MortgagesUndressed

The APR intention is a good one: provide the consumer with a way to compare rates and fees in one number so you can see the difference in what lenders are charging you. It was to be the simple way for consumers to shop.

The problem is that it isn’t simple, it is confusing, and most lenders are inaccurate and sloppy in this. The bigger problem is you the consumer don’t and won’t understand it. Truthfully, I bet if you ask 3 loan officers what are the components of the APR formula you would get 3 different answers.

If loan officers don’t get it, how can you? Even more important, how can you count on it?

There are supposed consequence to inaccurate quotes, sure that helps for the one a million that get that far.

My suggestion, don’t count on using APR. To me it is like being in a boxing match and putting your guard down. It is like saying, “go ahead and rip me off.”
You would be much more effective in learning the details of lending and find the right lender on line on this site, making sure you get to a loan officer that has a real estae agent referring you, and being careful.

Akismet blocks this spam about 10 times a day. Who is this loser?

Loan City, a conventional lender announced they are out of business. What you the consumer should do if you have a loan in process is to immediately call your loan officer and determine if your loan was locked with Loan City. If it is you need to have time to move the file to a new lender and to see if you can stay at the rate you are locked in. You should also inquire if rates are lower now, they may be, and this would be one of those rare times you can lock and get a lower rate. Larry Cragun

LoanCity is closed for business. Today March 20, 2007 is the last day we will be funding loans. To our customers, our staff and business partners - we thank you.

The question should be more focused on the loan officer. That is where the danger lies. Big banks are usually well managed from a fraud control point of view. However, their weekness lies in pricing and flexibility.

Lending rates are competitive. No one lender leads the rate game every day. When I worked for Mellon Bank In Bellevue Washington I found them in a place where they were rarely competitive. I had to leave as my ability to be competitive was paramount in importance.

Nitche programs are crucial for some, If you need a no income qualifying type loan for example, you better be working with a broker.

Our company is approved with over 30 mortgage lenders for these reasons. We added 3 this week and will continue to add as we find nitches we can fill.

If you don’t have 660 or so credit scores you better get serious about getting out of your home or your loan. They will continue to adjust higher. Sub prime adjustables may go as high as 12% if you don’t get out of them. This isn’t a time to be proud. If you can’t get out of your home or your loan and you can’t make the higher payment, have someone in your household get an additonal job.

It started out as a banter over the hazards of Box Elder Bugs in Minnesota. It now continues just for fun on Saturday when I need a light day.

Don’t worry he won’t eat your plants, he is very full.

The National Geograhic write about Chef Gene Rurka who cooks up delicious scorpions and other bugs. click here