The Mortgage Advantage
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.
