Where can I learn everything there is to know about mortgages?

I want to learn the math behind how mortage payments are calculated. I want to know about any other fees involved. What's a ';prepayment penalty';? What other terms is there to know? This whole area is fuzzy / blurry to me. I never bought a house before.Where can I learn everything there is to know about mortgages?
I speak for everyone and therefore I have the best answer.





%26gt;%26gt;%26gt;Where can I learn everything there is to know about mortgages?
www.bankrate.com





There is so much information there. You can read for hours.





Let your real estate Agent help you find the right lender for your situation. That is always the best policy.
i just bought a house using a mortgage broker and i think it's the way to go. it costs a few more quid but it's in his interest to get you a mortgage as most of them don't get paid unless you get your house. good luck i hope it works out for you
go to a mortgage broker or a good and experienced real estate agent. they should be able to fill you in. dont go to a bank, because they only tell you what they want you to know in order to make the most money from you.

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Why cant mortgage backed securities be split into their component mortgages to determine proper value?

If they could be split, good vs bad mortgages could be repackaged into good/bad MBS's and sold with high and low prices, respectively.





I'm sure this occurred to someone already, why isn't it being talked about?Why cant mortgage backed securities be split into their component mortgages to determine proper value?
There are two levels of evaluation.





First, to re-evaluate each mortgage (and there are a lot of them) would be a painstaking task. You would have to go back to each borrower, get an appraisal on the property and/or collateral, and re-evaluate the credit worthiness of the borrower. Each security could be INVESTED in or merely REFERENCE hundreds of individual mortgages. And it's not just limited to homes, but businesses as well.





Second, it's not easy to unwind or value these securities. Each security can have hundreds of owners and it's not easy to track them all down (especially since they're scattered all over the world). Before you can change the structure, you need all the owners to agree. Even to restructure a single mortgage in a security, you may need permission. That's why banks are asking for political cover before restructuring mortgages. The securities also tend to have a lot of moving parts that requires some complex modeling to value them.





I won't get into specific types of MBSs or how they're structured, but that's the general idea.





The reason the values of MBSs are being questioned is that nobody knows how good the loans were to begin with. See the referenced article below. On top of that, now we have the uncertainty of how bad the economy will get and how high unemployment will go. That makes valuation even more difficult now since ';good'; loans may now be ';bad'; loans. Not to mention you still need people to buy the bad loans and there really aren't a whole of willing buyers right now.





I haven't read it, but Wikipedia has an entry on MBSs.

Is there a standard qualification formula lenders go by for mortgages?

We currently have a mortgage and I'm trying to figure out if we'd be able to qualify for another (for an investment property to flip) with our current income. We aren't ready to actually apply for the loan yet, I just need to find out if we even could. How can I figure this out? What are the formulas or qualification standards lenders use?? Thanks.Is there a standard qualification formula lenders go by for mortgages?
Flipping properties and securing a loan to accomplish this might not be a very good idea. The loan application process is much too long for a person flipping properties.





Yes banks ans lenders use several formulas to determine your qualifications to purchase a property. In most loan application and eventually the loan approval you have a 2 year pre-payment penalty. This alone would not help in your aspiration at flipping properties.





There are several things you need to know when investing in real estate or buying foreclosures, probates and other distressed properties for flipping.





First of all you should go to the nearest book store, purchase several books on buying, fixing and flipping foreclosed, short sales and other distressed properties and real estate investing. There are several that you might be interested in.





You will also want to find out if your state is a non-judicial or judicial foreclosure state. This will assist you in making offers as well time frames in which you have to work within when purchasing a foreclosed property.





Once, or, while you are doing this you should buy one of the TV guru's distressed property programs. These programs will give you some legal forms you might use when writing an offer to purchase a property. You will also find several scripts to use in talking to your potential clients. The also give you tips and a formula on how to figure if you have a property that you can make money from before buying.





If you are without funds to accomplish this business, you will have to find some investors that will assist you. You will have to make a deal with them about a certain percentage of the profits made from the sale of the property. You will have to advertise in your local newspaper for these type individuals to assist you in buying and flipping.





Another method to use when you are without funds to assist you in buying investment property is to get the deal under contract in your name after which you wholesale the deal to another investor and let them do the fix up and repairs. You can collect anywhere between $5,000.00 to $10,000.00. In high cost property states you might even get more for wholesaling properties.





Normally this is 50/50 however it could be more or less depending on how your relationship is with the investor.





Now to purchase a foreclosed property depends on what phase the foreclosure is in.





#1 Pre-foreclose- the owner is still in the home, he has been notified that he is in foreclosure. Now he has to come current or the foreclosure will continue.





You can make an offer to the owner at this point, give him something in his hand to purchase his equity. Now you will also want to see if there is any repairs that need to be done on the property. If there is you need to know the cost of this repair. You will need to know how many months he is behind in his mortgage payments as well as any fees that the lender has incurred in trying to collect the mortgage payment. Now add these together to include what you had to give the homeowner. Also you must include how much you will need to hold the property, I mean making the mortgage, paying the insurance and taxes while you repair the house for sale.





Now find out the balance of the mortgage add this to the above figure. Now you need a method of finding out the current value of the property. All this information will tell you if you have a deal or not.





#2 The other way to purchase a foreclosure is when the property goes to sale. At this point you must have all cash and you must be able to prove that you have whatever the minimum bid is in cash, cashier鈥檚 check or money orders. If you have no proof you will not be allowed to bid.





#3 One last way is after the sale. If no one bid and get the property at the foreclosure sale, you may find out what bank owns the property, write an offer as well as a check as a deposit not to be cashed until the offer has been accepted. You might also inform them as to how and when you plan to come up with the remainder of the sales price. I have know some lenders to accept offers this way before the property is turned over to a real estate broker to sell.





Now you have to determine how you are gonna market yourself to get.





#1 You can purchase a pre-foreclosure list from a list broker (Join the crowd most do this and mail letters to the person that is in foreclosure)





#2 You can advertise in your local paper that you are in the business of purchasing foreclosures.





#3 You can do a direct mail to people in your city stating that you are now in the foreclosure business.





#4 You can do the research at the county recorders office yourself (time consuming and tedious-but workable. You should get enough leads for a least one days work.)





#5 You can select an area of your city that you want to work and target your that area with your energy. You can walk the area pass out fliers that you are now in the business of buying property distresseIs there a standard qualification formula lenders go by for mortgages?
Investment loans are very hard to get these days. Best bet is to call a mortgage company %26amp; give them your details. You must have extremely high credit scores (over 740) and you will probably need at least 20% down.
The truth of the matter is that mortgage related issues can be very complicated and sometimes confusing. So, you are not alone with your question.

What type of advertising is permitted for first mortgages vs second mortgages?

What is permitted and what is not permitted for advertising first and second mortgages? Is there a diffreence?What type of advertising is permitted for first mortgages vs second mortgages?
There is no difference. They can advertise however they want. What is controlled is not the advertising, but rather the disclosuers that must be made by the various parties involved in selling a home.


RESPA is about closing costs and settlement procedures. RESPA requires that consumers receive disclosures at various times in the transaction and outlaws kickbacks that increase the cost of settlement services. RESPA is a HUD consumer protection statute designed to help homebuyers be better shoppers in the home buying process, and is enforced by HUD.

How can I get a bank to consolidate two mortgages?

We have two mortgages on our house. the holder of the first one bought out the second mortgage company. Why won't they refinance the mortgages into one. We cannot make both mortgages anymore due to a change in employment, loss of wages. HSBC and HFC are the companys. So we're paying just the first one. Can we be foreclosed on?How can I get a bank to consolidate two mortgages?
Careful you could be getting into a PMI situation. If you can not afford the payments and the job is not going to be replaced soon get the house on the market tomorrow and try and sell it.





Yes you can be foreclosed on!How can I get a bank to consolidate two mortgages?
Sure you can be foreclosed upon. And you're ruining your credit.


Look YOU went to the banks and asked them to loan you money. You got the money, bought the home and promised to repay them. Whether bank ownership has changed is irrelevant, as is your decreasing income, normally. Obama has created some programs to help home owners stay in their homes. They usually do NOT mean lenders HAVE to do anything, they provide incentives for them to do so, and some lenders have been very slow to act. But you want they to do you a favor, so you have to ask and persist and call again and again. You can ask for loan modification, lowering the interest rate on one or both loans. This generally does not mean forgiveness of debt or lowering what you owe, just lowering interest rate.





Consolidating two loans into one is MUCH more complicated and tricky and there's no incentive for lender to do it, EXCEPT as refi, which costs money, and requires you to have equity in home and to pay closing costs.





While your first mortgage may be without recourse, your second is not, and you can get 1099C which complicates your income tax situation.
If you don't pay, you definitely can and will be foreclosed. I suggest you contact your lender asap to try to get them consolidated... or contact a lawyer or someone in your area who does loan mods.
You will have to refinance them - either with your current lender or a difference lender. If you cease to pay either, the lender CAN foreclose.

Is this comparison between the stimulus package and housing mortgages a fair one ?

Savings and Loans approved and loane money to people who truthfully could not afford to pay back, and now the raminding portion of the loan is equal to more than the house appraises at.





Will the Stimulus Package, with interests due, become larger than what our country is worth.





