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Vanilla Home Loans on the Way

11-05-09

John Dunn: Real Estate Agent in Denver, CO

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Office: (303) 320-3866

Mobile: (720) 353-0353

For the past decade or more, home loans have tended to be anything but basic. Complex loans, such as those that feature interest-only payments or option Adjustable Rate Mortgages, have been the rule, rather than the exception. The sheer complexity of the home loan marketplace can leave the new home buyer frustrated and confused. In addition, these complex loans are, at least in part, intertwined with the economic downturn in the housing market.

Option-AMR mortgages, for example, allowed the borrower to defer their interest while they made payments on the principal. This worked fine, until home prices began to fall. At that point, payments rose and the deferred interest payments caused many mortgages to increase while the value of the home dropped. This created a huge loss for the lender. Many companies that featured these products, such as IndyMac, Bancorp Inc., Washington Mutual Inc., Downey Financial Corp., Wachovia Corp., and Countrywide Financial Corp. have all folded or been bought out since the downturn hit.

Home lenders, such as Wells Fargo, are realizing that this is a problem, and are offering potential home buyers the choice of a basic, “vanilla” loan. Many of the home loan companies offering exotic mortgage products are closing their doors or at least scaling back, and Wells Fargo sees this as an opportunity. New home buyers need and want simple mortgages that they can afford and that won’t create a great deal of risk either for the lender or for the mortgage company.

Wells Fargo and the mortgage companies offering these vanilla loans aren’t the only ones who support the idea. Many politicians, including the President, support the idea of the vanilla loan. There is even legislation being talked about that would make it so that a new home loan is a vanilla loan, by default. If the home buyer wanted to explore other loan types they could, but most loans would be your standard loan, such as a 30-year fixed mortgage.

In the end, vanilla mortgages will not only help the overall loan market, they should create less risk for home-buyers. Buyers can be relatively sure that their home won’t be worth less than what they owe, even if the housing market should take another dive.

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Do you want to buy a home with no money down?

10-28-09

Nicholas Goraczkowski - Your Mortgage Resource (720) 83-RATES

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Office: (720) 83R-ATES

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PURCHASE A HOME WITH NO MONEY DOWN

for sale

So you are ready to buy a home but with this economy, who has the huge down payment? Most lenders that you speak with will tell you with no money down, they can't get you a loan. NOT TRUE!!!

I am very happy to tell you about the Economic Development programs that are now available. As a direct lender, I have access to this exclusive Government sponsored program. It will allow you to purchase a home without putting any money down!

Wait, it gets better.....

The credit underwriting guidelines have been relaxed as well. This means if you were not able to purchase a home before due to credit, we might be able to help you now. Just change jobs? That used to be a problem. Now with the economic development program, we can work with that as well.

no money down purchase

What is the Economic Development Program?

This program was put in place to help regular people purchase a home. It helps everyone when more people own their own homes. This program is designed just for that. It is only available through certain lenders because it is a very closely regulated program. More and more folks are now able to qualify for this great option.

Can it help you to purchase a home with no money down? Please contact me today to find out what options there might be for your situation - Happy House Hunting!!!

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Plains Conservation site a tribute to Colorado homesteaders

10-25-09

Emelyn Morris-Sayre, CRS, REALTOR Lakewood and Denver Metro homes

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Office: (303) 582-3200

Mobile: (303) 517-5116

On friday, I participated in a DAR field trip to the Plains Conservation site in Aurora. Colorado history has always fascinated me, especially since my husband's family homesteaded here back in the mid 1800's. As a former member of "The Shady Ladies of Central City" I have spent many hours studying the roles of women in the settling of the West...from soiled doves to wives of military men...all trying to survive in a harsh environment. So visiting this preserved rendition of an old homestead had special meaning to me.

Touring the small home built of sod and mud, to sitting on the stiff, wooden bench in the one room school house, I could imagine the hardships our families endured as they set down roots in Colorado. Even as the suburban developments creep towards this beautiful park, you can look towards the horizon and transport yourself back in time.

All photos are copyrighted by Emelyn Morris-Sayre, 2009.

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Get Smart About Credit

10-15-09

Nicholas Goraczkowski - Your Mortgage Resource (720) 83-RATES

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Office: (720) 83R-ATES

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If you have been wanting to learn more about credit, then this is the day. It is annual Get Smart About Credit Day.

Originally put together to teach young adults and teenagers about getting credit and being responsible with it. This day has turned into a day that is used by banks and employers along with schools.

It is a fact that most Americans can't go through life without some type of credit. We need it for a place to live; a car to drive; to pay for airline tickets and in some cases even to pay for food. So, it is important that we use our credit wisely. credit

The banks and lenders are all tightening up the restrictions on obtaining new credit. So, it is now more important than ever to know where you stand. If you need to know what your current credit scores look like, you can check with the major credit bureaus.

Get Smart About Credit Day is a great day to focus on:

Teaching your clients about how a credit works.
How a credit score is calculated.
The credit do's and don'ts

Get Smart About Credit Day is sponsored by the American Banker's Association. If you would like to request a Get Smart About Credit Day kit, you can visit the ABA site.

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