How safe are internet mortgage lenders?

I am located in Hawaii.

Looking for 30-yr fixed rate mortgage.

Seems Internet Mortgage Lenders (IML) offer better interest rates than local lenders.

Concerned about long term viability and stability of IMLs.

Concerned about responsiveness and lack of local representative.

Are IMLs able to consistently close loans at specified rates?

Anyone have personal experience with them?

What do realtors think of online lenders?

Specific lenders of interest include: The Money Store, AimLoan, Home Finance of America

How safe are internet mortgage lenders?

I%26#039;m going to have to disagree with the choir of local mortgage brokers chiming in here.

Let me try to answer your questions

1. Shop for the best rate, certainly an online lender may be able to give you a slightly better price as their salespeople may not be motivated directly by the rate they charge. Local mortgage brokers always earn more money if they are able to charge you a higher rate.

2. Use a reputable company, do you research. Quicken Loans, HFA, The Money Store are all relatively reputable. All major brands such as Countrywide, American Home Mortgage, Washington Mutual, also offer mortgages %26quot;online%26quot; via a centralized lending center.

3. Unless it is important to you to feel comfortable looking at your mortgage processors, you don%26#039;t need a local representative from the mortgage company. The mortgage company will find you a reputable local real estate appraiser and closing agent.

4. Certainly. IMLs can close loans at specified rates, in fact due to the lack of in person relationship, their practices tend to be under much higher scrutiny than the glad-handing local mortgage broker who will take you out for a beer after signing the papers.

5. Thankfully, no problems in my experiences, I have done everything online since 1999.

6. They frankly don%26#039;t like them, as Realtors like to control the mortgage business. It gives them leverage with the appraisers, settlement agents and mortgage lenders, and potentially pays in gifts and incentives to become buddies with your local mortgage broker.

Hope this helps. In general, any company can do a bad job or act dishonestly with a consumer. Online or offline. Work with a reputable company. Do your homework but don%26#039;t be blinded by the simple fact that a company may be local.

How safe are internet mortgage lenders?

not safe at all go to your local mortgage company

How safe are internet mortgage lenders?

DO NOT GO TO AIMSTORE OR MONEY STORE. never heard of home finance but I%26#039;d stay away as well. are there no brokers in your area that you can speak with face to face? would assume there would have to be some. the fate of IML%26#039;s is fickle. meaning that they may be around a year from now and they might not be. usually bigger companies buy them out, consume them and turn them into sateillte offices of the head corp. anyone can close the loan at a specified rate regardless. it%26#039;s the broker fees that you need to be aware of. most will charge around 3-5 thousand depending on the size of the loan itself. bigger the loan, bigger the fees required. these are things you CANNOT get around and no one will be cheaper. those that say low closing costs or whatever do offer these low closing costs, however you will pay for it somewhere else in the loan. you%26#039;d be safe in looking up national brokers or local brokers, if applicable, and go with them. any questions, email.

How safe are internet mortgage lenders?

if somebody lends you money then goes bankrupt, it is to your advantage, surely? All you have to be sure about is whether the interest rate will increase and what their fees are.

How safe are internet mortgage lenders?

Check Consumer Reports. Be aware that on line lenders have all kinds of hidden fees and they won%26#039;t cut you any slack at all for a late payment. They often resale the mortgages before the ink is dry to someone even more shady.

If you belong to a credit union, they will give you better mortgage rates than a bank. Oh, and the smaller, more local the bank, the better you%26#039;ll be treated.

How safe are internet mortgage lenders?

I got mine via the money store. They were great and they service all their own loans so you do not have to worry about your loan being sold 5 times beofre you even make the first payment.

How safe are internet mortgage lenders?

I have to disagree with Lou Lou. Seems like she%26#039;s offering a scare tactic answer with nothing to support it. FYI, I am a local mortgage professional. Large, reputable online mortgage companies (of the ones you listed, I%26#039;ve only heard of the Money Store) probably can provide you with a loan. If you decide to go with an online lender/broker, watch for the following: Bait and switch on fees, pre-payment penalties, long loan processes that cause your low interest rate lock to expire and excessive fees. Not online lenders use these practices, but they do happen. Also you level of customer service will probably be less. Internet lenders generally make money based on high volume, thus it does not pay for them to offer much service. As a local mortgage professional, I feel most of us offer a competitively priced product, excellent customer service and have FAR more interest in making sure you are happy with your transaction ... we live and die on repeat business and referrals. I%26#039;m admittedly biased, but I believe there is room for both online and local lenders based on the various needs of consumers. If you have additional questions, please contact me at phl_cocnord@yahoo.com.

BTW, if your financial/work/credit history has any irregularities, I would STRONGLY advocate workeing with a higher service local professional.

How safe are internet mortgage lenders?

personally I donot recommend it. I would feel very uneasy dealing with someone you never meet and giving them your most important information regarding your finances on the internet. Try and go with a bank or private broker. Good luck.

How safe are internet mortgage lenders?

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How safe are internet mortgage lenders?

After reading the post - had to answer. One thing you do want to check out is make sure the company / broker can do business in Hawaii. A Broker underwrites of many other companies. The rates are sometimes better than a big bank. A bank is locked in on certain programs they offer, where as a Broker has all the different programs out their. There are too many loan programs to mention. The ones most ppl think of are fixed, interest only, arm%26#039;s -

When you decide - here are some things to remember:

ADDITIONAL HELPFUL INFORMATION TO KNOW

Decide on how much you want to spend, if you want to escrow the taxes and insurance. Say the taxes are 1200 a YR and insurance 800 a year (just an estimate, ok) That is 2,000 a year divided by 12 = 166.66 If you paid 1,000 a month now - (166.66) your P/I Principle and Interest would be 833.34. Now you decided on the price range you are looking into. If you have great credit, a 1 loan at 130,000 at a rate of 7 percent over a 30 year time would be 864.89 - This is just a estimate - ok -

It greatly depends if you need help with closing cost, (The seller could do Seller Help toward your closing cost). If that is the case, I normally tell my clients NOT to hackle over the price, since you are asking for closing cost help - especially if the home is thur a realitor, and the seller has to pay the realitor their fee which runs from 2-6 percent of the selling price, and you ask for 4-5 percent toward closing cost -assistance) Follow me so far??

Talk with a broker, a broker underwrites for many company%26#039;s (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a %26quot;hard%26quot; pull and it drags down your credit score. When looking for a home, please do not apply for a credit card, Department Charge Card, Gasoline Card or make any major purchases, like a auto, etc. This will pull your credit down

Try to find someone (broker) that will pull your credit one time, and submit your loan application to company%26#039;s that will go off his credit report. By the way, a loan application is called a 1003, and they will issue you a GFE (Good Faith estimate, with-in 3 days, that is per the RESPA laws, and the TIL (Truth in Lending). This will tell you the up-front closing cost (etc) associated with your loan. This is a estimate only - not the final - but it does help you figure things out.

Lenders look at the middle score...of the 3 scores. If you only have 1 score or 2 scores (have seen it), it is still workable....but unless a lender sees the whole picture - credit - income - job time, etc - than you will not have a %26quot;true%26quot; picture of what you can afford - Hope this helps - There are also Government programs out there, but they too are looking for job time, etc.....They are not so much looking a credit - but the other factors are taken into consideration. With a government loan - collections and judgements will have to be paid (most ppl do not know that) but for FHA it is true.

Decided on the type of program (loan ) you are wanting. A 30 yr fix is still roughly at a 6.5 rate right now - but if you are needing a 90 percent ltv the rate is around 7 percent and a 95 ltv is 7.375 and a 100 percent rate is 7.5 ( This is a estimate only, since I do not know what your credit score%26#039;s are....There are also, interest only loans - adjustable loans, option arms (where you pick the payment, from 4 payments, including interest only). Interest only are lower payments, but nothing is being paid on your home. Some self-employed ppl like the payment options, in a lean month when money is tight., they can pay a lesser amount.

How safe are internet mortgage lenders?

As a mortgage Broker I can tell you that Internet %26quot;Mortgage Lenders%26quot; charge local lenders for your lead. In other words a Local Mortgage Company will pay around $30 for your information. Internet services are very competitive because it allows regular people to find lenders that were not normally known by most of the people.

You will never go wrong doing a research for those companies check bbb.org for information as well.

Good Luck

www.bletza.com

. the mortgage broker ask that I pay add'l fees outside of title. is this legal?

bought a new home in ca, I paid more money to buydown int. rate. mortgage co. said I would have to pay add%26#039;l fees to mortgage co. outside of the closing cost to title co. because it is over the amt allowed by the state. mortgage co. wants to to me to pay $4k to them directly besides what I pay to the title co.

. the mortgage broker ask that I pay add%26#039;l fees outside of title. is this legal?

Not only is this fishy, illegal, and stink....I would contact the Consumer Credit Agency or Bureau in your state and report the mortgage broker. All REPUTABLE brokers will have their fees stated in FULL on the HUD. The only items that you might pay %26quot;outside%26quot; the settlement statement/HUD are items like an inspection, appraisal, etc. All of their charges should be listed.

You should also contact HUD.

