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I dont want to get scammed into taking a mortgage I dont need. Can a mortgage expert enlighten me on mortgages. i would also like to hear the laymans views as well. How many types are out there; Pros and cons. I just heard of an inerest only but the only sense I can make from it is that there is no principal on the loan. Does that mean I would have to take another mortgage on the principal. What a balloon mortgage? Sounds like something that would blow up if I’m not careful. Once I decide on the mortgage that would best suite me do I then look for a bank. I dont want 5 different bank looking into my credit report. Can I run my own and hand each one a copy? What are the pros and con of using a bank instead of a mortgage boker and vice versa.

Ok first off:

What is your main reason for wanting to refinance?

There are litereally hundreds of loan programs on the market today. Some are horrible for one person and the best for another.

Interest only loans are great if you want to keep your monthly obligation to your mortgage payment at a minimum. However if you simply make the required monthly payment nothing goes to principle. But you can always make additional payment to the principle.

You can run a copy of your credit at www.annualcreditreport.com this is the website the FTC recommends to use for a free credit report. However when you do go to apply, the lending institution will still need to run your credit.

A balloon mortgage is a loan amortized over say 30 years but the balanced is owed say in 15 years. So if you refinance before the 15 years is up you would not need to pay off the loan on the 15 year. These are usually for 2nd mortgages or people with bad credit.

Across the nation, it has been proven that Mortgage Brokers have an average interest rate & fees that are less then Banks (because they are more competitive. So I would recommend using a licensed agent at a broker’s office. Make sure the loan agent/officer is licensed!

If you live in California, I am a licensed Loan Officer and I would be happy to show you your options.

The best thing for any loan officer to do for you is find out what your future plans are for the property as well as future financial goals, then customize a loan program to meet those goals & needs.

And is that a good idea? If we found a cheap, pretty good condition mobile home in a park and then found a nice piece of land to move it to, would that be cost effective? Would having two mortgages be bad? I know we need to get a real estate agent but in the meantime I’m just exploring options. Thx for any help.

Another factor of consideration will be how many times this mobile home has been moved.

Some lenders only allow a certain number of moves for a mobile home as each time it is moved, the structural integrity is compromised. FHA used to allow only 2 or 3 moves (I can’t remember). From factory, to dealer site, to home site.

Also, your mobile home loan (personal property) is likely to be at a higher interest rate and a lower number of years that it is amortized over. (20 years as opposed to 30 years) It might be better to do a mobile land package, especially if you are also needing to finance set up costs.

If you pursue this, make the purchase of each "subject to" the other. Then you will not be legally contracted to buy one without the other.

What is permitted and what is not permitted for advertising first and second mortgages? Is there a diffreence?
According to RESPA, what type of advertising is permitted for first and second mortgages? Is there a difference?

There is no difference. They can advertise however they want. What is controlled is not the advertising, but rather the disclosuers that must be made by the various parties involved in selling a home.
RESPA is about closing costs and settlement procedures. RESPA requires that consumers receive disclosures at various times in the transaction and outlaws kickbacks that increase the cost of settlement services. RESPA is a HUD consumer protection statute designed to help homebuyers be better shoppers in the home buying process, and is enforced by HUD.

Last night on "60 Minutes," the reporter stated that one guy made a lot of money on failing securitizations of mortgages b/c he realized that if just a few mortgages failed, the whole security would be worthless. This is one part of the financial mess I never quite understood–or if I did, I’ve forgotten the explanation.

TIA

It depends on the mix of mortgages and the details of the financial bond that put them together as a security.

First, "a few" is relative. Most mortgage securitizations were done with the very old fashioned idea that only 1% to 3% of them would fail. A default rate of a mere 5% could be a disaster…let alone the 10% that is common now…or the horrors of the sub-prime mess in CA, FL, & NV with default rates often exceeding 50%.

Second, the simple answer is that these securities are sold in groups — segments or tranches — buy the wrong one and you own all, or most, of the defaults.

