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Tag: payment

Credit Cards Or Mortgages: Which To Pay First?

Credit Cards Or Mortgages: Which To Pay First?

Conventional wisdom has it that folks will use their last dollar to pay their mortgage while other bills remain unpaid, but a new study says otherwise. A new study by TransUnion, the big credit reporting agency, says there is now a new payment hierarchy where consumers pay their credit cards before their mortgages. “The percentage […]

Posted in: News
The Untold Story Behind Fannie Mae & Freddie Mac

The Untold Story Behind Fannie Mae & Freddie Mac

The government is out with new foreclosure prevention numbers from Fannie Mae and Freddie Mac. According to the Federal Housing Finance Agency (FHFA), the headline is that “FANNIE MAE AND FREDDIE MAC LOAN MODIFICATIONS UP BY MORE THAN 50 PERCENT IN FIRST QUARTER, MONTHLY PAYMENTS REDUCED FOR HOMEOWNERS.” We then learn that “Fannie Mae and […]

Posted in: News
FHA — Yes (Sort Of) To No Money Down

FHA — Yes (Sort Of) To No Money Down

HUD has come out with new regulations which will allow borrowers to get FHA financing with no money down — but only in very limited circumstances. On May 11th HUD said first-time buyers could use their $8,000 tax credit to fund their FHA downpayment. In effect, borrowers would get a short-term bridge loan that would […]

Posted in: Mortgages
Should We Bring Back Ozzie & Harriet Loans?
By September 26, 2008 0 Comments Read More →

Should We Bring Back Ozzie & Harriet Loans?

It was in 2005 that Bill Dallas — then president and CEO of Ownit Mortgage Solutions, at the time on one of the 15 largest subprime mortgage lenders in the country — said “underwriting guidelines developed in the 1950s don’t address the needs of today’s homebuyers and brokers. Loans that met the needs of Ozzie […]

Posted in: Toxic Loans
Why Have Piggyback Mortgages Disappeared?
By September 20, 2008 0 Comments Read More →

Why Have Piggyback Mortgages Disappeared?

We usually define a “conventional” mortgage as financing with 20 percent down. Since most people don’t happen to have 20 down much less 20 percent plus closing costs, there has always been a market for mortgages that somehow require fewer dollars up front. The way you get loans with less down is to find a […]

Posted in: Toxic Loans
Taking A Call From A “Helpful” Lender — And Giving Back
By September 20, 2008 0 Comments Read More →

Taking A Call From A “Helpful” Lender — And Giving Back

Recently a mortgage lender who called to say my monthly payment is late. “Late,” I said, “What do you mean by late? Do you mean I owe you a late penalty?” “Well no,” said the distant voice on the phone, “you don’t owe a late fee but we have yet to receive this month’s payment.” […]

Posted in: Library
Mega Homes Versus Real Estate Sanity
By September 17, 2008 1 Comments Read More →

Mega Homes Versus Real Estate Sanity

According to the National Association of Home Builders, a home built in 1950 usually had 700 to 1,200 square feet while in 2007, says the association, the typical new home averaged 2,479 square feet. Bigger homes, of course, require more dollars to buy, finance, refinance, insure, heat, air condition, and carpet. The equation is bigger […]

Posted in: Library
A Foul Call From Lenders
By September 16, 2008 0 Comments Read More →

A Foul Call From Lenders

One of my lenders hasn’t called this month, and therein hangs a tale…. Long ago I happily financed an investment property with a 40-year adjustable-rate mortgage that used the 11th District Cost of Funds Index. This is not particularly a loan I would recommend for homebuyers in general, but it does have pros and cons. […]

Posted in: Library
Will Late Bill Paying Impact A Mortgage Application?
By September 12, 2008 0 Comments Read More →

Will Late Bill Paying Impact A Mortgage Application?

Generally no, because credit reports largely deal with payments that are at least 30 days late. However, be aware that being late may cause you to violate loan and credit agreements, such as mortgage contracts. While many creditors have a grace period during which late fees are not assessed, a late payment is still — […]

Posted in: Library
Mortgage Help for Hurricane Ike Victims
By September 10, 2008 0 Comments Read More →

Mortgage Help for Hurricane Ike Victims

It’s become a kind of ritual, the word from major mortgage lenders and loan owners providing relief in the face of hurricanes, tornados, fires, earthquakes and other natural disasters. What can impacted mortgage borrowers expect with hurricane Gustav? Looking at past practices from 2005 with Katrina, Rita and Wilma, Fannie Mae, Freddie Mac and most […]

Posted in: Library