Mortgage Loans
Mortgage Loans questions and answers
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Q: Mortgage loans........?
Who does the mortgage lender disburse the loan to. From my understanding, the lender direct deposits the loan into the buyers (borrowers) bank account. Then the buyer cuts the seller a check. Is this correct?
I was not eligible to borrower any funds beyond the asking price. So my mortgage consultant advice me to work out a side deal with the seller. The seller is asking for 40,000. But the consultant said raise the price to 55,000 and let the seller refund the 15,000 to me. So that's what I did. We (meaning the seller and I) made the purchase agreement for 55,000 and made a side contract (notorized) stating the seller agrees to refund the 15,000 for repairs and rennovations. Even though I have this contract, I am a little skeptical if the seller will follow through without a hassle. Can I arrage it where the lender disburse the 40,000 to the seller and 15,000 to me. What will happen if the lender finds out about our side agreement? Do they really care?
A: What you did is totally against the law. Who was your mortgage guy? Chop shops like this are horrible for our industry and consumers at long. He should have his license revoked for approving that loan, and if he encouraged it then he should be fined and placed in prison. Your deal artificially raised prices for all of your neighbors and put your lenders bank at risk. On that deal your lender would be lucky to make 2 grand. I hope it was worth it to him.
Q: How exactly do 'interest only' mortgage loans work? When do I pay on the principle of such a loan?
I know APR loans are a bad idea, but how would an interest-only loan work? Would it still be a 30 year note, or do they extend the loan? Would I be able to get a fixed rate with an interest-only mortgage loan?
A: In an interest-only loan or mortgage the borrower only pays interest each month. This makes it cheaper than a conventional mortgage, in which part of each month's payment goes towards the principal and part goes towards interest. These loans have become popular because the monthly payments are lower, allowing borrowers to afford a larger home.
However, these loans can be dangerous, especially in a down housing market. The interest rates are generally fixed for the first 1, 3 or 5 years. After that, they convert to a conventional loan, with a higher monthly payment. Most borrowers take on these loans because they assume they will sell the home before the interest rate increases. In a down market, they may not be able to sell. If they cannot afford the increased payment, they may have to default on the loan, and foreclose on the home. So, when the rate starts to adjust, you would need to refinance again. And, either get a fixed or another interest only adjustable. And, yes, I do believe you mean ARM. Although, if you have extra money every so often, you can pay down the principal in extra payments.
Q: Student loans not in repayment or in deferral included in a mortgage loan application as an expense?
Am applying for a mortgage loan and have two school loans already on my credit report but specify one is not in repayment and second is deferred. However, the loan application is requesting all expenses listed on my credit report. Are these loans not in repayment included in my expense ratio?
A: Student loans that are deferred...need to be deferred for 3yrs in order to take it out of the expense ratio.
If not, I WOULD HIGHLY recommend that you find the original contract of the student loan. OTHERWISE, the underwriter will use his own calculations of what you will pay...which is USUALLY higher than you will normally pay.
Q: In relation to mortgage loans what constitutes a low credit score?
I have been reading lots about the housing crisis and have learned that the loans for new mortgage loans for people with low scores it getting harder to aquire. What constitutes a low score? 600? 590? 650? 625? I am now ready to buy my first house and am finding out that my scores may prevent me from getting a loan.
A: It is funny how many opinions there are. I think anything under 680 is low, and you should not get a loan at all, that low obviously can not cope with making payments of any kind. I would never allow mine to drop below 770 because I hate paying interest. 625 is ridiculously low.
Q: How do I find out if someone is using my name for mortgage loans that I know nothing about?
I was looking up my credit report online and for the questions to make sure I was me I was asked about mortgage loans in two different years that I know nothing about. I'm renting a apartment and haven't took out any loans that I can think about
A: www.mycreditkeeper.com will allow you to view all 3 reporting agencies at once. I have also looked up my reports online and had them ask bogus questions When I looked at the report, nothing showed that had the info from the bogus questions. I think they just throw those in there for the match up process. I would check your report at the site I listed and if nothing shows, I wouldn't worry about it.
Q: I am planning to buy a home outside the United States, I am wondering if I can get mortgage loans or personal?
I am planning to buy a home outside the United States, I am wondering if I can get mortgage loans or personal loans here in the US. If so who should I contact. Please advise. Thanks.
A: Yes. Depending on what country. You'll have to research the brokers who handle out of country loans. There are actually quite a few of them.
Q: What is a Reverse Mortgage and are they good loans?
