Lastest Income Vs Home Loan News

Posted on Oct 14, 2012 in Stated Income Loans

Question by ohio_state98: Where can I find out current home mortgage rates for my area?
Does anyone know where I can find out the current mortgage rate averages for my geographic area? I’m looking at possibly refinancing and want to know if it would be worthwhile. Also, advice stomach can I expect any costs when trying to refinance?

Best answer:

Answer by orlandomortgagebroker
All over ONLINE. The only problem is, medical that you don’t get that rate until you lock it, or you have a honest mortgage broker on your side, which might be willing to lose on the Yield Spread if he doesn’t lock it, if rates happen to go up, from the day you were quoted on Good faith Estimate.

The minute you’re quoted a rate you like to proceed with, instruct lender or broker to lock, and provide form that states the fact and that their committed to lend at that rate.

When lenders “lock”, they commit to lend at a specified interest rate and points, provided the loan is closed within a specified “lock period”. (Points are an upfront charge expressed as a percent of the loan amount). For example, a lender agrees to lock a 30-year fixed-rate mortgage of $ 200,000 at 7.5% and 1 point for 30 days. A lock is contingent on the borrower meeting the lender’s underwriting requirements for the loan.

The need for locking arises out of two special features of the home loan market: volatility and process delays. Volatility means that rates and points are reset each day, and sometimes within the day. Process delays refer to the lag between the time when the terms of the loan are negotiated, and the time when the loan is closed and funds disbursed.

If prices are stable, locking isn’t needed even if there are process delays. If there are no process delays, locking isn’t needed even if prices are volatile. It is the combination of volatility and process delays that creates the need for locking.

For example, Smith is shopping for a loan on June 5 for a house purchase scheduled to close July 15. Smith is comfortable with the rates and points quoted on June 5, but a rate increase of 1/2% within the following 40 days could make the house unaffordable, and Smith doesn’t want to take that risk. Smith wants a lock, and lenders competing for Smith’s loan will offer it.

If locks were equally binding on lender and borrower, locks would not cost the borrower anything. While lenders would lose when interest rates rose during the lock period, they would profit when interest rates fell. Over a large number of customers they would break even.

In reality, however, borrowers are not as committed as lenders. The number of deals that don’t close, known as “fallout”, increases during periods of falling rates, when borrowers find they can do better by starting the process anew with another lender. Fallout declines during periods of rising rates.

This means that locking imposes a cost on lenders, which they in turn pass on to borrowers. The cost is included in the points quoted to borrowers, which are higher for longer lock periods. The lender who quoted 7.5% and 1 point for a 30-day lock, for example, might charge 1.125-1.25 points for a 60-day lock.

Years ago, lenders controlled lock costs by requiring borrowers to pay a commitment fee in cash. The fee was returned to them at closing but forfeited if they walked from the deal. But today, commitment fees have mostly died out. Borrowers don’t like them, and lenders and mortgage brokers don’t want to place themselves at a disadvantage in competing for customers.

To control lock costs today, many lenders refuse to lock until borrowers demonstrate commitment to the deal by completing one or more critical steps in the lending process. For example, one lender recently explained its lock policy to its mortgage brokers as follows:

Our loans are well priced, but we only commit to you when you commit to us. To lock, you must submit the completed lock form, application (original, no copies allowed), credit report, appraisal, and either a purchase agreement or escrow instructions.

The logic of this lender’s policy is that its procedural requirements reduce fallout costs, allowing it to offer lower prices. Lenders who make it easy to lock have large fallout costs because some shoppers will lock with them as protection against a rate increase while they continue to shop for a better deal elsewhere.

While the best (honest) quote is likely to be from a lender who requires extensive documentation to lock, these requirements impede effective shopping. For example, if the shopper identifies the lender offering the best deal but it takes 3 days to lock with that lender, the shopper is in limbo for 3 days. He has to hope that market rates don’t increase during the period, and if they do that the lender doesn’t pad the increase.

A mortgage shopper thus needs to know what each lender requires to lock, and how quickly the process can be completed if the shopper does her part. A good mortgage broker can help enormously. Brokers know lender lock requirements, can help expedite the process, and will keep the lender honest if the market changes during the lock process.

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income for home loan
by eyewashdesign: A. Golden

Question by Jackie: Where can I get a non income verification home loan with less than perfect credit?
Ok so I have less than perfect credit..but not enough debt for bankruptcy like 5, order 000 maybe.I have a house I want to buy its cheap good condition just what my family needs. Where can I get a non income verification home loan being a first time buyer with less than perfect credit? Dose anyone know? ( I have down payment money)

Best answer:

Answer by SPIFIMAN1
Hate to say it but with the economy the way it is right now you most likely will not find a mortgage loan that does not require proof of income.

Back in February my Wife and I refinanced our home that we have been in for 5-years, page we both have extremely good credit (all scores over 800) and we still had to prove our income.

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Question by wabaduu: FHA mortgage, viagra 60mg gift letter and paying the gift back?
I have applied for an FHA mortgage; the lender just called me to ask if I ommitted any accounts on the application because I don’t have any reserves. The only reserve I would have had – the ability to borrow from the vested bal of my 401K plan – is going to be gone because I need to borrow the down payment and a portion of the closing costs from it.

