Mortgage Sanity

Shopping for a new mortgage loan online can be confusing. There are so many companies competing and it’s difficult to tell which companies are legitimate and can really provide what they advertise.
Here are some things you can look for when you shop for a new mortgage loan on the internet:
1. Compare Rates - Before […]

If you are looking to buy a home, whether you have owned one in the past or not. The American dream of owning a home is still there, but it is becoming increasingly more difficult to get the financing needed to purchase a home.

In order to buy a home today, it’s important to have […]

In the U.S., all VA and FHA mortgages are insured by the federal government. Other types of mortgages, however, typically require some sort of mortgage insurance from a private mortgage insurer if the loan exceeds 80% of the value of the property. In any case, the borrower is responsible for paying for the […]

The billboard or TV commercial reads, “cut thousands of dollars off of your mortgage by converting to a bi-weekly payment plan!” Sounds too good to be true, doesn’t it? Well, it’s actually mostly true. A bi-weekly mortgage payment plan restructures your payment schedule. Instead of the traditional, one-payment-a-month mortgage payment, you […]

The word “escrow” has several different meanings, many of the pertaining to real estate and other financial transactions. In this instance, we will be discussing “escrow” as the process of allowing the lender or a third party keep part of your monthly payment in an account and then use the money accumulated in that […]

Chances are, you’ve seen headlines on the newspaper, stories on TV or video clips and articles on the internet recently about the subprime mortgage “meltdown”. What exactly happened? And more importantly, how is it going to affect you if you were in the subprime mortgage market?
Subprime Market Boom
There had been a few rumors […]

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The Basics
If you accept your mortgage quote, it becomes the binding document that either means you keep your house or you lose it. If you break your mortgage and don’t pay your monthly payments, you will lose your home. But if you pay your mortgage on time or even ahead of schedule, it can be […]

First time homebuyers often wonder what a lender is going to look for when determining whether or not you qualify for a mortgage and how much you qualify for. Lenders have many different ways of classifying your loan scenario according to risk. You could be considered “Full Doc”. “Limited Doc”, “Lite Doc”, “Stated […]

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When you are in the process of looking for a mortgage, whether to purchase a home or re-finance an existing mortgage, you will most likely be working with either a mortgage broker or a loan officer working for a lender. So, what is the difference?

Loan Officer Vs. Mortgage Broker 
Loan officers working directly for lenders […]

You may have noticed recently that more and more lenders are advertising loans with terms of 40 or even 50 years. The reason for the longer term is simply to stretch out the payments, and thus lower your monthly payment. You will certainly be paying more in interest, but that really only applies […]

In most cases, the answer is yes. Owner-carried financing, where the seller holds the primary mortgage, represents less than 5% of all mortgages. However, if you are having problems coming up with the difference between what the bank will lend you and the purchase price, ask your broker or agent (or seller even) […]

Lenders have been introducing more and more loan products recently to attract buyers by giving them more purchasing power. The traditional mortgage, whether fixed or adjustable, has a term of 30 years. Many other terms (5, 10, 15, 20, 25 years, etc.) are available, but when comparing lender quotes, a 30 year term is […]

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There are several factors that contribute to the final interest rate offered to you on your mortgage. Here are the main components that contribute to your interest rate.
Loan-to-Value Ratio
This is the amount of money a lender will allow you to borrow relative to the value or sales price of your home, expressed as a percentage. […]

We Recommend 2nd Mortgage Lenders Who Can Give You:
• Up To 4 Loan Offers
• Some of the Lowest Interest Rates Available
• Safe & Secure Applications Online
We have researched some of the most reputable mortgage lenders online and provide a list of the most popular mortgage companies to apply with for competitive rates and terms.
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We Recommend Home Purchase Lenders Who Offer:
• Up To 4 Competing Loan Offers
• Some of the Lowest Interest Rates Available
• Safe, Secure Applications
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When seeking a new home purchase loan, it is wise to pull a copy of your credit report and make sure that your credit does not contain any errors. You will want your […]

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Obtaining approval for a mortgage loan with an interest rate of Prime is actually not difficult. In today’s economy, bank interest rates are at an all-time low, and those applicants with who meet the criteria for the best possible programs are actually getting rates well below Prime. Currently, the Prime interest rate is […]

