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Mortgage Rates are DROPPING. I am a Loan Officer - Any Questions?

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Hewre's more good info from Era

--- Quote ---Hey everyone,
These really are crazy times we are dealing with. I think many of you like myself were caught off guard with how quickly things have escalated. A lot of our family members, friends or we ourselves have had to take a temporary leave of absence from our jobs due to federal orders. If you or anyone you know is concerned how you are going to make ends meet or pay your mortgage payment you need to know about Mortgage Forbearance.

First what is Mortgage Forbearance?

From Investopedia - "A mortgage forbearance agreement is an agreement made between a mortgage lender and delinquent borrower in which the lender agrees not to exercise its legal right to foreclose on a mortgage and the borrower agrees to a mortgage plan that will, over a certain time period, bring the borrower current on his or her payments."
This type of Mortgage Practice is nothing new. What is new is that federally many banks that service your mortgage (Who you pay each month) are being insured to provide this assistance. Based on the new directive the COVID Assistance is to provide:

Ensuring payment relief by providing borrowers forbearance for up to 12 months;
Waiving assessments of penalties or late fees against borrowers;
Suspending the reporting of delinquency related to forbearance, repayment or trial plans to credit bureaus; and
Allowing Servicers to offer borrowers additional loss mitigation options that are typically only enacted to address natural disasters. This includes loan modifications that give servicers options to provide payment relief or keep the payment the same post the forbearance period.

If you or a family member is affected

Click here to read up on the new protocols:
Call your mortgage service (The company on your mortgage bills) and tell them you have been affected by COVID-19

Can anyone get this assistance?

You have to prove that your layoffs were due to the virus - Employee letters ect.

I've had a lot of people ask me about this concerned about it and have been getting a lot of positive results. I hope this helps.
--- End quote ---

Either you or someone you know may find this useful if necessary. Please Share.

Freddie Mac Loan Look Up Tool:

Fannie Mae Loan Look Up Tool:

If you or someone you know has been put in a situation that paying your mortgage may be become a problem, these last two post are for your benefit.

So as you probably heard, all major lenders are doing some sort of Mortgage Moratorium.
All but 1 are doing a flat 90 Day Deferment.
1 (BofA) is doing a 30 Day Deferment, every 30 days as long as necessary.

Now I sat in my office today with a client who was on the phone with Mr. Cooper, who while on speaker phone explained how their Mtg Deferment worked....

you could apply and you would not have to make a payment for 90 days.
BUT..... and this is a big but, your payment will not delay the payoff of your loan by being tacked on to the back, instead, once the 90 days is up, you will be expected to make a lump sum payment and make your currently due Monthly Mortgage Payment.

Meaning, once that 90 day deferment is up, you could owe 4 months of Mortgage payments due in that 4th month.... I'm not really sure how that helps except to defer your panic of foreclosure and/or ruining of your credit for 90 days as well....
If you weren't working, and can't make the payment for those 3 months, how are you suddenly supposed to come up with those 3 months of payments, and then make your now due monthly payment while only receiving a single stimulus check of $1200 and possibly unemployment that went to buy food and keep the utilities on...?

The BofA deferment is tacked on to the back of the loan, so that once the crisis is over, you will just pick back up like usual, and it will just take you that many extra months that you were deferred to pay off the loan.

So when you are signing up for your deferment, please check to see if they are doing a lump sum or delayed payoff. /PSA

Random question I was wondering about: people are always talking about regular mortgage rates, but what about mortgage rates for an investment property? How much higher are those expected to be in general compared to the comparison to the "primary home" type of mortgage that gets front-page placement?

In this environment, it depends on who you go to, and the different factors of the loan, but I'd guess anywhere from .5% to 1% difference from the rates you are seeing for primary residence.

Credit Score, Loan to Value, Property Type, Loan Amount, Loan Type, and Loan Program all are factors.

and for us, we are matching all offers, so I invite customers to shop us if they want, and just bring me back a legit quote and get your loan secured a major lender for the same rate and in lots of cases less cost.


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