I love my country dearly, but that package is going to destroy the value of our dollar. Do you agree or disagree ?Is this comparison between the stimulus package and housing mortgages a fair one ?
agree what else is this idiot going to bail out? life on mars certainly they havent been in good shape lately

Can someone explain to me why the federal government supported loaning money to the poor for mortgages?

This is like giving water to a drowning man or snow to an eskimo. Isn't it kind of obvious if one lends money to someone incapable of paying it back that the loan will default?Can someone explain to me why the federal government supported loaning money to the poor for mortgages?
Get the facts %26amp; maybe you can form an opinion based on actual facts and not on what Rush told you.


http://www.politifact.com/truth-o-meter/鈥?/a>


http://factcheck.org/Can someone explain to me why the federal government supported loaning money to the poor for mortgages?
The ';zero down initiative';.. is all but lost in the memory of the ';United States of Amnesia';


http://www.boston.com/business/articles/鈥?/a>


They knew exactly what would happen.,.. the whole thing is engineered, the timing of it, everything... a total fix and we're going for it ?





The ownership class, is the owned class..
Started in the Clinton Administration to eliminate the rules so the voters would get homes.Barney Rubble there was one of the main culprits.Greenspan and McCain warned there would be trouble but were ignored. The Chairman of the Banking Committee was backed by the very people he was supposed to check out.Just think of it as a Democratic Charity and you will be making the mortgage payments.
Because not all of them are irresponsible


some of them are responsible enough to handle a


FIXED MORGAGE


They tricked people into


Sub Prime Loans


No Down Payment Morgages


and


Variable Interest Rates


Not Fixed Interest Rates


A lot of people didn't understand the legal jargon.


They knew the people were uneducated about the


meanings.


They took advantage of vulnerable people.


They would call them suckers.
I think they called it ';hope'; or ';change'; or some such thing.
Because it makes them feel good. No, seriously.





Carter, Clinton, and Bush 43 are all guilty of it, actually.
yes, we can thank political correctness for this failure.
Because of an administration policy called The Ownership Society.






Wait to you retire, with 40 million illegals on your back,
Affirmative action for the classes!





I think Bush used the phrase compassionate conservatism.





It's what happens when you feel instead of think!
So that we could find ourselves in this mess and let them blame it on the Republicans. Why else?

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How about extending the terms of soon-to-default mortgages to 50+ years?

Just to make the homes affordable to those ';naive'; home-owners, instead of subsidizing them with free money from taxpayers? Fed won't have to lower the rates to funny level. Banks get the interests of the loan paid. Savings also earn reasonable interests. This will motivate people to save instead of creating gigantic debt in the future. How about extending the terms of soon-to-default mortgages to 50+ years?
I have a better idea. Why don't we just let the idiots, who bought houses they couldn't pay for, go ahead and default. Then those of us who haven't been able to afford one, can now buy into a cheap home.





Let the fools pay the price for their foolishness.





Where is my bail out?How about extending the terms of soon-to-default mortgages to 50+ years?
What incentive to hard working people have to pay off their mortgage on the time that they are supposed to if you can get a 50 year mortgage instead. Let capitalism be capitalism. Things will work out for the best. On paper it does sound good but there are many other factors to be considered and that's where you might find out that it probally won't help.

FORCING mortgage companies to give mortgages to people who shouldn't have them is REGULATION or DEREGULATION?

Thanks, it's for a paper!FORCING mortgage companies to give mortgages to people who shouldn't have them is REGULATION or DEREGULATION?
Regulation that was started by Carter. He thought it was utopian to get more people into homes at any and all costs.FORCING mortgage companies to give mortgages to people who shouldn't have them is REGULATION or DEREGULATION?
It was regulation, because the Democrats, in creating the Community Reinvestment Act, penalized banks with heavy fines if they didn't lower their lending standards to meet lower income criteria.





My theory? The Democrats saw their voter base gathering too much wealth and becoming less needy, so they decided to slap them back down into the gutter and dangle the mortgage carrot in front of their face. Too bad they can't see what the Democrats are doing to them.
And also tied directly in with ';community organizers';! Battling to get loans that people can't afford because it's ';fair';.





Now how does Barack Obama fit into this picture? Do the words Community Reinvestment Act and ACORN come to mind? How about the fact that Obama worked as a community organizer for ACORN.
It is regulation in the worst way. The regulations should require that mortgages only be issued if the borrower qualifies instead of getting him into a debt he can't pay.
No one forces mortgage companies to give loans to anyone. Most of the subprime loans that are causing problems were not subject to Community Reinvestment Act.
Who forced them to do what?





Oh and you do know what you can do with your ';it's for a paper'; line?
It's deregulation. McCAin supports deregulation. The Dems. didn't give the morgages. The banks did.
I'm still trying to figure out if you even know how to read or write...I think you use a verbal typing software honestly.





nobody forced mortgage companies to do anything.
It is a recipe for disaster: government meddling with social engineering aims in the free market. Catastrophic.
It's plain stupid as illustrated by current events. Thanks a lot, Dems.
the only thing that forced them to do anything was their own greed.
ask Bill Clinton
No one forced anyone to loan money..

Can having many mortgages on your credit drop your score?

I have a total of 3 mortgages and I am about to buy 5 more houses. I have heard (not from an expert but he sounded like he was speaking from experience) that once you get up to a certain number of debt or number of mortgages on your credit, it can drop your score, is this true?Can having many mortgages on your credit drop your score?
Credit score is based on the following factors;





1. Payment history 35%


2. Time in bureau 15%


3. Types of credit 10%


4. New credit 10%


5. Debt to credit ratio 30%





The only way that having all of this debt would effect you would be when you applied for other loans.





Lenders are the ones that look at debt to income not credit bureau scores.Can having many mortgages on your credit drop your score?
I believe that if you are paying off everything, it is not a negative. Usually the only negatives are too many credit requests and too many credit cards.
Of course having a lot of debt can decrease your score, and having several new mortgages means much more debt. Although once you start paying them regularly and if you don't have late payments your score will slowly increase again. But yes, there will be a big hit on your score at first.
Anything on your credit, with a balance, will effect your credit score. I'm the Finance Director for Large Dealerships, and I do this all day long. If you're paying all your bills on time, you'll have no problem. A Mtg. showing paid on time, is a great asset to your credit. As far as you buying other homes, you'll have no problem,as long as you show proof, of your rental income. You sound very smart. As well as a good business person. Having a lot of Mtg's on your credit, as long as it does not make you DTI (Debt to income) out of line, you will have no problems, as you'll obviously have the proof of rental income,from all your properties, along with your normal income. Best of luck to you. You're sure doing well, and being very smart about your investments!
It is possible but it is also possible that it could raise your score. Part of your score is based on debt to income ratio. That means more debt often means lower score. However, if more income comes with the additional properties that means same debt ratio but higher income and more debts paid as agreed. Thus, higher score.





Bottom line, if you are paying 100 mortgages on time you are good as long as you have the income to justify one more.

What is the name to describe the difference between mortgages and swaps?

a. Mortgage basis


b. swap spread


c. Curve steepness


d. vol inversionWhat is the name to describe the difference between mortgages and swaps?
homework help links





http://www.answers.com/topic/mortgage-sw鈥?/a>


http://home.earthlink.net/~green/whatisa鈥?/a>


https://www.wachovia.com/helpcenter/page鈥?/a>What is the name to describe the difference between mortgages and swaps?
a mortgage involves you house-- a swap involves your wife

Where is a good place to read/learn how mortgages work?

We have a little girl on the way and want to start looking into suitable homes, but honestly don't know much about the process of getting a mortgage to buy a home. Any advice?Where is a good place to read/learn how mortgages work?
bankrate.comWhere is a good place to read/learn how mortgages work?
the bank,, they will educate you. also there is first home buyers programs around all states. get in the Internet and search for first home buyers gov. programs.
Feel free to check out our website at www.achievablemortgages.com. There are various links to help you with this.
Check this site out, they might be able to give you more information or try to post your question under ';Renting and Real Estate';, you should get more response over there!





http://www.**********/an/mortgage/

What happens to mortgages held by failed banks? Do mortgagees have to pay up now?

I'm wondering if homeowners face the possibility of having their loans ';called'; when they are held by a bankrupt institution. Is it wise to seek to pay off the loan with any holdings a person can gather so they own their house outright in today's market turmoil? What happens to mortgages held by failed banks? Do mortgagees have to pay up now?
No, the loans cannot be called. They will be assumed by a new lender under the same terms. Keep making your payments until notified of the assumption.What happens to mortgages held by failed banks? Do mortgagees have to pay up now?
Another bank will usually take over the home loan. Homeowners will not be forced to pay all their balance now.
the debt is still owed.

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Does anyone know the best place to look for Mortgages online?

I would rather do the work myself rather than getting the hard sell by a broker. I'm living in NJ in the US.Does anyone know the best place to look for Mortgages online?
Go to www.bankrate.com





It's great!Does anyone know the best place to look for Mortgages online?
Try the below company, you can comparison shop from the comfort of your home

What are some must haves for a person selling mortgages?

