topic Re: Let's Talk MORTGAGES in Mortgage Loans

Let's Talk MORTGAGES

Anonymous — Thu, 28 Jun 2007 05:18:39 GMT

This seems to be a rather popular topic here in General Credit Issues, most likely because many a campaign to improve a FICO score is fought with a good mortgage rate and home ownership as the goal. I have to admit I know little about the mechanics of mortgages myself, other than the origins of the word. The word "mortgage" originates from the Latin, though it has some Anglo-Saxon ancestry as well. "Mortgage" is a compound word:

"mort-" coming from the Latin "mortis," meaning death.

"-gage" which is lifted bodily from the Anglo-Saxon word "gage," which of course means "to measure," as in a gasoline gage or temperature gage on a car.

Hence, "mortgage" literally translated means "death-measure," or, more colloquially, "measured unto death," which is about how long your mortgage payments will last.

Okay, so I embellished that. But not by as much as you might think. Look "mortgage" up at Mirriam-Webster online, and you'll get this:

Etymology: Middle English morgage, from Anglo-French mortgage, from mort dead (from Latin mortuus) + gage gage -- more at

So there you have it. Mortage=death. With that in mind, I am creating this thread and floating it, in the hopes it will attract the more knowledgeable in the area of mortgages to share their wisdom. Please remember TOS rules regarding credit repair organizations.

Re: Let's Talk MORTGAGES

fused — Thu, 28 Jun 2007 05:34:17 GMT

A very fine post TNWM! Mortgages, I know very little. Being a history major though, I do appreciate you giving us your dissertation on the origin of the word! Excellent! Congrats on becoming a moderator at this forum, very well deserved.

Re: Let's Talk MORTGAGES

Anonymous — Thu, 28 Jun 2007 13:56:48 GMT

Thats funny because if you put yourself in a bad loan... It's the Death of you credit and thats what you're Measured by i n the banking world.

Most of the time you really don't know your getting a bad loan till it's too late and the broker is cashing the paycheck.

I just posted some tips...

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&thread.id=17531

Message Edited by OneMortgageGuy on 06-28-2007 08:56 AM

Re: Let's Talk MORTGAGES

Anonymous — Thu, 28 Jun 2007 19:14:36 GMT

So, OneMortgage Guy, what's your take on the whole subprime mortgage "collapse?" Is it as bad as the doomsayers are indicating? Have lending standards been tightened in the past year, and if so what are the implications for borrowers who are marginal in terms of FICO and DTI?

Re: Let's Talk MORTGAGES

Anonymous — Thu, 28 Jun 2007 19:20:57 GMT

Hello,

I am recently divorced which resulted in a mortgage foreclosure in Michigan (need I say more). The property has not been repossed yet, however the Sherrif's sale was conducted back in May 2007.

Does anyone have any forecast as to what the mortgage lending picture will look like to a person like me. I have a $70K annual salary, a 14 year credit history and NO serious credit issues prior to the divorce. My credit scores do not reflect the foreclsoure yet so I still don't know the impact.

One lender I spoke to suggested checking back in 12 months and be prepared to but 10% down and still expect to get a high intrest rate 8-9%. I know the market changes pretty quickly so I am hoping that there are some trends the will be in my favor.

Re: Let's Talk MORTGAGES

Anonymous — Thu, 28 Jun 2007 23:07:28 GMT

Well under the first year you will need 45 percent down, one year 20 - 25 down, 3 plus years they will look at you rental history and 20 to 0 down but 100% is at 620 subprime. If you are renting now... Pay by check and on time. Also keep a record of your payments. I know that over kill but in MI who knows what's going to happen. Keep your head up!!

npolk wrote:
Hello,

I am recently divorced which resulted in a mortgage foreclosure in Michigan (need I say more). The property has not been repossed yet, however the Sherrif's sale was conducted back in May 2007.

Does anyone have any forecast as to what the mortgage lending picture will look like to a person like me. I have a $70K annual salary, a 14 year credit history and NO serious credit issues prior to the divorce. My credit scores do not reflect the foreclsoure yet so I still don't know the impact.

