(I understand that mortgages were given to some very risky people who later could not keep up the payments. But mortgage loans are backed by property and the lenders could have recovered their loans. So why the losses?) Answer : yes the property holds value but the lender that gave the loan does not hold Read more »
Category Archives: Loans & Mortgages
What is a Reverse Mortgage and are they good loans?
(My neighbor told me about these reverse mortgage loans and I wanted to ask here if this a safe way to get some cash out of my home. ) Answer: A reverse mortgage is a really great thing if you have lots of equity in your home, and you don’t have very much liquidated cash Read more »
Does it bother you that the US government is taking over the two largest mortgage, loans, and ?
(home insurance companies in the United States? Is it possible that this could lead to the government deciding who gets mortgages, loans, and home insurance? (well, the already do, but does it bother you that it is now a widely known thing)) Answer : In a small way, yes, I am not sure I want Read more »
How do I find out if someone is using my name for mortgage loans that I know nothing about?
(I was looking up my credit report online and for the questions to make sure I was me I was asked about mortgage loans in two different years that I know nothing about. I’m renting a apartment and haven’t took out any loans that I can think about) Answer : www.mycreditkeeper.com will allow you to Read more »
Student loans not in repayment or in deferral included in a mortgage loan application as an expense?
(Am applying for a mortgage loan and have two school loans already on my credit report but specify one is not in repayment and second is deferred. However, the loan application is requesting all expenses listed on my credit report. Are these loans not in repayment included in my expense ratio?) Answer: Student loans that Read more »
Is it true that commercial mortgage loans are all ARM’s?
(When we got our commercial loan, our loan officer told us that “all commercial mortgages are ARM.” Although we got in on the low interest rate boom 4 yrs ago, our payments are now almost doubled. Any suggestions?) Answer : If it is a commercial loan then most of the programs are ARM’s. Most of Read more »
What are the new rules for mortgage loans?
(I got preapproved before (but didn’t buy a house) and when I went to the same bank, they said they had new regulations (didn’t meet with a mortgage specialist yet.) What kind of regulations are banks using now to qualify people for mortgages?) Answer : Much stricter on the credit scores Need a down payment Read more »
As home mortgages continue to default, which one is at a higher rate now, adjustable or sub-prime loans?
(I need to know for my current events worksheet in government… this is not something I am very well informed about.) Answer: Addy, I’m not sure if I understand your question. If you are asking which has higher interest rates – adjustable loans or subprime loans – there are no more subprime mortgages. The mortgage Read more »
In relation to mortgage loans what constitutes a low credit score?
(I have been reading lots about the housing crisis and have learned that the loans for new mortgage loans for people with low scores it getting harder to aquire. What constitutes a low score? 600? 590? 650? 625? I am now ready to buy my first house and am finding out that my scores may Read more »
Flaw with interest only loans. Are interest only loans better than regular mortgages?
(A loan salesman told me an interest only loan is better than a traditional one. He said that if I take the difference in payments (interest only being cheaper) and add that to my payment, I’ll have paid off more in principal in 5 years. i.e. $2K a month interest only vs $3K a month Read more »
How exactly do ‘interest only’ mortgage loans work? When do I pay on the principle of such a loan?
(I know APR loans are a bad idea, but how would an interest-only loan work? Would it still be a 30 year note, or do they extend the loan? Would I be able to get a fixed rate with an interest-only mortgage loan?) Answer: In an interest-only loan or mortgage the borrower only pays interest Read more »
Are Car loans like Mortgages?
(I’ve read on here that some car loans are “front loaded” which means that even if you make extra principle payments it would not decrease your overall interest…. On mortgages obviously you can save lots of money with extra principle payments…. always with cars too?) Answer: They aren’t exactly the same, but that doesn’t matter Read more »
Are Video Games and Student Loans just ways to rob younger Americans?
(Video games takes time away from time students need to learn academic materials, it takes money away from students and their parents. For profit Student loans mortgages students future income. Corporations take choices out of younger Americans’ future.) Answer : This seems to be two different issues here. Video games ARE time consuming, taking precious Read more »
Mortgages /loans wheres the best place to ask?
(my loan on a property in london comes to an end in november. its a 200k loan on a property worth 650k. been self employed my earnings are low during this recession.The bank said previously that it would not continue the loan but now says it will but wont give any clue re interest or Read more »
Student loans and mortgages?
(6 years ago I was a student at uni and amassed £7000 debt which now comes out of my wages weekly. I have applied for a mortgage and when asked if I had any loans I said no – completely forgetting about my student loan. Will this effect my mortgage decision? ) Answer: I disclosed Read more »
How do islamic loans or mortgages work? Isn’t there A LOT of money in this market ?
(JUST HERE ME OUT…im a muslim…in university and i wanted to know how these islamic mortgages worked…as far as i know the only restiction muslims have …relating to mortgages is the fact that ..’intrest’ is forbidden…i thinkin why do these islmace loan agencies make things so complicated, why don’t a guy just open a agency, Read more »
Does having a long relationship with a bank give you better deals for loans & mortgages ?
(I have an account since 3 years with Wells Fargo which is one of the strongest banks in North America . I am planning to close this account because i my funds r extremely low and my monthly paycheck goes into other bank accounts that give me good savings rates . I want to close Read more »
Is it true mortgages in Calif. are usually non-recourse loans, then become recourse when refinanced?
(I was told this once but I’m not sure if it’s true. I was told that in the state of California, the papers for the original mortgage you get on a house usually state they are non-recourse, but when you go to refinance, the refi paperwork usually indicates it’s a recourse loan. If this is Read more »
Islam and interest on loans/mortgages ~ is paying interest forbidden?
(I heard that Muslims are forbidden from paying interest on anything, such as mortgages and other loans, credit cards, car payments, etc. Is that true that Islam forbids interest, and if so, how do Muslims function in modern life esp. in the US and Europe without paying interest? The person who told me that interest Read more »