Why is Mortgage Underwriting So Crazy?
Posted On: January 25th, 2012 by James Posted In: Financial Health • Government Actions • Mortgage Programs • Mortgage Rates • Mortgages • Refinancing
Why is the loan approval process so difficult these days? Well, the answer is complicated. The truth is that the approval and funding process for a conforming, FHA, or VA, government insured mortgage has never been more complex since I’ve been in the business (since 2003). To get to the root of this issue we need to get into the way-back machine and go back to the year 2004.
This is the year of the ascendancy of the sub-prime mortgage industry. These companies realized that there was a HUGE appetite for AAA rated mortgage backed securities. So they began Continue Reading – Why is Mortgage Underwriting So Crazy?
Is it Possible to Buy Real Estate with Less Than 20% Down?
Posted On: October 28th, 2011 by James Posted In: FHA Mortgage • Financial Health • Government Actions • Mortgage Insurance • Mortgage Programs • Mortgages
A realtor colleague of mine was recently relating his shock to me about how often he is talking to renters who aren’t considering buying real estate because they are under the impression that a purchase requires a 20% down payment. This idea couldn’t be further from the truth, and this message is sadly often relayed on TV from uninformed talking heads and people who are obviously not real estate professionals. I’m here to tell you the truth, dear blog reader! Isn’t that why you read blogs?!
The truth is that just about every borrower in the market could qualify to put less than 20% down if they chose to. The FHA loan is one of the easiest loans to qualify for and it isn’t just for first time home buyers, nor is there an income cap on this program… and it only requires a 3.5% down payment, but I digress… let me break this down for you in internet-friendly bullet point fashion. Continue Reading – Is it Possible to Buy Real Estate with Less Than 20% Down?
How Does the Debt Ceiling Affect Mortgage Rates?
Posted On: July 28th, 2011 by James Posted In: Financial Health • Government Actions • Mortgage Rates • Mortgages
This debate is unavoidable, so I won’t try to establish any context for this blog post. I’ll just try to keep this very simple for those of you who are searching for some quick perspective on how this current debt ceiling debate might impact residential mortgage rates and fees.
***DISCLAIMER*** I am not an economist. I have 9 years of mortgage lending experience and a Bachelors degree in communications from NC State University (Go Wolfpack).
Mortgage rates are directly derived from FNMA mortgage bond offerings. This bond is sold just like any other bond, and competes with other municipal and corporate bond offerings. The yield of this bond changes from day to day. When the overall economy is “good,” this yield generally comes UP to attract Continue Reading – How Does the Debt Ceiling Affect Mortgage Rates?
How to save your money: Webinar invitation
Posted On: July 22nd, 2011 by James Posted In: Financial Health
“Establishing your cash reserve: the first step to financial safety”
Join James Adair from Portland Home Loan for a Webinar on July 28: 12:15-12:50 (during your lunch hour)
Space is limited.
Reserve your Webinar seat now at:
YES! I WOULD LIKE TO REGISTER FOR THE WEBINAR
What exactly will we discuss? Continue Reading – How to save your money: Webinar invitation
What To Do If You Are Underwater On Your House
Posted On: June 15th, 2011 by James Posted In: FHA Mortgage • Financial Health • Mortgages • Refinancing
Many of us are finding ourselves living in homes worth less than we paid to purchase them (myself included). Some of us purchased with a down payment, to find that equity we started with evaporating at what seems to be an alarming and relentless clip. Some of us purchased with little or no money down and feel stuck in a home that cannot be sold for what is owed on it. These are troubling times for the recent home owner – and many of us need more than a mortgage 101. But I’m here with a message of hope. I recently met with a young woman who purchased a home with zero down in 2007 for $225,000.00 and bought with a fixed rate INTEREST ONLY product (meaning: she still owes $225 against it). She wanted to see what a refinance would look like for her. I told her to Continue Reading – What To Do If You Are Underwater On Your House
