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HLS
ParticipantIt’s an empty threat. Nationwide, it’s now NON-recourse debt for anybody who walks that bought OR refinanced their principal residence without taking cash out….
The Mortgage Forgiveness Debt Relief Act of 2007 applies to forgiven or cancelled debt used to buy, build or substantially improve your principal residence, or to refinance debt incurred for those purposes.
http://www.irs.gov/individuals/article/0,,id=179414,00.html
Giving them 5 years to recover is a favor.
The punishment would be insisting that they HAVE TO buy again within 12 months !!
5 years is a decent amount of time to repair their credit, save up for a down payment, and then end up buying the house next door for 50% less than they owe on theirs today.
The sooner they come to their senses and walk away, the sooner the 5 year clock starts ticking. Many people should be encouraged by this offer, and not be surprised if it is changed from 5 years to 2 or 3 years in 2010-2011…
The “system” may desperately need those people to soak up some excess inventory around that time.
ParticipantJoec,
I’m in the mortgage biz, below are some facts:
Some of the answers above are basically correct.1) Your minimum payments showing on your credit report are what will be used for debt ratios. It should always match your most recent statement.
2) The credit card balance that shows on your credit report will be the last statement that was reported to the 3 credit bureaus. It could be one that printed one day ago or 30 days ago, (or possibly older)
3) The lender doesn’t know or care that you pay in full every month. Paying a credit card down or off may raise a credit score 20-40 points or more within several weeks. It depends on the % of that cards limit that you are using.
4) If the minimum payment is going to throw off a borrower’s debt ratios, it is usually possible to pay the balance in full through escrow and not have the minimum payment factored in the debt ratio. If more than $2000 is taken out of a refinance transaction, in most cases it is considered a “cash out” refi and you will pay a slighty higher rate for this loan. To avoid this, you can submit the funds to escrow.
5) Using a high % of credit limits on EACH CREDIT CARD is what can hurt you. If you have 5 cards with $5000 limits each, it is better to have $1000 on each card and making 5 payments than having $5000 on one card maxed out. (I understand that you pay yours in full)
6) If you want to raise your credit score you MUST use credit responsibly. Using a debit card is the MOST foolish thing that anybody can do. It does absolutely nothing for your credit score. Zilch, nada, zip. Doesn’t even show up on a credit report.
7) I do not believe that having too much credit penalizes people. I have seen credit reports with over $100,000 in available credit and near 800 scores.
8)Closing old credit card accounts hurts worse than closing accounts that were opened more recently. Part of your score is based on the age and history of an account.
9) There are programs that can predict how many points you can improve your scores by using various tactics. For a small fee, updtaed info can be submitted to the bureaus and updated within 24-48 hours to improve a score. It’s called a “rapid rescore” or similar.
10) It is normally ONLY your middle score of the 3 bureaus that is used to price a loan. The high and low are ignored.
It’s only a concern to raise the mid score to get a better loan. Scores above 680 today get better pricing than below 680.11) There are different credit score models.
a)consumer score b)auto score c)mortgage score
IMO It’s a waste of money to pay for your score on the internet, you will probably get a consumer score, not your mortgage score.12)A credit report is usually valid for up to 3 months, and will often not be re-run if submitted for a loan. Not all creditors report every account to all 3 bureaus which explains the variance in scores from them.
13) For a cost of less than $20 I can run a credit report that will give you your actual mortgage scores.
If you would like any help, you can get my contact info by doing a search for SHELDON in the search box on the left side of the screen. Let me know if you have any other questions or concerns.
ParticipantJoec,
I’m in the mortgage biz, below are some facts:
Some of the answers above are basically correct.1) Your minimum payments showing on your credit report are what will be used for debt ratios. It should always match your most recent statement.
2) The credit card balance that shows on your credit report will be the last statement that was reported to the 3 credit bureaus. It could be one that printed one day ago or 30 days ago, (or possibly older)
3) The lender doesn’t know or care that you pay in full every month. Paying a credit card down or off may raise a credit score 20-40 points or more within several weeks. It depends on the % of that cards limit that you are using.