. the mortgage broker ask that I pay add%26#039;l fees outside of title. is this legal?

shop around.. somethings stinky..

. the mortgage broker ask that I pay add%26#039;l fees outside of title. is this legal?

RESPA Laws vary from state to state, but as someone else said.... this smells fishy. All expenses should be listed on the HUD-1 Settlement Statement. If California limits the amount you can pay to the mortgage company, then they are trying to overcharge you %26quot;under the table%26quot;. Why don%26#039;t you just put them on hold, and talk with a mortgage LENDER, such as a bank or savings %26amp; loan, instead?

. the mortgage broker ask that I pay add%26#039;l fees outside of title. is this legal?

I agree wait find a lender tell the other not right now

Can a mortgage company profit off the escrow account?

I have a fixed rate mortgage and I am afraid that as Interest rates rise the mortgage company will try to recoup some of there losses by raising my monthly payment by increasing property insurance or property tax they require in escrow. Is that possible?

Can a mortgage company profit off the escrow account?

No. That is not possible. Your mortgage company has no control over your property insurance or property tax amounts. Your property insurance premium is dictated by your homeowner%26#039;s insurance company, and the local city or county sets the property tax rates. It has nothing to do with the mortgage company.

On a fixed rate mortgage, your payment will never change, unless you%26#039;re currently paying private mortgage insurance (nothing to do with property insurance), then it will go down once your loan balance reaches 78% of your original loan amount.

Your mortgage company cannot profit in any way from the escrow account (by collecting interest, or otherwise). The only time your payment can change in relation to taxes and insurance is if those amounts increase. If that happens, sometimes the lender will make you pay a little extra to %26quot;catch up%26quot; the escrow balance, because they had to pay out more than they anticipated.

Can a mortgage company profit off the escrow account?

that%26#039;s illegal....they cant even collect interest on the escrow account (with your permission maybe)

If you have a fixed rate mortgage and your lender goes bankrupt..you will only be sending your payments to a new location/lender.

THAT%26#039;S IT!

your escrow however does go up every year because taxes/ins goes up.

Can a mortgage company profit off the escrow account?

No, they are bound by what they must collect to realistically pay those invoices. They are allowed to collect a reasonable cushion to protect you from radical increases on the coming year%26#039;s bill but must be able to justify the increase by increase histories.

Servicer%26#039;s do not profit from escrow account activity. those funds are collected and paid out on the borrower%26#039;s behalf. Funds collected that are not needed for the intended purspose are refunded to the borrower either by rebate, application to lower the principal balance or retention in the escrow account to protect the borrower from future increases.

Escrow accounts are analyzed annually. That is when the borrower receives notification of either a defecit or an excess and the borrower%26#039;s options are explained.

Can a mortgage company profit off the escrow account?

no they cannot if you think they are trying to make extra money compare the intrest rate to the APR on the truth and lending if there is a good bit of differance you are being charged yield spread

Why is the 10 year treasury note used as a benchmark for determining mortgage rates?

Mortgages are bundled together by mortgage companies and sold on the open market as mortgage backed securities. Say $10M of 30 year loans at 7.00%. These securities are sold to investment companies (insurance companies, investors, banks, pensions).

Ten year bonds are also sold to investors on the open market and are considered a rock solid almost guaranteed investment. Mortgage backed securities are considered higher risk (since mortgages in the bundle could be refinanced or defaulted (foreclosures)).

SO when pricing mortgage securities, traders will look at the price and yield of treasury bonds and determine what they%26#039;re willing to invest. If T-bonds are yielding 8% then mortgage securities are going to be higher than 8% otherwise, why buy them? If I can get T-bonds for a better return why take the risk? Conversley, if T-bond yield 4% the interest required to sell mortgages on the open market goes down with it. Other factors determine mortgage rates also, but T-bonds are their major competition for investor dollars.

Why is the 10 year treasury note used as a benchmark for determining mortgage rates?

Mortgage rates used to be tied to the 30 year treasury bonds but they discontinued those and so they began using the 10 year treasury notes because it is the longest treasury note term.

Why is the 10 year treasury note used as a benchmark for determining mortgage rates?

The mortgage note may be written for 30 years, but the average person moves and pays off their mortgage in 7-10 years. This makes the 10 year treasury the nearest risk-free benchmark.

I would like to know if any building societies/banks are offering low mortgage rates plus free/low c

this is for next time buyers

I would like to know if any building societies/banks are offering low mortgage rates plus free/low costsurveys

can%26#039;t remember which one,maybe yorkshire,currently advertising on tv,no fees at all

I would like to know if any building societies/banks are offering low mortgage rates plus free/low costsurveys

Abbey are advertising no fees at the minute so are Halifax. The Abbey sight is Abbey.co.uk, not sure about the Halifax one.

Credit Score of 725, should I be able to qualify for the lowest mortgage rates?

Maybe.

Credit score is one key variable.

What you earn, how you earn it and how long you have had your present income level also matter.

The size of the loan (absolute size) plus the loan to value (LTV - debt level relative to the value of the property) is very important. People who want to borrow 60% of what the property is worth will generally get a better rate compared to the person who wants 100%.

How well and how much documentation you supply concerning your assets and income matters.

Your present debt levels make a big difference. If you have up to your eye balls in debt vs. have no debt is going to shift the interest rate.

Even the type of property. A single family home vs. an investment property will make a difference. A single family vs. 4 unit building can matter. A non-conforming condo will attract a higher interest rate.

The term of the loan will influence the interest rate. 15 year, 30 year, ARM with a 3 year fixed vs. 7 year fixed are examples for when rates will vary

There are a number of variables. Your credit score is a good sign as it implies a number of things about you.

Good luck. You can get a pretty good handle on average rates using the web or a local paper as many publish a table of rates.

Credit Score of 725, should I be able to qualify for the lowest mortgage rates?

That%26#039;s a pretty good score. I don%26#039;t know about getting the very lowest mortgage rates, but you should certainly get good deals.

Credit Score of 725, should I be able to qualify for the lowest mortgage rates?

Yes, if you also have had a good job for a couple of years.

Credit Score of 725, should I be able to qualify for the lowest mortgage rates?

Excellent credit rating! You should have no problem getting credit. You should also take into consideration your current bills. Can you afford to make a mortgage payment and your bills, as you probably know, you should see if you are able to make your bills (i.e. rent, utilities, etc)....don%26#039;t cut yourself short.

Credit Score of 725, should I be able to qualify for the lowest mortgage rates?

You won%26#039;t qualify for the %26quot;lowest,%26quot; but you will come very close. Other issues in qualifying are property type, savings, stability, and ratios (both income as well as LTV -- loan to value). Assuming that all of these are ideal, then you%26#039;ll be within .125% of the best available rates. Lenders now-a-days offer incentives to borrowers by discounting rates/costs for those with credit risk scores over 750. This translates to .5% reduction in closing costs (e.g. on a $100,000 loan amount this is $500).

No matter what, however, you%26#039;ll find someone who will approve you. Try IndyMac Bank; they have the best available rates and costs.

Credit Score of 725, should I be able to qualify for the lowest mortgage rates?

understand your credit history. you can have a credit score of 725 but you may only have the borrowing power of someone how works part time at McD%26#039;s. 725 is great score, but 725 with 3 credit cards and an average payout of 500 to 725 dollars of month and you got every bank in the country looking to give you everything they can possibly offer including their first born

Credit Score of 725, should I be able to qualify for the lowest mortgage rates?

A FICO score of 725 will get you a very good rate. If you couple that with a 10% down payment or so you should be in the driver%26#039;s seat. Don%26#039;t forget there is more to it than the rate. Closing costs, points etc. will more than make up for a lower rate. Almost all of those are negotiable.

If you are in the market for a mortgage, home equity loan, or refinance get up to 4 FREE No Obligation Mortgage Rate quotes at http://www.m-o-r-t-g-a-g-e-r-a-t-e.com

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Credit Score of 725, should I be able to qualify for the lowest mortgage rates?

Your credit is considered excellent these days. You are definitely qualified for an interest-only loan (the type of loan that the entire payment is tax deductible). Where are you looking to locate? I may be able to help you. Send me an email---mgcashin@yahoo.com---. Remember to include your corresponding email address. I think I can really help you.

Can I refinance my mortgage if I have no equity?

I have a 30 yr adjustable rate mortgage with the first 3 yr fixed rate of 6.8%, I have 1 yr since I refinanced. Is it a good time to refinance now that the rates dropped so much? Can I refinance even if I dont have any equity on the house?

What I want to do is lower my rate %26amp; my monthly payment, not get any money out it.

Please advice, I dont want to find myself in a place where I%26#039;m about to lose my house. BTW I live in NJ.

Can I refinance my mortgage if I have no equity?

if your property hasn%26#039;t decreased in value that shouldn%26#039;t be a problem. i%26#039;m sure some where out there you%26#039;ll be able to find 100% financing although it is more difficult now than a year ago. Also although rates were very good the past couple weeks as of yesterday they started to go back up so if you want to refinance contact a mortgage broker today to lock in a rate. Finally, remember that even though your payments may go down some you will need to pay the new closing costs so you%26#039;ll have to have a couple thousand saved up before refinancing and if the interest rate doesn%26#039;t decrease greatly it may not even be worth it due to the closing costs.