My boyfriend is changing careers and going into selling mortgages. What are some gifts I could get him for Christmas that would help him out or make the job easier?What are some must haves for a person selling mortgages?
Transportation-Car;Cell Phone,Nice suit ( Coat and Pant -nice shirt and tie with a tie pin.)Nice shoes ( preferably Black Bostonian).You can buy him out of those if you can,Or buy him a shaving set,so before he goes to office and do the shaving he will remember you for your gift.And if you wanted to be cheap than buy a shoe polish-shoe color and shoe shine brush.Or a Nice Parker or a Shaffer pen. With an Appointment book with a address book.A pocket calculator ( from Texas Instruments) for calculating mortgage.So as a Christmas gift buy for your BF whichever you can afford it.What are some must haves for a person selling mortgages?
A bunch of realtor contacts and a nice financial calculator.
A Laptop.
Your best gift will be your financial support for the first several months while he builds up deals, but has no income coming in.





Unless he's one of the rare few that will get some type of salary, most mortgage brokers are commission-only. You only get paid when loans close. Which means he'll have good months and bad months, sometimes 0 income for 30-60 days.

Why does Hillary want to Bail Out the SubPrime Mortgages Which are Disproportionately on Hispanic Houses?

Is she buying votes with your money once again?Why does Hillary want to Bail Out the SubPrime Mortgages Which are Disproportionately on Hispanic Houses?
Democrat candidates always say they'll fix everyone's problems before the election. That's how they get votes.Why does Hillary want to Bail Out the SubPrime Mortgages Which are Disproportionately on Hispanic Houses?
Yes, I remember when these banks said they were going to issue credit to illegals, so why are we bailing them out now?
No they aren't, statistically speaking there may be higher percentages of hispanics with subprimes than their population suggests, but the VAST majority of subprime loans went to white people.





The fact that you think because they are disproportionaltely hispanic and thusly against it does make me wonder about your own bias and bigotry.





Are you anti-american? Hispanics are Americans too. I suppose you also claim racism doesn't exist amongst whites in America anymore either?





Nicki, I worked in for a large broker too....its crazy how many people were/are going to be affected by this. And take it from me, the last thing we need to do is pretend like the lending insitutions and banks are victims here....
Yeah, I worked at a mortgage company and I helped people refi out of subprime all the time. These people were from all walks of life. Rich people with horrible credit even....white, black, hispanic, asian, whatever.....
Well, I wouldn't put it quite that way but yes, she is hoping to swing opinion over to herself as the great rescue politician.


If anything is broken, she says she can fix it so vote for Hillary.

My 86 year old father wants to purchase a home. Is there an age limit on mortgages?

If he applies with my sister would their income be considered together for the mortgage or would they both have to be able to qualify on their own?


What happens if he passes away and he is the only one on the mortgage?My 86 year old father wants to purchase a home. Is there an age limit on mortgages?
There is no age limit. He has to qualify for the loan. If he applies with your sister, it would be a joint loan and the credit and income of both would be considered.





If the mortgage is in his name only and he dies, it will become part of his estate.My 86 year old father wants to purchase a home. Is there an age limit on mortgages?
There is no age limit although most lenders will be hesitant due to his age and will not give him a long term say if he is 86 most terms are 30 years. Even though he qualifies due to credit the lending companies wont look at that due to his age.
He can apply for a 30 year mortgage...believe it or not.





Here are your challenges:





1. He cannot do any type of stated income loan if any part of his income is fixed, which at 86, it is.





2. If he and your sister goes on they loan, YOUR SISTER needs to make sure she can make the payment ALONE when he dies...if she can't, and he's gone...then the bank will foreclose.





3. If they apply for the loan together, they must qualify as a team.





4. If he is the only one on the mortgage, and he dies and NO ONE makes the payments, the bank STILL has the legal right to foreclose...the person on the note dying doesn't change that.





PS: Shonda, you are wrong. You cannot discriminate based on age. Both Fannie Mae and Freddie Mac will buy loans even if someone is 90 years old and applies for a 30-year mortgage.





I have personally underwritten these loans....THE LAW says you have to or you are discriminating...as nutty as that sounds. You CAN NEVER use age as a discriminatory factor as long as someone can legally enter into a contract.

I have two mortgages. Is it possible to get one refinanced and not the other?

I have one main loan at 8.75% variable 3 yrs from now, and one fixed at 10.25%. Is it possible to refinance the variable and not the other? I do not have much equity in my house because it is new, so I suppose I wouldnt be able to get them combined.I have two mortgages. Is it possible to get one refinanced and not the other?
That makes no sense to me.


Why don't you refinance and consolidate them into one loan at a lower rate?


Most places hate to loan if you have a first anyway because they prefer to have sole stake in your collateral and will usually give you a better rate for doing just that.I have two mortgages. Is it possible to get one refinanced and not the other?
I'll answer this in two parts, first the liens themselves. I'm assuming the fixed is a home equity loan. Basically what would happen is that you would finance the variable rate mortgage and the title company would assist you ( or do it for you, it depends) on getting the home equity subordinated. Whomever holds the second mortgage would sign a document that would be recorded stating their lien is to be second to whomever the new lienholder is. It will cost $$ to record this document (this would be rolled into the closing costs, usually subordinations are only 1 page so it's not too costly) and it may cost $$ for the actual prep of the subordination. Each lender is different, most charge, some don't, but be prepared for it as some will not prepare this doc without the money upfront. Now can you get refinanced, I really don't know, it depends on your credit, income and what the home appraises for. If you want to know, find out your fico score and get the house appraised. Once you have the house appaised (full appraisal) take the remaining balance of the two mortgages and divide that by the appraised value, if it's less than 80%, you should look into refinancing as your rates are way too high, if not hold off
Yes...It is very possible and common. In fact, we just refied our 1st and not the second. HOWEVER, make sure the owner/lender of the current 2nd is willing to re-subordinate. Many of the big banks are not willing to subordinate right now...we ran into and had to BEG to keep the 2nd (exactly as it was! We weren't even changing anything but the first!) You may very well be able to combine them both...it is called a cash out re-fi...your rate will be a little higher...but goodness, with them in the 8 and 10% ranges you can't go wrong...Those are really high. As long as it has been 90 (sometimes 120) days since you last re-fied you can do it again.
If these loans were obtained during a purchase, you have what is called a ';purchase money second.'; It will help you when your property goes up in value. If you refinance either loan, you will no longer be a purchase money second.
You probably have 2 loans because the original lender was trying to save you from PMI. Without equity- refinancing is not an option, normally because they want a 20/80 loan to value to combine and refinance.

Are there reverse mortgages that will let the brower past the house to aires, rather tan sell after death?

I want a reverse mortgage, however I want my daughter to have the house upon my death.Are there reverse mortgages that will let the brower past the house to aires, rather tan sell after death?
All of them do.





If your daughter repays the loan you are taking out then she can keep the house.Are there reverse mortgages that will let the brower past the house to aires, rather tan sell after death?
no.





what you might want to consider then is a cash out refinance, putting the funds into an account that has automatic payment of the mortgage coming from it and using the cash you need from that account.





With a reverse mortgage, you've sold your home with a right to occupy until your death. you cannot leave behind something you no longer own.
Yes, that is the way most of them work. You are essentially borrowing the equity in your home. You must be 62 years old and have sufficient equity, but it will be passed on to your survivors as you wish, but there will be a mortgage.
What you describe is exactly how the process works. Your daughter still inherits the house, she just has to pay the debt on it. If you don鈥檛 want her to owe anything, you can鈥檛 borrow. It鈥檚 that simple.
With reverse mortgages, the home is always yours. You can refinance out of it or leave it to whoever you want. The loan will need to be paid, but they can certainly keep the home.
you can't have it both ways . she could probably have it if she paid back the reverse mortgage on your death.- do a reverse mortgage with your daughter now - let her pay you now monthly
Of course not. Why would anyone give you money if this were the case? If you need money now and want your daughter to inherit your house, can you borrow money from her?
There are a lot of variables that come into play here. Starting with your age, if you are a younger senior and you take all the equity out of your house, live to be a ripe old age, your daughter could possibly owe more on the reverse mortgage than the home was worth. Since a reverse mortgage is a nonrecourse loan, which means that only the house has to pay the loan back, your daughter would not be liable for the difference. If the real estate market goes back up and you only takes out what you need to live on, the payoff of the reverse mortgage could be handled with a forward mortgage, to retain ownership of the home.


The best way to find a where you stand and if a reverse mortgage will work for you and your daughter is to contact a reverse mortgage specialist. The information should be free.

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What sort of calculations are used in determining mortgages?

I checked into getting a mortgage, and was told that I qualified for a mortgage of around $140,000 (which where I live is just enough to buy a crack house). With no money down, over forty years, they said my payments would be around $900 every month. I calculated that $900 a month over forty years is almost $400,000. So what gives? What am I missing here?What sort of calculations are used in determining mortgages?
Interest. You're looking at what, 7%? 7% Every year on the value remaining on the loan... 7% of 140,000 (To Start out) is $9,800 of Interest for the 1st year, and You'll be paying a Total of $10,800 on the Loan... The next year you'll be paying Off the Remaining $139,000 (Yes, You see, You only paid $1,000 of the Principal $10,800-$9,800= $1,000) and you'll gradually pay off more of the loan as you approach the later years of the Loan Term. The 2nd Year you'll pay $9,770 in Interest, and $1,030 off of the Principal, leaving you with a $137,970 Loan. See how it works?What sort of calculations are used in determining mortgages?
Yeah, there are no free lunches, Bubba. On the other end, we still are able to write off a lot of that every year for taxes. Then, If the market jumps, your in!!! Take a shot. Just think where you'll be if you Don't! Mike
the interest??