4) If the minimum payment is going to throw off a borrower’s debt ratios, it is usually possible to pay the balance in full through escrow and not have the minimum payment factored in the debt ratio. If more than $2000 is taken out of a refinance transaction, in most cases it is considered a “cash out” refi and you will pay a slighty higher rate for this loan. To avoid this, you can submit the funds to escrow.
5) Using a high % of credit limits on EACH CREDIT CARD is what can hurt you. If you have 5 cards with $5000 limits each, it is better to have $1000 on each card and making 5 payments than having $5000 on one card maxed out. (I understand that you pay yours in full)
6) If you want to raise your credit score you MUST use credit responsibly. Using a debit card is the MOST foolish thing that anybody can do. It does absolutely nothing for your credit score. Zilch, nada, zip. Doesn’t even show up on a credit report.
7) I do not believe that having too much credit penalizes people. I have seen credit reports with over $100,000 in available credit and near 800 scores.
8)Closing old credit card accounts hurts worse than closing accounts that were opened more recently. Part of your score is based on the age and history of an account.
9) There are programs that can predict how many points you can improve your scores by using various tactics. For a small fee, updtaed info can be submitted to the bureaus and updated within 24-48 hours to improve a score. It’s called a “rapid rescore” or similar.
10) It is normally ONLY your middle score of the 3 bureaus that is used to price a loan. The high and low are ignored.
It’s only a concern to raise the mid score to get a better loan. Scores above 680 today get better pricing than below 680.11) There are different credit score models.
a)consumer score b)auto score c)mortgage score
IMO It’s a waste of money to pay for your score on the internet, you will probably get a consumer score, not your mortgage score.12)A credit report is usually valid for up to 3 months, and will often not be re-run if submitted for a loan. Not all creditors report every account to all 3 bureaus which explains the variance in scores from them.
13) For a cost of less than $20 I can run a credit report that will give you your actual mortgage scores.
If you would like any help, you can get my contact info by doing a search for SHELDON in the search box on the left side of the screen. Let me know if you have any other questions or concerns.
ParticipantJoec,
I’m in the mortgage biz, below are some facts:
Some of the answers above are basically correct.1) Your minimum payments showing on your credit report are what will be used for debt ratios. It should always match your most recent statement.
2) The credit card balance that shows on your credit report will be the last statement that was reported to the 3 credit bureaus. It could be one that printed one day ago or 30 days ago, (or possibly older)
3) The lender doesn’t know or care that you pay in full every month. Paying a credit card down or off may raise a credit score 20-40 points or more within several weeks. It depends on the % of that cards limit that you are using.
4) If the minimum payment is going to throw off a borrower’s debt ratios, it is usually possible to pay the balance in full through escrow and not have the minimum payment factored in the debt ratio. If more than $2000 is taken out of a refinance transaction, in most cases it is considered a “cash out” refi and you will pay a slighty higher rate for this loan. To avoid this, you can submit the funds to escrow.
5) Using a high % of credit limits on EACH CREDIT CARD is what can hurt you. If you have 5 cards with $5000 limits each, it is better to have $1000 on each card and making 5 payments than having $5000 on one card maxed out. (I understand that you pay yours in full)
6) If you want to raise your credit score you MUST use credit responsibly. Using a debit card is the MOST foolish thing that anybody can do. It does absolutely nothing for your credit score. Zilch, nada, zip. Doesn’t even show up on a credit report.
7) I do not believe that having too much credit penalizes people. I have seen credit reports with over $100,000 in available credit and near 800 scores.
8)Closing old credit card accounts hurts worse than closing accounts that were opened more recently. Part of your score is based on the age and history of an account.
9) There are programs that can predict how many points you can improve your scores by using various tactics. For a small fee, updtaed info can be submitted to the bureaus and updated within 24-48 hours to improve a score. It’s called a “rapid rescore” or similar.
10) It is normally ONLY your middle score of the 3 bureaus that is used to price a loan. The high and low are ignored.
