Jumbo Loan product 1.5 Million Still Aggressive
This Jumbo Loan Program comes from 1 of Americas strongest banks. They are well capitalzed, eager to lend and focused on helping businesses and consumers come through these extraordinary times with flying colors.
Advantages to this loan program include
Debt-to-Income ratio allowed up to 50% on refinances and 45% on purchases. This is huge compared to the standard 28-36% often required from the conventional lender.
This will cut years off customers’ current mortgage term, saving thousands of dollars in interest.
Jumbo loans available up to $900,000 with no price to rate adjustments for Jumbos up to %1,500,000.
This program is available one day off MLS for purchase and refinances. So there is no title seasoning requirement for homes that have been recently taken off the market.
In the Face of Foreclosure
All the Latest News on Dealing with Foreclosure
By: Valerie Middleton
Don’t let the immense negative equity of the current residential housing market ruin you by knowing your options in the face of foreclosure. The following two alternative routes can help you to avoid foreclosure.
Retain your home.
Opting to take this route means that you will keep your home and will involve one of the following actions:
Make a repayment plan
Work with your lender to create a repayment plan in which you will pay a delinquency fee in addition to your regular monthly payment for a specified period of time. Find out if repayment plan is the correct choice for you.
Create a special forbearance plan.
Arrange to cease current payments for a specific amount of time, all of which will be paid back later at a higher rate.
Modify your mortgage
Refinance your debt or extend the terms of your existing mortgage contract. Get a loan modification resolution form.
File for a HUD partial claim
If your loan is FHA insured you may qualify for a FHA-Insurance Fund issued by HUD.
Opt to refinance.
Use the amount of equity already established in your home to cover the delinquent amount due. Get your numbers straight with these refinancing options.
Dispose of your home – You may arrange to dispose of your home without foreclosing through the following methods:
Sell your home.
Depending on the amount of equity in your home, you may be able to sell your home for an amount larger than the amount you owe. Know your rights in a market of declining home prices.
Undergo assumption.
Signing your home over to another person will transfer ownership of your home and any payments due to another party.
Hold a pre-foreclosure sale.
Use the amount gained from the sale of your home to balance the mortgage debt despite the fact that the amount collected from the sale of your home is less than the amount you owe. Not sure if a pre-foreclosure sale is for you? Hold a Pre Foreclosure sale, learn more.
Receive a deed in lieu of foreclosure.
Avoid damaging your credit by voluntarily returning all ownership back to the lender and calling it even. Learn more about the correlation between your credit and loans.
This Weeks Mortgage Market News
All the Latest News on Mortgages, Loans, and Finance
By: Valerie Middleton
This week’s mortgage and loan market shows no signs of following any general trends or patterns. In fact, it appears that the market this week will show a variety of faces. Here is a taste of the Good, the Bad, and the Ugly that the market has brought us so far this week:
The Good: Uncle Sam came to rescue in June when the Federal Housing Administration endorsed a record high of 186,000 mortgages. The FHA, a 75 year old agency that insures lenders against losses, has increased in popularity due to the fact that it is one of the only suppliers of low down payment mortgages. The Government National Mortgage Association, or Ginnie Mae, also broke a record in June when it issued $43 billion worth of mortgage-backed securities. During the first six months of 2009 Ginnie Mae issued approximately $207 billion worth of liquidity to the secondary market, surpassing the $107 billion issued during the first half of 2008.
The Bad: With mortgage interest rates dwindling downward, now is a great time to refinance. Those who wish to eliminate excess expenses may opt to refinance their home, but those who are not employed will need a No Doc loan program. When evidence of a steady source of income is required, those who are unemployed, with few exceptions, will not be given the option to refinance. Lending standards are high, which means lenders want to see sources of flow when it comes to a potential borrower’s finances. Thus, verification of employment, such as income documentation, acts as proof that the borrower will be able to repay the lender. During these times of strict lending requirements and high levels of employment, those who seek refinancing and are out of the job may be out of luck as well.
The Ugly: Commercial mortgages issued by U.S. banks used to finance commercial property, including retail malls, hotels, and offices, could result in a $30 billion loss by the end of this year. Many will pour over the devastating results that will be released during the next two weeks as thousands of banks report their second-quarter results.
Financial Literacy Month
For the first time ever, President Obama has said that it makes financial sense to refinance right now. He knows that there are billions of dollars that home owners could potentially save if they refinance at this time.
It’s financial Literacy Month. Are you avoiding a refinance because you might have to pay a point or a few thousand in closing costs? Even so, do you know what this could mean for your bottom line monthly and annually?
Example: Lets say you have a mortgage loan balance of $300,000 and you think you have a really good rate. If you were to refinance at a .5 lower interest rate, this could save you in the area of a couple hundred a month. Over the life of the loan, that could save you around $60,000 – big savings! This could help you save not only today, but toward your retirement, too.