Are there mortgages available from a UK bank for Australian property?

We have an investment property in Australia that is mortgaged through an Australian bank.





After our move to the UK last year, we would like to have this property mortgaged with a bank in the UK.





Is this possible?Are there mortgages available from a UK bank for Australian property?
Yes, it is, i'm a Real Estate Agent in Sydney and a lot of our clients properties are mortgaged through Hong Kong Banks etc... many through Rabobank and other non bank lenders as well.Are there mortgages available from a UK bank for Australian property?
I was (on maternity leave permanently) a Finance Broker in Victoria Australia and I have also financed a lot of overseas investment loans.


I can't see why it would not work the other way around.


You should contact your bank in UK and find out best way for them to organise it.


They would probably require a valuation but this could be organised through one of the major valuers (depends where property is).


Email me if you would like some contact people who are experienced with discharging loans internationally.

OK, so the bailout is to cover bad mortgages, but who gets the money when a foreclosed house finally resells?

Is this really going to end up costing us $700B or will we get some of that back?OK, so the bailout is to cover bad mortgages, but who gets the money when a foreclosed house finally resells?
Paul and daeve930 hit it right on the head. The government is doing this to keep us from spiraling into a depression like the one back in 29. Only much much worse.





Things always seem to repeat themselves, no matter how advanced we are.





Part of the problem was that people overestimated (or really didn't care) if they could pay the loan off that they took with no confirmation of income.





The other part are victims of a bad economy. Most companies have laid off people in a time where jobs are there, but not enough of them. And the pay will never meet what these people need.





I know most people's salaries have dropped either 10-40% from 2 years ago.





So the bailout is a mystery; but I truly think all the good ole big boys are trying to figure out how to keep their salaries intact, and let's not mention their bonuses that far exceed their salaries any day of the week.


OK, so the bailout is to cover bad mortgages, but who gets the money when a foreclosed house finally resells?
That's the problem Congress and Senator Obama have with the current bailout plan. The Bush administration has not answered those questions yet.





What happened is that lenders approved mortgages for people that couldn't really afford them. They then sold these mortgages to financial firms who thought they were investing in safe mortgage-backed securities (rising prices, people screened and approved for the mortgages, etc.). This happens all the time and has been going on for years. A buyer secures a loan through one company and that company isn't in the business of maintaining loans, just acquiring new lenders. A lot of these mortgages are bought up by investment firms, who sit there and collect your interest for how ever many years you pay on the mortgage.





But, when people started defaulting on these loans they never should have been issued, the financial firms that bought them stopped getting payments on them. And, they already ponied up the money - usually by borrowing on other securities they own - to buy the mortgages. Now they have to repossess the properties (foreclose) and sell the properties for what they can get, which is usually less than market value, because they want the property to sell quickly (they lose money every day they hold onto it).





Now they don't have any money to pay for the loan they took out on their securities and they have to liquidate assets at a discount to pay off those obligations. When they run out of money, they go bankrupt. This then has a domino effect throughout the world financial market of companies not being able to pay off their financial obligations.








The basic bailout plan is to give the financial companies the difference between what people owe on their properties and what the company can get for it at foreclosure. So, the company doesn't lose any money by filing foreclosures and they can pay off their obligations. So, the world financial market stays stable, despite the fallen real estate values.





The problem is, how do we know this is going to work? What's going to stop a financial company from taking the money the Feds give them and investing it foolishly again? What's the return on investment for the taxpayers and the federal government? And, what kind of regulatory and administrative oversight will be put in place to ensure no one takes advantage of the bailout plan?





This bailout plan simply cannot happen until these questions are answered. And, fortunately we have a Democratic congress that is stepping up and asking these questions before rubber-stamping the biggest and riskiest corporate bailout in world history.
If the banks fail, what will happen to your money? Think 1929. What would the government do with the houses? Are they going to give them to deserving people, who would then have to be able to afford the upkeep and taxes? I doubt it. They can't handle the real estate they already hold. This town is over run with dumps owned by the city.





I just read something that said if there are 300 million people in this county, the bailout equates to $2300 per person. Maybe it's a bit more palatable that way.





Don't forget that a lot of ';bad'; mortgages were good ones until the home-owner's job was shipped to India or Sri Lanka. This government allowed that to happen by encouraging corporations to export jobs by giving them tax breaks. We import goods from other countries where people are paid $1 a day. We have created a very unequal trade balance and let other countries tax what we send them but we don't tax what they send us. There's plenty of blame to go around...the world is not a vacuum.
The government is buying mortgages for 40垄 on the dollar. If the homeowners pay in full and on-time, the government will make a profit of 60垄 on every dollar invested. Some people think the government is overpaying. Merrill Lynch sold their loans for 22垄 on the dollar. The buyer of those loans could make a huge profit; or they could lose their shirt. Only the future will tell. It will not cost us $700B..
This may be radical thought in this forum, but I'm totally against the bailout. The two culprits (lenders and home-buyers) should suck it up like I did. Did I want to dig into my 401K...no! Did I want to sell my second car.....no! I'm very disappointed with this decision which will possibly be worse than the alternative.
When a house is foreclosed, the bank takes the loss for the unpaid loan. The bank assumes the property title and then resells the house for whatever it can get.
The bank that holds the mortgage. Not all foreclosures are due to defaults on sub-prime loans.

Why cant the government offer to buy all mortgages and stop the meltdown?

If there are 300 million people in America, and likely less than 100 million mortgages, a buy out of less than 100 million could stop the leveraged mortgage meltdown. Why not stop it at the source and only spend 100 million instead of the billions?Why cant the government offer to buy all mortgages and stop the meltdown?
Math isn't one of your strong points is it. Do you think the 100 million mortgages are only worth 1 dollar each??





And how about getting a job and taking care of your own instead of sticking your hand out for something that you haven't worked for or deserve?Why cant the government offer to buy all mortgages and stop the meltdown?
There are many problems with this. Many of the homes were overappraised even before they were sold. And since then they have lost a lot of value.





There are actually not all that many people in a position now to be rescued. People who have already lost their homes can't be saved.





But the biggest problem is that most of the ';problem mortgages'; don't exist. They are fake loans called ';credit default swaps';, intended to guarantee mortgage-based securities. There is no value to them now. All the money went to pay bonuses to bankers.
The government has NO MONEY, the money that they use is MY money (mine %26amp; other working taxpayers).





How do you feel about somone stealing from your familiies needs and the hard work to which you have dedicated yourself to pay the bbills of those who made poor decision (bankers, mortagage companies).





NO, absolutely not. I have been very careful, made good decisions in my life and worked very hard . . . MY money is my money to spend for what I want to spend it upon - not saving some bank or mortgage company.





When bank loans are made, they take a risk . . . BUT they make a ton of money on these risks (you pay back over 30-years over 400+% of what is borrowed).





When the loan plan fails and you lose - YOU lose. You see , you did not share your profits with me - I do not want to share your losses!
I think we are all missing the point of where are these mortgages? They were all broken down to many pieces and sold along with other investments. How in the hell are we going to track down every tiny piece of a mortgage glue it back together and then buy it? It was a bad move on the banks part and unfortunately we will all pay in the long run.
that has some bad Ju-Ju issues.





1. government buys mortgages, (at overinflated prices as usual)


2. private sector buys back houses at cheap price from government


3. private sector sells houses for huge profit


4. Government losses lots of money











.
Try gradiating from high skule with a little extra effort in the math area there hoss.
where's any personal or corporate responsibility in that? It's like Dad paying the Visa bill, you will run it up next month. right?

Who is responsible the banks who offered ARM mortgages or the idiots that took them?

Whatever happened to buyer beware? Is it the banks fault the idiots didn't read the fine print?Who is responsible the banks who offered ARM mortgages or the idiots that took them?
I have always been taught that I am responsible for anything that I choose to sign my name to. If I don't understand something completely, I am responsible for taking that document to someone to explain ti to me.





The key element in this is self-responsibility. Something that doesn't seem to be too popular right now.Who is responsible the banks who offered ARM mortgages or the idiots that took them?
Both. The banks offered ARM's as a way to get unqualified borrowers into mortgages in order to take advantage of the real estate boom and hedge their own bets against future busts and higher interest rates. The borrowers took them as the only way to get into a home.





I don't think the banks or the borrowers should have been bailed out. That is where buyer beware comes into play, after all.





But once you bail out the lenders, it is absolutely unjust to leave borrowers out in the cold--which is occurring for all Americans who do not qualify for the government loans, including many real estate investors in retirement (like my parents). I bring my parents into the discussion so you can see how this whole mess impacts all of us: My parents did not take out ARMs. They took out conventional loans over the years and have always paid their bills. When the housing market went bust and short sales and foreclosures flooded the market, it pushed their values down, leaving them holding properties worth much less than what they still owed on several of them. In my parents' case, this means they are both still working at 70 to cover mortgages on homes being trashed by delinquent renters (and no one is even talking about this).
I can see you never bought a home.