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A Buy-To-Let mortgage is a special type of mortgage loan that is not intended to go toward purchasing a primary residence; instead, the proceeds of such a loan are used to buy rental properties. Although there are a significant number of lenders who have programs available for this market, that number is still drastically […]

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A Discount Second Mortgage is a type of contract that has a lower “introductory” interest rate for a specified period of time. This concept is extremely similar to the credit card solicitations that consumers receive in the mail all the time, where the credit card company is attempting to entice the consumer to apply […]

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Over the past decade, real estate investing has increased dramatically in popularity as consumers have realized the power and income potential that comes with owning multiple properties. The number of lenders that offer mortgages for investment properties has also risen steadily over the same period, simply because the demand for such financing was increasing […]

We recommend lenders that provide:
• Up To 4 Competing Offers
• Some of the Lowest Interest Rates Available
• Quick Applications
• No Credit Check
• Safe, Secure Applications
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FHA loans are loans that are insured by the federal government. FHA loans are usually sought after by 1st time home buyers that may not have a lot of […]

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Owning property has countless benefits, and perhaps one of the most powerful is the simple fact that you are the legitimate owner of a tangible item that is potentially worth hundreds of thousands of dollars. This one simple fact is commonly the primary factor that will assist an individual in obtaining additional credit financing. […]

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What is it?
There is a notable difference between a mortgage pre-qualification and a mortgage pre-approval, and it is important to understand these differences so that a potential home buyer is not misled or confused. Very simply, a mortgage pre-qualification indicates that a buyer initially appears to meet the lender’s criteria for funding. This […]

What exactly is PMI?
PMI stands for Private Mortgage Insurance. It is a type of insurance policy that’s required by lenders during the time that the outstanding mortgage loan balance is greater than 80% of the home’s appraised value. This insurance policy provides no benefit to the home owner because it is intended only […]

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A “Stand Alone Second Mortgage” is a generic term for any type of additional mortgage loan on a property that is not used for the specific purpose of initially buying the property (often referred to as a Piggy Back loan). These additional loans are most often used by the home owner for personal consumer […]

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Mortgage lenders typically have several requirements that are necessary before an approval can be issued to an applicant. The lender needs to analyze the borrower’s complete situation to determine their level of risk, and the appropriate interest rate to accompany such risk. There is standard paperwork and several documents that lenders request from […]

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What is it?
What’s considered acceptable and appropriate is very different for everybody, therefore this question does not have a simple answer. However, there are some important aspects of this scenario that should be considered by all potential borrowers before they sign on the dotted line.
Very simply, a no-closing-cost-mortgage is one into which […]

In today’s competitive housing market, you need to be creative if you want to get a buyer’s attention. The following tips offer 50 different things you can do to sell your home quickly and for more money.
1. Time the Sale
Although it can vary by city and region, the peak home selling season usually begins […]

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Although the majority of today’s mortgage lenders are honest and reputable, there are still some unscrupulous individuals out there who will do whatever they can to separate you from your money. Even among good institutions, the loan that’s offered may not always be the best one for you; and though legal, it could actually […]

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One of the best things about applying for a mortgage loan online is that you can find many leading lenders that provide multiple, competing loan offers for one application. You can quickly compare lenders’ offers and do all of this with no obligation to commit to any one lender.
Whether you are looking to refinance, […]

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1. Number of open credit accounts - Lenders always look at the number of open lines of credit that an applicant has, and analyze this information to determine the potential risk they face. Their computer software is able to calculate the remaining available balances on those open lines, as well as the likely minimum payment […]

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The definition of a “Jumbo Mortgage” is a mortgage loan whose total amount is higher than the standard conventional limits.  Of course, with the ever-increasing cost of real estate in our country, it is becoming more and more difficult for consumers to purchase homes that are below this threshold.  This is also not to mention […]

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Lease Purchase Agreement - What is it and How Does It Work?
A Lease Purchase Agreement is a contract between the owner of a property and a potential purchaser of that same property, wherein the purchaser is permitted to live in the property as a renter for a period of time before actually buying it. […]

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There is no real or definite way to guarantee that you’ve gotten the best possible interest rate on your mortgage. There is no database or website that is available that will show the general consumer a report or grid of each company’s offerings and the interest rates associated with their various programs. At […]

