Monthly Archives: September 2005
Jumbo Home Mortgage Loans - What They Are And Where To Get Jumbo Loan Financing
Posted September 6, 2005 – 9:00 pm in: Foreclosure, Mortgage rates, Mortgage recovery, rating agencies, refinanceA jumbo mortgage is different than a conforming loan. A jumbo loan amount exceeds that limit set by FNMA. That limit can change every year, but is around $300,000. With a jumbo mortgage, the interest rate is a little higher than other similar mortgage loans that are for smaller amounts. The reason the rate is higher is because the loan has a perceived higher risk by lenders.
A jumbo loan is considered a non-conforming loan. Conforming mortgage loan programs have perceived less risk by lenders and have lower interest rates. Most mortgage loans that are done by lenders are conforming loans. Jumbo loans are a small percentage of the mortgages that are done.
Although most mortgage loans that are done in the US, are smaller loan amounts than those limits set by Fannie Mae and Freddie Mac for jumbo loans, in California, home prices are so high, that there are many jumbo home loans done there.
If you live in California and/or are looking to get approved for a jumbo loan, the internet is a great place to apply to get a jumbo loan for a few reasons. First of which is that there are so many lenders online competing for your business, that lenders are forced to offer their lowest possible rates in order to get your business. For example, a local broker, who has a steady client base, may not be motivated to offer the lowest rate or the lowest closing costs, when the competition is only local. However, when you have the largest group of lenders online competing for your business, you can get a much better offer.
Where is the best place to apply for a jumbo loan? There are many mortgages companies online who can provide you quotes from multiple lenders. These companies will be able to provide you with quotes for usually up to 4 different lenders. This is a great way to make sure to get competitive offers. However, make sure you still ask each competing mortgage lender about the points they will charge, their closing costs and any other fees, to make sure you are getting the best loan you can.
Getting the lowest interest rate does not always make the loan you want, the best deal. The lender can charge more in other places that you might not catch until closing.
Carrie Reeder is the owner of <a href="http://www.abcloanguide.com" target="_blank">http://www.abcloanguide.com</a>, an informational website about various types of loans. To view our list of recommended lenders online for jumbo loans, visit this page: <a href="http://www.abcloanguide.com/mortgageloans.shtml" target="_blank">http://www.abcloanguide.com/mortgageloans.shtml</a>
No Comments | Tags:Buying A Home With Bad Credit - Why A Recent Bankruptcy Will Not Stop You From Getting Approved
Posted September 5, 2005 – 9:00 pm in: Foreclosure, Mortgage rates, Mortgage recovery, rating agencies, refinanceBuying a home with bad credit is possible with the help of a subprime lender even if you have a recent bankruptcy or foreclosure. These mortgage lenders specialize in financing home loans for people with poor credit.
Effect Of Bankruptcies And Foreclosures On Credit
A bankruptcy or foreclosure is not the death of your credit. Yes, your credit score will be hurt and you won?t be able to borrow from a traditional mortgage lender right away, but you still have options.
A bankruptcy or foreclosure signals a crisis in finances. Lenders understand this, and if there are mitigating circumstances, such as a healthcare emergency or loss of a job, they will make exceptions.
Minimize Your Bankruptcy Or Foreclosure
To minimize the effect of your bankruptcy or foreclosure, include a one-page letter in your credit report stating the reasons for the financial crisis. Lenders want to know that this was a one-time event, not a sign of financial irresponsibility.
While including the letter in your credit report, review all your accounts and be sure they are accurate. After a bankruptcy, creditors may leave open accounts, even when they should be closed. These open accounts can have a negative impact on your credit score.
Appeal To Mortgage Lenders
To appeal to mortgage lenders with a bad credit history, increase your down payment and cash reserves. A large down payment ensures that the mortgage company will receive at least a partial return on their investment if they have to foreclose. A FICO score of 580 will require at least a 5% down payment, and lower scores will require a larger down payment.
Cash reserves ensure that the borrower has enough resources to weather a temporary financial emergency. Mortgage lenders like to see at least two months worth of payments in a savings account, but a higher amount will only help your application.
Online Mortgage Brokers
Online mortgage brokers also make it easier to find financing for people with adverse credit. Through their websites, you can compare multiple finance offers from different lenders, ensuring you get the best rates and terms to buy a home.
Carrie Reeder is the owner of <a href="http://www.abcloanguide.com" target="_blank">http://www.abcloanguide.com</a>, an informational website about various types of loans. To view our list of recommended bad credit home loan companies online, visit this page: <a href="http://www.abcloanguide.com/lessthanperfectcredit.shtml" target="_blank">http://www.abcloanguide.com/lessthanperfectcredit.shtml</a>.
No Comments | Tags:Home Mortgage Lenders - How To Find A Good Mortgage Broker Online
Posted September 2, 2005 – 9:00 pm in: Foreclosure, Mortgage rates, Mortgage recovery, rating agencies, refinanceMortgage lenders have set up shop online, but they aren?t all reputable mortgage brokers. To find a good mortgage lender you need to compare rates and research to find reputable companies.
Mortgage Broker Services
A mortgage broker works with several lenders to find the best financing for the purchase of a home. No matter if you have perfect credit or bad credit, typically a mortgage broker can find you a lower mortgage rate than if you went with your neighborhood bank.
It is important to remember that brokers are paid by adding on a fee or point to the loan, so you should do comparison shopping even with a mortgage broker.
One Stop Shopping
Online mortgage brokers have reduced time spent comparing mortgage lenders by consolidating information about several lenders into one site. Through such mortgage sites, you only enter your information once to receive interest rates from several different mortgage lenders.
Compare Rates And Fees
While online mortgage brokers make getting quotes easy, it is important to still take the time to compare rates. Your mortgage rate will be based on current interest rates, the property?s location, your credit score, and employment history. If you receive a rate quote without providing this detailed information, then you are just getting a general estimate.
General estimates for mortgage rates are still a useful tool to narrow your choices to at least three lenders. You can then apply for a true mortgage estimate with the most promising companies. With these true mortgage quotes, look at both the rates and fees to determine the actual cost of the loan.
Research Reputable Companies
Interest rates aren?t the only factor to consider when comparing mortgage lenders. You should also be comfortable with the lender?s reputation. Unfortunately, there is not a list of reputable mortgage lenders, but common sense can protect you from a bad mortgage lender.
First, do research on your top choices for mortgage lenders. Check out the lender?s website to find their physical location, list of terms, and available customer support. Secondly, beware of too good to be true claims, such as statements that this is the only company that will finance your mortgage loan. And finally, do not sign any blank forms from a lender. You don?t know what they add later.
To view our list of recommended mortgage lenders online, visit this page: <a href="http://www.abcloanguide.com/mortgageloans.shtml" target="_blank">http://www.abcloanguide.com/mortgageloans.shtml</a>. Carrie Reeder is the owner of <a href="http://www.abcloanguide.com" target="_blank">http://www.abcloanguide.com</a> an informational website online about various types of loans.
No Comments | Tags: