NLIC.org

Jane Said:

A question for mortgage brokers regarding home equity?

We Answered:

Sure you can take out equity lines to buy other properties, but there are various restrictions that will hold you back. First off you can usually only get about 80% of the appraised value of the place where you are taking out the line. You could probably get a new mortgage that goes to 100% but you'll have to pay lots of fees to refinance and also need to pay PMI. Also, typically the bank will make you wait a few years (2 I think) until you can take out equity above your purchase price, even if the place appraises for more (ie you bought the place for 300k 1 year ago, loan is 200K, it appraises for 400K - bank will let you borrow 80% of the 300K or refinance based on the 300K number, not based on the 400K - since you have owned the palce less than 2 yrs).

So, in general you can do this but the bank will limit this. They limit this to reduce their exposure and because they've been burned by bad appraisals in the past.

Best luck.

Caroline Said:

What piece of legislation forced mortgage brokers to do thinks like sell a $400,000 home to people who could?

We Answered:

The Housing Act (from 1994!!!) DIDN'T force any bank to make sub-prime loans, in fact sub-prime loans are not mentioned anywhere in the Housing Act.
They were an invention of the Banks, whose internernal memos claimed (there is NO risk in the Housing Market) and instructed its officers to start making loans to anybody and everybody even with no pay stubs, regardless of the price.
The Fannie Freddie talks were about TRYING TO GET THE BANKS TO STOP MAKING THESE LOANS!!!
THEY REFUSED!!!! And kept right on giving them AGAINST the advice of regulators.
The idea that Barney Frank had anything to do with this is just blatant right wing poppycock.

Leo Said:

RE Agents/Mortgage Brokers: home buying questions?

We Answered:

Have you tried NACA.org? They can give you some good tips and tell you how ready you are. It's a long process though and I personally didn't want to do it because I wanted to buy fast knowing how much I can afford and my downpayment. They offer low rates and tell you what you need as a couple. Also look into city sponsored first-time home buyer courses (Boston has homebuyer 101). You can ask questions in class or ask the instructor questions in private to get clarification.

As for your fiance not being a first-time homebuyer, if you are not married when you purchase, you can claim the tax credit (not him). But if you are married, neither of you gets it: http://www.federalhousingtaxcredit.com/2…

Not RE agent or broker but I thought you'd like to know that there are programs out there that can help. FHA mortgages are also another way to go. They allow a minimum of 3% down and offer rates in the 5% range. With a 200K purchase and not having more than 20% down, you are looking at $1,200 in mortgage payment, some $200 in taxes (assuming 2400/yr) and if you have a condo include the condo fees which would include master insurance, if you don't buy a condo then include you master insurance (assuming 2,000/yr) you'll also have PMI for about $100/month. That gets you to $1,600-$1,800. I bought for 200K with the same conditions. My monthly payment is $1,530.

My tools of choice.
- Redfin.com gives you an idea of what's around and the property taxes.
- Zillow.com gives you comparable stats
- Realtor.com (you can find listings as well as agents)
- Bankrates.com for searching mortgage rates, calculate monthly payments and finding banks.

Good luck!

Marvin Said:

How do first time home buyers with less than perfect credit get a loan? NO MORTGAGE BROKERS RESPOND , PLEASE!?

We Answered:

They could do it. Thereare loans out there called FHA (First Homeowners), Conventional loans, RD(Rural Development and other loans as well. Have them go to their bank or mortgage company and see what they can qualify for and the bank or mortgage company should be able to tell them what rate. Its best to get a Fixed rate rather than an adjustable because with an adjustable, the rate goes up depending on the market with the percentage rate. About the $142,000, there will have to be an appraisal also to make sure what the condo is worth, as well as closing costs.
My husband and I were able to purchase our first home when we got married 8 years ago with no money down. It is best to put some money down to make the monthly payment lower.

Johnny Said:

Should I mortgage a new home with the same brokers that are selling it?

We Answered:

It is perfectly fine to use the mortgage end of the company that is brokering it. Just make sure they follow whatever state mandated disclosure is required, which, in your case appears to have already been done.

Some people will chirp about a conflict of interest but I disagree. It is perfectly legal, and if the people are, in your judgement trustworthy professionals you ought to be fine.

There is no cost savings if you use the mortgage company that owns it in my experience. The REO arm of the lender has little to do with their origination department. The rates are the rates, and the closing costs are the closing costs.

Good luck

Jesus Said:

Do mortgage brokers provide home insurance as well?

We Answered:

homeinsurance.awardspace.us - try this one. Got my home insurance from them. As I know they provide such a service.

Peter Said:

How do mortgage brokers and commercial banks differ in there charges for new home buyers?

We Answered:

Brokers normally have higher costs because they are only a middle man. Banks & mortgage bankers close with their own money so there is no middle man to pay. Therefore there is no added cost passed on to you.