Archive for: November 2006

Cnonventional is not insured or guaranteed by the federal government.  Ther are two types of conventional loans conforming and non-conforming.  A conforming loan is one that follows the underwriting guidelines of Fannie Mae and Freddie Mac. Conforming loans have 3 …

These are not primary and second mortgages.  Primary mortgage lenders deal directly with you the public.  They originate loans and then lend you the money.  They sell the mortgage notes (in a large package - meaning more than one loan together) …

The loan officer will add on their earnings before quoting a rate to you.  The company usually has a minimum rate a loan officer has to add.  There is also a maximum so you do not get ripped off.

Say you …

Higher rates don’t cost as much as lower rates because the lender will earn more interest.  The lower the interest rate the lender earns less.

Almost all loan officers are paid on commission.  The amount earned the the loan officer and …

If you have a question on mortgages, home loans, etc. feel free to comment.  I am going to write a few more things on mortgages but I am also going to add more areas on home improvement, refinancing, etc. 

If there …

A lender will usually prepare a “Good Faith Estimate” of closing costs.  The lender prepares the estimate of the costs you may have when buying or refinancing your home but may not list all potential costs. The lender may not …

A mortgage broker is the loan officer for wholesale lenders.  The broker gets a low rate from the wholesale lender, the broker adds on his compensation, and the rate is usually about the same as you would get if you …

Refinancing your mortgage is the act of replacing your current mortgage loan with a new one.  You basically will follow the same process your went through when you obtained your original loan.  Refinancing can help you to lower your monthly …

What to consider before choosing the type of loan for your mortgage.

You need to look at your current financial picture.  Do you expect the current financial picture to change?  How long do you expect to keep this house.  How do …

A subprime mortgage works well with someone who has bad credit.  Subprime loans require a larger down payment and a higher interest rate.

Make sure you study the specific terms of the subprime loan.  You may be able to refinance your …