It’s only a concern to raise the mid score to get a better loan. Scores above 680 today get better pricing than below 680.11) There are different credit score models.
a)consumer score b)auto score c)mortgage score
IMO It’s a waste of money to pay for your score on the internet, you will probably get a consumer score, not your mortgage score.12)A credit report is usually valid for up to 3 months, and will often not be re-run if submitted for a loan. Not all creditors report every account to all 3 bureaus which explains the variance in scores from them.
13) For a cost of less than $20 I can run a credit report that will give you your actual mortgage scores.
If you would like any help, you can get my contact info by doing a search for SHELDON in the search box on the left side of the screen. Let me know if you have any other questions or concerns.
ParticipantJoec,
I’m in the mortgage biz, below are some facts:
Some of the answers above are basically correct.1) Your minimum payments showing on your credit report are what will be used for debt ratios. It should always match your most recent statement.
2) The credit card balance that shows on your credit report will be the last statement that was reported to the 3 credit bureaus. It could be one that printed one day ago or 30 days ago, (or possibly older)
3) The lender doesn’t know or care that you pay in full every month. Paying a credit card down or off may raise a credit score 20-40 points or more within several weeks. It depends on the % of that cards limit that you are using.
4) If the minimum payment is going to throw off a borrower’s debt ratios, it is usually possible to pay the balance in full through escrow and not have the minimum payment factored in the debt ratio. If more than $2000 is taken out of a refinance transaction, in most cases it is considered a “cash out” refi and you will pay a slighty higher rate for this loan. To avoid this, you can submit the funds to escrow.
5) Using a high % of credit limits on EACH CREDIT CARD is what can hurt you. If you have 5 cards with $5000 limits each, it is better to have $1000 on each card and making 5 payments than having $5000 on one card maxed out. (I understand that you pay yours in full)
6) If you want to raise your credit score you MUST use credit responsibly. Using a debit card is the MOST foolish thing that anybody can do. It does absolutely nothing for your credit score. Zilch, nada, zip. Doesn’t even show up on a credit report.
7) I do not believe that having too much credit penalizes people. I have seen credit reports with over $100,000 in available credit and near 800 scores.
8)Closing old credit card accounts hurts worse than closing accounts that were opened more recently. Part of your score is based on the age and history of an account.
9) There are programs that can predict how many points you can improve your scores by using various tactics. For a small fee, updtaed info can be submitted to the bureaus and updated within 24-48 hours to improve a score. It’s called a “rapid rescore” or similar.
10) It is normally ONLY your middle score of the 3 bureaus that is used to price a loan. The high and low are ignored.
It’s only a concern to raise the mid score to get a better loan. Scores above 680 today get better pricing than below 680.11) There are different credit score models.
a)consumer score b)auto score c)mortgage score
IMO It’s a waste of money to pay for your score on the internet, you will probably get a consumer score, not your mortgage score.12)A credit report is usually valid for up to 3 months, and will often not be re-run if submitted for a loan. Not all creditors report every account to all 3 bureaus which explains the variance in scores from them.
13) For a cost of less than $20 I can run a credit report that will give you your actual mortgage scores.
If you would like any help, you can get my contact info by doing a search for SHELDON in the search box on the left side of the screen. Let me know if you have any other questions or concerns.
ParticipantJoec,
I’m in the mortgage biz, below are some facts:
Some of the answers above are basically correct.1) Your minimum payments showing on your credit report are what will be used for debt ratios. It should always match your most recent statement.
2) The credit card balance that shows on your credit report will be the last statement that was reported to the 3 credit bureaus. It could be one that printed one day ago or 30 days ago, (or possibly older)
3) The lender doesn’t know or care that you pay in full every month. Paying a credit card down or off may raise a credit score 20-40 points or more within several weeks. It depends on the % of that cards limit that you are using.
4) If the minimum payment is going to throw off a borrower’s debt ratios, it is usually possible to pay the balance in full through escrow and not have the minimum payment factored in the debt ratio. If more than $2000 is taken out of a refinance transaction, in most cases it is considered a “cash out” refi and you will pay a slighty higher rate for this loan. To avoid this, you can submit the funds to escrow.