One lender I spoke to suggested checking back in 12 months and be prepared to but 10% down and still expect to get a high intrest rate 8-9%. I know the market changes pretty quickly so I am hoping that there are some trends the will be in my favor.

Re: Let's Talk MORTGAGES

Anonymous — Thu, 28 Jun 2007 23:54:04 GMT

I better try to keep it short! Look at all the companys going down (http://ml-implode.com/) and Im sure that many more are going down.

One of the biggest problem was the refi boom!! It could of been a good thing and for some it was. Back in the late 90's and early 2000 rates were at an all time low and property values going up like crazy. Now all those people that did that refi and got that low ARM and now that they are adjusting they can't keep up with the payment or refi because of the LTV.

On top of that you had brokers getting rich by doing loans that just didn't make any sense. You had programs where you could state that value of your home, state your fico, you had appraisers inflating the value on homes, and etc.... I can keep going and going like the energizer bunny.

Lots of people pulling cash out to buy crap they just didn't need. What? I can't pay my bills? Well let me just do a refi and combine all my payments to one. Hey now look... Im rich again so I think I'm going to buy more crap on credit and just refi till I can't refi anymore. Sorry about that! If you fit in here don't be mad at me because I'm bad with my money but I didn't own a house then.

My favorite is Ameriquest... I can't count how many time I have seen a 6 month Arm with a 5 year prepay or no appraisal was done on the loan and when the arm is about to adjust... the appraisal comes in 100K short. The one that tops it all is... The elderly on fixed income is about to lose the house they live in or the money they get only covers the mortgage. Let me just tell you that if I think you can't afford your home I will tell you. If I think it will be hard on you I will tell you but if you can't eat I WILL NOT DO THE LOAN FOR YOU!

Now look at all the lenders that just do not do subprime or there guidelines have changed. With foreclosure on the rise it's going to hurt the PRIME market. Yup I said it I really think the subprime problem is going to effect the prime borrowers. The subprime market is or was the bread and butter. If you're subprime you really don't have too many choices like a prime borrower. Bad credit can even effect your insurance rate.

So now that banks are losing revenue on the subprime borrower... I wonder where they will make it up.. Hmmm. In the end we all lose even if you work for the bank! What's that fastest way to save money? Just fire a few 1000 people here or there and that should make the share holders happy.

Well I'm just going on and not even making any sense... Its cause im at work and need to go home...

Re: Let's Talk MORTGAGES

Anonymous — Fri, 29 Jun 2007 00:01:55 GMT

As for the borrowers who are marginal in terms of FICO and DTI... Work on your credit and pay your bills and don't fall into that subprime pit because you may never get out. The good new is if you are looking for a home or refi you can get that uplift to go prime but you need to find a way to save money. Take 6 percent of your income and put it in a 401K and the net on your check will be the same. SAVE...SAVE....SAVE.... and Pay you bills and stop running up you credit cards.

Quick Tip.... If you are having DTI problems. Look at you car note and if it is 10 payments or less you don't need to add the payment to your DTI you can even pay it down to pull more cash out.

Good Luck.

Re: Let's Talk MORTGAGES

Anonymous — Fri, 29 Jun 2007 00:50:14 GMT

thank god for "va" loans!!!

Re: Let's Talk MORTGAGES

Anonymous — Fri, 29 Jun 2007 02:55:32 GMT

Thanks for you feedback. I plan to see what the lending situation will be like in about 18 months and then perhaps look into a lease-option. I would just hate to fork over all the money I've saved into a lump sum downpayment. Any thoughts?

Re: Let's Talk MORTGAGES

Anonymous — Sun, 01 Jul 2007 03:41:06 GMT

Well let's talk about mortgages. I am in the process of building a new home. In my reserarch I see all these construction one time close / interim-perm / etc etc. It seems that every lending institution is different. Background: I own the property to build on which is worth 80K. My wife and I make 105K a year. We have no outstanding debt, (cars, credit cards,...). We just sold our current home in a lease back arrangement through construction. Credit scores are 780. The construction cost is 350K. Any ideas or suggestions.

