(This was originally published March 18th, 2006. I’ve added a couple updates, but otherwise it’s as published. It’s still very relevant, and if there’s anyone that wants to tell me I didn’t nail it, please speak up) Somebody wrote a comment about going upside-down on their mortgage: What happens if the property value falls and …
Continue reading “Losing Property Value with Highly Leveraged Properties”
First let me say that I really learned a lot from your postings/articles/website; its awesome that a resource like yourself exists. Now to the problem. I recently refinanced and the mortgage broker lied to me about many, many things. I was sold a negative amortization mortgage. The broker provided me a chart showing my payment …
Continue reading “You Only Need Negative Amortization Disclosures on Negative Amortization Loans”
I’ve written a lot here about how to manage your mortgage so that you control it instead of it controlling you. Let’s consider what happens when that project fails. If you don’t pay your mortgage, on time, no big deal at first. The lenders don’t like it, but there’s a grace period built in. Fifteen …
Continue reading “What Happens When You Can’t Make Your Real Estate Loan Payment”
We aren’t married. How do we buy a house together? Basically, the same way that married people do. The qualifications are exactly the same, provided that you both will be living in the property. If not all of the people who will be buying will also be living in the property, they have to show …
I am profoundly lucky in that I read “I Will Fear No Evil” in high school. Not an assignment, I just like to read, and Robert A. Heinlein has always been one of my favorite authors. A very few pages into the book, he has one of his characters toss off two fantastically good pieces …
Banker loans are better deals – for the bank. Ken Harney had an article Study Shows Loan Brokers’ Better Side But now a new, independent academic study has concluded the opposite: According to a team of researchers headed by Georgetown University’s Gregory Elliehausen, home mortgage applicants with less-than-perfect credit pay lower financing costs when they …
Continue reading “Debunking “Banks Give Better Deals Than Brokers””
There’s a lot that gets written on this subject, mostly by loan officers looking for business. Well, don’t think I’m not looking for business, but not with this post. Or if anybody calls me because of this, at least I’ll know they understand how to do it right. The basic come-on is this: Your home …
Continue reading “Debt Consolidation Refinance – Doing it Wrong vs. Doing it Right”
One of the consumer attitudes I encounter constantly is the feeling that if you cannot afford the loan, the lender will not loan you the money. This safety zone common sense sort of reliance upon lender policy as a backstop is not only false, but one of the best ways to get in trouble with …
Continue reading “Changes in Lender Attitudes: The Push Towards Bigger Loans”
First off, let me say that your site has been very informative and helpful. I stumbled across your blog looking for information on ARM vs. 30 year fixed loans and ended up reading every article. One issue I have never really seen addressed is joint loans. When a couple, married in this case, gets a …
Continue reading “Joint Loans for Couples: How Does the Qualification Process Work”
I have repeatedly advised my readers to sign up for a back-up loan if they can find somebody willing. So every once in a while, I get email like this: Hi! Would you be willing to do my backup loan? I’m already signed up with my brother-in-law but you tell people to get a backup …
Continue reading “Getting a Loan Provider to Agree to be a Backup Loan”
