Q&A: For mortgage loans, to esure the value of the property and monthly repayment is important.?

Question by Eddy T: For mortgage loans, to esure the value of the property and monthly repayment is important.?
stable property overvalue ensure demand for it. Prompt repayments of monthly instalments by mortgagors also enhance the property value and demand. Banks can also create new loans to house buyers. And preventing a bubble in the housing market.Why is it important to ensure that the property value and loan repayment is promptly paid?

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Answer by Marjie W
Where’s the question???

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Why did the investment bankers think it was profitable idea to securitize bundle bad mortgage loans?

Question by Kuntree: Why did the investment bankers think it was profitable idea to securitize bundle bad mortgage loans?
First I don’t understand why banks would loan money to someone with bad credit or not having the means to repay. Second I don’t understand why investment companies like Bears Stearns would repurchase the loans from the banks. Securitize them and sell them as bonds. What are they learning at these prestigious business schools? How to be a licensed crook? The credit rating agencies are seem to be payed by not assigning the proper credit ratings. The country is falling apart because people don’t have the discipline to live within there intended. Greed is linear rampant.

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Answer by Stu
The big problem comes in when the people originating the loans are not the people that end up holding the loans. They originator is getting paid to originate loans and frankly doesn’t care if the lent will get paid, because he isn’t travelling to be holding the loan – it will be sold to someone else. There is no incentive for the originator to do extensive checks to see if the person getting the lend can really pay it cancelled. All is good and ticketing if the housing offer continues to go up as populate can continuously refinance. However, that can’t continue forever and now someone must pay the price for this. That should be the loan originators and the people that applied for these loans.

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Q&A: What companies offer smaller mortgage loans?

Question by hi24home: What companies offer smaller mortgage loans?
I am looking to buy a house that has an asking price of $ 18,900. I have decent credit (600-range) and regular income (1600/month), but no one will offer a mortgage because they do not offer mortgages that small. Are there companies that do? I am located in Pennsylvania.

Best answer:

Answer by Woof
I don’t know of any mortgage lender that will do loans under $ 50K or so. The administrative expenses are too high relative to the small profit they would make on such a loan. You might try getting an unsecured loan and combining that with cash savings for the full purchase price.

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ARM Explanation Adjustable Rate Mortgage – Quicken Loans

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What are the new rules for mortgage loans?

Question by da_hal: What are the new rules for mortgage loans?
I got preapproved before (but didn’t buy a house) and when I went to the same bank, they said they had new regulations (didn’t meet with a mortgage specialist yet.)What kind of regulations are banks using now to qualify people for mortgages?

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Answer by Ryan M
Every bank has their own rules and regulations.

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