Can I refinance my mortgage if I have no equity?

Only if you want to pay more money.

You need to drop 2 points to make refinancing worth it.

Are borrowers still making their mortgage payments?

Pardon my ignorance, but this credit crunch isn%26#039;t being caused by the home buyers who made variable interest rate mortgages not paying their mortgages. Is it? So if the lenders would only ease up on raising the rates to home buyers, they could avoid many foreclosures on homes that are generating capital for the lenders.

What good will it do for the lean holders to foreclose and continue to cut the own throats by driving the property values down even further?

I told you, I%26#039;m ignorant, but I knew enough to get a fixed mortgage.

Are borrowers still making their mortgage payments?

It is being caused by variable interest rates going up to the point where people who were barely able to afford the house they bought can no longer afford to make their payments. Their houses are going into foreclosure, which is dropping a lot of property on the market all at once (which drops the market value of property because the supply is now greater than the demand). And, the banks are getting pickier about who they will finance, which is making it harder for people with mediocre credit to get a mortgage. So, now you have an abundance of houses on the market that are for sale. But, because a lot of people can%26#039;t get financed, those houses don%26#039;t have buyers. And, the houses are selling for less than what the loan amounts were for. So, now we have mortgage companies who own a bunch of properties that they can%26#039;t sell (because new buyers can%26#039;t get mortgages) and the few that they do sell are barely paying back what the people own. Catch-22.

So, long story short, mortgage companies are land rich and cash poor right now.

And, they did it to themselves. It was a combination of greed on the mortgage companies part by putting people into house they knew the people couldn%26#039;t afford, not disclosing everything clearly to the borrowers. And, then greed on the borrowers end because they wanted to save a few bucks each month by getting that variable interest rate instead of locking in a fixed rate. Now that it%26#039;s gone up, they want to whine about it. But, all was fine and dandy when they were getting an interest rate below what the people with fixed rates were paying.

Greed.

Are borrowers still making their mortgage payments?

A lot of people with variable rates are going to the banks and requesting a refinance and waiving any penalties. The banks do not want another house, and will probably accept their customers requests.

Are borrowers still making their mortgage payments?

It is being caused by home buyers who were ignorant and got an ARM just so they could get the house they couldn%26#039;t afford. Now 5 years later their mortgage payment doubles and then what do they do because they can not afford the payments.

They should have gotten a traditional 30 year mortgage in a house they could afford.

Are borrowers still making their mortgage payments?

The problem is the people. people are buying homes when either they shouldn%26#039;t be buying one to begin with or are buying one they can%26#039;t afford. They get a loan that they can barely pay for and when one thing goes bad like a variable interest rate they are screwed and have to foreclose.

Are borrowers still making their mortgage payments?

First, your are smart enough to get a fixed rate mortgage. Everyone looked into the option ARMs (4 payment options with a potential downward spiral) which were designed for the house-flippers of the world. Everyone borrowed against those and when the adjustable rates started to reset, they found themselves unable to pay the additional (major) payment increases.

I ultimately blame it on the lenders. They did not train their people to benefit the client...just to write business, so they may ultimately sell the loans and be done with them.

FYI...because of this unfortunate situation, it is estimated that there Will be (modest) 2.5 million foreclosures next year. I predict much more, as many people who will/now have more owed on their properties then it is worth, will just walk away... Time will tell.

Are borrowers still making their mortgage payments?

No, its caused by sub prime lenders overestimating the real estate bubble.

Only 3% of borrowers are in arrears.

Of those only 1.75% are in foreclosure.

The problem is that with the real estate bust, the value of the homes has declined so the company is holding paper with a value less than the loan. A negative situation for them.

Its not the adjustable rate, its the value of the asset as opposed to the amount of debt and the homeowners ability to pay. If the homeowner walks, the company won%26#039;t be able to get back its investment.

But the mortage companies gave these subprime borrowers too much credit too easily, thats over now.

Are borrowers still making their mortgage payments?

To be brutally honest it is because lenders were giving out loans like candy. They gave loans to people who in the past would not have a chance to get a loan. On the surface it sounded like a good thing, but has just resulted in an increase in foreclosures.

They did this by doing things such as %26quot;interest-only%26quot; and 0 down. The problem was that these people were speculating that the house values would continue to rise. Since they did not, and in addition to the interest rate rising these people can no longer afford the mortgage payment.

Lenders do not have a direct input on the interest rates. They purchase(for lack of a better term) money from the federal reserve. The federal reserve board is the group that decides that the interest rates needs to increase, then every interest rate will also go up. If they decide it needs to go down, then other interest rates will follow. Basically if it costs the lenders 3% to %26quot;purchase%26quot; money, they can%26#039;t create loans for under 3% and still be able to survive.

Are borrowers still making their mortgage payments?

the lenders mostly do not own the loans anymore.they were sold in the capital markets(if you have a 401k you may have some in your portfolio)and no one knows who the lenders are anymore. the serviceing company that take the mortage payment cannot change to intrest rate or terms of the loan since they do not own them.Also remember that these loans were risky investments for the people who buy such things and they wont buy them anymore.

Are borrowers still making their mortgage payments?

The lenders don%26#039;t raise the rates - the federal government does. Then lenders pass that along to their customers.

Are borrowers still making their mortgage payments?

First of all, banks can%26#039;t just magically raise or lower rates. They are determined by the mortgage bond market. Supply and demand. Mortgage companies have to book loans at rate that buyers are willing to invest in.

2nd of all, how can you ever blame a bank when it%26#039;s the client signature on of the docs. yes, there is a lot of paperwork, but there is so much consumer protection out there with disclosures that you%26#039;d have to be blind not see what you%26#039;re getting into.

We send out Good Faith Estimates with fees and payments listed. We send out one form that discusses the interest rate, payment and possible changes. These come out to the client 3 days after an application is taken and usually gets there weeks before closing.

Then at closing, the same sheets are there for you to compare with the sheets we originally sent out.

There%26#039;s no reason to blame someone other than yourself if you enter into a commitment you can%26#039;t follow through with.

If the us in financial trouble because of the housing problem why not lower mortgage rates on home l

What financial trouble?

If the us in financial trouble because of the housing problem why not lower mortgage rates on home loans????

Because the government/banks dont make a multi million profit - this effecting the economy. I guess!

If the us in financial trouble because of the housing problem why not lower mortgage rates on home loans????

You have to balance the economy with inflation. If you lower the interest rate to much or to fast you will cause inflation.

If the us in financial trouble because of the housing problem why not lower mortgage rates on home loans????

The financial situation of a country is as much depending on perception, as on reality. Still running high on the enormous success of the 90%26#039;s, most people haven%26#039;t realized, the USA is in trouble. But visit another country. There, the sentiment has already changed from admiration to feeling pity for the USA, like a guy, who is still wearing his Gucci%26#039;s, but can%26#039;t pay the bill for his kids health care.

If the us in financial trouble because of the housing problem why not lower mortgage rates on home loans????

Actually, The US is in financial trouble not because of high mortgage rates nor loans. Most of the Loan entities are privately owned. We could call it financial trouble due to over expenses that surpass planned budgets.

Now, On the home loan situation. The problem resides in there was a combination of over construction due to Banks or Mortgage Companies were offering %26quot;eccentric%26quot; loans (IE. interest first loans) and people opted to buy more than needed and with excessive pricing, at the beginning everything was going great. Now 4 to five years later, when the real deal came up, a lot of people could not afford payments. This made a devastating combination of over construction plus pre-owned. Making the market to be saturated of housing. the end result is. More houses in the market than required. And you know what happens when there%26#039;s more product than buyers (offer-demand). Everything tends to slow down and drop in prices. That%26#039;s why you see more houses in the market that cannot be sold as quick as they did two years ago.

I hope this helps a bit.............

If the us in financial trouble because of the housing problem why not lower mortgage rates on home loans????

The housing problem has less to do with rates than it does with declining home values. Many homes have lost value in the past year by as much as 20% or more. This has caused a negative equity in some cases or the home is worth less than the amount financed.

In addition many people went into adjustable rate loans at high loan to values and those loan rates are adjusting now. With the reduced values of the homes these people are having trouble selling or refinancing because they are upside down. Their only option is to pay the adjusted rate, try to get a short sale and get out of their property, be foreclosed on, try mortgage mitigation, or possibly bankruptcy.

Incidentally rates in general are VERY low right now on mortgages so it has nothing to do with that.

If the us in financial trouble because of the housing problem why not lower mortgage rates on home loans????

I dispute the whole premise that there%26#039;s some sort of %26quot;crisis%26quot;.

What%26#039;s going on, is that home prices are down.

The primary function of homes, IS FOR PEOPLE TO LIVE IN, not for real estate investors to %26quot;flip%26quot; and make a quick profit.

That is why the prices when up so drastically, keeping many people (like myself) from being able to buy a home, just to live in!

So in my opinion, the market isn%26#039;t bad, IT%26#039;S GREAT, because more people will be able to afford homes, which is the main reason homes exist!

