Mortgage Loan Outlet

There are many mortgage loan companies out there that are excited  to help you refinance your 1st and 2nd mortgages.  You have probably seen advertisements all over the Internet and television for refinancing services.  These refinance ads can significantly helps you because you have the opportunity to compare the many different mortgage refinancing options. 

If you find that one mortgage lender does not work with you the way you would like you can always find a different lender somewhere else.  With the competitive loan quotes you are in a position to get some of the best lending advice you have seen in years.  Read the complete article > Home Mortgage Loan Rates.

A recent mortgage lending survey offered a bird’s eye view of the home financing activity involving mortgage bankers, commercial banks and thrift and loan companies. In a recent article, Jason Cardiff told Mortgage Related News that he anticipates that the FHA mortgage rates could decline to 4.5% or even 4.25%. 

Jason Cardiff also said, “The Federal Reserve has made its move to pump more blood back into the housing sector.” The index was 876.9, up from 723.4 a week earlier, the trade group said. Almost 73% of mortgage applications came from borrowers seeking to mortgage refinance loans at reduced interest rates, not home buyers. See the original article > Mortgage rates Decline as Refinance Applications Rise

In a recent article, the chief economist for LendingTree, Cameron Findlay stated that borrowers need to have a few borrowing qualifications met to get the lowest mortgage rates.  First, you’ll need a FICO credit score of 720 or higher, a loan-comparison website. 

To avoid surprises, you should obtain your credit score before you apply for a mortgage loan, says Nancy Flint-Budde, a financial planner in Salem, N.Y. Your credit score is based on information in the credit reports compiled by the three main credit bureaus: TransUnion, Equifax and Experian. You can order a free copy of all three of your credit reports once a year at www.annualcreditreport.com. You’ll have to pay extra for your credit score.  

Once you have received your credit reports, check them for errors that could hurt your score. If your reports show late payments make sure the info is accurately reported.  The only way to repair the damage is by showing mortgage lenders that you can prove it was a mistake or “you must have change your ways”, says Craig Watts, spokesman for Fair Isaac, who developed the FICO score. That will take time, because you need to demonstrate a pattern of on-time payments.  However, if your credit reports show large credit card balances, you can raise your score quickly by paying them off, Watts says. Your “credit utilization” ratio, which reflects to the amount you’ve borrowed as a percentage of your available credit, accounts for 30% of your credit score. Credit repair solutions are available if you need help getting errors and duplicates removed from your credit report.  Read the complete story by Reporter Sandra Block>

Despite complaints that mortgage lenders and banks are not financing enough of new home mortgages, bankers say there’s plenty of money to borrow if banks agree that you are worthy of credit.  In the case of business clients, that means banks are happy to lend to growing companies that can handle the payments.  The Fed cut interest rates, but how many borrowers are being approved for mortgage loans?  Can borrowers with bad credit refinance into an affordable payment or will they lose their home to foreclosure?

But even where banks are lending to sound businesses, they are tightening standards on new mortgage loan programs. In a distressed economy, they say, and with the example of so many failed mortgages around them, it makes sense to demand more security from borrowers.  In a recent article, Bill Williamson, division president for Bank of the West’s Portland said, “When times were better, we were willing to make some exceptions off our guidelines and policies for well-run, growing companies.” 

A bad credit score often leads to a mortgage lender denial of credit. So, if you have poor credit, and your fico scores are too low to qualify for FHA or non prime mortgages, you’ll need to find a  lender that works with hard money.

The approval process for bad credit mortgages is a lot simpler than that of other home loans. The lender considers the property being used as collateral to determine whether it holds sufficient value for the investor/lender to be willing to take the risk of granting the loan. Most hard money lenders require the LTV to be less than 65%. The borrower’s current financial status and future potential is reviewed to calculate the debt to income ratio. And, because we recommend hard money loans only for a short-term solution of 6-18 months, so make sure there is no pre-payment penalty.

Many people in California are using Hard money mortgage loans for foreclosure bailout loans. But, they are not a good idea for mortgage refinancing unless you’re refinancing to help for foreclosure prevention. If possible, try to work out your financial issues with your creditors before trying for home refinance loans or home equity debt consolidation loans. Once you get to the point where your scores are high enough for a sub-prime loan (typically 540-619), then secured debt consolidation loans for consolidating revolving debt to pay off credit card debt will lower your payments and save money.