5) Using a high % of credit limits on EACH CREDIT CARD is what can hurt you. If you have 5 cards with $5000 limits each, it is better to have $1000 on each card and making 5 payments than having $5000 on one card maxed out. (I understand that you pay yours in full)
6) If you want to raise your credit score you MUST use credit responsibly. Using a debit card is the MOST foolish thing that anybody can do. It does absolutely nothing for your credit score. Zilch, nada, zip. Doesn’t even show up on a credit report.
7) I do not believe that having too much credit penalizes people. I have seen credit reports with over $100,000 in available credit and near 800 scores.
8)Closing old credit card accounts hurts worse than closing accounts that were opened more recently. Part of your score is based on the age and history of an account.
9) There are programs that can predict how many points you can improve your scores by using various tactics. For a small fee, updtaed info can be submitted to the bureaus and updated within 24-48 hours to improve a score. It’s called a “rapid rescore” or similar.
10) It is normally ONLY your middle score of the 3 bureaus that is used to price a loan. The high and low are ignored.
It’s only a concern to raise the mid score to get a better loan. Scores above 680 today get better pricing than below 680.11) There are different credit score models.
a)consumer score b)auto score c)mortgage score
IMO It’s a waste of money to pay for your score on the internet, you will probably get a consumer score, not your mortgage score.12)A credit report is usually valid for up to 3 months, and will often not be re-run if submitted for a loan. Not all creditors report every account to all 3 bureaus which explains the variance in scores from them.
13) For a cost of less than $20 I can run a credit report that will give you your actual mortgage scores.
If you would like any help, you can get my contact info by doing a search for SHELDON in the search box on the left side of the screen. Let me know if you have any other questions or concerns.
February 27, 2008 at 12:39 PM in reply to: Update for investors & landlords regarding loans & financing #160872ParticipantViz,,
It’s not one bank,, it’s FNMA guidelines…Dunno what’s going to happen. It’s layers of risk to the system.
From their experience, Rental condos are too big a risk if not owner occupied, there goes the option for non-owner.
That could change tomorrow, next week or never.If they want to loosen the noose, they would go to one year or no proof of landlord history…
If they want to tighten the noose, they raise it to three years history.Just like subprime created new options, at some rate and some down payment, somebody will offer you a loan, but as of today, you wouldn’t get the best rate/program.
Interesting times.
February 27, 2008 at 12:39 PM in reply to: Update for investors & landlords regarding loans & financing #161166ParticipantViz,,
It’s not one bank,, it’s FNMA guidelines…Dunno what’s going to happen. It’s layers of risk to the system.
From their experience, Rental condos are too big a risk if not owner occupied, there goes the option for non-owner.
That could change tomorrow, next week or never.If they want to loosen the noose, they would go to one year or no proof of landlord history…
If they want to tighten the noose, they raise it to three years history.Just like subprime created new options, at some rate and some down payment, somebody will offer you a loan, but as of today, you wouldn’t get the best rate/program.
Interesting times.
February 27, 2008 at 12:39 PM in reply to: Update for investors & landlords regarding loans & financing #161182ParticipantViz,,
It’s not one bank,, it’s FNMA guidelines…Dunno what’s going to happen. It’s layers of risk to the system.
From their experience, Rental condos are too big a risk if not owner occupied, there goes the option for non-owner.
That could change tomorrow, next week or never.If they want to loosen the noose, they would go to one year or no proof of landlord history…
If they want to tighten the noose, they raise it to three years history.Just like subprime created new options, at some rate and some down payment, somebody will offer you a loan, but as of today, you wouldn’t get the best rate/program.
Interesting times.
February 27, 2008 at 12:39 PM in reply to: Update for investors & landlords regarding loans & financing #161202ParticipantViz,,
It’s not one bank,, it’s FNMA guidelines…Dunno what’s going to happen. It’s layers of risk to the system.
From their experience, Rental condos are too big a risk if not owner occupied, there goes the option for non-owner.