If I had a relative give me a gift of the down payment, and then sign a gift letter – I am completely prohibited from ever paying that person back? As in I don’t take the 401K loan, I get the gift and gift letter, and then I take the 401K loan at some time in the future to repay her???

Best answer:

Answer by mazziatplay
The gift letter simply specifies that the donor does not require repayment, it does not prohibit you from doing so should your wish.

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fha lenders
by marsmet526

Question by TamSmi: Are lenders required to help on delinquent FHA Loans?
I have an FHA loan and my lender (US Bank) is offering me an off the wall payment plan which I cannot afford. What are my options? Are they required to assist me with bringing my loan current? What can I do to get another option?

Best answer:

Answer by Kiker
They are not required to make it really do anything.
This also isn’t the best time to be caught in this, mind as both parties are in a bind. You do have resources at your disposal. My suggestion is to shop around. Lending Tree seems to have done well for my friends and family. See if you can find a better plan/rate. In many instances, purchase the bank will bend over backwards to keep you on-board. Especially now, ed with money being so tight. In fact, I have never known anyone to follow-thru with LendingTree, as they merely had offers and took them to their current lender, who therein changed their song and dance.
I would give this a shot.

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Question by MissJnVA: Helping more people AVOID foreclosure if they lost their jobs — “Stay & Pay”?
Mr. President, more about your HARP program is geared specifically towards helping people with Freddie Mack & Fannie Mae backed mortgages. What are you going to do (if anything) to help people who lost their jobs, then were sent into foreclosure by uncooperative banks (long story, but basically the runaround game) and are now bankrupt as a result, who happen to have used government backed loans? There doesn’t seem to be any help for people like us, former military, having served our country honorably, with children now serving proudly. Why doesn’t the government consider a “Stay & Pay” program where the lenders are forced to work with the people that are now on unemployment so they can keep their home? You should know that when you lose your job – as in my case – being 65% of the monthly income for my family, then draw unemployment, the lenders will not consider the unemployment – which, in my case was less than 20% of what I was making while employed – math: monthly income was $ 4,000, unemployment was $ 1,200, net $ 2,800 total income loss – but mortgage payment stayed the same. Why won’t the goverment force the lenders to accept a proportional amount – based on the unemployment compensation amount and other income, so the homeowner can “stay and pay”? Who wins when people are jobless, and then homeless? EVERYONE loses. The family, the neighbors, the lender. And, what sense does it make to allow entire neighborhoods to be lost to foreclosure when everyone is struggling? Who can buy vacant property if we’re (as a nation) in the worst economic shape in recent memory? The day I lost my job, I called the bank (Countrywide – now owed by Bank of America) and told them I lost my job and needed to either refinance or get some help quickly. I was told that I had to be 3 months late. Well it didn’t take long for that to happen. Then the bank told me they couldn’t help me because I was delinquent. I came to DC to get a counselor through the HOPE program to help me negotiate with the bank. I have notes from that meeting where I was told we “were NOT in foreclosure, that we were in a “forbearance”.” Two weeks later, a foreclosure notice came in the mail! I had to file bankruptcy to keep them from selling my home from under me. Meanwhile, my husband went to Kuwait to work as a contractor to help us save our home and was over 6,000 miles away, so I went through all of that alone. Now…ALL of our good credit is gone. The bank won’t even talk to us as we repay the debt through Chapter 13 bankruptcy filing. It’s not fair. What are you going to do to help people in my situation? I have a 30-year fixed mortgage and my interest rate is 6.5%. I deserve the lowest rate available just based on what they did to us. PLEASE ANSWER MY QUESTION as I’m sure there are others similarly situated that need help. PLEASE don’t let people say it’s alright to “let the foreclosure bubble continue to burst.” That’s the WORST thing we can do. Remember — “STAY & PAY”. People who lose jobs NEED a place to live so they can be stable and LOOK FOR WORK. But when the lenders & banks that created this mess put people in the street and bulldoze communities, they contribute to the continued decay of our family infrastructure by stripping our homes, our dignity, our ability to keep our children in their schools, opportunities to look for work without the stress of being homeless, the neighbors property values tanking, etc. PLEASE HELP US, PRESIDENT OBAMA.

By the way…you gave an excellent speech last night. I sat on my couch riveted to every word. 🙂 I pray you exercise your executive power to help us (the middle class as yes, Mr. President, I am the 99%). Unfortunately, although I respect your intention, waiting for cooperation from the other side isn’t working and we need help now. Novel idea, but ineffective.

May God bless you & your family, Mr. President, and may God bless the United States of America. 🙂

Best answer:

Answer by Bill
That was a good political reelection speech, however the problem with passing legislation to help the economy falls in the lap of the president and the Senate! The House has passed over 35 bills to help the economy but between the Senate refusing to hear them and the President’s refusal to lead, the country is remaining stagnant.

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Question by Angie: Question regarding FHA financing after bankruptcy?
Traditionally the rules for getting a home loan after bankruptcy (through FHA) required 24 months to pass after the discharge of the bankruptcy.

I have heard that due to the mortgage crisis that 36 months should pass before approval now. Anyone out here work in the mortgage industry that knows details on this?

Assume there was no foreclosure and the credit was perfect before and after.

Best answer:

Answer by EMatthew
Hi Angie, website like this
From personal experience you should be good to go I have just been approved and its been 28 months since discharged. Good luck and happy house hunting.

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