NJ Mortgage

Archive for May, 2010

My daughter is buying her first flat and money will be tight,what kind of mortgage would suit a first time buyer and why? All answers gratefully received.
With Thanks

You should get her to talk to an independent mortgage broker who can search a panel of lenders for the best deals hat are available for your daughter depending on her circumstances, A reputable independent broker will not charge a fee for advice, only a small fee for getting a mortgage offer in place.

My family and I live in a home legally donated to us by my father. We have ownership. Can we use this home as collateral for a mortgage loan on another home in another state? If so, how does that work?

Don’t see why not. Each state has different rules and regulations regarding this particular matter. If you are looking for the best home mortgage rates or want to reduce your mortgage loan payments, check out this site

http://Best-Mortgage-Refinancing.com

Here you can get free quotes from all available companies in your area. its the best way to find an affordable payment with a reliable company.

Hope this help,

What I mean by that is I assume there is a formula which banks use to figure out what mortgage rates to offer a customer based on prime rates, customers credit history, size of mortgage, etc…

Does anyone know how this process works and the specific formula/methodology used?

thanks in advance!

Rates are determined by investors in the secondary market.

Most loans are originated for sale to Fannie and Freddie so they rates that anyone can offer depends on what Fannie and Freddie can afford to offer on a program (e.g. 30 year, 15 year, etc.) which in turn is driven by what their investors require for a return/yield on their money.

The link below tells you what Fannies investors are requiring roughly.

http://www.bloomberg.com/apps/quote?ticker=MTGEFNCL%3AIND

Then the Fannie/Freddie have to add a spread to that in order to make any money. The link below would represent a "par" rate based on delivery dates for various Freddie programs:

http://ww3.freddiemac.com/ds1/sell/sffrny.nsf/frmDisplayRNY?OpenForm

Then, a lender either has to charge fees or offer a slightly higher rate in order to make any money.

Today, we were offering 6.875% with closing costs of $350 in our market.

Of course this conversation does not address the delievery fees required by the agency programs based on credit scores, loan to value, transaction type and occupancy. These delivery fees will add to the closing costs or increase the rate or both if the delivery fees cannot be covered by increasing the rate.

Home equity and portfolio programs are priced by individual banks and there is no single methodology or formula. If they are lending there own money, they can price there programs how ever they like.

There is a similar secondary market for government programs, Ginniemae, which operates a lot the same as the secondary market created by Fannie and Freddie. The big difference is that these are owner occupied programs and there are not as many delivery fees as with the Fannie and Freddie programs.

I hope I have helped to illuminate the subject without over complicating things.

If any of you have hurt by mortgage crisis, could you please tell me your story and how do you handle your finance. How much percentage did your house’s price dropped? Is it affected your lifestyle?

I have a low (5 1/2%) fixed rate loan so it has not affected me directly. The value of my home has probably fallen about 10%. But it has not affected my lifestyle since I am not planning to sell any time soon.

I have a friend who is a builder and would like to use me for his mortgage broker. I have no problem finding banks who will do financing for owner occupied builder programs, but nothing for spec homes. A lot of the banks offer spec programs on the retail side, but I’m having trouble finding it wholesale. Thanks!
I do know what a spec home is
My rep at Indymac said that they only do owner occupied construction, but maybe there is another dept she’s unfamiliarr with? I’ll ask her again. Thanks!

I don’t think you know what is spec home is. A spec home is just a home that is build in speculation of a buyer and was not a custom built home. 98% of all homes built are spec homes.

Democrats Caused Our Economic Crisis

Democrats created the mortgage crisis by forcing banks to give loans to people who couldn’t afford them. Click here to view a video that shows the Democrats covering up the Fannie Mae and Freddie Mac scam that was at the heart of our economic crisis. Franklin Raines, a financial advisor to Obama, walked off from Fannie Mae with a $22 million dollar severance package.

Fannie Mae and Freddie Mac scam DID NOT create the financial meltdown.

The private sector WAS: http://www.mcclatchydc.com/251/story/53802.html.

Freddie and Fannie weren’t even securitizing subprime mortgages en-masse until 2005: http://www.nytimes.com/2008/10/18/opinion/18barr.html

As Center for Economic and Policy Research co-director Dean Baker has written, “Fannie and Freddie got into subprime junk and helped fuel the housing bubble, but they were trailing the irrational exuberance of the private sector. They lost market share in the years 2002-2007, as the volume of private issue mortgage backed securities exploded.”

http://www.prospect.org/csnc/blogs/beat_the_press_archive?month=09&year=2008&base_name=market_place_misleads_the_publ

McCain’s $169,000 from Fannie AND Freddie directors and officers and lobbyist:

http://graphics8.nytimes.com/images/2008/09/10/us/politics/10fannie.graphic.jpg

Aquiles Suarez, listed as an economic adviser to the McCain campaign in a July 2007 McCain press release, was formerly the director of government and industry relations for Fannie Mae. The Senate Lobbying Database says Suarez oversaw the lending giant’s $47,510,000 lobbying campaign from 2003 to 2006

In addition, Politico reports that at least 20 McCain fundraisers have lobbied for Fannie Mae and Freddie Mac, pocketing at least $12.3 million over the last nine years.

http://www.motherjones.com/mojoblog/archives/2008/09/9663_mccain_fannie_freddie.html

Will my first mortgage payment be included in my closing costs ?

If you close tomorrow (say, October 3), your first payment will be due on December 1st. That is because interest from the closing date until the end of that month is paid at closing and is part of your closing costs (so, at closing, you pay from October 3 through October 31). And, since mortgage interest is always paid in arrears, your first monthly payment would be due on the first of the second month after closing (i.e. your payment that’s due on December 1 will pay the interest from November 1 through November 30).

I already deposited my money with a listing agent, had a home inspection and my realtor already did a title search. The mortgage lender suddenly tells me that he is not able to finance the loan because my bankruptcy discharge is less than a year. What is my next option? Am I entitled to the refund of my deposit monies?

no. when he says "I cannot finance you" he really means you are a bad risk and are unfinancable, if that’s a word.

Looking for a list of mortgage lenders and/or banks for each state. Any website out there like that?

Try bankrate.com . It’ll give you a lot of lenders to look at – good luck.

Yes. If you actually read all the papers you sign it tells you that the application fee is non refundable.
The farther along the loan goes the more fees are incurred and those are also non-refundable even if the loan is turned down. You need to make sure you want the loan before you start the process otherwise it will cost you some money.