a mortgage pro to sit down with you and observe your current financial situation. It won't cost a penny and may save you thousands of dollars.

Don't Get Mortgage guidance From "Experts" on the Today Show

Forex Factory Blog

Read More

Fannie Mae Announces Underwriting Changes - Much Ado About Nothing

Fannie Mae announced some changes to their loan guidelines. Some of the changes make it easier to get that home loan you're finding for, while other make it tougher.

A word of warning here - the changes are Fannie guideline changes only. They do not reflect the so called "investor overlays" that are tougher than the normal program guidelines. Lenders place the tougher overlays onto the sponsoring loan program, Fannie in this case, to make the loans more spicy to investors. The sources of money in the mortgage chain - Mortgage Bankers and their banks that furnish lines of reputation to close loans - require that mortgage bankers consequent these overlays as they do not want to fund loans that are un-sellable on the secondary market. This means that the mortgage secondary market is still not wholesome and that we've not achieved a situation where money is flowing to market.

Current Fannie Mae Refi Plus Programs

For the most part overlays are strikingly uniform, though there may be tiny variations lender to lender. The best known overlay is the reputation score requirement on Fha loans. Fha does not mandate a minimum reputation score on its loans, though investors have overlaid one on Fha loans. The minimum started out at 580 and now is at 660.

Here are the changes Fannie announced:

Gift or grant funds of 5% are now standard from non-profits. This has all the time been a particular sore spot with sales agents, borrowers and lenders. While Fannie agreed to accept grant funds, extra diligence is required to decide if your lender will accept the grant. Also be aware that if mortgage insurance is required, the Mi firm may not accept the grant. Thus while your lender may take it, the Mi firm is an additional one cook in the kitchen with veto power over the approval.

The tougher news is that Fannie adjusted its debt-to-income ratio down to 45% from 55%. Its also announced changes to the manner in which it would use debt in the ratio, when the debt has ten payments or less to payoff.

45% has been the norm with lenders, so this change does not impact most if not all mortgage programs. What is considerable is that change to calculation of mortgage debt with less than 10 payments to run in the loan. Lenders have routinely exempted debt, revolving, mortgage, installment, etc., that could be paid off in less than 10 installments. This change seems to take this exemption away and force lenders to add the debt service back to the Dti calculation, development it tougher to qualify.

So while the Dti calculation is beyond doubt a no-change, inclusion of the balances that could be paid off in 10 months represents conclusion of one of the last techniques loan officers were using to get loans approved. I wouldn't even call it a loop hole.

Overall, this evidences the fact that the secondary market is still not in any place it needs to be.

Fannie Mae Announces Underwriting Changes - Much Ado About Nothing

Forex Factory Blog

Read More

Debt Consolidation - Loan That Helps To Clear All Your Debt

When you are suffering from the burden of any debts, your first concern is to be debt free as soon as potential to avoid any crisis. Debt consolidation loan erases all your debts and gives you an opportunity to start new life all again.

Based on borrowers potential and requirements these loans are structured in two forms, secured and unsecured loan. To pay off greater debts, opt for secured debt consolidation loan, which comes against your home or any valued asset. The biggest benefit is that you get this loan at lower interest rate. Commonly the refund term for these loans is 5 to 30 years. The loan whole depends on value of property pledged as collateral.

Credit Union 125% Loan To Value

In case of smaller debts, you can apply for unsecured for of these loans without collateral, which makes it a risk free loan offer for the borrower. The loan is meant for shorter refund duration of 5 to 15 years. Borrowers will get an whole of £1000 to £25000. Your revenue and refund potential is the basis of these loans.

Debt consolidation loans are also meant for bad credit habitancy who have late payments, arrears, cost defaults or bankruptcy. Ensure that you pay back the loan installments in quarterly manner to avoid falling in a new debt
trap.

These services are available to the borrowers through the online mode easily. Lenders are available online who are ready to take off the debts of the borrowers and that too at a low cost. The borrowers can collate the deals that are available to them and then choose the best of the service.

With the help of debt consolidation loan borrowers can feel free of debts and many financial issues are resolved through this loan. This kind of loan pays off all the unpaid debts and improves your poor financial position.

Debt Consolidation - Loan That Helps To Clear All Your Debt

Forex Tipps Führer Forex Factory Blog

Read More

Obama's Stimulus box Helps Customers Refinance Bank of America Bank Loans - Loan Modification

When you think of well-known banks in the Us, Bank of America remains one of the largest institutions, dealing with such a wide-base of customers over the country. They have so much at stake with the difficult economy, so they are eager to help homeowners with solutions to holding their existing mortgages before they foreclose or consequent in bankruptcy.

President Obama has put forth a Plan for banks to have a way to help homeowners, while in turn earning incentives from the government for their participation. Bank of America is one of the participating lenders for the 2009 Stimulus Plan.

Current Fannie Mae Refi Plus Programs

If you currently have a Bank of America owned loan for your mortgage, here are some tips on approaching them to fetch a loan modification:

* It is very important to continue to make your monthly payments on time, without letting your loan default. If despite your efforts, you get behind, immediately draft a hardship letter to illustrate your situation. The bank will need it to settle either or not you are carefully a prime candidate for receiving aid through the programs available. But your letter must contain the calculate why you were behind, your financial situation, and steps you have and will take to ensure that with a modified loan you will continue to stay current on your mortgage.

* If you are finding to refinance your home, the estimate you owe must be 105% more than the market price of the asset to be considered.

* Fannie Mae and Freddie Mac owned loans are also eligible for loan modification or refinancing as stipulated in the Stimulus.

* Obama's Plan also covers the cost of expert counselors who can provide you with guidance on how to approach your lender, including helping record you if needed. You can caress the Housing and Urban improvement division (Hud) and apply their services free of payment to you.

Obama's Stimulus box Helps Customers Refinance Bank of America Bank Loans - Loan Modification

Forex Tipps Führer Forex Factory Blog

Read More