I have, twice now, and I can tell you that you can't buy a mortgage that the bank doesn't want you to have. They set the interest rate, the amount you have to put down, and then they can refuse you if the mortgage is too high. Of course that was back before the nineties.


Those strange mortgages, no money down...100% financing...no verifiable income needed...balloon payments...teaser rate ARM with huge interest hikes, supposedly built on increase equity, so the client is told they can refi without a problem. Except the market went down and it became a problem for the clients. Not for the bank which chopped up its mortgages and sold pieces of them. They were out from under.


The homeowners weren't idiots, neither were they professional bankers.


When the pros told them no problem, the homeowners believed them.


Buyer beware isn't supposed to function with your banker, they aren't supposed to be behaving like carnival shills. That they did behave like shills is not to their credit. Its the banks fault for encouraging their staff to write bad mortgages by giving them promotions and bonuses based on greed rather than sound business sense.
Ultimately at the end of the day the person who signed the dotted line is responsible. It is not like the banks held a gun to anybodies head. That said the banks were flat out greedy and stupid to think that people who had never repaid any loans or were always late, could not balance a check book, and had slightly better than minimum wage jobs would ever be able to pay back their loans.
If you sign a mortgage you didn鈥檛 read鈥?.well, you deserve what you get.
Barney Frank.
a bit of both.

Why is the govt interfering with adjustable rate mortgages?

The homeowner signed the contract knowing the rates would increase. Is there any law that states that such a contract is unenforceable?Why is the govt interfering with adjustable rate mortgages?
they are trying to help out certain classes of folks -- i disagree and i have email my opinion to my congressman!!!Why is the govt interfering with adjustable rate mortgages?
Because too many people need government to act as their nanny and help them when the are not responsible to help themselves. I agree with you. I would have loved to get a lower rate and thus better house if I took an adjustable mortgage. But I know my limitations. I took the security of a fixed rate.
That's not what is happening...





The contract MAKERS are agreeing to accept less-than-agreed-to interest payments in exchange for being able to discriminate among those who get the break and those who do not.





If you and I sign a contract that says the you will pay me 12.50% interest annually for 30 years and the government convinces me to charge you 6.75% for the next 5 year instead, who is going to complain? You? I think not. I'm the one who just made the change (in practice, not in the contract), so who is left to argue that the contract has been violated?





On the other hand if Tom-the-9.75%-rate guy sues because it isn't FAIR, I am protected by the government who told me it was okay. FAIR and contract law are not the same thing.
Because the Fed eased rates too much years ago making credit too easy, banks took advantage of customers with their creative packages, stockholders of these companies demanded high stock prices, which helped banks continue these deceptice practices of giving credit to anyone whose heart was beating, all the while analysts were giving these companies 2 thumbs up, while these practices were in addition bypassed by their accountants.


In other words, if someone were handing out cheap money to you, wouldn't you accept this once in a lifetime present?

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john masters

Are there any banks that offer second mortgages to homeowners in California, that are stating their income?

I am a loan officer in California looking for a bank to send a second mortgage too. I am having trouble finding a home for a second mortgage. Here is the scenario:





750 FICO


70% LTV


Stated Income





Please help me find a home for this loan...





THANKS!Are there any banks that offer second mortgages to homeowners in California, that are stating their income?
Ask www.brokeroutpost.com they are awesome!Are there any banks that offer second mortgages to homeowners in California, that are stating their income?
The guy above me is wrong. We do stated loans all day long, but NOT at a 70%LTV on a second mortgage. sorry
Nobody does stated loans anymore. Forge some rental contracts and get some BS bank statements.
why not do a cash out refi with those scores. Is it a primary residence. If it is you might try commerce bank. the loan has to make sense. you cant be a french fry cook and state an income. I am also not sure if they will lend in California

What's the best way to help homeowners who are having trouble paying their mortgages?

isnt really to make sure they have a job here in the USA so that they can pay for their mortgage on their house here in the USA?





Even if someone's house goes down in value by 20-40% that alone does not make them unable to pay their mortgage........for the most part and in most of these troubled mortgage situtations, the lack of good jobs that pay well is the real problem. who agrees?What's the best way to help homeowners who are having trouble paying their mortgages?
The APR rate skyrocketed, and those who probably would never own a house otherwise couldn't afford their mortgage.What's the best way to help homeowners who are having trouble paying their mortgages?
I for one think the main cause of the housing trouble is due to higher than normal debt to income ratios. What needs to be done is all of these people who can not pay for their debts should file for bankruptcy protection and wipe the debts clean. It has little to do with jobs since most of these people were in trouble before they were unemployed.
I agree that many people are losing their homes due to losing their jobs but also due to predatory lending practices which have the mortgage interest rates suddenly balloon with people unable to refinance.





Help with refinancing or changing the mortgage terms would also help.
hummmm...I think real problem has something to do w/ the Federal Reserve System playing with interest rates, counterfeiting our currency and steeling our wealth. who agrees?
Too late to worry or care. America is headed for a severe Depression....you can thank Bush.
I liked Gohmert's plan.


http://gohmert.house.gov/Article.aspx?Ne鈥?/a>


This would help them short term to get back on their feet.





I disagree that jobs are the main issue. When we bought our home, we decided to finance only 50% of what the bank said we could finance or less. We did this because we know that either of us could lose our jobs within the next 30 years (the length of the loan). Yes, we could have decided to buy a larger, newer house in a better neighborhood but we chose to live below our means.





We're grateful now because my company closed and we are down to only one income. However, many of my co-workers didn't make the frugal decision that we did. They bought those more expensive houses and now are losing them.





Yes, a slow economy is part of the problem. But personal responsibility cannot be ignored. Lack of work is the reason for some foreclosures but not all. People knowingly took out loans that had balloon payments that would be due in the future. Some people got caught when flipping houses and lost in the gamble. Still others chose to take out loans knowing that it would take everything they had to pay the mortgage and even the slightest bump in their pay would make them late on a payment (I personally know three people who did this).





More jobs would help but people need to live below their means and save for a rainy day when things are good.

Is it possible to get two separate mortgages on one two family house?

If the house has two floors and a basement, can one floor be assessed separatly and separate mortgage obtained?Is it possible to get two separate mortgages on one two family house?
Yes, it is possible to subdivide a residence. However, there are building codes which have to be satisfied before you can get a new assessment. You have to completely separate the parts by having a complete barrier between the two, separate entrances, utilities. You need to research this using the local building codes where the house exists. Once you have made the house into a duplex, the owner can then sell one half, or both halves to different people, which means 2 mortgages to two different people. The zoning also has to such as to allow multifamily residences. Duplexes are not allowed everywhere. A community near me here where I live in WA State, has 5 acre rural parcels and the zoning laws there say that there can be only one single family residence per parcel, so no matter how big a house is on one of these 5 acre parcels, you can't subdivide it into a duplex because the parcels are not zoned for multifamily residences. So, bottom line, zoning restrictions and building codes will determine if you can subdivide a house into a duplex, the rules for which varies from place to place. However, if you CAN make the house into a duplex, then each half becomes an independent property with a single common wall.Is it possible to get two separate mortgages on one two family house?
don't think so... but u can get a 2nd mortgage on the one whole house tho.
If you qualify, you can get two mortgages on a single family home. Some creative financing uses a second mortgage to increase the downpayment so you qualify for the first mortgage.





See a mortgage broker. Get an on line quote at lending tree.

4 mortgages on my credit report that were part of a morgage fraud scam. Can I get these removed from credit?

This has caused me to file bankruptcy which has been discharged. Can I dispute these and have removed from the credit report? The title company is out of business, the appraiser over-appraised the homes and the individuals are under investigation. How should I proceed?4 mortgages on my credit report that were part of a morgage fraud scam. Can I get these removed from credit?
If you voluntarily participated as a strawman in the scheme, you can't get them removed...it will be 7-10 years before the items begin to roll off of your credit history.





I'm surprised you weren't charged with fraud as well.4 mortgages on my credit report that were part of a morgage fraud scam. Can I get these removed from credit?
I suspect there's more to the story than you state here.
Hi,


I used ';Credit Solution'; to settle my debt and avoid bankruptcy.They managed to reduce my debt up to 58%.I came across this company on NBC News Special Edition.Check it out here:


http://urlhawk.com/29x

How can congress pass legislation allowing bankruptcy judges to change terms on already written mortgages?

It seems like this would be challanged (sucessfully) in court since the laws when the contract was signed didnt allow modification. I can understand how they could mandate that future mortgages are capable of being modified but not those already written... seems kinda like ex post facto.How can congress pass legislation allowing bankruptcy judges to change terms on already written mortgages?
1. Ex post facto means that Congress is prohibited from making a law retroactively punitive. i.e. Congress couldn't pass a law saying that drinking is illegal again and punish people who drank before the law went into effect. It affects criminal statutes only.





2. Congress is just being Congress. They know there is a large likelyhood that this can be overturned. They just want to tell peopl that they tried.How can congress pass legislation allowing bankruptcy judges to change terms on already written mortgages?
Because the democrats currently in control of congress don't believe we are smart enough to negotiate our own contracts. While that may be true in some cases, the courts shouldn't be stepping in to alter them.
I'm with you on this.