With home foreclosures soaring at record rates, the economic picture dimming and job losses ramping up, all the elements were in place to push prices lower.  “The turmoil in the financial and mortgage markets are placing further downward pressure on a housing market already weakened by its own fundamentals.” said David Blitzer, Standard & Poor’s spokesman for the indexes, in a press release. “All three aggregate indices and 13 of the 20 metro areas are reporting new record rates of decline. . . . Prices are back to where they were in early 2004.”  Mortgage rates are higher than 2004 levels, but historically they are still at low levels.  Mortgage lending guidelines are much tighter than 2004 and this is one of the driving forces for declining home values. Homebuyers and borrowers seeking refinance loans simply can’t find many options with mortgage loans.

The 10-city index is now 23.4% off its peak price, which came in June 2006; the 20-city index is down 21.8% from its July 2006 high and the national index has fallen 21% since the third quarter of 2006.  Home prices in the 10-city index have fallen for 26 consecutive months. The decline has broadened over the past 12 months, with prices dropping in every city of the 20-city index during September.  In the weakest market, Phoenix, the 12-month loss came to 31.9%. Las Vegas prices plummeted 31.3% and San Francisco recorded a 29.5% decline. The best performing markets, Dallas and Charlotte, N.C., still posted drops - 2.7% in Dallas and 3.5% in Charlotte.  With San Francisco and Las Vegas, the other members of the 10-city index are: Miami, down 28.4% year-over-year; Los Angeles, down 27.6%; San Diego, down 26.3%; Washington, down 17%; Chicago, down 10.1%; New York, down 7.3%; Boston, down 5.7%; and Denver, down 5.4%.  In addition to Phoenix, Dallas, Charlotte and the cities in the 10-city index, the 20-city index is made up of: Detroit, down 18.6%; Tampa, Fla., down 18.5%; Minneapolis, down 14%; Seattle, down 9.8%; Atlanta, down 9.5%; Portland, Ore., down 8.6%; and Cleveland, down 6.4%.

Foreclosures continue to take a heavy toll, with sales in some cities dominated by properties repossessed by banks and then put back on the market, often at bargain prices. In Las Vegas and Cleveland, for example, about half of all homes for sale are bank-owned properties, according to the real estate website, Trulia.com.  “Foreclosures are clearly a part of the market now,” said Blitzer.  He added that the national index price trends tend to be more moderate because they encompass many more exurban and rural areas, where, in many cases, home prices never skyrocketed as they did in some of the hotter, urban markets.  From the foreclosure prevention efforts, many mortgage lenders are providing loan modifications plans to delinquent homeowners.  Read Complete article at CNNMoney.com

In a recent article written by Bryan Dornan, he reflects on the subprime mortgage problems starting in 2006 and brings us up to speed with FHA and the foreclosure crisis.  Dornan points out how the media is giving the mortgage lending banks like Countrywide, Chase and Wamu a pass with the FHA loan guidelines that have been tightened to the point of strangulation. 

The FHA mortgages were reborn in 2007 with new cash out requirements that enabled borrowers to qualify for cash out refinancing up to 95%.  In an effort to curb foreclosures HUD introduced the FHA Secure refinance that enabled borrowers who were paralyzed with a high rate adjustable mortgage to lock into a fixed rate loan that they could afford.  The homeowners that had enough equity began utilizing FHA home loans for debt consolidation and home improvement funding.  In 2008, Congress finally passed an economic bill that mandated FHA mortgage loan amounts to increase nationally.  

FHA recently introduced the H4H that is considered a “short refinance” because it is a mortgage loan modification endorsed by FHA.  

Read the complete article Loan modifications, FHA Refinancing and No Hope for Homeowners.

The Federal Reserve’s board of governors on Sunday approved Wells Fargo’s $11.7 billion purchase of Wachovia, removing the last key regulatory hurdle for the deal.  On Friday, federal antitrust regulators backed the acquisition by San Francisco-based Wells Fargo of Wachovia.

Citigroup had initially offered to buy the Charlotte, North Carolina-based bank for $2.1 billion in a deal brokered by the Federal Deposit Insurance Corp. Days later, the board of Wells Fargo agreed to an all-stock offer worth $11.7 billion.  Citigroup walked away from the deal on Thursday, but is still seeking $60 billion in damages for breach of contract.

The Federal Reserve released a statement announcing the approval of the deal, which includes Wachovia’s banking business and all other units. Wachovia shareholders must now approve the deal.  Wells Fargo provides stability and liquidity that is needed for these difficult economic times.  The popular Wells Fargo mortgage products include the FHA mortgage, conventional home loans, VA loans and home equity loans.  Refinancing and purchase mortgage loans are available for qualified borrowers.