No, the 30-year mortgage is not a con – not exactly. But it sure is a good deal for the fat-wallet Wall Street banks. If I could get large groups of people to pay me interest for 30 years, it would make my day.
The large majority of borrowers have 30 year mortgages because that’s what everybody knows and talks about. When you get right down to it, there is no other reason. It’s simply the norm and everybody follows the crowd. Very few borrowers ever stop to give it a second thought. Requesting a 30-year payment will roll off a borrower’s lips faster than jello. Fact is, most borrowers could afford a 20 year mortgage loan. And many more could afford the 20 year payment by easily cutting back unnecessary consumption that we somehow find to be necessary. [Click here to read full Article and Comment…]
Tagged as:
30-Year Mortgage,
Refinance
According to the Federal Trade Commission, there has been a rapid increase in the number of scam mortgage sites. For a long time, the biggest scam sites running were for loan modification services. You’ve seen them everywhere. People set up fraudulent sites claiming they can get your mortgage modified to a ridiculously low payment and they make it seem as easy as breathing. Countless homeowners end up sending thousands of dollars in upfront fees to a bogus operation – and many get absolutely zero in return.
In addition, since the scammers know that countless borrowers will search online simply for someone quoting low rates, they throw up phoney sites to either steal your identity through an online application and/or they collect your information to resell it to many others. When you find websites with low advertised rates and nothing more, often their goal is to get you to enter your name, address, phone and email address which they will then sell to as many lenders, brokers, and lead syndicators as possible. If you read the very fine print at the bottom of these questionable websites, they often admit they are not a lender. [Click here to read full Article and Comment…]
Tagged as:
Mortgage Scam
Will they ever get it right?
David Stevens, Federal Housing Commissioner, has issued a “Special Edition” press release confirming that both upfront and monthly required FHA mortgage insurance will be modified on all FHA case numbers issued on or after September 7, 2010. The changes will have a huge impact on any FHA borrower who needs to keep the monthly payment lower in order to qualify. It is also expected to significantly reduce the number of closed FHA Streamline refinances. That’s because the streamline guidelines already require that the borrower save at least 5% when refinancing. With the monthly mortgage insurance increasing substantially, it will eliminate many borrowers unless their current interest rate is very high. Read below for details.
Effective September 7, 2010, FHA’s upfront mortgage insurance premium will be reduced to 1.00 percent of the loan amount (from the current 2.25%). However, the mortgage insurance borrowers pay each month as part of the mortgage payment will increase. [Click here to read full Article and Comment…]
Tagged as:
FHA Mortgage,
Mortgage Insurance,
Upfront Mortgage Insurance
Short answer: Not many. On Monday, June 21, 2010, the Department of Housing and Urban Development (HUD) released a monthly report that revealed more loan modifications are canceled than approved. This comes as no surprise to anyone who’s staying on top of the HAMP program. And falls far short of the expectations of Obama and the Treasury when the much bandied about program was announced. How clearly I recall what grandiose goals they had. [Click here to read full Article and Comment…]
Tagged as:
HAMP,
Mortgage Modification
Avoiding a course in Economics, let me share one of the primary causes of mortgage rate fluctuations – in a very simple manner.
When people, companies, etc., want to invest their money, they make decisions about how much risk they want to take. With our economy and the overseas economy being rather up and down (mostly down) over the past year, investors are skeptical and therefore want investments that are safe and secure. There aren’t a lot of choices for “safe” and “guaranteed” investments. But one of them is Government debt. Investors feel that if they place their money with the U.S. Government, they will surely get their money back. They won’t earn much interest, but they won’t lose any prinicipal.
As more and more investor money enters the Government safe havens, it can cause mortgage rates to fall. That’s where we are today. [Click here to read full Article and Comment…]
Tagged as:
Interest Rates,
Refinance
Who’s that dude in the mask? He’s the guy you paid $2500.00 to modify your loan. Seem strange? Maybe. But that’s what thousands of borrowers have done and will continue to do out of desperation. Anthony Cuomo, New York Attorney General, is doing what he can to put a stop to bad loan modification companies in the state. A widespread investigation continues about fraudulent activity prevalent with mortgage modification. Massive “cease and desist” letters have been sent warning them to “immediately end all misleading and illegal conduct.” Over 200 companies have been put on notice.
Cuomo’s office has determined that these firms have been collecting illegal upfront fees from homeowners on the brink of foreclosure but fail to help them lower their mortgage payments or save their home as promised.
The cease-and-desist letter from the Attorney General warn mortgage rescue companies to discontinue any illegal, deceptive, and misleading practices, including charging upfront fees for consulting services and failing to enter into written contracts with homeowners in the language homeowners use that fully disclose the exact nature of the fees and services to be provided. [Click here to read full Article and Comment…]
Tagged as:
Mortgage Modification
It is quite common to hear borrowers say they will refinance or want to refinance with their current mortgage lender because they have good credit and have paid their mortgage on time. The thought behind this is that the current lender will give them something great because of their good history. This is a fallacy. Read: Chase slow to process Summit woman’s mortgage refinance.
Having good credit and paying the mortgage on time is what happens with 90% or more of the bank’s customers. We don’t get a break for doing what is expected. Our lender fully expects the mortgage to be paid on time. It was part of the agreement we signed when we borrowed the funds. [Click here to read full Article and Comment…]
Tagged as:
Refinance
Who says serving a life sentence doesn’t come with perks? Despite being in prison, nearly 1,300 inmates wrongly received more than $9 million in new homebuyer tax credits. After all, isn’t it possible to buy a home while you are in the slammer? Is this a qualification exclusion that the guidelines neglected to mention?
Not only did 1,300 inmates get the tax credit, 241 of them were serving a life sentence. Take a look at their remodeled home (after the credit) on the left. Pretty nice, huh? $8,000 goes a long way in a 10×10.
The high incidence of fraud with homebuyer tax credits caused the IRS to make significant changes to filing requirements. Those claiming the tax credit must submit their tax filing via mail and include supporting documentation. There aren’t any quick refunds when you claim the credit. [Click here to read full Article and Comment…]
Tagged as:
Tax Credit