Are you making financially smart decisions? Are you financially literate? Who are you getting your information from? Think about it and make the inquiry and at least see if it makes sense for you!
Please feel free to take a look at our current lender niches for more information.
What is the advantage of a PORTFOLIO Lender?
Filed under: Mortgage News | Tags: jumbo lender, jumbo loans, non agency lender, portfolio lender, use your own appraiser
Comments (1) Well, for starters we can use our or your own Appraiser!
Portfolio lenders can provide good loans for good people because they lend their own money and therefor don’t have to conform to an investors pool of underwriting guidelines.
Because portfolio lenders can typically make their own decisions, they can afford flexibility to the borrowers. A Non Agency lender is a different world in terms of loan guidelines in this time of uncertain lender dependability. Don’t listen when your loan officer tells you that you can’t be helped because all there is for mortgage loan programs these days are fannie mae, agency or government product.
Here is an example
• Cash out refinances to loan amounts of $900,000 to 90% financing in most states. With Impounds as low as 3.30% as of this morning.
• Stand-alone 2nd mortgages/HELOCs – $350,000 max line amounts.
• Their prime rates at 3.25%, they can afford to offer these low rates too
• 1st lien HELOCS (Home Equity Line Of Credit)
• All HELOCS – 15 years to draw plus up to 10 more to repay
• Only 12 month mortgage credit history to qualify
• No price adjustment for cash out
• No mortgage insurance required
• Properties 1 day off MLS OK
• Manufactured homes OK, limited loan amount
• Interest only option OK
Good and worthy borrowers still deserve aggressive loan programs!
Housing Afforability and Pricing
Week after week as of late, economic signs are pointing to recovery in our real estate market.
Overall, the ecomony as a whole isn’t looking quite as good in that hundreds of thousands of jobs are still being lost every month across the United States – federal reserve board Chairman, Ben Bernanke, says the unemployment rate is likely to rise a little bit more before the economy diggs its way outl ater this year.
But for housing, most of the key indicators continue to point up..here’s the rundown:
- Pending home sales took a 3.2% jump last month, 2nd straight month of positive growth, these are signed home sale contracts that are scheduled to close in the next 30-90 days.
- Dr. Lawrence Yun, Chief Economist for the National Association of Realtors NAR says “we’re at the leading edge of the first time buyers responding to the very favorable affordability conditions, and the $8,000 tax credit.”
- Additionally, mortgage applications for future home purchases have also urged once again up 5% nationwide last month according to the Mortgage Bankers Association.
- Mortgage rates are firming up in response to the rising demand of mortgage money. They rose last week on average to 4.8% on a 30 year and 4.6 on the 15 year variety. Still, they are close to all time lows but with more people jumping into this home buying market, they could easily jump up over the 5% level in the coming weeks.
- According to the National Assocaiation of Home Builders NAHB, the affordibilty index also continues to hover near its all time best. According to NAHB, the median income american family earning $61,000 can now afford to buy a $290,000 home with a 20% down payment assuming only 25% on the gross income is devoted to the mortgage principle and interest, thanks to low financing rates.
- The median single family residence SFR now sells for about $175,000 and consumer psychology is turning upon housing, good for sellers!
The Gallup Polling Organizations asked a national sample of americans last month whether it is a good time to buy a house:
- Last month, 71% of americans polled said now is a good time to buy a house.
- 18% more than last year, and the highest level in four years
Moral of this post; only the doom sayers still believe housing isn’t turning around and heading for recovery!!
Fannie-Freddie Bailout – Solution to the Mortgage Crisis?
Filed under: Mortgage News | Tags: fannie mac, Fannie-Freddie Bailout, freddie mae, Mortgage Crisis causes
Comments (1) This past Sunday September 7th, the federal government took over the two most important and well-known finance companies in the nation. Freddie Mac and Fannie Mae have been official bailed out by the government in the wake of the crippling subprime mortgage crisis. The takeover is aimed at mitigating damages in this horrific mortgage dilemma.
Predictions as to the possible effects of the bailout are wide and varied. CNN reports that many small banks are being crushed, due to the fact that their stakes in Fannie and Freddie are now completely worthless. Most experts agree that taxpayers will be taking the brunt of the cost for this takeover. CNN also reports that Fannie and Freddie employees themselves are suffering immensely, also due to the fact that the companys’ stocks are now all but completely worthless.
