Mortgage Guide

ken asked:

I here countrywide was a large player. Would anyone help me to understand what went awry with moprtage industry? Thanks a lot.

Question posted courtesy of: Ted

Michael asked:

I bought a house with a friend of mine as co-borrower two years ago. I got married recently and want to take over the house and the mortgage. The house has two mortgages when it was purchased at 100% financing at that time. Rates are good. I called up the lending bank who holds both mortgages and they said I can assume the first mortgage but the second mortgage is not assumable. I have to refinance for the second mortgage.

Another option would be to refinance altogether and combine the two mortgages into one under my name. But since the house was purchased almost two years ago, there has not been that much equity so in order to refinance I have to put down a lot of money. The bank can only finance 95%LTV.

If I go with refinancing with the second mortgage, the bank will need 85%LTV maximum.

Not sure what to do. What do you think?
Thanks Christopher B.! But what is the Power of Attorney for?
The first mortgage is a 30 year fixed, with 6.5% interest. The second mortgage is a 30 year fixed with 7.9% interest.
My buddy got married too and intends to buy a house in a year or so. Hence the need to take him off the mortgage.

Question posted courtesy of: Patricia

gijaneridesagain asked:

My husband wants us to take out a one account mortgage. He reckons that you put your savings and income in there, your mortgage shrinks, say, to 3 years - then your house is completely paid off and you still have all your funds 100%intact. I have pointed out to him that this is to good to be true, and therefore probably isn’t. I have read through the info pack and there are a couple of contradications - the on-line calculator said we could shrink our mortgage to 3 years, and yet the info booklet says the one account mortgage term is for a minimum of 5 years, also, one paragraph says that you can withdraw your savings at any time, and then another paragraph says your savings / lumps sum payment have to remain in the account for the duration of the mortgage term…confused? we are - are then any financial gurus out there who can help to simplify things in a nutshell for us please?? - specifically the pros and cons of taking out such a mortgage and any pitfalls to watch out for.

Question posted courtesy of: Francisco

BMD asked:

I just read a few “answers” to someone’s post about ING Mortgage, and I am confused. ING Mortgage is telling me hand’s down that it is 695.00, plus odd days interest, and then the mortgage tax, and that is it. In their paperwork, they indicate “there will be some 3rd party fees” but when I ask them about it, they say “No, these are listed by law, but you (me the consumer) do not pay them, they do.” However a mortgage guy @ National City Mortgage told me to BEWARE…. he said that they can’t pay 3rd party fees themselves b/c it would be illegal. On different Yahoo answers, it supports what my National City Mortgage guy told me, but ING SWEARS that I will not have to. I would like to have it listed directly to me opinions from others on this site who either have applied for an ING mortgage, have one, or an expert.
Can someone post one answer just so I can get this off my “open” list. I have this listed twice accidentally. If you answer I’ll vote you “best response” but put something somewhat intelligent sounding.

Question posted courtesy of: Gina

mMiha asked:

working in mortage industry on the subprime side, i find it hard to locate brokers devoted to that type of business in my area (bay area, CA). Most of the offices i work with are doing prime loans. And I need some kind of new approche to encourage them to work on the sub prime side.

Question posted courtesy of: Glenda

Overt Operative asked:

America’s leading sub-prime lender is in bankruptcy and others are not far behind.
Sub-prime lenders provide variable rate mortgages to people who wouldn’t otherwise qualify for a home loan. These loans account for 20% of the homes sold in the already troubled housing market.
With rising interest rates, the default rate on existing home loans have skyrocketed, which has left the sub-prime lenders holding the bag. As a result, the bottom will literally fall out of the housing market this year.
Will the combination of increasing energy prices and a falling housing market lead us into recession? Or, is our economy strong enough to absorb the loss?
Balsabulb:
God loves optimists.

Question posted courtesy of: Keith

west asked:

person responsible for paying the mortgage is not paying on time, he dosnt want to put the mortgage on his name nor he wants to sell the house. ,what are my options, should I tell mortgage bank that they should call him and take off my name from mortgage, what are my legalities and rights since deed his on his name and he doesnt return my calls. he is a mortgage officer and he knows everyone in real estate proffession from attorney to agent, I am getting very scarred as I m getting calls every month from mortgage company that my mortgage is due, as he is already one month behind.
Month of april alreday shows on my credit report as a late payment. please someone help me with a professional advice. thank you.
well, he is an investor not living there (mortgage officer), he is the one approved my loan for this house, his friend find me this house (real estate agent), the house is in NY, and both are in NY . I have nothing to do any thing with NY, I am from NJ, this Mortgage officer is my cousin !!! , initially he told me that you have nothing to do but sign the papers and i will get you good chunk of money in 3-4 months, i dont know what comes to me and i signed the papers.
I dont know how can I go about and what to do, initially he forge the papers to approve for loan (he put his address as I am living there in NY, my income level is also showed as 10 times which i make, thats a long story), I didnt take any money from him matter of fact I have paid 3 mortgage payments from my pocket, he promised me orally that he will give me back my money once He sold the house, we didnt have any written contract. It is a 2 family house and both floors are rented. rent is not covering the mortgage.
he puts his name on deed, but the mortgage is on my name, i dont know if deed and title are the same papers.

Question posted courtesy of: Randy

I Am Tired asked:

I just recently went back to school to get a more marketable degree. But just last week, I went to a job/career fair and discovered that a lot of people are still looking for work. I’m afraid that this sub-prime mess is going to make the job market even worse than it already is. I hope that I made the right decision to go back to school to get a better degree. What do you think?

Question posted courtesy of: Beatrice

eliasulmonte asked:

The American economy is driven first and foremost by consumer spending. Some think that this crisis will trickle down into the rest of the economy and snag businesses and people who have poor credit ratings and limit everyone’s ability to finance large purchases, thus hurting those who are selling those large purchases, thus… well, you can see the dominos… Also, the net worth of the average consumer is sliding as the value of his home corrects. Others believe that this is far smaller than past crises such as the S&L shakedown during the 80’s. The economy then barely burbed. Please give me your opinion, and more importantly, direct me to an interesting article on the subject.

Oh, and one more thing, New Jersey, your property taxes are atrocious, and I’m leaving your economy by the end of the year.

Question posted courtesy of: Francisco

Lee asked:

I have signed a mortgage in principal agreement with my mortgage advisor to get a mortgage which at the time was the best on the market. However, as it took about a month for the actual mortgage offer to arrive, the interest rate on the offer has increased, and would work out to cost us about £700 over the lifetime of the agreement. This is despite the mortgage advisor guarantee us upon signing the mortgage in principal agreement that the rate was then secured. What can I do about this and who can I complain to?

Question posted courtesy of: Jane