Can you believe the banksters are on CSPAN today telling congress that bundling securitized mortgages is good?

The banksters and related finance industry says we just need to tweak things a bit!! What do you think of how Barney Frank, Chuckster Schumer and friends are taking care of their fine friends. They continue to defend what they have encouraged and administered despite all that has happened? Pay the banksters, pay the big three auto monopolists? Huh? Can you believe the banksters are on CSPAN today telling congress that bundling securitized mortgages is good?
Yes,I can believe that the world is run by the central banks.


http://www.youtube.com:80/watch?v=P772Eb…Can you believe the banksters are on CSPAN today telling congress that bundling securitized mortgages is good?
Yes, something like cigarette company lawyers saying smoking was good for you!
No, I can't believe it. THIS is why people climb up into tall towers with a high-powered rifle.

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john masters

I purchased a house using firstline mortgages just under 2 yrs ago. when is there no penalty fees?

Can't find it in my paperwork but I am sure that this is what the fiancing lady had said. That if we sell before 2 yrs there would be penalty fees. If you know let me know.I purchased a house using firstline mortgages just under 2 yrs ago. when is there no penalty fees?
There shouldn't be any penalty fees unless you pay off your mortgage before the 'end date' of the loan. (So let's say your currently locked in until June 2010, if you pay off your mortgage today, you'd have a penalty)





Call them just to be sure, but personally, I've never heard of a penalty for selling your house within a certain time frame (I could be wrong, though!).

What hidden fees are there in mortgages?

What, aside from principal and interest, might I be paying for every month to live in a house?What hidden fees are there in mortgages?
There will be no other monthly fees, other that what you know, than utilities, taxes %26amp; insurance and perhaps cost of maintenance after closing.





As far as obtaining a loan, there are a MULTITUDE of hidden/junk fees associated with a loan. They would include:





Processing fee


Underwriting fee


Document preparation fee


Settlement fee (if in addition to ';Escrow Fee';)


Lender鈥檚 attorney fee


Affiliate consulting fee


Bank inspection fee


Signup fee


Amortization fee


Messenger fee


Funding fee (In addition to ';Loan Origination Fee)


Document review fee


Photograph fee


Translation fee


Administrative fee


Assumption fee


Lenders inspection fee


Application fee





These are all ways that the lender makes money on the amount of money you borrow. Most are unneccessary %26amp; are only a way of them making money at your expense. Sometimes a lender with a low rate will charge these fees as a means of making money since your rate is low. Shop rates %26amp; ask for a ';Good Faith Estimate'; to also shop the ';fees'; associated to borrowing the money.What hidden fees are there in mortgages?
Property taxes, PMI, homeowners insurance.





Don't forget water, sewer, garbage, gas/electric, yard maintenance, etc.
there are plenty of fees when you get a mortgage but they arent hidden. your payment will stay the same unless you get an adjustable mortgage. and then it will adjust. the third party fees from titel and escrow usually total around 2k and plan on paying a broker around 1% of the amount of your loan.





Better than the realtors getting paid 6%!
There aren't any hidden fee's.


they spell everything out to you.


They hypnotize you and take your head in their hand


and move your head up and down, and tell you to say yes.





The only one that I've run into, is a supplemental income tax


and that's not stated at closing sometimes.





Then they have bonds, this is all depending on where you live.


Some Cities have a flat fee for water......they attach your sewer, water treatment and water, then they start charging you for the


good stuff and bill you every 2 months.





Call the city and see if they have after purchases taxes. Meaning things that they don't know about at the title company and they really don't want to know about to tell you.





they do have taxes in your city that are just plain implicated, just


because yo live there, after you pay taxes on top of taxes.





Like when you call 911 to many times etc.

Why did so many Americans sign mortgages that they could not afford?

Were they stupid or something? Why were they so dumb? Why would you ever sign for a mortgage that you might default on?Why did so many Americans sign mortgages that they could not afford?
I know a few people. the banks were guaranteed on the loans so they used mysterious ways to qualify you. You figure, why would they lie? Then, you are in a house for $2k a month. 3-5 years later, they didn't really tell you, the loan becomes due, you have to refinance now that the house has lost money, you have no more equity, payments go up to $4k a month and you are screwed.


Thank god it's not me but I know of 3-5 families in that situiation here in the SF Bay area.Why did so many Americans sign mortgages that they could not afford?
here's a little thought that, so far, no one seems to be saying anywhere --





who advocates for the buyer?





no one, that's who.








how fair is this?





here's who advocates for the seller and tries to get the buyer to sign the paper -- the seller, all of the real estate agents, the mortgage loan broker, the closing agent, the mortgage lender, and virtually every other person involved [appraiser, inspector, etc. -- none of whom get paid much if the deal doesn't happen],





this situation is so unbalanced that maybe your state Legislator ought to pass a law forcing the mortgage broker to work as an agent for the buyer and be financially liable if he doesn't recommend the best deal he can find, as well as if he doesn't counsel his client to refuse the deal completely if it seems financially unsound.
I wouldn't, you're right.





But look, the whole economic 'bubble' was caused by people buying investments, not just houses but stocks, real estate, etc., that they really couldn't afford, because they knew they would be worth a lot more soon. People bought investments they knew were overpriced because they knew some idiot would come along in a few months and pay even more for them. That's how bubbles happen.





It works fine, too, so long as the market continues to grow, so long as the bubble continues to swell. People speculate in hopes of getting rich quick. But as soon as the market stumbles and backs off, everyone goes to unload all their overpriced investments as quick as they can, and the market collapses completely, like a bubble bursting.





Every investment contains an element of 'calculated risk'. You buy a house, you figure there's an 80% chance it will go up 15 or 20% the first year. If it goes down, and you lose your job, you walk away and it belongs to the bank. If not for the big upside potential, nobody would buy houses!





Besides, we tend to think that people who couldn't keep up with their mortgages were all low-life scum. But lots of these houses, maybe most, were bought by millionaires who leveraged their own houses to buy more houses. When the investment houses went south, their own homes did too, so they couldn't borrow more to hold onto the investment properties.
You've obviously never signed a mortgage or you already had someone with prior knowledge check it out cover to cover.


Most mortgages read like the NY city phone book except in legal jargon few people even understand. Then take greedy mortgage brokers who had absolutely nothing to lose and a LOT to gain on the deal who promised the moon stars and sun to the people plus a darn nice house and that's exactly what happened. By in large most people who got suckered into the sub prime thing were poor with little education, decent, but not great jobs, honest hard working people and there was another group nobody hears about... The flippers, people who lead us to believe its great to buy a property, slap a cheap coat of paint on it then resell it for twice its true value. The flippers were by far the worse and its they who also drove real estate prices through the roof to unsustainable levels. I know all about flippers because i worked for a bunch of them and cleaned up after the messes they created. My son and I ran a business cleaning out the mess after a foreclosure when people are thrown out to the wolves and leave their possessions behind.


The VAST majority of the houses we cleaned out were modest homes, not fancy multi-hundred grand houses, but 25k-50k houses with mortgage payments that could choke and did choke the big mortgage banks, but blame the little guys. they're easy to pick on. Don't blame the people who allowed it to happen, just the victims.
You make an assumption that I don't think is entirely true, wait and see, The Chicago Tribune did an expose last year and a paper in Florida did as well, I think you're going to find about 1/2 these Mortgages are out and out criminal fraud, they were basically using the mortgages as a means of theft, they would work in groups consisting of a corrupt broker, appraiser, and straw buyers, over inflate the property value then borrow and pocket the money, there are going to be thousands and thousands of these being brought to light as we sort through this fiasco
Not well informed, never had anything of worth, and just plan dumb.





I had a friend that signed up for one of those subprime loans where her notes doubled.


She said that they sprung the high interest rate on her and the fact that her payments would double in two years at closing.


She said she was so prepared to move into her new home that she just didn't have it in her to just say no to the deal and walk out.





I would have. I think pride had a big stake in her making the biggest mistake of her life.
This is an excellent question! There are so many people in this country that live materialistically, and it is quite ridiculous! People compete with each other and they try to live well beyond their means...people don't know the true meaning of living anymore, they think that if they have the nice car, and the nice house that they will be happy, but that's not the truth in most cases!
Yes, they were stupid. They were financial idiots and have caused the mess we are now in. People have been spending money for years that they did not have (credit crisis) and now the chickens have come home to roost. No one administration is to blame, as it has been going on for well over 2 decades.
Simple answer, greed - followed by the entitlement attitude that leads folks to believe that they deserve the good life whether or not they have earned it.





Yes they were stupid. Yes they were dumb. But our current administration is even more stupid to bail them out.
I worked with a couple of people who got these mortgages. At the time I kept wondering how they could afford it. After all we made about the same pay and I knew I couldn't. One lost hers and the other I don't know about as I lost contact. Both were from foreign country's
Looks like it's only 8% of American Mortgages that fall into this popular category.





