Mortgages, home loans and credit questions.

Can't find the information you're looking for?

Sometimes it smarter just to pick up the phone and make a call... rather than going from website to website
and wasting time. The Senior Loan Consultants at Mortgage Match will be glad to answer any questions you
have regarding mortgages... specifically as the answers apply to your unique borrowing situation. They're not
sales people, so there will be no pressure for you to do anything. You can arrange a free, no obligation phone
consultation by sending an e-mail to info@mortgage-match.us

A. - We'll answer this question from the institutional investors' point-of-view, which includes most
mortgage bankers, wholesale lenders and mortgage companies. These sources for mortgage
funding look primarily at your midscore FICO, your debt-to-income ratio, and your overall ability to
repay the loan. This last factor is measured by how you earn an income, where it comes from, how
much you earn and how stable you are in whatever your income-earning situation is.

A. - Whenever any mortgage investor or lender checks your credit, a tri-merged credit report is
obtained. This means your credit report with all three major credit bureaus is viewed and analyzed.
Each bureau, Experian, Transunion and Equifax, scores and reports your credit file.

Usually, each bureau has a different score for you. The industry's standard practice is to use, not the
highest or the lowest score, but the middle score as your "official" FICO score. Let's say, Transunion
scores you at 624; Experian scores you at 594; and Equifax scores you at 575. Your midscore FICO
would be 594, and this is the FICO score which is used to qualify you for any given mortgage
program. Generally speaking, the higher your FICO score, the more choices and options you will
have in what programs you qualify for... plus you will usually qualify for better interest rates and lower
payments. So, whether you're able to qualify for such options as 100% financing, interest-only
payments and stated or no income verification programs depends on your midscore FICO. It's
obviously very important.

A. - Borrowers often mention to us that they have a friend or relative who got a certain rate for their
new mortgage or refinance, and they would like to get that good rate too. Unfortunately, picking the
rate you want or think you deserve isn't usually that easy. Assuming you're interested in the same
type of mortgage as your friend... an Adjustable Rate Mortgage (ARM) or a Fixed Rate, most mortgage
lenders have a variety of criteria they consider in developing pricing for their specific programs. And,
even when lenders have the same programs, they don't necessarily price them the same way. So,
unless your borrowing profile is exactly like your friend's, you may either qualify for a rate that's not
quite as low... or, you may qualify for a better rate. In most cases, the primary factor will be your
midscore FICO... the higher it is, the better or lower your rate will be. There are, however, several
other considerations; such as: in what manner your income and/or employment can be documented,
what type of property you are purchasing or refinancing, and whether or not the property is your
primary residence or if it's non-owner occupied. Another issue of considerable importance is the
Loan-To-Value (LTV) of the property. For instance, if you are purchasing with no money down, then
your LTV is 100%. If you're putting 10% down, then your LTV is 90%, and if your down payment is
20%, then your LTV is 80%... and so on. The lower the percentage for your LTV, whether you're
purchasing or refinancing, the better or lower your rate will be. So, a borrower putting down 20%, will
get a better rate than a borrower who is getting 100% financing. Nearly all mortgage lenders price
their programs using the above factors for guidelines. To get the lowest rate, you should have a
midscore FICO above 700, put down as much money as you can afford, be able to document your
income with paycheck stubs or W-2's (Full Doc), and be purchasing or refinancing a detached, Single
Family Residence (SFR).

A. - Assuming the question means, "how long does it take from the time I apply until my deal is funded",
the answer is... on average about 30 calendar days. It can be done considerably faster, but typically it's
around a 30-day process. What happens between the time application is made and funding occurs are a
number of steps. The property's title is researched. A field appraisal must be preformed by a licensed
appraiser. The lender may stipulate certain conditions must be satisfied before closing; such as:
verifications of employment, insurance, rent, mortgage history, closing funds or other assets. Sometimes
a physical or pest inspection may also be required. Not all purchase or refinance deals are alike. Some
can be closed with short cuts. Therefore, there's no exact answer to this question available.

A. - An interest only mortgage loan provides you with the option of making an interest only payment on
your mortgage; instead of a principal and interest payment. If your mortgage account has been set up to
impound or escrow your taxes and insurance, then these costs will still be paid, even when you make an
interest only payment. So, in this case you will be making an interest, insurance and tax payment... but no
principal payment. Interest only payment options do not last the life or full term of the loan. Usually, a
borrower has this option available during the first few years of the loan... most lenders offer an interest
only option on the first five years. However, this option can greatly reduce your monthly payment. Here's an
example... let's say you are purchasing a $200,000 home, and you qualify for a zero down payment
mortgage with an interest only option. Your loan amount is $200,000 and your interest rate is 6.95%.

Your payment amortized over 30 years would be $1,323.89. But, with an interest only option your payment
would be $1,158.33... a reduction of $165.56. After your interest only option expires, then your payment
reverts to a full principal and interest payment.