April 2007
Monthly Archive
22 Apr 2007 08:25 am
Fannie and Freddie Polish Image
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Freddie Mac and Fannie Mae said they expect to buy tens of billions of dollars of newly created subprime mortgage loans over the next few years to help prop up the roughly $1.3 trillion subprime market as lenders tighten their credit standards or flee altogether. The move shows how the two government-sponsored companies are redeeming themselves on Capitol Hill by depicting themselves as part of the solution to surging defaults on subprime mortgages, those for borrowers with weak credit records or high debt in relation to income. |
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search for : Freddie Mac, Fannie Mae, subprime market
21 Apr 2007 07:18 am
Refinance Applications Up: Is It Time?
| With all this recent talk about loan hybrids it’s no wonder refinance applications are up. People are seriously thinking about getting out of them and into fixed rate mortgages. Even though their adjustment period won’t take place for another couple of years. What gives? I have two good Realtor clients who have me on short leash that if the 30 year fixed conforming rate gets to 5.50 percent then they want me to refinance them out of their hybrid mortgage and into a fixed. Interestingly enough, they both have the same hybrid, a 5/1 conforming ARM at 5.50 percent. |
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search for : loan hybrids, refinance, hybrid mortgage
20 Apr 2007 06:58 am
Cash-hungry retirees look to reverse mortgages
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As thousands of baby boomers decide to retire every day, many suddenly realize they don’t have enough income to provide for a comfortable lifestyle. Meager Social Security income certainly isn’t the answer. But there is an easy solution. It’s a reverse mortgage, which can provide lump sums of cash for any purpose (such as a new roof, new car, trip around the world, bill payoffs, or something frivolous), a credit line for emergencies or investments (except in Texas), or lifetime monthly income even if you live to 110. Or, you can select any combination of the above. The best part is tax-free reverse-mortgage money never needs to be paid back as long as you live in your principal residence. Also, there is no personal liability. |
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search for : Social Security, reverse mortgage
19 Apr 2007 06:24 am
Refinancing an exotic mortgage
| If you’re looking for a refinance, whether it’s because your current mortgage will soon adjust to a higher interest rate or because you’d like to borrow extra cash against your built-up equity, you can expect lenders to be more demanding about your credit, your ability to document your income and the appraised value of your home. They are less likely to OK new mortgages if the monthly payments consume more than 28 percent of the borrower’s monthly gross income, or if, combined with payments on other loans, debt repayment consumes 36 percent or more of income. |
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search for : refinance, mortgage, interest rate, appraised value of your home
18 Apr 2007 07:21 am
Lenders tighten standards on subprime
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The stricter lending standards are the fallout from the subprime mortgage market meltdown. About 15 percent of mortgage borrowers are in the subprime category. Those are the least creditworthy people, with credit scores less than 620 (on a scale of 300 to 850). About 85 percent of mortgage borrowers have credit scores of 620 or higher. So far — knock on wood — most of these prime customers needn’t worry about being turned down for home loans on the basis of their riskiness as borrowers, so long as they’re willing to let the lender verify their incomes and assets. |
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search for : subprime mortgage, credit score
17 Apr 2007 08:05 am
How Much Home Insurance Is Necessary?
| Make sure your policy covers the cost of rebuilding — and don’t confuse the real estate value of your house with what it would cost to rebuild in case of damage. And remember, most standard policies, which usually cover disasters such as fire or hurricanes, do not include flood coverage. Consider buying coverage from the National Flood Insurance Program ( www.floodsmart.gov), or buy additional coverage from your current carrier. |
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search for : real estate value, flood coverage, National Flood Insurance Program
16 Apr 2007 05:06 pm
Mortgage Applications Trigger Competing Offers
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Can you put a stop to those postal mailed mortgage offers that begin arriving soon after you apply for a mortgage? Or is it easier to simply let them keep coming until you find a better deal? Much to the chagrin of some consumer advocates, when you apply for a mortgage and the lender pulls your credit report, your file lights up like a runway for other companies with money to lend. It’s not that the original lender is selling information about your every move, creditors are taking advantage of federal law that allows credit bureaus to identify you and other mortgage applicants to companies that want to pitch their product to you often in the form of “prescreened” or “preapproved” credit. |
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search for : mortgage offers, credit report
15 Apr 2007 06:35 am
Loans modified to avoid foreclosure
| Loan modification represents just one approach that mortgage servicers can use to stem the tide of foreclosures. Other techniques include: Repayment plans that reduce unpaid balances over time through small, regular add-ons to borrowers’ monthly payments. Forbearance agreements whereby principal and interest payments are reduced or even suspended for a period of time, enabling the borrowers to get their finances under control. Then the regular payments resume, along with gradual reimbursements of balances in arrears. |
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search for : Loan modification, mortgage servicer, tide of foreclosures, monthly payments, Forbearance agreement
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