NLIC.org

Ricky Said:

Will mortgage lenders penalise someone who has a small / no deposit by only offering a higher interest rate?

We Answered:

No, it depends upon their credit history.
There are 3 categories
1.Sub prime (very bad credit history)
2. Near Prime (not bad)
3. prime (very good)
So, sub prime customers get very high interest rate to avoid risk involved in lending.
This is how it is calculated

Patsy Said:

What is the lowest credit rating most lenders require to get the best rate on an owner-occupied mortgage loan?

We Answered:

Right now you will probably need to have a minimum of a 680 mid score with a 20% down payment to get the best rate on an owner occ mortgage. There has been quite a increase in foreclosures and a large decline of lenders in the subprime market. recently. All lenders have tightened up their requirements for % of LTV, credit score, debit to income, everything. The wave has not stopped yet.

You may see more tightening of terms and these are changing almost daily. One real positive thing is that interest rates are still at all time lows. Conventional and FHA loans are still excellent fixed rates for buyers.

Make sure you deal with a reputable loan officer and get all information in writing.

Kelly Said:

As a standard rule of thumb for most mortgage lenders, what is the interest rate differentiation between..?

We Answered:

A regular mortgage i.e. full documented loan is going to give you the best interest rate. No Income No Asset loan is slightly higher risk and No Documentation loan is the highest risk loan for a bank or mortgage broker. A full documented loan based on good credit (700+) should get you an interest rate around 6.375%-6.875%. Keep in mind that's a 30 year fixed and an ARM (adjustable rate mortgage) would be slightly less but the interest rate is not locked for 30 years. A NINA or No Doc loan is going to be significantly higher based on the risk factor involved. You could be looking around 1%-2% higher interest rate. I recommend contacting a mortgage broker or mortgage banker as they have hundreds of lenders who will compete for your business from the mortgage broker and a mortgage banker can finance the loan themselves. If you are unsure of the difference between the two, visit my website and it will explain the benefits of both. I hope this helps you but if you have any further questions or need some help please feel free to contact me. www.dantadgerson.com