Third, depending on structure of the bond particular events can "blow up" the whole bond. For example, the bankruptcy of Lehman Bros triggered special language in many bonds underwritten or originated by that firm. Default rate above specific rates can trigger clauses that give senior ("better") tranches of the bond the rights to any and all monies recovered by all tranches. Etc.

Finally, you should keep in mind who was "suppose to" hold these securities and why. As a simple example, for an investor who buys a security for steady, predictable income at a specific rate and amount, a bond that does something entirely different (like paying nothing for 3 years and then paying out half as much for less than half the time) might as well be worthless.

A friend of mine is in a situation where she has two mortgages on two different properties, one is her primary residence, and the other is an investment property. She is about to lose the investment property to foreclosure. She is scared that this might affect her mortgage/ownership of her primary property. Can it be legally taken away from her if she defaults on one of her mortgages?
I don’t think this could happen, but then again, I’ve never heard of anybody in this situation before.

It will not have any affect on her other mortgage, however it can be a problem, Heres how:
The foreclosed property will be auctioned off. If the proceeds of the auction do not cover the amount of the original mortgage, the mortgage holder can place a lien on the other property after getting a judgement, for the outstanding balance. That lien will remain in place until she sells the property, at which point she will have to pay off the first mortgage, then the lien.
If the mortgage compnay is owed additional monies, and doesnt place a lien (writes off the balance), then the mortgage company will report that amount to the IRS as ‘forgiveness’, and she will be responsible to pay taxes on it as if it were income.

My boyfriend is changing careers and going into selling mortgages. What are some gifts I could get him for Christmas that would help him out or make the job easier?

Transportation-Car;Cell Phone,Nice suit ( Coat and Pant -nice shirt and tie with a tie pin.)Nice shoes ( preferably Black Bostonian).You can buy him out of those if you can,Or buy him a shaving set,so before he goes to office and do the shaving he will remember you for your gift.And if you wanted to be cheap than buy a shoe polish-shoe color and shoe shine brush.Or a Nice Parker or a Shaffer pen. With an Appointment book with a address book.A pocket calculator ( from Texas Instruments) for calculating mortgage.So as a Christmas gift buy for your BF whichever you can afford it.

I pay my mortgage. Why should I pay his deadbeat welfare class supporters mortgages when they don’t have a job and live in a bigger house than me?

cause we have to help out our fellow man is it their fault truly that the mortgage companies preyed on them and got them in over their head with their mortgages is it their fault that they live well beyond their means come on now lets all hold hands and sing lets give the world a smile…lol now that is a freakin dream …hell no we shouldnt pay their mortgages…they live within their means like the rest of us or they dont get to keep their house..end of story

It seems like this would be challanged (sucessfully) in court since the laws when the contract was signed didnt allow modification. I can understand how they could mandate that future mortgages are capable of being modified but not those already written… seems kinda like ex post facto.

1. Ex post facto means that Congress is prohibited from making a law retroactively punitive. i.e. Congress couldn’t pass a law saying that drinking is illegal again and punish people who drank before the law went into effect. It affects criminal statutes only.

2. Congress is just being Congress. They know there is a large likelyhood that this can be overturned. They just want to tell peopl that they tried.

I want to refinance my home for a 40 or 45 year mortgage. What are the avantages and disavantages of this type of mortgages?
Thanks

Mortgages are simply a payment schedule that takes into account the interest rate on your outstanding loan. The longer the mortgage, the longer you are borrowing money, the more interest you will have to pay on the loan. You will also take longer to build the equity in your house (the amount of principal that you pay down every month). While a lower monthly payment is usually the case with a longer mortgage, it also has a higher interest rate, so you are actually paying more when it is all done and told. Take out a 30 year fixed if you can afford it.

Say you only qualify for a $75,000 mortgage loan, but the house you want is $150,000, so you have two mortgages for the same amount each, on the same property. Would you have to have good credit for this to work? Or could you have fair/poor credit and they would just give you higher interests rates?

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