Reader question: “We were denied for a mortgage loan because the lender’s underwriter said we had too much debt based on our annual income, or something to that effect. But I still feel like we are strong borrowers by all accounts. We’ve never missed a payment on anything in over a decade. I’m just wondering, […]
Reader Question: “My brother pays private mortgage insurance (PMI) on his home loan. He said everybody who makes a smaller down payment has to pay for this extra cost. Is this true? Why is PMI required on certain types of loans but not on others? Have the private mortgage insurance rules changed for 2014, or […]
Reader question: “Most of what I read online says I need to have at least two years of employment and income to qualify for a mortgage loan these days. I had a gap in my employment about a year ago, due to a career transition. Will this hurt my chances of getting approved for a […]
Reader question: “We have been saving up to buy a house for quite some time. As a result, we might actually be able to put 20% down on our mortgage. I’m just wondering if it makes sense to do this. I’m sure there are both pros and cons to consider. Should I put 20% down […]
From the borrower’s perspective, underwriting is the most important part of the mortgage process. This is when the underwriter reviews the loan file to see if it meets the lender’s minimum requirements. Here are some of the common problems that can arise during underwriting.
When you apply for a home loan, whether for purchasing or refinancing, there’s a good chance you’ll have to pay an origination fee. Lenders and brokers charge these fees to cover some of their operating costs, and also to generate a profit. Here’s what you need to know about it.
This article explains the various types of home loans that will be available to borrowers in 2014. It has been fully updated to include the latest products, programs and lending rules. It covers fixed-rate mortgages, ARMs, FHA, conventional, the QM rule and more.
How do lenders determine mortgage rates? They typically start with a baseline or default price, and then apply mark-ups based on various risk factors. Credit scores are one example of a risk indicator. The lower your score, the more interest they will charge you. Down payments and debt ratios also play a role.
Fixed versus adjustable. PITI. Discount points. LIBOR. COFI. These are just a few of the mortgage-related concepts that leave first-time home buyers scratching their heads. In this tutorial, you’ll learn how these things are related, and how they affect the total amount of interest you’ll pay on your loan.
Reader question: “We are planning to buy a house sometime during the first part of 2014. It’s been years since I’ve been through the mortgage process. I’m wondering what the advantages are to using a mortgage broker when shopping for a loan, as opposed to going straight to a bank lender. From what I’ve read, […]