The news is not all dire though. While most lenders will almost certainly be risk-averse to the point of paranoia for months and years to come, the government assistance may encourage some lenders to begin to open up their doors once again. Only time will tell…
Lending Practices More Tightly Regulated by the Federal Reserve
Filed under: Mortgage News | Tags: Lending Practices More Tightly Regulated by the Federal
Leave a Comment Today, the Federal Reserve took a stab at reducing the probability of another mortgage crisis like the one we are currently experiencing. The move is based on the fact that, while there were many potential causes of this situation, the major one seems to be deceptive lending practices.
The standards for subprime or “higher risk” lending is not much more strict. Lenders can no longer rely on borrowers simply stating their income, and prepayment penalties are outlawed except in certain situations. Other deceptive fees and penalties are no longer allowed either. These new regulations take affect in late 2009.
Mortgage Rescue Plan Approved by Senate
Filed under: Mortgage News | Tags: Mortgage Rescue Plan Approved by Senate
Leave a Comment Pursuant to this plan, the Federal Housing Administration would back mortgages designed to be more forgiving for those who are being crushed under the weight of their current housing payments. The bill would also allow banks to recover a certain amount of the money that they would have lost by dealing with so many expensive foreclosures. The plan will help almost an estimated half a million homeowners.
The plan is riddled with tax breaks and help for first-time home buyers. Both Democrats and Republicans banded together to pass this bill with an overwhelming 63-5 vote. However, the Bush administration has already promised to veto the bill, claiming that the plan helps lender more than it does borrowers. There are still too many disagreements among the parties, and Bush’s promise virtually assures that the bill will not be passed into law without certain revisions, despite the continuing struggle amongst homeowners.
Foreclosures: Profiting from Your Pain
Filed under: Mortgage News | Tags: profiting from your foreclosures
Leave a Comment I’m generally not one for a sensationalist piece, but this one is a bit interesting. Apparently this guy is scouring the country for foreclosed homes, waiting until the bank buys the home (nullifying any liens on the property), and swooping in to take them off the bank’s hands, who are usually all to happy to get rid of their new problem.
No doubt there are countless investors who are doing the same thing all across America. What’s interesting is how easily he is able to do it. He signed up for a $49 a month plan to access the MLS, does his own research and using his own line of credit. By using comparison data, he finds houses that are grossly under-priced due to foreclosure and scoops them up. No emotion, no attachment to any individual home, just pure numbers.
Granted, you have to have (1) be able to get credit and (2) have a lot of time on your hands to find the deals and do the research, but nonetheless it appears that not everyone is hurt by the current market.
As a side note, AOL seems to pitch this guy as an unfeeling opportunist who is profiting from other people’s pain, which is of course nonsense. The guy didn’t cause the foreclosure, nor did he help it along in any way whatsoever. He is just putting himself in the right place at the right time.
Another Unfortunate Consequence of the Mortgage Crisis
Filed under: Mortgage News | Tags: credit card limits decreasing, mortgage crisis
Leave a Comment In order to further reduce their risk, lenders are lowing credit card limits, reducing the number of allowable balance transfers, increasing interest rates, and generally limiting credit lines. They are doing so in response to more and more people relying on credit cards to pay their bills during our slow economic times. Some are saying this is a good thing; if borrowers have less credit available to them, they are less likely to overextend themselves.
Unfortunately, this is a load of crap. The damage has already been done, and lenders are doing nothing more than trying to save their own tails. The credit limitations are actually really hurting people. For example, let’s say you have a credit card with a $15,000 limit on it, and you have a $6,000 balance. If the credit card company lowers your limit so you won’t “overspend,” you will then have let’s say an $8,000 card with a $6,000 balance. This drastically increases your “credit utilization rate,” which is an important factor in determining your credit score. This in turn makes you less able to secure credit, and makes the credit you can get cost you more.
So, we continue the downward spiral of defaults leading to less credit, leading to more defaults, ad infinitum.
The Right Niches at the Right Time!
Filed under: Mortgage News | Tags: current lender niches, fico score
Comments (1) We’re still doing loans in declining markets, while other lenders have run scared!
- Super competitive I/O’s. Awesome fixed rates, and still offering Option ARMS/Hybrids.
- We qualify debt ratio on the Interest Only payment, not the fully amortized payment!
- LOAN AMOUNTS TO $ 3 MILLION!!!
- Only 1 appraisal required for loan amounts to $ 3 Million.
- Up to 45% DTI allowed on owner occupied properties 80% LTV and below with 680 FICO
- 2×30 Mortgage late’s allowed in the last 24 months, 0×30 in the last 12 months.
- 12 months bank statements as Full documentation for self employed borrowers.
- For Asset verification on Full Doc, we only require 2 Months bank statements to verify 2-4 months PITI, principle, tax and ins.
- Gift equity allowed for full doc purchases ( NO MONEY DOWN )
- Permanent Financing out of Construction loans considered a rate & term and not cash out!!!
