The Top 10 Reasons

1. First off there should only be one or two reasons why you would even want to refinance a home after closing on a home. The only time it makes sense to refinance in such a short time period after closing would be to take cash out of the home. Good luck doing it though. You will only be able to get approved on a new home loan is if the home was given to you in a will or a gift of equity (which is when a parent or relative gives you the house for 50% of what the value is).

2. Many parents will have paid off the house or owe little on it and decide to give the house to their kids to help them get started with their lives. Instead of charging the kids full price them give them a deal. Most will just sell them the house

1. In most instances homes usually can have two mortgages placed as a lien against a property. Under normal conditions you can have a first mortgage and a second mortgage. Some companies during the refi boom were putting a third lien against the property. Local banks and credit unions were the ones that did the third lien.

2. When people are trying to refinance their home the mortgage company will look at their credit report and will contact the local city or county government office to pull up who is on the title of the home and any outstanding liens against the property. If you default against anything including credit cards or if you are behind with taxes these can be put as a lien against the property.

3. What these companies do is register the lien with the county and it is recorded. If you ever plan to refinance the home or

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. 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. CNN reported today that foreclosure filings are up 120% more in the second quarter of this year than what they were this time last year. It really should come at no surprise to anybody.

2. Right now a lot of people that took out adjustable rate mortgages from 2003-2005 are starting to see their interest rates finally adjust on them and are trying to deal with the increased payments. Many of these same people that took aout an adjustable rate mortgage also took a home equity line of credit when their property was increasing in value. They also took out their home equity loan right up to 100% of the value of the home more than likely to pay off credit card debt or other things they did not need. Now they have two loans combined and owe around 125% of what the home

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. If you have bad credit you are probably worried about getting approved on a mortgage to buy or refinance a house. Many people with poor credit histories should be concerned about this because it is going to determine what kind of loan you are going to get approved on. With all of the changes going on in the mortgage industry there still is hop for you to try to get approved on a mortgage, but you are going to need to know how to do it.

2. During the refinance boom of 2002-2007 every single mortgage company was doing every single loan they could get their hands on. The mortgage companies had two kinds of loans, a desktop underwritten loan and a manually underwritten loan. Both were very similar in their guidelines but one had more restrictions than the other. A desktop underwritten loan was a system that the mortgage

1. What is interesting is that refinancing a mortgage is relatively a new phenomenon. There was no need to ever refinance a mortgage from the 1950s to the 1990s. Everybody that bought a home would put a 20% down payment on the home. This was a common practice for all banks in that time period because many did not want to have to deal with a home going into foreclosure. Foreclosing on a home was a term hardly used in those years. People who bought homes had so much money invested in their down payment that they did not want to lose their home. They also had enough money saved up and had money to make the payments. Many home owners had to deal with interest rates on a 30 year fixed rate mortgage around 12%. This is almost double on what today’s going mortgage rates are at so people