Re: Let's Talk MORTGAGES

Anonymous — Sun, 08 Jul 2007 11:11:26 GMT

I need some guidance about what your basic FICO needs to be to qualify for ANY mortgage. I used to own a home, had some health issues and the bills piled up. My response was avoidace and I didn't pay any of the bills, except the mortgage. I decided to sell my home, pay off my bills, then purchase another home. If only it were that easy!!!! I've watched my FICO gain about 100 points in 3 months and that's been very encouraging and motivating. What's a good number to shoot for. Right now I'm in the low 500's. I'm frustrated that doing the right thing seems to not matter to anyone. However, I miss owning a home and HATE renting. My taxes have gone up zillions and I feel that I'm only working to pay the tax man. I've considered the option of rent with option, but find these homes to often be not what I'm looking for.....houses that others couldn't sell. What are the best companies to work with if you want to apply for a subprime mortage. I don't want to apply until there's a good possibility that I'll be able to be approved.

Re: Let's Talk MORTGAGES

Anonymous — Tue, 10 Jul 2007 02:16:07 GMT

How can I get a Mortgage if I am in Ch 13? I can sell my house and clear 150K but I need to be sure I can get a new loan...

Re: Let's Talk MORTGAGES

Anonymous — Wed, 11 Jul 2007 03:08:48 GMT

You can sell your home... Payoff the CH13 and have it Discharded and refi the next day but whats your Fico and your current mortgage histroy? The CH13 is not the only thing you need to worry about.

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&thread.id=17531

whodknee wrote:
How can I get a Mortgage if I am in Ch 13? I can sell my house and clear 150K but I need to be sure I can get a new loan...

Re: Let's Talk MORTGAGES

Anonymous — Wed, 11 Jul 2007 14:27:50 GMT

Always the comedian out of the bunch!! For some strange reason I agree with you!

Re: Let's Talk MORTGAGES

Anonymous — Thu, 12 Jul 2007 00:51:55 GMT

How about someone who desperately needs to get out of a nasty, expensive ARM now? I have a TU of 615, excellent income now with old lates bringing down my score. I made a serious refi mistake 2 years ago and it is changing into a huge monster. No BK's, No collections or any other serious public things!

Any company you recommend? A bank, broker or ???.

Thank you!

Re: Let's Talk MORTGAGES

Anonymous — Sat, 14 Jul 2007 17:45:52 GMT

I'm trying to purchase a home and sell my condo and I live in New Jersey. I have fairly decent scores 786,790,791 and my husband's scores are 666,678,691. When we were preapproved the loan company gave us a interest rate of 6.5%. Is this a reasonable rate? Should it be higher? Please advise. I am really afraid to act on improving my credit score for fear that I may do something wrong and lower it. As for my husband, he can afford to take the changes to increase his scores.

Thank you.

Re: Let's Talk MORTGAGES

Anonymous — Sat, 14 Jul 2007 21:09:35 GMT

Who earns more money? You or your husband? I have heard that the lenders use the higher wage earners middle score. If your husband earns more they may be using his middle score of 678. Also, mortgage rates have risen a bunch since late May. Follow the rates on sites like Bankrate.com.

Let me know what you find out as I too am trying to get a mortgage within the next week and I have scores like your husbands.

Re: Let's Talk MORTGAGES

VLGaffEsq — Tue, 17 Jul 2007 22:55:20 GMT

From my initial research of working on my refinance with cash out, 1) Your credit scores are Excellent right now while your husband's scores are good. 2) An interest rate of 6.5 % right now looks pretty good, so long as you aren't paying any points and can lock into a 30 year mortgage right now, I would go for it. 3) However, with you credit score so high, I would hope you could find a rate at around 6.25% or so. Good luck!

Re: Let's Talk MORTGAGES

Anonymous — Wed, 25 Jul 2007 23:56:25 GMT

Before you run off and refi... Find out what the Cap is on your arm and then shop around. Good Luck

cyjt wrote:
How about someone who desperately needs to get out of a nasty, expensive ARM now? I have a TU of 615, excellent income now with old lates bringing down my score. I made a serious refi mistake 2 years ago and it is changing into a huge monster. No BK's, No collections or any other serious public things!
Any company you recommend? A bank, broker or ???.
Thank you!
CY