American Mortgage Blog

There is plenty of disagreement about when the “financial crisis” began, and what caused it. Some opinions go back ten years or more, when elected officials encouraged Fannie Mae and Freddie Mac to buy loans backed by borrowers who were not traditionally credit worthy. Others say it began in 2007 or 2008, when several large profile companies went bankrupt.

Trained Loan Officers remind clients that it is important for borrowers to remember that they do have options, other than the standard, “Make your payment on the first of every month, it is late by the 15th” payment plan. Some options are better than others, one example being the “Bimonthly mortgage”. Under this program, an alternative payment plan is set up, but borrowers are reminded that it is an alternative, but not necessarily cheaper plan.

The industry is always looking for ways to streamline and finesse the mortgage loan process, and ideally, lenders should start with the very first step—pre-approval. For borrowers, it really does pay to work with a lender who asks the right questions and procures all the appropriate documents, as they’re less likely to make a misstep and stall the process.

There has been an increasing amount of interest from home owners in different programs offered by government agencies or banks. More specifically, these programs offer some type of alternative to foreclosure – specifically for borrowers that are “underwater” (owing more than your home is worth). And many are indeed interested in hearing more from lenders who offered the borrower the chance to remain in their home as a tenant for an extended period plus have their mortgage debt wiped away.

A new survey from Zillow shows that rental markets around the U.S. continue to grow. Citing declining home values, Zillow reported that 70% of markets nationwide saw an increase in rents during January.

President Obama announced the broad overview of the second phase of HARP, now commonly known as HARP 2.0, in mid-November. But, like an aircraft carrier, government-announced programs and changes rarely turn on a dime, or happen overnight. But recently Fannie Mae rolled out the underwriting guidelines for HARP 2.0, allowing some lenders to also begin offering it to their clients.

Income taxes are due in a little over a month, and it’s worth pointing out that, when it comes to home deductions and credit, a lot of people get things wrong. While there are any number of mistakes one can make that will lead to being audited (at worst) and losing money (at best), there are a few trends that tax pros highlight, and with which your Landmark advisor can help.

Often times borrowers wonder about the basics of the “secondary” mortgage market. It seems that Fannie Mae and Freddie Mac are always in the news. But what are they, and why do lenders “sell” them loans?

There are two basic types of residential refinance: to lower your rate and possibly term, or to take cash out. With rates as low as they are, most are refinancing in order to lower their rate and payment. Cash out refinancing has not been removed from the range, however. But it is on a slow simmer, with 49% of homeowners who refinanced during the last quarter of 2011 bringing cash to the table compared with the 37% who took out new loans of size similar to the previous ones. This has, in turn, reduced the amount of the new loan to a median ratio of 74% of the old loan.

In most countries 30-yr fixed rate loans are in the minority. Here in the United States, however, the majority of residential mortgages are fixed rate loans with an amortization spread over 30 years – but some argue that might be changing.