Q. What are the pro's and con's associated with non-qualifying loans?
A. They are gone! Gone since July of 2007! Here is the real deal! EVERY LOAN requires the buyer to sign a 4506. The 4506 is a form you sign when you apply for a loan. The form is sent into the IRS to see if the information you gave to the lender is indeed true and correct. If you lied on your paperwork the lender is required to inform the IRS of the difference and you could be taxed for the difference. The stated loans were originally intended for the self-employed borrowers who write off EVERYTHING, for some unknown reason, the lenders allowed W-2 employees to get in on the programs which is what caused a lot of the mortgage melt down! ( that is why they are gone and many people distroyed the self employed peoples opportunities!) But....if you have 20% for a down payment or equity try Wacovia!
How were the low quality home loans financed prior to the crisis?
Q. I think Ben Bernanke also gave a short speech about this, but I am not sure and can't find it. Can you guys please answer this, I am so lost right now? Thanks
A. Simply put loans were given to people who had no business being approved for one.
What are the disadvantages of subprime home loans?
Q. I'm getting ready to buy my house. I know to do a 30-yr fixed rate. I'm just wondering what is the buzz about subprime home loans? It seems to really be hurting people and mortgage companies. What are the advantages and disadvantages? Thanks.
A. There are advantages and disadvantages to everything in life.
I don't understand your situation financially, therefore I can not answer your question about subprime mortgage.
Sub-prime mortgage was and is an option available or was selected by those that wanted to purchase a house and the program fit their financial situation at the time.
Depending on your financial condition, credit report and other factors will determine if you get a sub-prime loan, an adjustable rate mortgage a 30 year fixed rate and FHA or a "A" loan.
You should not zero in on a certain mortgage program because everyone tell you this is the way to go. Don't jump into the fire because everyone says it is the way to go and we fell all warm and rosy. This same fire might burn you.
Your financial situation should dictate the type mortgage you get. Everyone's financial situation is different.
You should contact a mortgage broker complete a mortgage application and allow this mortgage broker to run a credit check for you.
This credit report, debts on your credit report as well as your income will dictate the type of mortgage you are qualified for not that you want a 30 year mortgage or that all your friends have a 30 year mortgage or suggest that you get a 30 year mortgage.
What is best for you right now and in the future should determine the type of mortgage you want and should get.
Once your mortgage broker has mortgage programs available to you then you should sit down with this mortgage broker and go over each option available to you. If you don't understand a certain mortgage then don't leave the table until you completely understand what is available to you.
Now once all your options have been explained to you, then and only then are you able to make an intelligent decision as to which is best for you.
I hope this has been of some use to you, good luck.
"FIGHT ON"
I don't understand your situation financially, therefore I can not answer your question about subprime mortgage.
Sub-prime mortgage was and is an option available or was selected by those that wanted to purchase a house and the program fit their financial situation at the time.
Depending on your financial condition, credit report and other factors will determine if you get a sub-prime loan, an adjustable rate mortgage a 30 year fixed rate and FHA or a "A" loan.
You should not zero in on a certain mortgage program because everyone tell you this is the way to go. Don't jump into the fire because everyone says it is the way to go and we fell all warm and rosy. This same fire might burn you.
Your financial situation should dictate the type mortgage you get. Everyone's financial situation is different.
You should contact a mortgage broker complete a mortgage application and allow this mortgage broker to run a credit check for you.
This credit report, debts on your credit report as well as your income will dictate the type of mortgage you are qualified for not that you want a 30 year mortgage or that all your friends have a 30 year mortgage or suggest that you get a 30 year mortgage.
What is best for you right now and in the future should determine the type of mortgage you want and should get.
Once your mortgage broker has mortgage programs available to you then you should sit down with this mortgage broker and go over each option available to you. If you don't understand a certain mortgage then don't leave the table until you completely understand what is available to you.
Now once all your options have been explained to you, then and only then are you able to make an intelligent decision as to which is best for you.
I hope this has been of some use to you, good luck.
"FIGHT ON"
Did Ted Kennedy start HMOs and required mortgage home loans for the poor?
Q. Guess what, whoever did it sure messed up big time. Whites better pack it up and bail asap.
A. Ted kennedy's biggest tribute to america and the poor will be when he 's gone. he is without a doubt one of the least effective and most lousy politician around sence his brothers.
what is the best guess on interest rates for home loans in the next six months?
Q. I am trying to decide between a rate lock at 6.125 or the current rate at 5.875. We will close on the home in about six months and am wondering what the consensus would be on rates climbing higher the the rate lock of 6.125 in that time period, or if I should just hold out hope for the 5.875. Thanks!
A. Due to the weakness in our economy, there is no fear of inflation. Rates go up in inflationary periods. I think the 6 month window is good for low rates. Watch the 30-yr bond...it moves in complete correlation with mortgage rates.
However, much longer than 6 months and you'd better run for the hills. The amount of debt and deficit is unreal. The Washington Boys are CRAZY as are the two hopefuls. Rates will be 12% in 2010 due to the weak dollar, China and Japan dumping our debt and our self-imposed trillion dollar wealth transfer to OPEC by allowing oil to go so high and not being self-dependent.
Imagine what the housing markets will be like with high interest rates, too. Whoever the next president is....don't spend it if you don't have it. Run this country like it's a business or we all better learn to speak Mandarin.
However, much longer than 6 months and you'd better run for the hills. The amount of debt and deficit is unreal. The Washington Boys are CRAZY as are the two hopefuls. Rates will be 12% in 2010 due to the weak dollar, China and Japan dumping our debt and our self-imposed trillion dollar wealth transfer to OPEC by allowing oil to go so high and not being self-dependent.
Imagine what the housing markets will be like with high interest rates, too. Whoever the next president is....don't spend it if you don't have it. Run this country like it's a business or we all better learn to speak Mandarin.
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