Do You Know Your Mortgage Terms? 1 in 4 don't!

Home owners are getting better at understanding mortgage terms, but according to a GfK Roper random survey of homeowners and others, 26% still don't know if they have a fixed rate, ARM or other kind of home mortgage. Still, the numbers are better than last year where 34% didn't know.
What kind do you have; are you sure?

I recently helped a client who wanted to purchase a duplex, the client insisted on using a particular lender because the lender "took care of everything last time", and they had already talked to this lender and the lender had told them this new property would be no problem.
I like to shop my buyer's good faith estimates around to our local financial institutions just making sure they get the best deal. Why, because as the survey above points out, people don't get mortgages often, they don't understand terms, and additionally as a Realtor I believe it is a service I can and should provide. The mortgage on the previous duplex had some red flags, the payment didn't match the "terms" the client said they had (payment amount too low to pay off the loan in the stated time period, loan was a fixed rate).
They brought the mortgage documents in to my office and guess what - it has a balloon! They were not happy, and once they understood they were barely paying on the principle they started looking for a local lender to refinance. But, they had obviously signed the documents- so what happened. Had they just forgotten; I don't think so but it is possible. What is more probable however is that they were intimidated by the jargon and the paperwork and just signed and initialed where they were told to.

Maybe you should pull out that paperwork and take a good look at it again, and if you are thinking about buying go on line and learn, learn, learn. Also, ask a person who should be very familiar with the various mortgage products and programs - your Realtor.

Do You Have an Adjusting ARM? How do you know if You Qualify for Help

If you have gotten caught in the adjusting ARM nightmare, there is hope. Follow the link in the title to see if you qualify for the assistance program. Don't just stick your head in the sand! If you have missed one payment you may still qualify. Contact your lending institution or the company that services your loan and call 1-888-995-HOPE, which provides counseling to homeowners with mortgage problems.
There is HOPE, the best defense against getting into trouble is to educate yourself and don't keep your knowledge to yourself, pass it on.

Realtors and Consumers The Chairman of the Senate Banking Committee Needs Your Support

Sen. Christopher Dodd is expected today to introduce a bill that would require mortgage lenders to issue only loans that are beneficial to borrowers and that borrowers are able to repay. What a novel idea - What, you thought the banking industry had your best interests at heart????

This bill seeks better loans for consumers. The proposal by the chairman of the Senate Banking Committee would not only force mortgage lenders to act in the best interest of borrowers, it also would expose Wall Street firms to lawsuits (IT IS ABOUT TIME!!!!) as well as bar subprime mortgage lending practices such as prepayment penalties and yield spread premiums, (this should not be how a mortgage broker gets paid) can anyone say Major Conflict of Interest???
Dodd's proposal is in some ways similar to one from Rep. Barney Frank, which passed in the House by a wide margin in November.

Mortgage companies and banks are expected to come out in force against Dodd's bill. Really? well you as an American consumer can help get this measure in place ----CALL YOUR BANK, MORTGAGE COMPANY, SENATOR AND YELL - Get this legislation passed and implemented. "I'm Mad As Hell and I'm Not Going to Take it ANYMORE!"



Click on the title to link to Reuters article on the bill