Yes, if you based it on the projections made by scores of mortgage professionals last year. They said that the volume of non-QMs is expected to grow, backed by a strong appetite among lenders. This growth may also come from people whose credit remains an issue that kept them out traditional financing, according to reports. […]
Homeownership FAQ: The Quest for Finding the Right Mortgage Term
With buying a home more relevant than ever in building a retirement plan, it’s largely a financial decision. And that decision is anchored on a myriad of things, including the mortgage term. In any homebuying venture, it’s essential to find the right mortgage term for you. Why? Your interest rate and monthly payment depend on […]
In the World of Mortgages, What Does Manual Underwriting Mean?
In particular, how does manual underwriting benefit you as a mortgage borrower? Lenders make loans to borrowers every day. They use an automated underwriting system (AUS) such as Desktop Underwriter® to approve mortgages. There are cases, however, when a loan is manually underwritten due to certain circumstances. Nonqualified mortgages, for instance, require manual underwriting where […]
It’s a Toss-up Between 30-Year and 15-Year Fixed-Rate Mortgages
Both loans offer stability: they have fixed rates that don’t change throughout the life of the loan. They also have equal monthly payments arising from these unchanging rates. For this alone, 30-year and 15-year fixed-rate mortgages are staples among today’s consumers. But between the two-fixed rate mortgages, which is a better option? Should you go […]
What’s the Difference Between Loan Forbearance and Modification?
Last hurricane season, the FHA, USDA, VA, Fannie Mae, and Freddie Mac each offered mortgage relief assistance to respective homeowners affected by Hurricanes Harvey, Irma, Jose, and Maria. These moratoriums on foreclosures include loan forbearance and modification, helping borrowers buy time as they focus to rebuild their lives after the disaster. To be clear, the […]
What Does 2018 Hold for Non-Qualified Mortgages?
Ellington Financial LLC fairly recently completed a $141.2-million securitization of non-qualified mortgages. It joins lenders who want to boost their revenues by making or increasing their production of non-QM loans. What’s in store for non-qualified mortgages in 2018? How long will this strong appetite among lenders to originate non-QM loans continue? That being the trend, […]
Cash-out Refinances, Home Equity Loans, and Texas Mortgage Laws
Texas fared better than California during the Great Recession. According to a Dallas Fed study, the share of subprime mortgages that were underwater in Texas was 40 percentage points lower than the rest of the U.S. and serious delinquencies were 10 percentage points lower during the peak of the housing crisis. This is partly credited […]
How Well Do You Know Conforming and Non-Conforming Mortgages?
All conforming loans are conventional loans, but not all conventional loans are conforming loans. Then, there’s the case of non-conforming mortgages. They are not exactly polar opposites but their features can make a difference. This is spelled out in down payments, interest rates and credit scores that affect your loan prospects. Knowing about conforming and […]
Meet Portfolio Loans and What They Can Do for Borrowers Like You
They sound complex, almost foreign because they don’t crop up as much as conventional, conforming, and government mortgages. Portfolio loans are not your typical mortgages either, making room for borrowers who are not traditional themselves. Nonqualified mortgages and other examples of portfolio loans present an alternative source of viable mortgage financing. Learn more about these […]
First and Second Mortgages: Their Perks, Possible Things to Consider
The default rates on first and second mortgages went up in September from August per S&P/Experian Consumer Credit Default Indices. Still, the first mortgage default rate was one basis point lower from a year ago. This talk about first and second mortgages makes one wonder: what is a first mortgage and what is a second […]