Debbie V asked:


What Happen with the Senate mortgage rescue plan? was that a new plan create for first time home buyer’s?

I’m getting ready to buy my first home I was pre-approve for a FHA loan of 180k do you think any of this will affect me.
I have a good job and the 3% down, and my credit score is 710

Jessie

Carrie Reeder asked:




A jumbo mortgage is different than a conforming loan. A jumbo loan amount exceeds that limit set by FNMA. That limit can change every year, but is around $300,000. With a jumbo mortgage, the interest rate is a little higher than other similar mortgage loans that are for smaller amounts. The reason the rate is higher is because the loan has a perceived higher risk by lenders.

A jumbo loan is considered a non-conforming loan. Conforming mortgage loan programs have perceived less risk by lenders and have lower interest rates. Most mortgage loans that are done by lenders are conforming loans. Jumbo loans are a small percentage of the mortgages that are done.

Although most mortgage loans that are done in the US, are smaller loan amounts than those limits set by Fannie Mae and Freddie Mac for jumbo loans, in California, home prices are so high, that there are many jumbo home loans done there.

If you live in California and/or are looking to get approved for a jumbo loan, the internet is a great place to apply to get a jumbo loan for a few reasons. First of which is that there are so many lenders online competing for your business, that lenders are forced to offer their lowest possible rates in order to get your business. For example, a local broker, who has a steady client base, may not be motivated to offer the lowest rate or the lowest closing costs, when the competition is only local. However, when you have the largest group of lenders online competing for your business, you can get a much better offer.

Where is the best place to apply for a jumbo loan? There are many mortgages companies online who can provide you quotes from multiple lenders. These companies will be able to provide you with quotes for usually up to 4 different lenders. This is a great way to make sure to get competitive offers. However, make sure you still ask each competing mortgage lender about the points they will charge, their closing costs and any other fees, to make sure you are getting the best loan you can.

Getting the lowest interest rate does not always make the loan you want, the best deal. The lender can charge more in other places that you might not catch until closing.

To view our list of recommended lenders online for jumbo loans, visit this page: Recommended
Jumbo Mortgage Loan Lenders Online.

Zachary

William Chesney asked:




With a view to lend a helping hand to those people having problems with mortgage repayments, Obama’s government has come up with special home refinance and loan modification programs. These programs mainly aim at helping the destitute. Due to recession and other economical crunches, many home loan borrowers are unable to repay their mortgage loans promptly. In such a scenario, this special package offered by the government provides relief to about 9 million struggling mortgages.

This package includes two main key components:

Home Refinancing Loan modification

Let us look at each of these components in detail:

Home Refinancing: allows two major players Fannie Mae and Freddie Mac to refinance all those borrowers whose balance outstanding is more than the true value of the property. However, borrowers need to fulfil a clause to be eligible for this program. The mortgage loan procured by them should be guaranteed by these agencies. On the other hand if you have the financial ability to pay the excess amount due, you would be entitled for this option.

But this program is only applicable to those properties that are being used for residential purpose. Any unoccupied property would not get qualified under this program.

Loan Modification: In order to encourage and promote this program on a large scale, Obama government has announced special incentives to lenders modifying loans. The main aim of this program is to help homeowners avoid foreclosures.

How does home loan modification work? Loan modification cuts down the rate of interest up to 2% on the existing loan, increase the repayment period which would in turn reduce the monthly EMI to be paid towards this loan. And most importantly all the penal charges and late fee are waived off.

Mortgage modification also allows lenders to have control over the total payments made by the borrower. In no case, the lender would be able to increase the liabilities of borrower more than 31%.

Yolanda