Now I wonder why so much of the News is dedicated to this subject. Does someone need a recession to convince us to Stimuloot the Treasury.
They obviously didn't read the fine print and/or had a great real estate agent. People should always study their contracts and if they don't understand it get a lawyer to look at it. Not all of them are stupid. . . they just didn't know.
Many did because their mortgage brokers were telling them that they could. The typical story read, I know it seem high but in six months the house will be worth 60K more and you will refinance. The ';professionals'; selling the paper are equally guilty.
the media makes people feel bad about their social status by forcing celebrity garbage in their heads. the media doesnt report real news unless its negative like a soldier getting killed or a celebrity is making a new fade of some kind of clothing.
Hey it was like Congress someone put a pen and a bunch of papers in front of them and there was plenty of ink in the pen so why not.
1. They wanted the American Dream at any cost





2. Greedy brokers that just wanted to make a sell convinced them that they could afford it.
Because they were stupid.





Now these idiots think they are entitled to some welfare benefits that the responsible people now have to pay for.
American dream


keeping up with the Jones


predatory lending


they could afford it originally





many reasons
They could afford them ';at the time';, but the majority were adjustable rates.. When the interest rate went up? They couldn't afford it anymore.. It was more expensive... etc....
They knew that dummies like us would bail them out. They are now laughing while we are crying.
Because greedy, irresponsible people always want more than they can pay for.
They wanted it, that is all you need to know, now you pay for it.
Why did so many banking ';experts'; approve such loans? When we bought our first house, they was sooooo much more scrutiny than there has been in the last 8 years
There's always stupid people in the world. It's a question of why the banks got so stupid.
Predatory lenders.
What do you expect with government schools.
didn't you hear?? because it is their right. geez its right in the constitution. didn't you see it???
MTV cribs and rap videos of the rich and famous
They were lied to.
ask clinton
they all wanted to live like a celebrity

How has the credit crunch affected mortgages in the UK?

Is it better now to get a fixed or variable rate? Who's doing the best deals right now? And who can I trust?How has the credit crunch affected mortgages in the UK?
The banks have removed 100% deals and it's harder to get a mortgage.





I'm not a mortgage/financial adviser so I won't answer whether a fixed or variable rate is best for you.





I would speak to a mortgage adviser I did and I found him very helpful and explained to me about the rates and found the best deal for me.How has the credit crunch affected mortgages in the UK?
Most of us are aware of the negative impact that the global credit crunch has had on the financial markets, affecting everything from mortgage lenders and unsecured lenders to credit card providers. Consumers have been affected by the effects of the global credit crunch, with credit conditions becoming tight and access to finance becoming more and more restricted.





If you can get a decent short term tracker rate this might be a good bet, many lenders have increased there tracker rates over the last week. If you prefer to be able to budget for your monthly mortgage payments and believe that interest rates will increase over the long term the a fixed rate deal may be a better bet. Most of my clients have been taking fixed rates as they like to be able to budget for their mortgage payments.





Who can you trust, as far as the lenders are concerned you have to remember its them lending you the money of a contracted rate, not you saving with them. If looking at a mortgage you will be best putting your trust in a independent mortgage adviser, but make sure you ask if the adviser covers the whole mortgage market or only a selected few lenders.





Disclaimer:


The answers above are for guidance only and should not be acted upon without you receiving professional mortgage advice relevant to your circumstances. To find an independent mortgage adviser please go to http://www.impartial.co.uk.



It's much more difficult to qualify although housing prices are down and expected to go lower.

How long after a change does it take for the fed prime rate to affect the lending rantes offered on mortgages?

The fed cut rates today 1/22/2008 by 75 points, but I checked rates offered on mortgages today and found that they have only dropped slightly. How long does it take before mortgage rates change with the fed prime rate cut?How long after a change does it take for the fed prime rate to affect the lending rantes offered on mortgages?
It doesnt change mortgages. Ive answered this question many times today but it doesnt affect mortgages.





It wont affect it, sometimes it can make it worse. Mortgages are sold like Oil, or Corn ect. They are sold on the open market. If China, Japan ect decide they dont want to buy mortgages anymore the rates go up.





The Fed doesnt control mortgage rates. The people that buy mortgage backed securities do.





People that think the Fed controls mortgage rates are wrong. Its like thinking the feds lowered mortgage rates and now the price of corn should go down. Its the same thing.





Its purely a market decision not a fed decision. Rates went down today because of what happen to China's market yesterday. It had nothing... absolutely nothing with what the Feds did.





Thats how it rolls.How long after a change does it take for the fed prime rate to affect the lending rantes offered on mortgages?
Sometimes Adjustable Rate Mortgages (ARM) rates will change. Additionally lines of credit rates will change too. It may take some time. You never really know how long.

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Is the current economic meltdown affecting the prices of all mortgages in America, or just the bad mortgages?

In other words, are just the faulty sub-prime mortgages being affected, or are the values of all American mortgages affected?Is the current economic meltdown affecting the prices of all mortgages in America, or just the bad mortgages?
Truly it is not affecting the ';price of all mortgages';.





It doesn't affect the debt, only the asset.





Yes, all our homes have lost value.





And yes, thanks to Congress and their open checkbook, they are now encouraging people to do the wrong thing and walk away.





Nothing has changed in my house just because the value of houses has changed.





When I signed my mortgage I agreed that my house was worth ';X'; and I agreed to make my payments on the debt.





Nothing about that has changed at all.





Is the current economic meltdown affecting the prices of all mortgages in America, or just the bad mortgages?
The way it has affected our mortgage is this. We were able to refinance to a lower percentage, our house value has dropped but we still owe the original amount that we started with. So I don't know if that answers this question, but it may give some insight to how it has affected someone. Other than these things, nothing has changed. We pay a little less monthly.
well i think its just the bad ones.....for now, because its going to start a chain and will eventually effect even the higher mortgages.
I think you are more affected if you don't have a fixed rate mortgage.

wholesale cosmetics

john masters

How will the recent cut by the Fed of the discount rate affect the intrest rates on home mortgages?

If I were to shop around for a mortgage on Thursday, what if anything would be different than the motgage rates that I would find on Monday?How will the recent cut by the Fed of the discount rate affect the intrest rates on home mortgages?
It won't affect it at all.





The discount rate is the rate that banks charge each other for loans. It doesn't impact consumer loans. This reduction was more symbolic than anything else. It showed the market that the Fed is aware of the current turmoil and is watching it closely.





In any case, the Fed has very little impact on mortgage rates. The Fed only controls short-term rates. Long term rates, like mortgages, are controlled by the market.How will the recent cut by the Fed of the discount rate affect the intrest rates on home mortgages?
I don't know about the US, but in South Africa, when our Reserve Bank cuts the interest rate, then the mortgage rates usually follow suit within 24 hours.

Mortgages????????????

Ok what do you think, are 'Islamic Mortgages' really ok? And where can i get more info???Mortgages????????????
The Sharia law of Islam prohibits the payment or receipt of interest, which means that practising Muslims cannot use conventional mortgages. However, real estate is far too expensive for most people to buy outright using cash: Islamic mortgages solve this problem by having the property change hands twice. In one variation, the bank will buy the house outright and then act as a landlord. The homebuyer, in addition to paying rent, will pay a contribution towards the purchase of the property. When the last payment is made, the property changes hands.[citation needed]





Typically, this may lead to a higher final price for the buyers. This is because in some countries (such as the United Kingdom and India) there is a Stamp Duty which is a tax charged by the government on a change of ownership. Because ownership changes twice in an Islamic mortgage, a stamp tax may be charged twice. Many other jurisdictions have similar transaction taxes on change of ownership which may be levied. In the United Kingdom, the dual application of Stamp Duty in such transactions was removed in the Finance Act 2003 in order to facilitate Islamic mortgages.





An alternative scheme involves the bank reselling the property according to an installment plan, at a price higher than the original price.





Both of these methods compensate the lender as if they were charging interest, but the loans are structured in a way that in name they are not, and the lender shares the financial risks involved in the transaction with the homebuyerMortgages????????????
The meaning of riba can include interest when it is used to enslave people.





There are 2 or 3 organizations that claim to make Islamic finance. What they do is make the paperwork reflect a partnerdhip, but the payments are made according to an amortization schedule which is designed to pay a conventional mortgage to a bank which is the only way the secondary market will buy the product. SO the company selling you the product will change the word ';interest'; into ';rent'; but the rest is the same.
Assalaamu alaykum





Depends what are the terms and conditions and how the particular system you may be referring to works.





Just because something claims to be islamic does not mean they are.





If they are really based upon islam, then obviously, they are proper.





So you would need to provide more details.
This really can't be answered on yahoo answers. You have to go to a scholar. There are many different ';Islaamic Mortgage'; groups and I do not know which ones are Islaamic (if any?) vs which ones are not (but claim to be).





This is a very serious issue.
Makes no difference. They pay exhobitant interest in advance instead of during. They are in business to make money - not charity.

Mortgages...............?

is it possible to get a mortgage with quite bad credit rating, i have a joint mortgage but am being bought out and would like my own but have bad credit ratingMortgages...............?
We got a mortgage from Kensington who provide ';bad credit'; mortgages. It was a ';bad credit'; mortgage as I'd missed two payments on a mobile phone contract and on a credit card (yeah shocking I know, LOL!) and my partner had a bad credit rating due to taking out a loan when he was 18 to buy a car for his disabled mum. He couldn't keep the repayments up and it was repossessed.





