The Top 10 Reasons

1. Home loans are getting harder than ever to try to close nowadays with all of the changes going on in the mortgage industry. During the refinance boom years of 2002-2007 everybody could get approved on some kind of loan for the most part. Even if you tried to get approved on a normal conventional kind of home loan and could not get approved you could always fall back on a no income no asset loan (NINA) to close the loan. This loan was considered a sub-prime loan and came with higher interest rates but at least it could close.

2. By the time a home loan gets sent down to underwriting a mortgage banker or mortgage broker should already know whether or not your loan is going to get approved or denied. The majority of times your home loan will be approved from the second you talk to your mortgage

1. During the refi boom of 2002-2007 adjustable rate mortgages always had lower interest rates than fixed rate mortgages. In most cases they were considerably lower. As an example you could get a 3 year ARM with an interest almost 2% lower than a 30 year fixed mortgage. This was the same case for the 5 year, and 7 year ARM’s too.

2. There was so much talk about adjustable rate mortgages being for only sub prime borrowers but in reality most of the people that took out an ARM had good credit. They either liked the sound of the lower interest rate, thought rates were going to come down on the 30 year fixed before it adjusted, or just listened to their mortgage broker tell them that they would refinance them in a couple years before their rate adjusts (of course they will, more

1. Quicken Loans is one of the largest mortgage lenders in the country. They are not mortgage brokers but instead what is called correspondent lenders. What this means is that they are large enough to fund their own loans but sometimes borrow their money from larger banks to write mortgages. Knowing that they are a larger bank you should feel at ease knowing your working with a direct lender.

2. Quicken Loans has always had high customer service ratings. This is one aspect of the company that is preached to their employees from day one. The management of Quicken Loans knows that you can go anywhere to get your mortgage so they try to go that extra step to make the application process that much easier.

3. Employees of Quicken Loans are not mortgage brokers but are considered mortgage bankers, just as if you were going to go to your local bank

1. Treasury Secretary Henry Paulson said today they are going to create a new “Covered Bond Market” to help with the mortgage mess going on in the U.S economy. By going to a covered bond market it really puts the weight on two financial institutions not just one to make sure the loan is good.

2. Under the new housing bill what would happen is a larger bank would invest money to a smaller local bank, credit union, mortgage lender, etc to do the loans and in turn they would put up some collateral to receive the money.

3. The collateral would be any asset that the bank has on their balance sheets. So if the homeowner defaults on their mortgage and is put into foreclosure the larger bank that invested the money could choose from something on the smaller banks asset sheet to make up for the lost

1. Interest only mortgages really get a bad rap when it comgees to talk about home loans. Many financial experts talk about how bad they are because you never gain any equity in the home because you are not paying down the balance. They are right in this conclusion because you are not required to pay down the balance during the interest only period of the mortgage.

2. What many financial experts or gurus do not tell you is that you have the choice to pay down the mortgage if you want. The mortgage company is not telling you that you have to for a certain period of time. Typically most interest only home loans are a normal 30 year fixed interest rate mortgage where the first ten years of the loan are an interest only option period and then at year ten it turns into a 20

1. A mobile home is also called a manufactured home. Both are the same in the eyes of the lender. It is considered a property that is not secured to the ground.

2. Without the mobile home being secured to the ground it becomes a huge risk for any mortgage company. The mortgage companies do home loans that are leveraged against a “secured property.” A mobile home or manufactured home is not.

3. Since the mobile or manufactured home is not secured to the ground the investors that give the money to the mortgage companies say in their guidelines that they will not allow them to write any loans on such a property.

4. If you own a mobile or manufactured home and are looking to refinance your property you should always be upfront about the type of property it is. Many mortgage companies will collect a deposit at the time of application

1. Let’s take this a step further and say that they are same as Michigan’s mortgage rates, Ohio’s mortgage rates, Texas mortgage rates, New Jersey mortgage rates, and the rest of the states that make up the United States of America. One state does not get better mortgage rates than another. There is nothing written in the Constitution that says one state is better than the next so why would we think that one state should get better treatment financially than the next.

2. Mortgage rates come from the stock market and are traded like a commodity on the secondary market. Mortgage companies originate the loans and package them with all of their other loans and sell them for a quick profit. The companies that buy them are usually larger banks that run mutual funds, hedge funds, and their company’s pension. The earn the interest off of what the mortgage makes.

3.

1. Being a first time home buyer is a emotional decision. You plan on being in this home for the rest of your life (everybody says that) and starting a family or maybe your single and just want your own place. You have done all of your research on homes in the area and have found a home that is in your budget and one that is suitable for your needs. Now you need to set up your financing.

2. It does not matter how much you have for a down payment in this situation but let’s just assume that you are on of the smarter first time home buyers and you have saved up enough to put a 20% down payment on the mortgage so you avoid private mortgage insurance (PMI). You are already on your first step to being a better home owner than most of the people that

1. Mortgage companies love it when you tell them that you want to escrow your taxes and insurance with your mortgage payment. It reassures them that you are paying your taxes and home owners insurance every month and they get to manage. As long as you make your monthly mortgage payment there is nothing for them to worry about. The additional money you pay every month is collected by the mortgage company and put in a escrow account. When your taxes and home owners insurance are due the mortgage company will get a bill from your local city or county tax office and the insurance company and they just send them a check on our behalf.

2. Knowing that this is going to be taken care of by them many homeowners feel that this is comforting to know that its always going to be paid on time and its one less

1. The Option Arm Mortgage has a number of different names. It has been called the Option Arm Loan, Pick A Payment Loan, Neg Am Loan, and the Negative Amortization Mortgage. All of these names describe the same mortgage. All that really happened was that each mortgage company decided to change the wording of the loan so some sound better than others. Pick A Payment (wait, I can choose what payment I want to make) and Option Arm (we all like options) sound better than Negative Amortization Mortgage (nobody likes a negative Nancy). They all pretty much describe one of the worst loans ever invented and let me tell you why.

2. The Option Arm Mortgage came with a feature that let you have a choice on what payment you would like to make each month. You would get a 15 year fixed, 30 year fixed, Interest Only, and a