This scenario isn%26#039;t bad for the economy overall, just bad for those who make their money off the unnatural inflated house prices we%26#039;ve had for the last few years.

If the us in financial trouble because of the housing problem why not lower mortgage rates on home loans????

You will find much more useful suggetions and tips for dating and relationship here.Good Luck for you.http://homeloan.online-assistant.info/ho...

What is the point of e-mail spam like stock picks, errection pills, low mortgage rates?

I get hundreds daily, each from a differrent address, but all with the same junk. Is this someone idea of power/satisfaction (i sent 10mil messages?), is it to validate e-mail addresses? do people actually buy sotocks based on these reccomendations? Can%26#039;t be a DoS attack, they don%26#039;t usually contain a virus, what%26#039;s the point?

What is the point of e-mail spam like stock picks, errection pills, low mortgage rates?

The point Gman is Money,these emails or suggestions stay in the mind,to be used at a latter date.

What is the point of e-mail spam like stock picks, errection pills, low mortgage rates?

Some people, unfortunately, do buy them that%26#039;s why its so lucrative.

If you%26#039;re using Outlook, you can get SPAMBAYES, which is a program that automatically redirects SPAM to your junk mail folder. It%26#039;s free.

Can you refinance an adjustable mortgage as a fixed mortgage?

Thankfully, my mortgage is fixed rate. For those out there who are getting pounded by their balooning adjustable payments, do they have an option to refinance their property with a fixed rate mortgage?

Can you refinance an adjustable mortgage as a fixed mortgage?

Yes, you can.

However, the reason most of these borrowers opted for ARM%26#039;s in the first place is because ARM%26#039;s, at least initially, result in lower monthly payments than fixed rate loans. The borrowers couldn%26#039;t qualify for the higher payment fixed rate loans, so they took out ARM%26#039;s.

So, if they couldn%26#039;t qualify for fixed-rate three years ago, then they aren%26#039;t going to qualify now, unless they are now earning significantly more income.

Can you refinance an adjustable mortgage as a fixed mortgage?

yes!!!!

Can you refinance an adjustable mortgage as a fixed mortgage?

Most do. Sometimes they have to wait a year if there is a clause in their mortgage. Some people do not have substantial credit to do a refi. The rules have tightened on loans now.

Can you refinance an adjustable mortgage as a fixed mortgage?

Sure they can, all mortgages can be redone. Since they do not usually adjust for 2 years the homeowner has time to get their credit rating up to qualify for a great mortgage rate.

Of course it seems that most people do not use the time of a low mortgage rate to clean up their credit. But this is a free country, you are free to have bad credit or good credit, which ever you want.

No one is %26quot;being pounded%26quot; by surprise, they all knew this would happen and exactly which day it would happen if they did not make some other arrangement.

Can you refinance an adjustable mortgage as a fixed mortgage?

They can refinance those ARMS, if they qualify to do so. The problem for many folks, however, is that their ARM balance is now more than their property is worth, due to declining real estate values. Thus, in order to refinance, they will have to show up at closing with the cash to make up the difference between current value and the amount of their ARM loan.

Can you refinance an adjustable mortgage as a fixed mortgage?

Sure if there credit qualifies them, and the house actually has equity. This is the major problem, most bought when values were really high, and now can not refi to the amount needed.

Can you refinance an adjustable mortgage as a fixed mortgage?

They do if they can qualify now that credit standards are tighter and if they do not now owe more than the value of the house. Some of these teaser ARMs also have prepayment penalty clauses.

HELOC or Fixed Mortgage? I need your opinion!?

With so many loan options out there I am undecided on what type of loan is best fitting for my situation. I have talked to numerous lenders but they are competing for my business so I am having a hard time gaining an unbiased opionion regarding what avenue I should take.

My situation is this: I have built a brand new house out my pocket. I have no mortgage or leins etc. on the land or home. The vaule of the home is roughly 310K. I only want a loan for about 115K. I plan on making a big draw right of the bat if I go the HELOC route. The institution I plan on using if I go this way has no closing, lender fees and no points are raised once I lock in my rate. I have other lenders telling me that I should get a regular fixed rate mortgage for the 115K. Of course then I have the closing costs, lenders fee etc, but I am looking for the best deal. Which loan makes the most sense for my situation? BTW, my credit score is 770

HELOC or Fixed Mortgage? I need your opinion!?

Well first what are the interest rates for each loan?

What are The terms for each loan (number of years you want the loans to run)?

What do you plan to do with the money?

With out that info I can tell you that a HELOC is normally Prime rate and adjustable. Currently Prime rate is 7.5% HELOC%26#039;s have the advatage of flexiblity, and the disadvatage of higher rates and shorter terms.

Fixed Rates will depend on where you live but they are currently right around 6%. If we assumed the same term of 30 years just for figures sake. It would take roughly 3 years to make up paying 3500 in fees. This also assumes that Prime interest wont go up or down.

So the question is do you want flexiblity or security? And how long will this loan be for? (If it is less than 3 years) it wont make that much diffrence. Also Do you think Prime interest will go up or down during the life of the loan?

I hope this has helped.

HELOC or Fixed Mortgage? I need your opinion!?

My suggestion is that unless you are taking this loan out to avoid bankruptcy or have a similar financial catastrophe don閳ユ獩 do it.

How long does it take for pass dues and lates to come off your mortgage rating?

12 months and it wont count against u.....but will stay on there or 7 years

How long does it take for pass dues and lates to come off your mortgage rating?

Derogitory ratings remain on your credit report for approximately 7 years but, for mortgage lending purposes, other than the negative effect on your credit score these types of delinquencies lessen in importance in 24 months.

How long does it take for pass dues and lates to come off your mortgage rating?

Most mortgage lenders only look at the last 12 months history of mortgage payments (includes 1st mortgage and equity 2nd mortgage). If you have a foreclosure you usually have to wait 3 years after the discharge date to obtain a loan. You want to try your best to keep the mortgage payments current as any payments over 30 days late severely affect your credit score. All my sub prime mortgage loans have pricing based on mortgage history and credit score.

The negative credit does stay on your credit report for 7 years.

Northern Rock Mortgage Question?

I have a fixed rate mortgage with Northern Rock, it ends in July, I have stayed with NRock for several years, and have just remortgaged every two years, will I still be able to re-mortgage, or will the society stop giving new mortgages?

Northern Rock Mortgage Question?

your best bet is to remortgage...and move to another bank...even if they sort their management and processes out no other bank is going to lend them money to refinance their mortgage book...things are only going to get worse in the financial sector and inter banking lending... and my guess is another bank is going to hit the wall this year due to astronomical subprime write offs which will be announced soon...best bet...go to someone else..

Northern Rock Mortgage Question?

It is just business as normal

Northern Rock Mortgage Question?

The operation of the Rock is set to continue. Check if your mortgage is still with them. They had a mortgage book worth 鎷?5 billion, but sold 鎷?.2 billion of mortgages to JP Morgan to repay some of the Bank of England loan.

You will be able to remortgage with them, it is still an operational bank.

Northern Rock Mortgage Question?

Dunno

But I was hoping they%26#039;d fold and forget I had a mortgage with them so I get my house chirpy cheap cheap !!

Northern Rock Mortgage Question?

northern rock are to advise all existing mortgage customers that they should find a better deal elsewhere.

They are putting up all their new mortgage products to a point where they are not attractive.

They are to be marketed as a savings bank!!

Northern Rock Mortgage Question?

based upon your status,I believe you should find something useful here.

http://mortgage.onlineidea.info

What's up with the "Australian Mortgage"?

I recently saw someone try, not very well, to type an explanation about Australian mortgages. I also heard someone try to explain one to Bob Brinker, but he didn%26#039;t seem to like the idea.

However, I still don%26#039;t get it.

I know it%26#039;s something with an adjustable rate 20 year mortgage with variable payments. They don%26#039;t do traditional fixed rate mortgages at all.

Anyone know what%26#039;s up?

What%26#039;s up with the %26quot;Australian Mortgage%26quot;?

The interest is calculated weekly and you pay weekly, meaning that the interest is paid off in addition to the capital, therefore your balance reduces much faster,in turn reducing the term (you can extend the term if you wish, to reduce repayments ) the interest rate can be fixed for certain periods, however if it%26#039;s not you can benefit enormously from variations. We swapped to an Australian (type) mortgage, keeping our repayment the same, we reduced the term from 25 to 17 years - only have 7 left and the balance is even less than the initial projection, you get a new payment schedule every year.

You need to get a full run down and a projected payment plan which will show you how much the repayments are per week and also what the balance will be at the end of every year, they really do work - I look forward to getting my mortgage statement!

Mortgage Crisis: What is the cause?

What is causing all of the foreclosures in our country? Is it just affecting those who did not have a fixed rate mortgage?

I just need to know as I just went into a new mortgage in Dec 07. I am okay meeting my monthly payments, however, I%26#039;m just a little scared with the crisis in real estate.

Mortgage Crisis: What is the cause?

This financial crisis was caused by poor leadership, poor oversight, and poor decisions.