The variables effecting interest rates in general are too numerous to list, mostly due to the fact that there are so many different types of accounts, products, and scenarios that have an interest rate attached to them. However, there are a few factors in common that affect all interest rates, regardless of the type […]

The number of loan programs that any particular mortgage broker will have at his disposal will depend entirely on the number of relationships he has with lenders, as well as the quality of his relationships with such institutions. Some brokers only have a few key lenders who they work with on a consistent basis, […]

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How long after my bankruptcy is discharged do I have to wait to get a mortgage? - Typically, the majority of lenders refuse to consider an application from someone who has had a bankruptcy within the preivous two years. However, more and more lenders are beginning to consider applications from people who have had […]

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The two riskiest types of mortgages a borrower can get are Balloons or Interest-Only loans. With both of these loan types, the lender is given a short period of time where payments are very low and easier to afford. However, the interest-only loans also contain provisions that permit the lender to significantly increase […]

Without a doubt, the “safest” type of mortgage to get would be a 30-year fixed rate loan. This type of loan leaves the borrower with nothing to question and no concerns about rising interest rates or rising payments. The borrower’s monthly loan payment minimum is static for the entire duration of the mortgage, […]

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There is no “one size fits all” answer to this question. Since every borrower’s situation is different, the appropriateness of an Interest-Only loan must be evaluated on a case-by-case basis.
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For the average borrower, however, an Interest-Only loan is probably not a great idea. Most borrowers are looking for nothing other than […]

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Typically, ARM’s and Interest-Only loans are the ones that have the greatest possibility of leaving the borrower upside down. To fully understand this danger, one must first comprehend what it means to be upside down on a mortgage. Very simply, the term describes a situation where the borrower actually owes more money in […]

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For borrowers who qualify for these loans, there is very little difference that directly effects the borrower either during the application phase or after the loan disbursement. The significant difference is that both organizations, the Veterans Administration (VA) and the Federal Housing Administration (FHA), will provide insurance on these loans to protect the lender […]

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A significantly larger portion of mortgages over the past several years have been ARM’s than in previous periods, and this is largely due to the dramatically lower interest rates and availability of financing for real estate purchases.

The ARM is an attractive alternative to those individuals with income that is just short of what […]

Yes, there are still a significant number of balloon mortgages issued every year in the United States. The reason you’ve probably never encountered one is because they are more commonly used to finance commercial real estate, and are rarely used when borrowers are purchasing homes.
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Balloon Mortgages are Extremely Risky 
Balloon mortgages are an extremely risky […]

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Probably not. Of course, the term “bad credit” is subjective and means something different to every person and every company, therefore, there is no clear-cut or consistent description. However, using generally accepted principles and guidelines with respect to an applicant’s credit score and history, there are several basic assumptions that you can rest […]

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Foreseeable Increase in Income
No, ARM’s are not always a bad idea. In many instances, they are very appropriate. The most common example of an appropriate scenario is when the borrower has limited monthly cash available to make a mortgage payment, however there is a clear and foreseeable expectation that monthly resources will […]

This question is not easy to answer because there is no set or regulated standard for arranging mortgage broker compensation. Mortgage brokers can technically charge whatever they want to, but of course with the significant amount of competition that exists today they are more likely to charge less.
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Broker Compensation is Variable 
Mortgage brokers are compensated […]

Without resources and experience in the realm of lending legislation, the answer to this question is almost impossible for the average borrower to answer. If the borrower had the time, energy, and know-how to conduct his own research into his own state’s current laws regarding loans and mortgages, then it is definitely possible to […]

A lender is the company that will provide the financing for the purchase of a property. Ultimately, this is the company who will pay for the house you’re buying, and you will in turn pay them back on a monthly basis per the terms of your mortgage contract. A broker, on the other […]

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Yes. The borrower has the freedom to choose either an independent mortgage broker or to go directly to the loan provider. Obviously, there are pros and cons to either decision, but there is indeed no “right or wrong” in this case. Ultimately, the decision should be made by the borrower using reliable […]

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Since everyone’s definition of “good” is different, there is no definitive way to decide whether or not your broker is good. With that being considered, however, there are some things that all mortgage brokers should do when working with their clients that are to be considered minimum acceptable standards.
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Regardless of the other, […]