That could change tomorrow, next week or never.If they want to loosen the noose, they would go to one year or no proof of landlord history…
If they want to tighten the noose, they raise it to three years history.Just like subprime created new options, at some rate and some down payment, somebody will offer you a loan, but as of today, you wouldn’t get the best rate/program.
Interesting times.
February 27, 2008 at 12:39 PM in reply to: Update for investors & landlords regarding loans & financing #161269ParticipantViz,,
It’s not one bank,, it’s FNMA guidelines…Dunno what’s going to happen. It’s layers of risk to the system.
From their experience, Rental condos are too big a risk if not owner occupied, there goes the option for non-owner.
That could change tomorrow, next week or never.If they want to loosen the noose, they would go to one year or no proof of landlord history…
If they want to tighten the noose, they raise it to three years history.Just like subprime created new options, at some rate and some down payment, somebody will offer you a loan, but as of today, you wouldn’t get the best rate/program.
Interesting times.
ParticipantTo know what you MIGHT qualify for, here are a few of the factors for the BEST RATE conforming refi loan amount of $417K or under..with a 30 day lock,
NO prepayment penalty,
FULL DOC loan
Financial Reserves (of more than $3.99)
First lien only (NO 2nd, NO HELOC)
NOT taking any cash out
NOT paying off a HELOC (not used to purchase)
Primary Residence
Single Family Home
80% LTV or less
WITH an impound account
Credit score of 680 or higher
NO late mortgage payments in at least 12 months.Depending on your other monthy debts,
If you don’t meet ALL of the above, you probably don’t qualify for the best rates.As of 9am today SUBJECT TO CHANGE
the PAR rates for
30 YR fixed is 6.125%
15 YR fixed is 5.375%Today, a 4.50% 15 YR fixed would cost 3pts in buydown fee to the lender IN ADDITION TO all the other costs.
Rates can change all day, everyday, until they are locked in. One month ago, there were NO points needed to get a 15 YR fixed at below 4.50%.
ParticipantTo know what you MIGHT qualify for, here are a few of the factors for the BEST RATE conforming refi loan amount of $417K or under..with a 30 day lock,
NO prepayment penalty,
FULL DOC loan
Financial Reserves (of more than $3.99)
First lien only (NO 2nd, NO HELOC)
NOT taking any cash out
NOT paying off a HELOC (not used to purchase)
Primary Residence
Single Family Home
80% LTV or less
WITH an impound account
Credit score of 680 or higher
NO late mortgage payments in at least 12 months.Depending on your other monthy debts,
If you don’t meet ALL of the above, you probably don’t qualify for the best rates.As of 9am today SUBJECT TO CHANGE
the PAR rates for
30 YR fixed is 6.125%
15 YR fixed is 5.375%Today, a 4.50% 15 YR fixed would cost 3pts in buydown fee to the lender IN ADDITION TO all the other costs.
Rates can change all day, everyday, until they are locked in. One month ago, there were NO points needed to get a 15 YR fixed at below 4.50%.
ParticipantTo know what you MIGHT qualify for, here are a few of the factors for the BEST RATE conforming refi loan amount of $417K or under..with a 30 day lock,
NO prepayment penalty,
FULL DOC loan
Financial Reserves (of more than $3.99)
First lien only (NO 2nd, NO HELOC)
NOT taking any cash out
NOT paying off a HELOC (not used to purchase)
Primary Residence
Single Family Home
80% LTV or less
WITH an impound account
Credit score of 680 or higher
NO late mortgage payments in at least 12 months.Depending on your other monthy debts,
If you don’t meet ALL of the above, you probably don’t qualify for the best rates.As of 9am today SUBJECT TO CHANGE
the PAR rates for
30 YR fixed is 6.125%
15 YR fixed is 5.375%Today, a 4.50% 15 YR fixed would cost 3pts in buydown fee to the lender IN ADDITION TO all the other costs.
Rates can change all day, everyday, until they are locked in. One month ago, there were NO points needed to get a 15 YR fixed at below 4.50%.
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