Aug

21

Mortgage Primer: loans that Wall St. doesn’t like

Filed Under mortgage 

MakeYourNextOpenHouseAWinner.jpgHere’s a mortgage primer on which loans are no longer the flavor of the month on Wall Street. They’re the Michael Vick’s of the mortgage world, they were once very popular on but now nobody wants to be associated with them. Okay, that’s a little bit too harsh since these loans didn’t kill dogs. Then again, these loans have put families in dire straits so lets keep the Michael Vick analogy.

Loans the Wall Street doesn’t like:

  • THE LOANS WITH THE REALLY REALLY REALLY LOW RATE AND LOW MONTHLY PAYMENT

    • Also called: 1%, amortization »”>NEGATIVE AMORTIZATION, NEG AM, OPTION ARMS, PAY OPTION ARMS or

    “A CAN OF WHOOP ASS WAITING TO HAPPEN”

  • THE LOANS FOR BORROWERS WITH REALLY REALLY REALLY BAD CREDIT HISTORIES

    • Also called: SUBPRIME, NON PRIME, POOR CREDIT, 2/28s, 3/27s, or

    “I GUESS THIS IS WHAT I GET FOR NOT PAYING MY BILLS”

  • THE LOANS FOR BORROWERS WHO HAVE GOOD CREDIT BUT WHOSE OVERALL LOAN APPLICATION DOESN’T MEET FANNIE MAE OR FREDDIE MAC’S STANDARDS

    • Also called: ALT-A or

    “SO I’VE GOT GOOD CREDIT AND A GOOD JOB BUT I’M PENALIZED FOR NOT SAVING ANY MONEY”

  • THE LOANS FOR BORROWERS WHO CAN’T REALLY REALLY REALLY SHOW HOW MUCH MONEY THEY’VE MADE OR HOW MUCH THEY HAVE SAVED UP

    • Also called: STATED INCOME, STATEDSIVA, SISA, NO DOC, or

    “DON’T THEY HAVE LOANS FOR PEOPLE WHO DON’T HAVE JOBS?”

  • THE LOANS FOR BORROWERS WHO REALLY REALLY REALLY DON’T WANT TO PUT ANY MONEY DOWN

    • Are called: 80/20, 100% Financing, NO MONEY DOWN, 103%, 107% or

    “I WANT A LOAN WHERE I GET TO KEEP MY MONEY IN CASE MY JOB GETS OUTSOURCED TO INDIA”

  • THE LOANS FOR BORROWERS WHO REALLY REALLY REALLY DON’T WANT TO PAY AN AMORTIZED PAYMENT

    • Also called: INTEREST ONLY, IO, or

    “IF I LIKE PAYING DOWN PRINCIPAL MY PAYMENT GETS RECAST TO A LOWER PAYMENT EVERY MONTH”

  • THE LOANS FOR BORROWERS WHO REALLY REALLY REALLY WANT TO BUY A HOME THEY HAVE NO INTENTION OF LIVING IN

    • Also called: INVESTMENT PROPERTY LOANS, NON OWNER OCCUPANCY, NOO or

    “I’M GOING TO BE THE NEXT DONALD TRUMP”

  • THE LOANS FOR BORROWERS WHO REALLY REALLY REALLY MAKE A LOT OF DOUGH

    • Also called: JUMBO, NON CONFORMING, SUPER JUMBO, MILLION DOLLAR LOANS, ANYTHING OVER $417,000 or

    “THAT’S PRETTY LOW FOR A RATE OF RETURN AND PRETTY HIGH FOR A MORTGAGE INTEREST RATE”

    It remains to be seen if Wall Street still likes:

  • THE LOANS FOR BORROWERS WHO REALLY REALLY REALLY HAVE NO INTENTION OF LIVING IN THEIR HOMES FOR 15 to 30 YEARS

    • Also called: ADJUSTABLE RATE MORTGAGES, ARMS, 3/1, 5/1, 7/1, 10/1, TEASER RATE LOANS, HYBRID LOANS, BALLOONS or

    “THE AVERAGE PERSON MOVES EVERY 5 to 7 YEARS, SO WHY SHOULD I GET A LOAN FOR 30 YEARS?”

    Wall Street will always like:

  • THE LOANS WITH REALLY REALLY REALLY NO RISK

    • Also called: FHA, VA, CONFORMING, FANNIE MAE, FREDDIE MAC or

    “THE LOANS THAT MAKE UP THE MAJORITY OF THE AMERICAN MORTGAGE LANDSCAPE”

Is your rate too high? Get a rate quote on a Denver Mortgage Loan now!

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