My neighbor told me about these reverse mortgage loans and I wanted to ask here if this a safe way to get some cash out of my home.
A: A reverse mortgage is a really great thing if you have lots of equity in your home, and you don't have very much liquidated cash to enjoy your retirement.
Anyways, you can find info and resources about reverse mortgages here:
http://reversemortgageresource.blogspot.com
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Q: Can troubled morgage companies call in their mortgage loans?
I'm current on my note. This is just a general question. I know about foreclosure for non-payment. I'm asking a hypothetical question. Can a mortgage company arbitrarily call in their home loans anytime they want and for any reason? or under what circumstances can they call in a mortgage loan, other than default?
A: They cannot call them in as long as you honor your terms of the agreement. A mortgage is a contract, and both sides are required to honor the terms of same.
Q: How is Ditech with their mortgage loans compaired to other companies?
I'm in the process of buying my first house. I live in Northern CA and have heard from a few people to go with Ditech for a mortgage loan but I am just a bit worried because it doesn't seem like I would be able to sit down and talk to a real person. It seems most of it is done over the phone.
Has anyone had any good or bad experiences with them?
A: Ditech and Quicken both have a reputation for taking money upfront without making sure you qualify for a loan. They will refer to it as a rate lock fee but really its a gimmick to get the consumer to commit to using them. The other issues I have heard from clients has to do with their appraisals coming in way under value and blowing the deal.
Q: Is a bank or a credit union better for mortgage loans? I am with a bank and heard that credit unions are a?
better way to get approved for mortgage loans, and are overall better. Is this true?
Thanks!
A: Credit unions do typically offer better deposit rates and have lower fees. Their rates are generally competitive and they try to give personal service to you since credit unions are own by members (the people that use it), so they aren't trying to make a profit for someone else. Talk to several local banks and credit unions to see what their rates are.
Q: How do you feel about the state of mortgage loans right now?
I'm in the mortgage business, and I'm curious how the general public feels about today's rates and ability to get a decent loan.
A: Rates are still historically low but people have short term memory and compare them to the rate of 3-4 years ago. Mortgages are like any other loan, if you do your homework you can find a good deal. If you just listen to one person and don't do any research you are liable to get ripped off. Unfortunatly, most people take the easy way out and get a bad deal by just taking the first offer made to them and taking a mortgage brokers word as gospel.
Q: How do I find clients for mortgage loans in GEORGIA OR Nationwide?
I'm a mortgage loan officer. I need to find my my own clients to refinance, purchase or invest. I can do loan almost anywhere but first I need to find the clients (LOL). I've been cold calling but I haven't had any luck yet. PLEASE HELP ME.
A: In my office we do cold calling along with the referrals we get. Starting out it is tough but I would stick to cold calling. The leads we use gets us about 4 apps per 100 calls. We probably close 1 out of 5 of those apps. So it does work for us but it is tedious and can get discouraging when you hear so many no's before you get a yes. We do loans in 15 states so we do have leads that we do not call. GA is one of them. If you would like a batch just email me.
Good luck.
Q: is it advantageous to talk to different banks/mortgage companies for options on mortgage loans?
we are first time homebuyers and will be looking to get an FHA loan...is it okay to talk to, maybe like, three different places (2 banks and 1 mortgage company) to see what is available to us?...or will that hurt us?
A: Yes, but you need to remember that a mortgage broker often deals with several different banks. I suggest you speak to one bank and two different mortgage brokers instead. As a first time buyer I also suggest you search your state housing department website for special government programs directed towards low to median income buyers (if applicable). FHA is a great program but not always the best deal. you sound like a good consumer so you know to shop around for the best deal. Good luck!
Q: are there mortgage loans that will use only your HiGHEST score?
I have had credit problems in the past and would like to get a 155k mortgage loan. My high score is 620 and would like to know if there are loans that will use the high score?
A: You should talk with a mortgage broker and let them look over all your stats. They may know a bank that will look at your highest score. Every bank is a little different. Some are very robotic and only live by regimented rules. Others take a more realistic look at your scores and income make a more informed decision.
Q: if you have 2 interest only mortgage loans, can you do tax deductions on the both?
I am talking about the case when you got 80/20% mortgage loans with 0% downpayment. I know that the 80% one is fully deductable, but not sure if I can deduct taxes for the second one
A: I've gotta better one.
What will you do when your rate goes up and you have no equity and you can't sell?
I'd refinance on a 30 year fixed. If you can't afford it then you can't afford the house.