MortgagesUndressed

Sure, but why would you want one? I suggest you only have it on the third house you own.

The point? Lenders take a risk as they go into a position behind another. If there is a foreclosure, the 3rd may have to buy out everyone in front to save his position. So even though it is possible to get a 3rd, you possibly are better off refinancing a new first. This may especially be true with the state of the current interest rates. Larry Cragun

I am going back to introducing you to unusual products. If you have a situation you think is unique, ask me about it. Lar

Try these two on for size. There are lenders that do this. For some reason you need cash out on a 4 plex, more than the appraised value. There is a lender out there that will loan you 125% of the value of a 4 plex. How about on a home and you are in a hurry or for some reason want a drive by appraisal. There is also a lender that will loan you 125% of the drive by appraisal value.

Several articles have been written recently poo poohing 40 year mortgages. I think its fashionable to take this position. I also think it is stupid. The arguments against are about all the interest people will pay or about owning the mortgage for your lifetime.

I am in favor of any program that allows people to purchase a home. I have always encourage my clients to purchase the most home they qualify for. Why? Like my sister told me today, she and her husband are looking forward to retiring. They have a nice home they felt lucky to get when they bought it. They still feel that way. Now, they are considering they can sell, make some great money, supplement their retirement, and move down in price, even in a non city market.

They won’t own their home mortgage forever, because they will value down. Thank Heavens for their home. So let us not be so provincial in our attitudes. If it takes a 100 year mortgage to get people into their home, so be it. They will be better off for it, I am certain of it.

CLICK HERE FOR THE FULL ARTICLE ON THE WELLS FARGO ARTICLE BY EAST BAY BUSINESS TIMES
Larry Cragun

My comments apply, even to this, true to the my home is my castle concept.

Wells Fargo Home Mortgage said Tuesday that it will offer 40-year mortgages, adding to the bevy of creative loan products on the market to help home buyers secure financing.

“The primary advantage of a 40-year mortgage is a smaller monthly payment without the risks associated with interest-only loans or Option ARMs,” said Joe Rogers, an executive vice president at Wells Fargo Home Mortgage. “A 40-year term reduces monthly payments, making home ownership more affordable.”

But the loan comes with a big asterisk. Non-conforming loans — essentially those for more than $417,000 on single-family homes this year — are amortized over 40 years but must be paid off with a balloon payment at the end of 30 years.

SMORT REPORT: I need to borrow and get $200,000 of my equity. I still would have a 25% equity remaining. Can that be done? Yes: Tell your broker to go to iresfunding.com to find the product.

Q: I want to buy a home that is a mobile. It is on a foundation. It was built in 1980. Where do I get the best rate, even find a lender who will finance such a purchase. I don’t have a lot of money to put down.

A: You will probably find your best loan arrangement will be with a lender that does FHA insured loans.

Larry Cragun

Announced by David Porter of Pacesetter Mortgage who is attending the National Mortgage Brokers Convention:

David Announces

Breaking News! Mortgage Blog News - Freddie Mac announced today at the National Association of Mortgage Brokers (NAMB) Annual Convention that with their “Home Possible Mortgages” they will be offering a true 100% LTV mortgage.

They will no longer be requiring that borrowers:

• Have $500 of their own money. Loans are now available to consumers with no cash investment required by the borrower. As before the seller may pay all of the closing costs, but again, no $500 required investment from the borrower.
• Home Ownership Education requirements are now waived. Although Freddie Mac strongly encourages this education it is no longer required.

I have never had the opportunity to break news before. This is good news for the consumers of America. Freddie Mac plans to further announce this information in a press release on Monday.

Larry Says: Now what we really need is for a 0 down FHA program. That is what will make a difference Click Here for article from Boston Herald on this point.