First, the banks decided to lend money to people who did not deserve to receive those loans because they were high credit risks, and they loaned them the money without requring significant down payments.

Secondly, banks offered %26quot;adjustable rate mortgages%26quot;, which means that people could borrow money at lower introductory interest rates and then interest rates would reset to higher rates a couple of years down the road. (Well, people took a short-sighted view of this and forgot to figure whether or not they could afford the higher payments down the road).

Thirdly, the people who borrowed the money did not do their homework in figuring out whether or not they could afford their current and future mortgage payments.

Fourthly, banks, and borrowers believed that real estate prices would continue to rise. They are not, and now people are %26quot;upside down%26quot; in thier homes, meaning that they owe more on their houses than what they are worth.

If you have a fixed rate mortage and you are able to meet your monthly obligations, you should rest easy, because it is very unlikely that the bank would make you refinance your home to a higher interest rate or anything like that. Just keep a job and make your payments and things should work out just fine.

Mortgage Crisis: What is the cause?

Alot of the problems came from Mortgage companies giving mortgages to people who could not afford them or would normally not have been approved for them. Therefore, there are alot more people defaulting on their mortgages.

Mortgage Crisis: What is the cause?

its all over the news. Lots of reasons. Banks want to mortgage homes, want to find buyers for these home and don%26#039;t check income and people get in and don%26#039;t pay. Or its like me, I owe 125k on my mortgage, its worth 325k. I ask the bank for 200k and then I can%26#039;t pay the mortgage off at all. There are so many spins to the mortgage crisis its not even funny

Mortgage Crisis: What is the cause?

If you pay the mortgage the %26quot;crisis%26quot; won%26#039;t affect you. The only problem might be if you overpaid and you are upsidedown in your property and you try to get out too soon.

Mortgage Crisis: What is the cause?

Some of the problem was created by unscrupulous Loan Officers squeezing unqualified borrowers into 2 yr. fixed programs that change to adjustable programs after 2yr fixed period. Which means their monthly payment adjusts even higher every 2- 6 months. Also high profile lenders, for example Countrywide, who qualified stated income investors with high ficos to buy properties in hopes of selling or renting out later.

No income was verified and the income stated is usually inflated so borrower could qualify. Now with the falling market investors are sometime unable to rent or sell the property at true value. The problem this causes to most homebuyes is the temporary loss of value due to possible foreclosures in your close proximity which will lower your value. The effect would be you may have a problem refinancing or selling your home with true value.

Removing an ex spouse from a mortgage?

I am in the final phases of my divorce and currently co own the home that I currently live in. I get to keep the home if I can qualify for a mortgage on my own. I do not need to take cash out to give it to him at this time. My question is- is there a way to remove a spouse from a mortgage and deed without having to refinance? Perhaps giving the bank the divorce decree, etc? We are in a adjustable rate mortgage that I would like to take advantage of the new plan that is soon to be available to freeze the introductory rate.

Removing an ex spouse from a mortgage?

you cannot remove the ex from the mortgage. you need to refinance it under your name.

Removing an ex spouse from a mortgage?

There is no way to remove someone from an account. You will have to refinance in your name only.

Removing an ex spouse from a mortgage?

First, you cannot remove your ex%26#039;s name from the mortgage without a refinance. You%26#039;ve also said something that raises a red flag -- %26quot;I get to keep the home IF I CAN QUALIFY FOR A MORTGAGE ON MY OWN.%26quot; Has the court given you some timeframe in which you need to refinance and get the mortgage in your name?

Second, the rate freeze is voluntary -- the plan does not obligate lenders to freeze rates.

Removing an ex spouse from a mortgage?

Sorry, but lenders do not remove signers from a mortgage without refinance. It%26#039;s simply not in their best interests. They want to keep as many people liable for payment as possible.

Removing an ex spouse from a mortgage?

From what you say, you have been given a limited amout of time to get a new loan and buy out your estranged spouse. If you don%26#039;t complete the refi within whatever timeframe that the court has specified it will force a sale and division of any equity between the two of you.

In this situation we don%26#039;t even need to address the issue of the fact that there%26#039;s no way to remove someone from a mortgage. The court has ruled and you MUST comply with the ruling if you wish to keep your home.

And we don%26#039;t even need to address the fallacy of waiting for a rate freeze that may never happen. The devil is in the details with that one, there%26#039;s no way to know today if you would be covered by the bailout plan because the details have NOT been worked out. Congress will probably have to act and right now they%26#039;re moving at the speed of smell.

The courts have spoken. Refinance or lose your home. Those are your ONLY choices.

Removing an ex spouse from a mortgage?

I live in TX and my ex- husband removed himself from our mortgage by filing a quit claim deed i am not sure how he did it I only he did it because I checked with the county clerk%26#039;s official record site,and there it was in black and white

Mortgage Help!!!?

Does anyone know of a good mortgage company that can help people with sub par credit? My house had an adjustable rate mortgage and it just went up 4% yesterday and it totalled about $200 more a month in payment! I need to refinance right now and unfortunately my credit isnt that good. Please link any companies.

Mortgage Help!!!?

You should investigate whether a FHA loan can assist you with your refinance needs.

FHA isn%26#039;t a credit score driven and would allow you to secure a rate below 6% (based upon last week%26#039;s rates) up to 97.75% for a 30 year fixed mortgage.

Regards,

Scott Miller

Mortgage Help!!!?

start packing

Mortgage Help!!!?

You need a 30 year fixed. Now is a good time to get it.

Is it best to pay off your mortgage or keep making payments?

I inheirtied a house with an adjustable rate mortgage. The loan when I took it over was $80,000 when I took it over 3 years ago. The rate right now is somewhere near 6%, I want to pay it off asap so the rate doesn%26#039;t go up and so I can use the extra money that would have been a loan payment for a baby instead.

I have been paying an extra $1000 a month on top of the loan amount due.

I recently sent $14,000 (from my savings) towards my balance and now the mortgage is at $33,000 and I am going to be sending payments of about $2700 a month to pay it off in a year.

A friend of mine is telling me not to pay it off and just keep making payments since its the best solution.

I am paying like $150 in interest every month that will be staying in my pocket once its paid off, I don%26#039;t get what my solution isn%26#039;t the best.

The tax write off isn%26#039;t really worth it, is it?

Is it best to pay off your mortgage or keep making payments?

OK, there are a number of reasons not to payoff your house, only one of them being the tax benefits. Think of it this way. You are currently paying about 6% interest per month on the money for your house. So that money you are paying off and that $14k you sent in, costs you 6% per year to hold on to.

If instead of paying down your mortgage, you give that $14k and each additional payment to your stock broker. He invests this in a moderate risk mutual fund. The mutual fund will grow (currently) at about 10% per year.

So by giving your money to a stock broker, instead of paying down your mortgage, you get 4% per year on that money profit. Plus, your interest of $150 a month in tax deductions help you as well.

Basically, you are using the bank%26#039;s money to further your own portfolio which will grow faster then what it costs to borrow. Please let me know if I did not explain well enough.

Realize the risk however, stocks and mutual funds can lose money, if you pay your mortgage, it%26#039;s saved. But even on a bad year, most reasonable mutual funds will make you over 6%. call any stock broker and ask them.

Good luck, and I hope this helps

Angelo Russo

Title Plus Services, LLC

arusso@titleplusservices.com

Is it best to pay off your mortgage or keep making payments?

Just make the monthly payments, and use the additional money that you would have been sending them to invest in other things like stock, or other investment realestate.

You have already paid it down a ton, and I bet you have taken years off of the back end of the loan.

DOn%26#039;t forget that the interest you pay is a tax deduction that can lower your taxable income.

Is it best to pay off your mortgage or keep making payments?

you might consider paying it off and then use the money you%26#039;ve been making in payments towards a money market or some other type of investment.

besides if the rate hasn%26#039;t hit variable yet...be ready for a big change in your payment.

let that money work FOR you.

Is it best to pay off your mortgage or keep making payments?

If you have other debt, it%26#039;d be better to pay off your other debt, since mortgage interest is probably the lowest interest you have. If you%26#039;re concerned about a rate hike, but have other debt, refinance to a fixed-rate mortgage, take a bit of extra, pay off the other debt with the extra, and then pay the mortgage off as soon as possible.

If you have no other debt and you have the disposable income to do it, by all means, pay it off as soon as you can.

Is it best to pay off your mortgage or keep making payments?

In general, the tax write off shouldn%26#039;t be the main consideration for whether you pay off the mortgage. If you have the money to pay it off, one of the few reasons you would not want to pay it off is if you think you can get a higher rate of return on that money through other investments.

If it%26#039;s an adjustable, it%26#039;s going to go up soonish since the Fed keeps raising rates. No one really knows when they%26#039;ll stop but they%26#039;re probably not going to lower rates in the very near future.

But if you%26#039;re paying 6.5% or whatever and you have some way of earning more than that through investments, then it%26#039;s a better place for the money. If you%26#039;re just going to stick it in the bank and earn 0-4%, then pay it off.

The tax write off theory means you get 20-40 cents back on a dollar that you paid (depending on your bracket), so it%26#039;s not a valid reason in and of itself but you can take that into account when doing the basic calculations.

