Sara asked:


I am in the process of buying my 1st home. What I dont understand is that the mortgage company is charging more interest than the borrowing amount but the interest rate is what I see advertised everywhere in my area?? When I calculate the interest on the loan it is completely different from what they are telling me. Is it normal to pay more interest on a home loan?? Or what is normal?
Right now if I go with this loan it is like I am paying for two houses or an amount that I would have never considered on a home before because it would seem out of my range. I dont get all this so any help is very much appreciated. I would love to think I am making a good choice if it is…..I really like this home.

ARRON

Jayson asked:


The term ‘reverse mortgage loan’ is not particularly descriptive of the kind of financing involved. It implies that the homeowner is lending money to the mortgage company.

With a regular mortgage, the usual pattern works like this: the total price of a property is $100,000. Of this amount, let’s say $10,000 (10%) is put down by the prospective homeowner - the other $90,000 is supplied by a bank or other financial institution. Then, over a period of 15 to 40 years (depending on the loan term), the homeowner pays back the $90,000 in regular monthly payments including interest.

With a reverse mortgage loan, a homeowner with equity in their home or who has paid off their existing mortgage, requests a cash sum from a lending institution. The big difference from a regular mortgage is that there are no monthly payments involved. In fact, there are no payments during the homeowner’s lifetime; the total loan amount is paid back only upon the death of the homeowner. This amount will also include interest accrued over the lifetime of the loan.

There are several ways in which the homeowner can enjoy the benefits of a reverse home loan. He or she can take out a single lump sum in cash, or alternatively, a regular monthly cash advance. Another option is to use the available loan as a line of credit and use it as needed; a homeowner could also choose to combine some of the options above.

Reverse mortgage loans can be of particular help to many older Americans who may be poor in terms of available savings or monthly income, but who are wealthy in terms of the equity that has built up over the years on their real estate property. For example, if a person is retired and purchased their house 30 years ago for $10,000, they have paid off their mortgage and the house is now valued at $100,000. They could take out a reverse home loan and have access to much of that equity, with no monthly payments.

Therefore, unlike a regular mortgage, with a reverse mortgage, such things as credit score and income are not particularly relevant as there are no monthly payments involved. Obviously, these loans are generally made to senior citizens who can use the equity in their home to help finance them on a monthly basis, or perhaps to pay off their medical bills, or maybe even to travel the world.

These reverse mortgage loans are usually tax-free and are officially known as ‘Home Equity Conversion Mortgages’ or HECMs. They are backed by HUD (The Department of Housing and Urban Development). This kind of loan can also be obtained from private institutions such as banks and many other mortgage lenders, who are not backed by HUD.



HARRIS

boricua_2290 asked:


my husband brother in law sign a document for a home, my husband did sign the first loan, but then the deal with the business home group went bad for them and they decided to refinance but this time without telling my husband, in the new loan documents it says that whoever sign the borrower wich is my husband show proper ID and this is a lie because my husband didnt sign anything this time.. the borrower had 11 thousand dollars at closing wich is another lie we didnt get any money.. can we go after this loan mortgage company? should have they check to see if the person who sign the documents was really my husband? when the documents says that the borrrower showed proper ID only it wasn’t my husband who sign? do we hve acase of forgery? do we have a case at all?

ELOY

Becky asked:


We currently have a home loan on our house, but we just sold. We just recently got an excellent locked-in rate that we hate to give up but we have to move. We found a house and want to put in an offer today. Thing is, with the previous ARM loans we had, we almost got foreclosed on (we pushed on through and never did) and now our credit is not as great as it once was. In a perfect world, we could just use our same mortgage company and they could just “transfer” our loan from one house to the other. In reality, can this happen? Or can something similar happen? My husband was reading about loans, but the brokers use all these words that make no sense to real people and he doesn’t want to get screwed in the end. Anyone know the best way to go in this situation? Any advice at all is much appreciated! Oh, and a loan on the house we want would be a bit lower than our current loan, if that helps.

