Your Questions About Home Loans

William asks…

How do you get grants for home loans?

I was wondering if anyone new how to get grants for down payment assistance for loans to purchase a home?

John answers:

There are two ways to get down payment assistance. One is through the government and the other is from seller-funded down payment assistance. The seller-funded down payment assistance is mostly used by people who are trying to get conventional loans. As the name implies, the seller pays for a part (sometimes even the whole amount) of the down payment. The problem here is that these types of assistance result to troubled loans, which is part of the reason why we are in the housing crisis we are in today. The new housing bill will eliminate this type of assistance, so you are now left with Government down payment assistance. The American Dream Downpayment Initiative can help you with your problem.

Steven asks…

What is the current interest rate for home loans?

Can people even get home loans right now? What is the current rate? Where do you find such information?

John answers:

PJ it depends on where you are and what bank/lender you are using. There’s no “one rate fits all” situation. Of course you can still get mortgages but they have to be done the right way which is in my opinion the only way there should have ever been.

You need to be able to service the debt as in be gainfully employed for at least a year. Come up with a minimum of 5% down and have a healthy credit score/report minimum of about 650-680 depending on the lender.

Take a look at the finance/rate section of msn.com or just visit the website of your local bank and look up their mortgage rates.

Laura asks…

Why for home loans the banks are calculating the interest rate?

I Check with the bank for the home loans,they told me 7.5% as floating & 7.25% as fixed,I need to know what is the difference between these two terms?

If i take RS.10,00,000 as home loan & the loan period will be 5 years,so with the interest rate 7.5%,what will be the EMI Per month need to pay to bank.

Please explain.

Thanks,

Ibrahim

John answers:

Fixed means the rate stays the same throughout the term of 5 years
Floating means it will change with the market. Could be 7 one year and 10 the next. Take the fixed.

Sharon asks…

Why aren’t the mortgage companies and Banks resetting home loans to current value?

I was told that the mortgage companies and banks are going to reset (re-write) home loans starting on Oct 1st. Why are they waiting so long? If they re-set the loans now they will receive monthly payments and people will stay in their homes. If they continue to wait until oct 1st more people will be walking out on their homes cause they cant make the higher payments.
This same greed has caused the problem, the banks should take what they can now and not loose more money.

John answers:

You answered your own question in your comments section above. They are greedy and want more.

Carol asks…

Why do people that do home loans get so mad when you shop around?

I’ve heard a friend of mine <that does residential and commercial real estate loans> go completely nuts every time her customers shop around for home loans. What do these lender expect someone to just trust them when they say. <hey, don't be looking at loan numbers from other lenders or I'll kick you in the ding ding.

John answers:

I do home loans so I can shed some light, (although I don’t go ballistic)- it is a lot of work to give someone a pre-approval- we have to run credit (which we pay for) & figure the debt to income & loan to value etc. Enter all fees etc into a good faith estimate which can mean checking tax rates for your property, getting insurance quotes etc. Its quite a bit of free work for someone who is not “really sure” that they are even ready to buy. We are so busy with the really serious buyers that when you get someone who you see 4 or 5 inquiries from other mortgage companies we know they are just taking up time that we don’t have to spare. Really don’t mind someone shopping- its just a lot of work for nothing. (Just being honest!). I usually tell those people to get me their good faiths & I will see if I can do better.

Powered by Yahoo! Answers

This entry was posted in Uncategorized. Bookmark the permalink.