- Full Doc on 1-4 Units Investment properties to 70%. No limit on amount of properties FINANCED by 1 investor.
- Borrowers can finance up to a total of 4 properties with Downey or up to $ 2 Million total in loans. ( ask for more details )
- No Seasoning required for R/T refinances, one day on title, one day out of purchase. WE TAKE CURRENT APPRAISED VALUE!!!
- Payoff of seasoned 2nd TD considered R/T(must be 12 months old, draws with the last 12 months okay)
- Non-occupying co-borrowers can help you qualify (blend ratios)
- Non-Applicant spouse income can help you qualify regardless of their FICO score
Shady Credit Card Companies Are Taking Advantage of the Information Age
Filed under: Mortgage News | Tags: information age, Shady Credit Card Companies
Leave a Comment The amount of information that companies can acquire about you with today’s technology is astonishing. Google probably knows as much about you as your own mother (perhaps more for those with less than tasteful Internet hobbies). Now it seems that certain unscrupulous credit card companies are monitoring your purchases and selectively penalizing you for purchases at certain venues.
Granted, the company in question, Compucredit, is known as a “subprime credit card” vendor who extend credit oportunties to slightly riskier propositions. Many of us have held a credit card such as one from this company during difficult financial periods in our own life. They are the ones who seem to invent a new fee each month, charge you to pay your bill, have astronomical interest rates and seem to know just when to insert a fee onto your bill so that your balance will be pushed over the limit (causing yet another fee).
Nevertheless, it seems as if CompuCredit has brought suspicious behavior at a credit card company to a whole new level. According to Business Week, the company is curtailing credit lines for people who use their Aspire Visa in certain places, especially tire repair shops, bars and massage parlors.
Of course, certain companies make financial decisions regarding your life based on your chosen activities often; you may not receive a (decent) life insurance policy if you choose Aviation as a hobby, for example. The difference here is that CompuCredit didn’t disclose that it uses certain criteria, and instead touts that it offers credit for anyone for any use.
The information age is an amazing place and an incredibly scary place, all at once. It is probably only a matter of time before certain Big Brother tactics are commonplace in our daily life. Scary thought.
Mortgage Applications Continue to Decline
Filed under: Mortgage News | Tags: mortgage applications continue to decline
Leave a Comment Gunshy lenders are as hesistant as ever to provide financing opportunities to borrowers. Mortgage applications have continued to decline, falling another 9% just in the last week. We seem to be in a bit of a downward sprial, credit tightening up as rates cotinue to increase, causing potential borrowers to hold off their purchases. Foreclosures continue to rise and the cycle continues.
Homeowners are still losing their homes at record rates, the highest in thirty years, as rates continue to rise for fifteen and thirty year fixed mortgages and one year adjustable rate mortgages.
We can expect the economic slump to continue as long as lenders stubbornly refuse to lower rates below the critical point which will kickstart our economy.
Mortgage Rates Still High After Subprime Mortgage Crisis
Filed under: Mortgage News | Tags: Mortgage Rates, subprime mortgage crisis
Leave a Comment Mortgage rates are stubbornly refusing to fall in the wake of the subprime mortgage crisis, despite countless state and federal initiatives intended to lower rates. The Federal Reserve has drastically reduced interest rates, and there are countless homes across America which are available for sale, many at foreclosure prices. Yet, lenders are still wary. The Chicago Tribune says that the hovering interest rates “defy conventional wisdom.”
The article claims that interest rates are still too high for newer home buyers, and even those looking to move into something a little more accommodating for their families. Because of their stubborn refusal to fall to normal recovery levels, high interest rates are exacerbating the economic stagnation, as the remaining lenders who didn’t succumb to the subprime mortgage crisis refuse to loan money.
All the big companies predicted that the credit crisis would long be over by now. Morgan Stanley and Goldman Sachs both used sport’s analogies to imply that we were witnessing the final stretch (if I may) of the disaster. Yet, here we are, still in post-crisis limbo. Time may be the only medicine for our economy’s gaping wounds, but don’t expect that to console America’s former homeowners.
If you are tired of hearing about the subprime mortgages crisis and would rather read something interested about the cause of the whole mess, read this scathing opinion.
AIG Investigated for Subprime Mortgage Fiasco
Filed under: Mortgage News | Tags: AIG federal investigation, AIG overstated subprime morgages
Leave a Comment AIG is being investigated for potentially skewing the value of certain swap portfolios which were backed by subprime mortgages. Attorney General Michael Mukasey claims that they misrepresented the worth of those contracts. AIG claims that the incorrect appraisal was simply due to the difficulties of valuing complex portfolios and because of the subprime mortgage crisis. Evidently, this is the most common defense to a charge of this nature.
