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My husband and I looking to buy a home and we are first time home buyers and going to look for single family home as a primary household. We don’t have much money at the moment saved up…with rent and 2 children it’s a little hard to save. We do have some money in savings and heard of 3 percent down mortgages What I want to know which banks offer this and what other cost are there attached to it besides closing costs
Hi CJ! 3% down payment mortgages are definitely available. The most flexible low down payment mortgage is an FHA mortgage. It’s also flexible when it comes to your credit.
First thing you need to do is speak with a reputable direct lender. They’ll ask you lots of questions – about income, assets, credit, payment you’re comfortable with – and be able to tell you how much home you can afford. Then you can start house hunting!
Feel free to contact me directly through my profile if you have any other questions. I’ll include some links for FHA and to mortgage pre-qualification calculators and payment calculators. Hope it helps – best of luck!
FDIC loan guarantees, Fannie & Fannie buys of Toxic mortgages, and the TARP is resulting in higher yields, wider GSE Debt spreads and higher mortgage rates, which are signs that The Great Credit Crunch remains in the third inning with that one-year rain delay. The TARP is now on the infield, but covering a swamp full of alligators. Crude oil has reached a $75 handle as I expected. A weekly close below $74.90 would be the first since October 2003. More bad loans are on the horizon: Credit Cards, Home Equity Loans, Commercial Real Estate and Construction & Development Loans are set for increasing defaults. We are entering a multi-year Bear Market and heading for Recession. To subscribe to my special report, �The Great Credit Crunch� and updates to Richard Suttmeier�s List of Problem Banks and new Richard Suttmeier�s List of TARP Banks, send an email to GMCReports@aol.com or to Support@ValuEngine.com.
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in value each. I am 2 months late in my 3 mortgages,my income is less because I was bump to part time.
what solution is best to me , Chapter 7 bankruptcy or try and pay the debts.?
I like to give constructive answers for the most part but sheesh man!
You should create a time machine, go back in time, and slap yourself in the face.
http://www.eurointelligence.com/article.581+M5b5ae837605.0.html
Medicare -
http://www.news-medical.net/news/20100301/Medicare-cuts-to-doctors-payments-go-into-effect-today.aspx
Volcker -
http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article7047420.ece
mortgages -
http://www.housingwire.com/2010/03/01/a-dark-day-for-the-mortgage-industry/?utm_source=rss&utm_medium=rss&utm_campaign=a-dark-day-for-the-mortgage-industry
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I am confused. I know there are ARM’s, and that lending companies sell their mortgages to others to collect payments and so that their books look good at the end of the year. I just don’t understand a few things:
1 – if the Fed has cut interest rates, wouldn’t that rate cut trickle down to the mortgage industry? If so, why would mortgage interest rates increase?
2 – Were people informed of the "ballooning" that was going to happen?
3 – Why did lending institutions issue mortgages at adujustable rates knowing that they were going to increase out of peoples budgets?
Any explanation of what is happening would be appreciated. Thank you!
1 – if the Fed has cut interest rates, wouldn’t that rate cut trickle down to the mortgage
A: US interest rates are determined by the US Bond market.
Many banks are charging a premium because they are concerned about default risk.
Look at 10 year Treasury prices (benchmark for most consumer rates).
Compare that to the LIBOR rate (many mortgages tied to LIBOR).
LIBOR = London Interbank Offer Rate. Complicated. Basically it’s an agreement with all U.S. charter banks under UK law.
2 – Were people informed of the "ballooning" that was going to happen?
Yes, I have been saying this since summer 2005. Most people, and lenders weren’t paying attention.
3 – Why did lending institutions issue mortgages at adjustable rates knowing that they were going to increase out of peoples budgets?
Greed. Easy money. Lenders resold loans to Wall Street and to banks and governments world wide to reduce their loan risk.
How did we get in this mess?
1. Former HUD director, Henry Cisneros under the previous administration strongly advocated that we should have home loans to more people, including people who could not afford them by current standards.
2. The FED kept rates at historical lows which made this job easy.
3. Real estate prices soared with these low rates and money that moved out of the stock market in 2000-2002.
4. By 2004, the FED began raising rates due to their nutty idea on inflation fears. Their inflation ideas was and is wrong. The FED mistakenly saw inflation but failed to attribute the cause was driven by higher commodity prices (oil, corn, wheat, steel, milk, etc). The big drive in oil prices was and is due to demand for oil by China and India’s explosive growth. These FED rate hikes continued until 2006.
5. The FED Funds rates went from 1.00% to 5.25% in two years – a 425% increase in rates. This killed the subprime market and hit everyone with an adjustable rate mortgage, no money down mortgage, and interest only mortgage.
6. Greedy banks and other lenders were lax on their credit standards and gave out loans to anyone without any qualifications. This was a mistake.
7. The higher rates triggered loans to go into default as many people could no longer afford their house payment. They should not have got the loan in the first place.
8. Some alleged "predatory lending" may be a slight factor. It is ridicules to think that someone could buy a $500k home who makes $18k a year, and never expect rates to rise and never expect home prices to fall.
9. Creditors made their own problem worse by tightening credit standard in spring/summer 2007. The tighter standards increased defaults. As defaults increase the problem perpetuates on itself. Mortgage insurers are partially stuck with huge losses as they guaranteed payment on these higher risk loans. These companies are 1 step from bankruptcy right now (ABK, MBI, PMI,. MTG, RDN).
10. Banks and other lenders began taking huge losses as they write off part of their bad loans. This problem is huge. Banks and lenders will not admit how bad their portfolio really is. The result is the wave of selling in the stock market.
Future issue?
Bad credit card portfolios. if people can’t pay their mortgage, what makes anyone think they can pay their credit card?
Proof Note: Amer Express (AXP), Capital One (COF) reported large Q4 (2007) losses due to credit card defaults. Were just getting started with this issue.
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The 3 times your salary is only a rule of thumb and alot more has to do with how much money you have coming in vs. going out (aka debt ratio)
Matt Rosen