Is it best to pay off your mortgage or keep making payments?

If you are labeling the extra money to be applied to principal only, then you are helping your self because it reduces the interest paid. If it is applied to principal and interest the you are not helping yourself.

Is it best to pay off your mortgage or keep making payments?

It depends on how old you are and what your income is. If you%26#039;re older with low income and can afford to pay if off, then do. Probably the rental income, if there is any, isn%26#039;t even enough to justify the deductions. A good way to know is if when you did your taxes last year, did you take the standard deduction or use Schedule A. If the standard deduction was higher, you%26#039;re not getting any benefits from the interest expense. If you are older or on a fixed income, then sell the house - but not all at once. Owner finance it, that way your taxes are lower. If you ever need cash, you can get a mortgage on it again.

On the other hand the interest expense is a tax deduction for you, you would be better off to refinance to get a FIXED rate mortgage and continue making the payments (let the gov%26#039;t help you buy the house that way). If you%26#039;re younger, than say 40, when you refinance, get a mortgage for as much as you can, the full value of the house (100%) if you can. Say you get a new mortgage for $70,000, pay off the old 33,000 you walk away with a check for $37,000. Make sure the house is structurally sound. If not, spend some money on it to get it that way. If it is, take $35,000 and get a good financial advisor (not this forum) to help you select some good investments like mutual funds, IRA%26#039;s, etc. No matter what, get it refinanced with a fixed rate quick.

The other, $2,000. Take a vacation honey.

Is it best to pay off your mortgage or keep making payments?

YIKES!!!!!!!!!!!!!!!!

rule of thumb: the best monthly payment is the LOWEST monthly payment. if you%26#039;re at the baby-making stage of life, you probably want to be paying the minimum (or less).

let me explain:

imagine refinancing the house with a Power Option ARM loan (rate of 1.75%ish), and pulling money out of the house at the same time. let%26#039;s say you pulled 100,000 out of the house (that%26#039;s assuming the house is now worth over 150,000 and you qualify for the loan (which based on your savings and diligence, i%26#039;m sure you%26#039;re an A++ candidate!)).

Now you have a total loan of 140,000 (100 + 33 + closing costs).

Guess what your payment is: about $500/month (add in taxes and insurance).

And then the fun part:

Invest the 100,000 in a safe investment that returns between 8-12% (email me for a list of where to find these!).

You can also invest what you%26#039;re saving every month, or, to make room for the baby--just invest another $500/month.

At this rate:

100,000 will double in six years at 12%. That%26#039;s 200,000! And in another six years = 400,000! At this rate, you can pay off the house with ease when your hair goes gray or when the kids leave the house.

With the $500/month (over 18 years) you%26#039;re going to have an amazing college fund for your baby, as well as enough money to buy the little one a house or two!

Now, the catch that everyone is going to freak about: a power option arm means that the interest you%26#039;re not paying today, you%26#039;ll pay later. instead of working down on your principle, your principle increases. Here%26#039;s the deal, though: the money you%26#039;ll be making on your investment will far exceed any negative amortization. For real!!

As far as tax write-off--no, it%26#039;s not really worth it. What IS worth it is investing money at 12% and letting it grow TAX FREE!! That%26#039;s worth it. :)

Best of luck!

Gertie

Is it best to pay off your mortgage or keep making payments?

If you have no pre-payment penalty attatched to your loan then it is always best to try and pay as much toward the principal to reduce excessive interest. The more you pay off the more equity you build up as well...

More Questions?

Contact me anytime through my E-mail

I am a mortgage consultant for consumers

I have and know all the secrets invovled in lending.

jonnylender@yahoo.com

Is it best to pay off your mortgage or keep making payments?

If you have the money and no other, higher interest and non-deductible, then there%26#039;s nothing wrong wtih paying your house off. Having the security of a home that%26#039;s paid off can%26#039;t be measured. If it were an investment property I might answer differently. Just be smart with the monthly payment money that you won%26#039;t be spending on a mortgage. Put it in a retirement account, preferable pre-tax through your employer in a 401(k). Don%26#039;t just blow it every month. You%26#039;ve got a great opportunity to get youself on the right track toward a nice, worry-free, retirement.

Is it best to pay off your mortgage or keep making payments?

Holy cow! I would not pick any of the other people who answered your question as my financial adviser! Half of them are trying to sell you a loan, the other half have it backwards.

The first question I%26#039;d ask myself is %26quot;what is my marginal tax rate? %26quot;. Your marginal tax rate is the amount of tax paid on an additional dollar of income. This will determine how much you actually save each month in taxes due to your mortgage interest payment (more or less).

Second, I%26#039;d want to know %26quot;What rate of return are other investments paying today?%26quot; That means, if you invested money in other investments, such as a bank CD, a treasury note, a mutual fund or some stocks, how much would you expect to earn?

Lastly, I%26#039;d want to know %26quot;Can I lock my interest rate today by doing a low or no cost refinance so that I don%26#039;t have to worry about it creeping up on me?%26quot; If you have an adjustable rate loan today, you might also want to know %26quot;What is the maximum rate they can charge?%26quot; as these loans often times have ceilings.

My advice is if you find that you can borrow money for less than you can expect to earn by investing that money, you should do it.

To know if this is true, you need to know your true cost to borrow, which is your total interest paid next year minus any tax savings you expect to receive, over the total amount you owe.

If your APR is 6% and your marginal tax rate is 33%, your actual interest rate, after taxes, may be much closer to 4% (67% x 6%).

If you can invest that money in a bond earning 6.5%, you%26#039;re making money. Of course, you%26#039;ll have to pay taxes on that 6.5% you%26#039;ve earned, so you should factor that in too...

If you can lock in a low interest rate, you may even decide to borrow more money than you owe today, and invest the difference in a %26quot;safe%26quot; investment, and continue to benefit from the tax %26quot;loopholes%26quot; create for homeowners.

Of course, the best place to invest your money is to pay off any high interest accounts you might have open. If you have a Macy%26#039;s card with a 24% interest rate and a $2000 balance, you can save nearly $500 a year by paying off that card! And since a penny saved is a penny earned, your $2000 actually saved you $500, and therefore you can think of it as it %26quot;earned%26quot; you $500, which is way more than the $120 (6% of 2000) you had to pay in interest to your mortgage bank. I%26#039;d pay off any debts that have a higher interest rate than your mortgage before investing the proceeds in CDs or the stock market (**unless they are also very low interest rate loans with some sort of tax benefit, which is unlikely**).

Is it best to pay off your mortgage or keep making payments?

I agree somewhat with sunny.

Here is my thought. You mention that you have a variable loan. The first thing you should do is fixed that rate before it continues to go up and you continue loosing money paying more interest than you need to. Once it%26#039;s fixed PAY IT off!. In some cases it would be very benficial to just make the regular monthly payments and keep enjoying the tax write offs. But in your case you are so close to paying of the mortgage that it does not make any sense.

Once you%26#039;ve paid off the mortgage you will have the home free and clear and you could use this as leverage for any other necesities you might have in the future like a BABY like you mentioned. You could, only if you needed to, take out a loan for a small amount to help you for the baby%26#039;s health, education, etc, etc. and while you are enjoying this help to help you with your baby you are once again enjoying the tax write offs.

Another thing you could do as well is once pay off the house. Use that as leverage to invest in more homes. If you know how to invest well and sell them at the right time you could end up getting profits of up to $500,000 TAX FREE if you are married. Unlike when you invest in mutual funds or others you pay taxes on any profit you make with those types of investments.

I am sure you can make money investing in mutual funds, stocks, etc but you dont have the benefits of getting tax free profits and that market is very volatile.

I understand people will tell you that now the RE market is just as volatile as other markets, well.....I tell you that is only true if you are a speculator/flipper. If you are a true investor/homeowner there is no better market to invest than Real Estate.

I stumbled upon a great book titled %26quot;The Automatic Millionaire Homeowner%26quot; by David Bach.

PAY ATTENTION here: This is NOT a get rich quick scheme book. I as a Real Estate agent and owner of investment property, tell you that this book is very good. I started reading it because I wanted to see if it was worth mentioning to people like you that could make some good use of it.

Obviously, I am not asking for your business nor I%26#039;m promoting a book for my profit. Im just giving you my opinion.

Also another resouce of information is an article I wrote back in November 2005 (and still stands) about the so called %26quot;buble%26quot; in the Real Estate market. You might want to check it out. Follow this link:

http://jrealestate.blogspot.com/2005/11/...

My husband & I are looking to buy our first home. We live in ohio. Where can we get low mortgage

tried 53 bank so far but their rates just didn%26#039;t seem reasonable. Thanks.

My husband %26amp; I are looking to buy our first home. We live in ohio. Where can we get low mortgage rates?We have

Check credit unions they offer very low rates. I pay 3.9% thru my credit union.

My husband %26amp; I are looking to buy our first home. We live in ohio. Where can we get low mortgage rates?We have

Where you go almost does not matter when it comes to the rate.

What does matter is your credit score. The down payment, the loan amount and other loan terms can also impact the rate to some degree.

