Across the country home prices are up nearly 7% from the lows in 2009. As Anthony Mason reports, some economists believe the housing market may still be on shaky ground.
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National Home Prices Up 7%
How can I get a USDA home mortgage?
I heard about this just the other day,…why hadnt i heard of it sooner?
My husband and I are cooped up in our tiny rental home and its getting tighter with my 10 month old crawling around, but i cant seem to get a response from any lenders, whats holding it up? If there is anyone out there who is enjoying ther successful USDA mortgage, give a shout out! Also, what levels of low credit has the USDA approved for loan? Thanks!
You have to meet certain income restrictions, and you have to live in certain specified rural areas. Here’s info on the program:
http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do
Remember that legitimate info on government programs can always be found at dot-GOV sites, not necessarily at dot-COM sites.
NACA Event Not For Everyone Needing Mortgage Help
As WPBF 25 News’ Stefan Holt explains, not everyone may be able to receive home mortgage help at West Palm Beach’s NACA event.
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Equity vs. Debt
Debt vs. Equity. Market Capitalization, Asset Value, and Enterprise Value.
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Does all banks allow us to purchase points for the home mortgage loan ?
I am a first time home buyer and shopping for home mortgage loans.
Does all banks allow us to buy points upfront to lower our interest ?
If its a 200K loan.
Do we really save paying more in interest in long run by buying the points upfront ?
Banks would love you to pay more points up front, because paying points is paying interest in advance to make you think you are getting a lower interest rate (an illusion).
The total cost of the loan over the full term is probably the same either way, points plus lower interest rate vs. more down payment and higher interest rate for a smaller loan. So over the long run points do not help you unless it gives you a tax advantage.
Mortgage Modification: Who qualifies?
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http://www.60MinuteLoanModification visit for a free CD on Mike Rockwood’s experience modifying 5 of his own home loans – and how you can too. Ask Mortgage Modification questions on our forums at http://www.60minuteloanmodification.com/members
Initially, lenders strictly adhered to the seven guidelines explained below when awarding mortgage modifications. Today thats no longer true. Theyre now limiting their analysis to fewer of the original criteria as the crisis deepens and the workload increases. In fact, the range is surprising and somewhat inconsistent. This indicates to me that the rules are being written on the fly.
Virtually all lenders are using cascading calculations, whereby one set of calculation results are used in the subsequent calculation. Therefore, no one criterion is final; rather, qualification depends on a combination of factors.
Ability to pay: This is your ability to meet the obligations of the modified loan. Customary underwriting criteria are used, so take 55% of your gross monthly household income. That is a rough estimate of how much monthly debt payment the lender will allow. This is your target amount after modification.
Debt to Income Ratio is the term that lenders use to describe this underwriting guideline. Its simply your total monthly debt payments, including cars, credit cards, student loans, and others, divided by your Gross Monthly Household Income.
Type of Loan: 100% of Negative Amortizing Adjustable-Rate Mortgages (NegAM) loans will be approved for modification to fixed rate loans. Almost no fixed rate loans with rates lower than 6.0% will be modified. Everything in between is fair game.
Hardship: Six hardships are commonly accepted:
Divorce or separation
Loss of income
Reduction in income
Death of spouse/co-borrower/family member
Illness
Military service.
Lets face it, with the economic downturn there are literally millions of Americans whose ability to meet monthly payments has diminished. So theres no shortage of hardship. The lender simply needs to know personally and specifically what your hardship is.
Occupant: Owner-occupied homes are the easiest. However, even HELOC loans on investment properties are being modified.
Default status: The FDIC Guidelines are that the borrower must not have filed bankruptcy during the life of the loan and a foreclosure sale must not be imminent. The Guides also state that borrowers should be encouraged to apply even if theyre not late on payments.
In reality, applications from borrowers who are current on their loans arent getting good modification offerseven with all the announcements to the contrary.
Age of loan: You can expect that any loan older than 9 months will be considered for a modification.
Balance Sheet strength: Whether you have significant additional assets beyond the property may be an issue, especially if the loan was a refinance with equity taken out or is a Home Equity Line of Credit (HELOC).
The first guideline is most important ability to pay. The modification will be approved by an underwriter who will apply standard qualifying criteria to your application. YOU MUST BE ABLE TO DEMONSTRATE THAT YOU CAN MAKE THE MODIFIED LOAN PAYMENTS. Beyond this, you need to make a strong case for at least one of the other two major guidelines.
I have automated this calculator has been automated! Use it online at www.60MinuteLoanModification.com.
Homeowners who dont qualify are in situations either too bleak (such as too close to foreclosure) or too solid (such as no duress and with good loans).
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Philly Fed Pres.: Dont Need Gov’t Involved in Home Mortgages
Philadelphia Federal Reserve President Charles Plosser argues the government should no longer be involved in home loan market.
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Is it possible to get a second home mortgage?
I want to rent my house out and buy a new home. Will I be able to get a mortgage on the new home?
Yes, of course, most adults over 40 or so have multiple mortgages. There is nothing at all unusual about that. Obtaining 2-4 is easy, after that it gets tougher.
Home Mortgage Calculator – Vertex42
http://www.kanjoh.comHow do I calculate the APR of a home mortgage?
How do I calculate the APR of a home mortgage to compare program rates and fees?
Why would you need to?
You are given a Truth In Lending statement that the lender could run for each hoome you are looking for.
By law they have to provide that to you within 3 business days of loan application.