Mortgage Answers
Sheriff of Ugly Mortgages
The big, bad sheriff of lending, The Consumer Protection Financial Bureau (CPFB) thought it built a tamper proof fence corralling “bad” loans by holding the lending industry hostage and implementing tough approval guidelines. The old saying if you build a tall fence, someone will build a taller ladder, has proven true.
WHAT DOES WINE HAVE TO DO WITH INTEREST RATES
First, who or what sets the mortgage rates?
• The 10 year U.S. Treasury notes or bonds. They are sold to pay for the U.S. debt.
• 10 year treasuries are considered one of the world’s ultra-safe investments.
• Demand for the bonds is higher in times of financial turmoil, global unrest and icky economic news.
6 MORTGAGE MYTHS
Myth 1 – Automated Underwriting Systems (AUS) are optional.
Myth 2 – Private Mortgage Insurance (PMI) is good for the borrower.
Myth 3 – VA loans are too strict.
Myth 4 – FHA acquired dementia last year and forgot their mission statement to borrowers and increased their monthly mortgage insurance to ridiculous levels.
Myth 5 – There is no reason for borrowers to use FHA anymore.
Myth 6 – A good credit score can guarantee you a loan.
Appraisals Coming in Low
Appraisals coming in low are part of the market that we are in. Nonetheless, it is still thoroughly frustrating for all parties involved each and every time an appraisal comes in low. Unless of course you are the buyer and the seller happens to be a bank or short sale lender. Then you may be jumping for joy because you