If you have tried 53 banks and the rate is too high it might be that your expectations are out of line with the mortgage market. Or that there is a specific credit issue that is causes lenders to view you as high risk so they want a high rate.

My husband %26amp; I are looking to buy our first home. We live in ohio. Where can we get low mortgage rates?We have

are you crazy? Ever one of these banks must pull your credit. So your scores are in the dumper. Stop it right now. It will take up to 90 days for them to reset. Also Opt out of Credit offers by calling 888-567-8688 this should increase your scores by as much as 10 points. You are at this point a mortgage bankers nightmare. You will only get good rates with high scores. Your scores must be around 620 or greater to get conforming rates. You know the ones that are published in the papers! So every time your credit is pulled your scores could drop as muc as 2 points and I have in the past seen them drop as much as 100 points by this type of activity.

I am a mortgage banker in TN %26amp; KY

My husband %26amp; I are looking to buy our first home. We live in ohio. Where can we get low mortgage rates?We have

im licenced for that state

please feel free to call me at 1-866-242-6689 ext.5002

ask for me, my name is Jennifer.

I can see what my bank can do for you if you%26#039;d like.

as an aside, the rates arent what they were 5-6 years ago,

youre best bet is to get an ARM or some kind of interst only

program ARM that will temporarolly give you the lowest payment possible. Good luck

My husband %26amp; I are looking to buy our first home. We live in ohio. Where can we get low mortgage rates?We have

I%26#039;m guessing you mean 5th 3rd not 53 banks? I%26#039;m also guessing you are in the cinci area. I own several homes and always have used the same loan officer w/Countrywide in Milford. They usually seem to have the best rates i have found. I always compare w/several banks and savings and loans in the area before going w/countrywide, but always seem to end up there. Guardian is also a good bank to check rates.

My husband %26amp; I are looking to buy our first home. We live in ohio. Where can we get low mortgage rates?We have

Stop! With all that credit checking you won%26#039;t get any better rates than you were already quoted. I think your expectations may be too high, so please reconsider some of those previous offers. They are most likely better than you think.

Anyone want to talk about the mortgage crisis?

I want to open up some discussion here. You see, I have reason to believe that the current mortgage crisis was either intentionally planned or a colossal mistake the likes of the stock market crash. Allow me to elaborate:

Years back, a new and wonderful thing came about in the world of mortgages, the 閳ユ笧efi閳? which we have come to know as the refinance. For those of you out there familiar with this, people where allowed to refinance into adjustable rate mortgages and get cash out against equity. This program was signed off on by the powers that be that oversee the mortgage and banking industry, a key player is the Federal Reserve Board (to be referred to as FRB forward)

Anyone want to talk about the mortgage crisis?

I agree the Fed is partially responsible for the mess (Greenspan - not Bernake) . . . but what kind of moron did you have to be to not know that rates would eventually go up . . . it%26#039;s not hard to figure out monthly payments on an interest only loan. The Fed (hindsight being 20/20) probably lowered interest rates too much to compensate for the dot.com bust - thus creating an emotional real estate market (euphoria). However, again how big of a moron do you have to be . . . when every news caster in the country professes %26quot;historic lows%26quot; for interest and %26quot;historic highs%26quot; for home value then you must be willing to accept the inverted statement for it to be true. Simple logic.

Anyone want to talk about the mortgage crisis?

While I love a good conspiracy theory, I have to disagree. Allow me to explain.

What is the driving force behind the current mortgage crisis we can agree upon. That is GREED! The greed I am speaking of doesn%26#039;t rest squarely in the laps of the Trilateral Commission, the Iluminati, The Counsil of Forigen Relations, the World Bank, the Fed or any of them.

The primary reason for the crisis is Wall St and the secondary mortgage market. You see, when a lender funds any type of loan other than FNMA it is immediately sold on Wall Street. Then it is re-sold, and sold again, split and devided into so many forms and fashions that by the time it%26#039;s made the rounds investors don%26#039;t even know what they are buying. What drives this? Greed, pure and simple. Everyone sees dollar signs. %26quot;I can make a ton of money selling this%26quot; or %26quot;I can triple my money buying this%26quot;

Well guess what. The reaper has come to collect. Now these big money investors and brokers are loosing big time. They cry to the Fed and the World Bank %26quot;Pleae help us! These big, bad, mortgage brokers are ruining us!%26quot; Ans big brother bails them out. Now what do they do with the bailout money? FUND MORE LOANS! Can you beleive it?

Now let us take a step back and look at where it all begins. Is it the fault of the mortgage broker for writing the loan to begin with. I beleive they have to take some of the responsibility but keep in mind that a loan officer can%26#039;t approve a loan. The lender has to have the program in place to begin with. Why? GREED!

Now, let%26#039;s look back a bit more. The poor homeowner. The slob in foreclosure that can%26#039;t afford his payments because he bought a $400,000 home and he only makes $29,000 a year. He wants to blame everybody and everything. He wants someone to step up and take the blame so he%26#039;s got someone to sue. Do you know what he doesn%26#039;t want to do? He doesn%26#039;t want to admit that he knew he couldn%26#039;t afford the home to begin with. He doesn%26#039;t want to admit he was counting on hitting the lottery to cover him past the first year of payments. He doesn%26#039;t want to take any responsibility for anything. Why? GREED!

So, who really IS to blame for the mess we are in right now? How about everybody, all of us! Let%26#039;s stop pointing fingers and taking responsibility for out actions!

Sorry for the rant, but you asked.

Anyone want to talk about the mortgage crisis?

I don%26#039;t claim to understand all the inter-workings of finance. But I disagree with eliminating the interest rate. If you did that, would they just call it something else?

As for those folks losing their homes today, well it really is a combination of things, mostly that the loan companies used poor business judgment in approving some for loans that had bad credit or poor credit history. They weren%26#039;t approved on a full blown mortgage amount, only on the initial rate, some on an interest only loan. So in my mind, those lenders should be help accountable. And I think they should cancel all adjustments to these loans and make them fixed rates at the current rate of the mortgage. Those that are interest only should also be converted to current market rates and fixed. And I%26#039;m talking only those borrowers who are still current on their mortgage payments. Unfortunately, we can%26#039;t save the world, and all of those folks that have already lost their homes, the debt should be forgiven and written off by the originator of the loan in the beginning, and no marks on thier credit histories. As for future mortgages, people need to be fully qualified before being approved. They should have to demonstrate good money management skills, good credit history. It is not a %26quot;right%26quot; to own your home, it is a %26quot;privilege%26quot;.

And that is my 2 cents.

Anyone want to talk about the mortgage crisis?

I started to post an answer for you, but this problem is much more complex than you believe.

It is not the Federal Reserves fault this is happening.

It is not the mortgage companies

and it surely is not interest.

It is a combination of loss of good paying American jobs, theft of corporate profits by the upper management, the law of gravity and finance (what goes up, must come down), and Americans never ending pursuit of things they cannot afford and utter lack of personal responsibility. (Oh, you mean you want me to PAY for the things I bought?)

Blaming FRB and interest only puts band-aids on symptoms instead of fixes to true problems, which is also the American way.

I just posted a new blog entry, if you care to read it, come on over. But I bet you won%26#039;t, as real change requires real work.

Something a lot of Americans have forgotten.

Anyone want to talk about the mortgage crisis?

I think people shouldn%26#039;t try to live beyond their means. If you have shitty credit and are irresponsible, WHO CARES if you have this burning desire to own a home. Don%26#039;t go begging lenders to give you money, knowing full well that you can%26#039;t afford your ARM once the rate adjusts. Ignorance is NOT bliss.

You can%26#039;t blame the sheer stupidity of the American public on congress.

Anyone want to talk about the mortgage crisis?

I think the mess we are in is the result of %26quot;poor management%26quot;. I think all sides (Fed, lenders, and consumers) contributed to the mess. The federal government lowered the interest rates to historic lows to revive the economy but fails to guard the flood gate. It%26#039;s like the Fed invites everyone to attend an all-you-can-eat buffet but doesn%26#039;t care how the foods are prepared in the kitchen. Some guests may eat too much while others may get sick by eating bad food.

People who refinanced, including myself, should know what they are doing and are responsible for their decisions. Those choosing ARM should know this is a gamble. When you are gambling, you take the risk! I, too, feel sorry for those who lost their houses.

How do I know which Mortgage Company to go with?

We are looking at refinancing due to an adjustable loan that the interest rate keeps going up every 6 months, its now 10.025%. We dont want to get stuck in another bad deal and I want to know which Mortgage company is best going to suit our needs and be honest with us. Is there a website that rates mortgage companys?

How do I know which Mortgage Company to go with?

What i would avise is very simple instead of looking for the best lender look for the best deal. the fact you you need to refinance quickley before your credit is affected. the best thing for you is going to be a fixed rate mortgage plain and simple no suprises down the road with this type of loan and now the rates are fantastic!

you have been placed in a ARM adjustable mortgage not what was best for you at the time im sure. you most likely became the victum of a broker just looking to close the loan with no consideration of your best interest long term!

i would shop a few online sources and compare the rates and fees. below is a link to a loan comparison calculator this will show which loan saves you the most money over all!