The only problem with bad credit mortgages is the HUGE interest rate! We're paying 拢400 a month on an interest-only mortgage! But its still cheaper than renting - its about 拢550 pcm to rent around here and thats just dead money going into a landlord's pocket. A high street bank would have a much better rate of interest - but then if you have so much as a speck on your credit rating they won't touch you so are not much use really. Also bad credit mortgages trend not to offer repayment holidays and all the other nice little ';Perks'; the high street banks offer.





But hey, if it would end up cheaper to pay a mortgage than to rent (which it usually does) then go for it!





Get in touch with a mortgage broker - they should be able to hunt around and find someone who will accept you and lend to you.Mortgages...............?
It is, but your interest rates are liable to be higher.


Have a look at www.thehighstreetweb.com site and type in Mortgage in the search bar.


They will give you a list of lenders including those for self employed and poor credit rating
Probably not. If you are being ';bought out'; then of course you will have a small amount of cash to work with (your half of the property of which someone is buying you out) but to be honest, if your credit rating is that bad and you have a lot of outstanding debt, then you can forget it!

Mortgages??

How can I tell what kind of mortgage is right for me?Mortgages??
All of these answers are great! You really need to consult with a professional who can analyze your particular needs along with you. There are so many programs available to borrowers, but without guidance, you can get stuck in something that just is not suitable!





Contact me, if you would like. I represent one of the nation's largest lenders... BEST OF LUCK TO YOU! I hope that someone is able to ';show you the way HOME!'; =)Mortgages??
Check out lbalending.com and their 1.85% loan thats available for up to $500,000. This loan could save you $40,000 over a 10 yr span. The details are in the pudding they say. Get the details from the site.


They also have the only the only TRUE no income / no asset loan in the industry.

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Self-employed and salaried employees will qualify. Save yourself the hassle and headache of trying to explain your way around past income fluctuations, sporadic employment or a career change. Best of all, for those in cash businesses, there is no need to sign a form 4506.

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* Purchases * Refinancing * Debt Consolidation * Cash out for Investment * Home Improvement * Construction * Credit Difficulties * Fore closures* Bankruptcies. With a 90% approval rate, give us a try, http://lbalending.com/home.php

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if you are in the uk - see a mortgage advisor or trail through the internet. Try www.moneysupermarket.com for more details of what is out there once you know what it is you are looking for.
All of the answers above are really good ones. Think this through because this is the biggest buying decision you will make in your life time. How long do you want to live there? Do you have a down payment? How is your credit? Are all valid points. Deal with a mortgage banker. This professional can help you decide what is best for you and will not charge any origination fees and can offer FHA, Conventional Loans and can even have access to other financial companies who lend money in the sub-prime arena or bruised credit. This professional should give you at least three to four options and give you the ups and downs of each one. If you get advise from one who only wants to push a certain loan and not give you options, don't walk away, RUN. I represent a major mortgage bank and deal with over 200 other lenders as well and we lend money in 48 states, excluding Hawaii and Alaska. Call me anytime. Cary Stephens 765-271-1987
An independent mortgage adviser will be the best person to talk to. They will be able to calculate your monthly disposable income and give you the best option available but shop around. In the mean time check out the mortgage calculators in Yahoo Finance section, it'll give you a rough idea.
Talk with a broker, a broker underwrites for many company'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 ';hard'; pull and it drags down your credit score.





All is not HOPELESS - ok - take a deep breath. If your credit score is 500 or higher, anything is workable.








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 ';true'; 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 100 percent ltv the rate is around 7 -7.5 percent ( This is a estimate only, since I do not know what your credit score'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.





Good Luck to you - A Broker, who cares, will go over it all with you and be in contact with you daily. The one on one customer service is important, to you, the client, to let you know the whole loan process
IMA / IFA will scour the market for you and advise what will be best for you.
Make a list of things you have question on, make another list of what you the mortgage to do for you. (payoff bills, firsttime home buyer, flexible payments, short term, interets only) So many choices. A good broker will set you up to have some choices but also explain which is best for you. They cannot make you take the one they like so you have some freedom. If you have more questions let me know. Shoot me an e-mail.
Hi there





Before you go to a mortgage broker of independent financial adviser it is worth reading up on the subject. One useful site that is mortgages.co.uk.





The main types of mortgages for UK market are:





Repayment - each month you pay the interest plus some of the original loan/capital. As years go by the amount of loan outstanding reduces. This type is quite popular.





Interest only - each month you pay back only the interest. The company loaning the money will normally ask for you to have a separate savings plan or investment plan to repay the original loan - but not always, some let you pay interest only and in 10, 25 years, or whatever the term, you can sell the property and pay back the loan, remortgage, etc. This type of loan has the lowest monthly outgoings ... but your loan never reduces in value.





There are many other types which are variants on the interest only mortgage where you tie the loan to a savings policy of some time. These policies include endownments (less popular now after recent failures), pension plans, equity (e.g shares) plans, etc.





As to which mortgage is best for you it will depend on your age and income amongst other things. The safest option for most people is a repayment mortgage - but this is not always the best option and that is where you need the specialist advice.





Good luck
The mortgage that it best suited to you will depend on many things, income, employed or self-employed, credit rating, etc once a broker has considered your circumstances he/she will be able to place you with a lender whose criteria you satisfy at a rate that reflects your status. Need any further advice please feel free to e-mail me. Hope this helps.
There are many factors that will dictate the type of mortgage program that is best for your needs and situation. Including but not limited to, credit score, length of stay in the residence, amount of financing needed, etc...





You should consult with a mortgage planner, about your situation and discuss the different programs that are out there and how each one would benefit you.





Some examples might be that if you plan on staying in the location for just five years, maybe a 5/1 ARM would be good. Or if you already have significant equity in the property and staying only for one or two more years, you could go with an Interest Only product. If you credit is OK, but not great, you may want to go with a 2/28 (sometimes referred to as a band-aid loan), where you make the mortgage payments on time for 12-24months to improve your credit score, with the intentions of switching to a 30 or 15 year mortgage at which time your improved credit score will qualify you for better interest rates. If you are looking to purchase with no money down, you will probably need an 80/20 mortgage to avoid paying PMI.





There are so many angles to think of, only an experienced mortgage planner can help you find whats best for your particular situation, and then find the appropriate lender and program options to best serve you.





There are plenty of places to ';pre-educate'; yourself on different programs, and it never hurts to shop around to two or three different planners to make sure your getting straight answers!
Go see a mortgage adviser. They complete a fact find on your financial circumstances now and in the future and based on that they will recommend the best type of deal for you.
Ask yourself a few questions....


How long will you be in this house?


What is your tolerance for payment fluxuation?


What kind of down payment can you afford if any?


How is your credit? Income?





These are the basic questions any mortgage professional will ask you. There are literally hundreds of programs available out there.

Mortgages........?

Does anyone know of any mortgage companies who will lend 4-5 times salary? We are not first time buyers but are struggling to get a bigger mortgageMortgages........?
Northern rock just lent us 4.5 our salary plus an unsecured loan at the same rate to top it up. so for our low joint salary of 拢27000 we borrowed 拢130000 on a 100% mortgage over 30 years the rate is a bit high but 拢120000-拢130000 is the starting price for houses in our area so had no option it worked out at 拢775 a Month on a repayment mortgage which is manageable when you compare it to rental costs.





Hope this helps and Good luck.





p.s. Just remembered a couple of weeks ago we went into our lloydstsb branch and the mortgage adviser collared us and put our figures in, and said he could match our current mortgage but not beat it and that mortgage multiples are not such a big thing now.


Things must be changing because 6 months earlier he only offered us 拢90000





p.p.s. We are locked in for 5 years but after that you can always shop round for a better dealMortgages........?
most mortgage lenders will,negotiate with them,especially if you are under 35,tell them all earnings including bonuses/overtime,try for a longer mortgage ie 30/35 years.but remember no lies as your home is at risk..
loads of them do, even some of the mainstream ones. Just off the top of my head, try Intelligent Finance and HSBC. They won't say they're lending 4 times salary as they fix the figure according to 'affordability', but that is effectively what they'll lend. I would start with a mortgage broker, who will know which companies lend the bigger multiples.
A mortgage is a document signed by a borrower when a home loan is made that gives the lender a right to take possession of the property if the borrower fails to pay off the loan.





When buying a house or refinancing your home, you first need to compare the mortgage options available. The next step is to compare mortgages and find the best mortgage rates available. Find the best mortgage rates at HoldMortgage.com.
Do a no documentation or no ratio loan. This way you don't have to find someone to lend on such a high debt-to-income ratio.
If you don't qualify for a conventional mortgage....that's a good indication that ';you don't qualify.';


Have you heard the expression: ';Don't bite off more than you can chew.';


I think people should buy the cheapest house they are willing to live in. That way, people may have some money left to save.
There's no way. You are asking for certain trouble if you would find someone to do this for you.
Dont' know of any Banks that will do this but you might try a second mortgage as an alternative.
Sounds like you will need to do a stated income program, no doc or no ratio program. When a lender states your income, they don't prove it with pay stubs, W2's or tax returns. The income they state has to be reasonable for your profession or the underwriter (loan approving) won't accept the mortgage application for approval. No doc loan means to not list anything for your income (source or how much). The rates tend to be higher on these type of loans (thus a higher mortgage payment). You want to make sure you have a comfortable mortgage payment, so your property does not go into foreclosure.