CODY

hopeful77 asked:


My mortgagecompany issued me a moratorium for 4months (postponed payments)due to hurricane Wilma. This Hurricane displaced us for a couple of months and caused an extreme Financial hardship. The mortgage company(Wells Fargo Home mortgage) has on their records that they will not report any late payments and/or there will be no negative credit reporting.However, after i sent the payments and checked my credit report they indeed reported 120 days late payments to the major credit bureaus. When i talk to the represenatives they indeed see the notes about not repoting late to the credit bureau and even waived every late charge,but are adamant about not removing the negative reporting. I was a loyal consumer and my lateness was due to “acts of Nature” beyond my control. Initially the moratorium helped our family, but in the end it has really hurt my credit worthiness. I am having difficulty securing another home loan (sold previous property)because of the negative reporting. What can I do?

EMANUEL

Tacity asked:


My husband and I are in our 30s. We have a mortgage that is unbearable but we have manage to make the payment for the three years that we have had the home on-time. Our employment status has changed and my husband is the only one working. Our home value is less than the balance we have. We have good credit. Is there a loan program that can help us reduce our payment/rate? Our rate is currently at 11%. Are there any programs for minorities? Lastly, our mortgage is with HFC and they are dissolving but there mother company is HSBC. I called them re: the President’s Home Affordability Plan that was announced on 3/2/09. Per the website, I should qualify, but HFC said that they did not have any info on this yet and I would have to wait but it looks like I would not qualify. That does not seem right.
I hope this makes sense.
I would greatly appreciate some real help.
we purchased the house for 143,900 now the house is worth 135,000 and our loan balance is 151,000.

ARMAND

Tell It Like it is asked:


Buying my first home and want a quality loan. Whats a good mortgage loan company thats a larger chain GMAC, Countrywide? I dont want a surprises during my loan are fixed loans better? Have good credit

JEFF

hopeful77 asked:


My mortgagecompany issued me a moratorium for 4months (postponed payments)due to hurricane Wilma. This Hurricane displaced us for a couple of months and caused an extreme Financial hardship. The mortgage company(Wells Fargo Home mortgage) has on their records that they will not report any late payments and/or there will be no negative credit reporting.However, after i sent the payments and checked my credit report they indeed reported 120 days late payments to the major credit bureaus. When i talk to the represenatives they indeed see the notes about not reporting late to the credit bureau and even waived every late charge,but are adamant about not removing the negative reporting. I was a loyal consumer and my lateness was due to “acts of Nature” beyond my control. Initially the moratorium helped our family, but in the end it has really hurt my credit worthiness. I am having difficulty securing another home loan (sold previous property)because of the negative reporting. What can I do?

ROBBIE

Peter H asked:


Can a Lender i.e. Mortgage Company enter my home without permission or written notice.

Our Lender for our Manufactured Home (currently trying to sell it) had winterized it and we were charged $150 for doing this. They clam they had to protect their assist since were were not living their.

We were keeping the utilities on and Heat going until we could winterize it ourself or get it sold.

I checked our papers on the loan and found their is nothing written about entering the home.

They did not write us to inform us they wanted to do this.

When we called them they said they could not reach us on the phone but could not tell us why they did not send letter.

I am thinking of reporting it as a Breaking and Entering since they refuse to admit they were in the wrong.

All we got was the run around and very rude representatives.
They did actually enter home. Left notice on wall inside.

They need to enter in order to winterize fully.

Other concern we noticed was a changed dead bolt that we didn’t use.

It is located in a Manufactured home park in Michigan and does not have basement.

JACOB

Out Snooped asked:


I am looking to purchase a bank owned home and I live in California. I have a credit score of 650 and I make about 40,000 a yr. I am looking to purchase a home but I am not sure what kind of loan is available to me as a first time home buyer. I have heard about alot of loans available but I’m not sure which ones are the most suitable for me. I am also not sure which lender or mortgage company to go with? Any ideas would help!

JASON