How do I know which Mortgage Company to go with?

use a broker. they%26#039;ll shop around for you %26amp; you get there fee%26#039;s upfrom ont he Good Faith Estimate. If you%26#039;re in PA or NJ contact my old company - www.terrafinancialgroup.com I don%26#039;t work there anymore, but I can tell you they are good honest people.

How do I know which Mortgage Company to go with?

My wife and I just refinanced we really shopped around!!!

We even tried the lending tree thing. I dont suggest using that method. They charge the mortgage company a $1200 fee witch is then passed along to you. We found our credit union to be the best choice for us. They were honest and provided us with a accurate Good Faith Estimate. I have used banks also in the past and they too can be a great option.. But you need to be careful they can charge large fees. rember you can negotiate your lender fees and do you home work Know what is a required fee and what isnt. Happy hunting!

How do I know which Mortgage Company to go with?

Try lendingtree%26#039;s website.

How do I know which Mortgage Company to go with?

EASY Call me (jared) at 1866-928-9333 i%26#039;m a mortgage broker. rates are GREAT right now. if you qualify for a new mortgage you can get much lower than the 10. something on a fixed rate that will never adjust on you!

When making a Mortgage Loan Prepayment, does it reduce the principle amount you have to pay each mon

Currently I am about to close on a house and have a 30 year fixed rate mortgage. My question is whether paying additional amounts above my normal mortgage payment reduces the amount I will have to pay each month, or whether it just reduces the amount of periods in my loan term.

When making a Mortgage Loan Prepayment, does it reduce the principle amount you have to pay each month?

yes

here is one example on 150 k 30 yr fixed with a 6.5% rate

first i must say you should make an additional payment and mark on check %26quot;apply to principle%26quot;! this way you have proof and there is no question your intention!

ok 150k home making a 150 extra payment every month!

pays your home off in 21 years and a 9 months

When making a Mortgage Loan Prepayment, does it reduce the principle amount you have to pay each month?

Principal reductions do not impact the monthly payment unless your lender allows a modification of mortgage and they usually only do these in the case of a one time large payment not on amonthly basis.

When making a Mortgage Loan Prepayment, does it reduce the principle amount you have to pay each month?

No, if you pay more than your amount for the payment each month, it does nothing to reduce your payment, but if you do that each time, your morgage can be paid off sooner. Probably knock off a year or two. But you would still have to pay a payment each month, so even if you pay WAY over your monthly payment, make sure you have enough to pay for the next month cause, if you dont, you%26#039;ll get a past due statement, and thats not good.

-loan processor for a credit union! = ]

When making a Mortgage Loan Prepayment, does it reduce the principle amount you have to pay each month?

No it will not decrease the amount you have to pay each month, it will increase the amount of principal you pay each month and you end up pay off the principal faster, thus decreasing the life of your loan.

When making a Mortgage Loan Prepayment, does it reduce the principle amount you have to pay each month?

No, I%26#039;m sorry it does not.

What happens is you need to SPECIFY that you are making a principal ONLY payment when you send in your regular payment.

When this happens the amount of monies you have requested gets taken away from the original loan amount and the BANK LOSES THE INTEREST for that amount.

The banks sets all new loans so that the first 15 years or so most, if not all, of your payment is applied towards interest only on your loan. Towards the end of the loan period after they have received the specified interest more is then taken off the principal (your original loan amount).

It is a very wise idea to make PRINCIPAL ONLY payment. Please be sure you do not mistake this with additional payments because what you are trying to do is reduce your loan amount not keep given the big guy more of your hard earned money.

Additionally, there are services out there that you can make your payments in a bimonthly fashion (this stops having to come up with such a huge amount once a month which for many can be hard) When you do bimonthly payments this also at the end of the year takes monies off the PRINCIPAL.

There are so many choices out there - your already showing great intelligence just by asking others who have been through what is the best way.

HAVING WORKED FOR SEVERAL BANKS - I KNOW WE ARE NOT ALLOWED TO BY LAW TO HELP YOU WHEN WE SHOULD WE ARE SUPPOSED TO PROTECT THE BANK AND OUR JOBS BUT HEY THEY DIDN%26#039;T DO THAT WHEN THEY MADE ATM%26#039;S DID THEY.

When making a Mortgage Loan Prepayment, does it reduce the principle amount you have to pay each month?

When you make additional mortgage payments, those amounts go entirely against your principle. This will reduce the number of payments you will eventually have to make. So, in the example of a 30 year fixed mortgage, if you make just your normal (fully amortizing) monthly payment, you will end up making 360 payments (12 payments per year for 30 years). But if you make extra payments, you will reduce this number and you%26#039;ll save on interest to boot!

When making a Mortgage Loan Prepayment, does it reduce the principle amount you have to pay each month?

No. ONLY INTEREST ONLY MORTGAGES are impacted

when additional money is added to the monthly payment.

If you make extra payments to a 30yr fixed mortgage it will

only cut the term of the mortgage.

When making a Mortgage Loan Prepayment, does it reduce the principle amount you have to pay each month?

Make sure you call the bank and have them apply the addtl pmt to the principal. this will not reduce your monthly amt, just the time on the loan.

Mortgage payment/Compound interest? Pz help?

X financed $53,492.92 on a 10% fixed rate mortgage payable monthly over 30 years. What is his monthly payment? Plz show calculations

Mortgage payment/Compound interest? Pz help?

I am going to introduce a term called present value. Basiclaly if I have a payment of Y dollars coming up in 15 months the present value is the amount of dollars you would have to pay now to not have to Pay the Y dollars 15 months from now.

Now comes the fun part. The combined present value of all those payments you make on the above mortgage is going to be worth the amount financed. Say X is your monthly payment.

I am going to assume that this mortgage is compounded monthly so a 10 percent rate for the year is a .83333...% a month loan.

Now call Pi the present value of the payment made at the end of month i. Pi*(1.0083333...)^i=X

So Pi=X*(1.0083333...)^(-I)

Now we have the sum of Pi for i =1 to 360 needs to be 53492.92 This is the sum of a geometric series so we have

53492.92= X*( (1.0083333...)^0- (1.0083333...)^(-360) / ((1.0083333...)-1)

Or 53492.92=X*113.951

Thus we have X=469.44

Mortgage payment/Compound interest? Pz help?

The general equation for payments at a fixed interest rate is:

payment = (principle+r) / (( 1.0-(1.0 + r)^n), where principle is the amount of the load, $53,392.92 in this case. r is the interest rate per period and n is the number of periods. The

catch here is the payment rate is monthly on the rate per period is 10%/12 = .10/12 = ,0083333, and the number of periods is 12(months/year_ * 30 years = 360 periods, so the

equation is

payments = $53,392.92 *0.008333..)/(1- (1.0+.0083333)^360)

payments = $469.44

Mortgage payment/Compound interest? Pz help?

Try this http://www.topamericanmortgage.blogspot....

How come mortgage interest rates are not dropping in par with the 10 year bond?

10 year treasuries have dropped over 130 basis points yet interest rates on mortgages have only dropped about a third of that?

How come mortgage interest rates are not dropping in par with the 10 year bond?

Its called supply and demand. If you are a loan purchaser in todays market.. You call the shots. Fannie/ Freddy have cap limits and cannot exceed them. You go to the secondary market (most are gone) and if you find ANYONE you pay what they ask. Im surprised that rates havent gone up. And if you want to see TRUE madness look at Countrywides 90% jumbos. You want YSP? Rates REALLY close to 10%. Can you say bend over and grab your ankles/

How come mortgage interest rates are not dropping in par with the 10 year bond?

It%26#039;s because of the sub-prime lending %26quot;scandal.%26quot; Banks and underwriters need to shore up some of their poor loans and do not want to be seen as lowering rates in order to attract customers that should not be getting loans in the first place.

How come mortgage interest rates are not dropping in par with the 10 year bond?

Because the mortgage industry is in trouble. They passed out mortgages like Halloween candy and now the foreclosure rate is through the roof. They have to make money and they aren%26#039;t gonna cut those rates for a good while. It has to have time to correct.

How come mortgage interest rates are not dropping in par with the 10 year bond?

They are dropping, but they trail the bond rates due to the spread banks and other financial institutions need to stay in business (profitability).

Todays rate cut affect me?

we just bought a house in october of last year. and since then the rates have declined alot, i want to know how does these rates affect the average person? i know it helps if you have an adjustable rate mortgage but we have a 30 yr fixed. so does these rate cuts only help those with the adjustable rate mrtgages or all of us and if so HOW?

Todays rate cut affect me?

Fixed rates arent affected unless your fix rate is higher and you can find someone to refinance it at a lower rate since the cut. Investments like savings accounts and what not are effected as well.

Todays rate cut affect me?

Fed rate cuts do not affect fixed-rate loans. They affect ARMs only to the extent that the ARM adjustment is tied to the fed rates.

Todays rate cut affect me?

30 year rates are tied to long term bond rates.... The fed funds rate has very minimal effect on 30 year rates.

Todays rate cut affect me?

best bet is to check and see if you can get a cheaper rate than what you are now paying -- if you got it in oct i doubt it!!!