Anyone else having trouble getting a mortgage??

[battricia]

I don't understand. With your mortgage being paid off you have 100% equity in the house right? Are you building an addition that's going to cost you 80% of what the house is worth? Or are you just not happy with the rates the banks are giving you? It doesn't make any sense to me unless your house is worth over 500k and you're trying to get an 80% loan.

tricia.

 

[battricia]

I went back and reread and it does seem you're putting an addition on that is worth 80% of what your house is worth. To me that doesn't really seem smart. it will price your house out of the market in your area - being 'worth' almost double what most of the houses in your neighborhood are worth. I can understand why the bank doesn't want to loan this out.

 

[breezy1077]

It's not about what the bank requires, its the current housing market. It stinks! Houses arent worth anything anymore!

They'll only loan 80% of the current market value - not enough for us to complete our work! Well, actually it will cover construction costs but that's it. I'll have a nice brand new kitchen, great room, livingroom, master bed & bath and 2 other bathrooms.....unfortunetly they'll just be shells. There's not enough money to finish them. Arggggh!

sigh
Connie

I actually think the fha rehab loan is a 203k, and you should be able to go the lesser of "as is" value of property b4 rehab plus cost of rehab OR 110% of the expected market value upon completion. They're a pain in the "you know what to do" but it is a viable option. Fyi fha rates are in the 5's right now.

 

[gower525]

I am about to have to refinance to buy out my soon to be ex-husband. This is all good news for me - right? I want the house to appraise as low as possible so I don't have to pay him as much. I will have to take out some equity to buy him out. I have very good credit - so I thought I would have no problems taking out some equity to buy him out. Perhaps I have thought wrong.

 

[dumboiu]

You can thank all the people who financed homes they couldn't afford and thus they went into foreclosure or bankruptcy.

what about thanking the lenders who backed the mortgages to those people who couldn't afford them?

 

[msmayor]

I am about to have to refinance to buy out my soon to be ex-husband. This is all good news for me - right? I want the house to appraise as low as possible so I don't have to pay him as much. I will have to take out some equity to buy him out. I have very good credit - so I thought I would have no problems taking out some equity to buy him out. Perhaps I have thought wrong.

Depends on how much equity is there and how much ready cash you already have to make the buyout. Let's say for example your house is worth $200k and is already mortgaged for $150K, and you need to pay him $100K, you'd need close to $70K in ready cash outside of the equity to fully pay him since you'd probably only be able to refinance for up to $180k, $30k more than you have now.

The less your house is worth, the less equity you have available to make the buyout. Double-edged sword, actually.

 

[breezy1077]

Thank the banks that gave all those sub prime mortages out!

Kathee

The consumer has the entire loan process and then has three recission days to "think twice about it". Our country has resorted to the blame game and loves to play "victim". Don't forget, not all sub-prime loans were bad and afforded many people the opportunity to become homeowners that might otherwise not be able to do so. Let's also not forget that even in the worst areas (before the mortgage meltdown), 97% of loans (incl. subprime) were performing - an A+ rating where I come from. Anyway...just something to consider...

 

[Anjelica]

The consumer has the entire loan process and then has three recission days to "think twice about it". Our country has resorted to the blame game and loves to play "victim". Don't forget, not all sub-prime loans were bad and afforded many people the opportunity to become homeowners that might otherwise not be able to do so. Let's also not forget that even in the worst areas (before the mortgage meltdown), 97% of loans (incl. subprime) were performing - an A+ rating where I come from. Anyway...just something to consider...

I guess I have to digress a little here. Even if only 97% were performing an A+ rating what about the other 3% that were not. While 97% in school would be an A I don't think thats fair to apply that in this instance. Say you have 50 million homes in America and 3% are foreclosed - that's 1.5million homes that have defaulted. I think that is a pretty huge number considering many towns don't have thousands of homes.

 

[breezy1077]

I guess I have to digress a little here. Even if only 97% were performing an A+ rating what about the other 3% that were not. While 97% in school would be an A I don't think thats fair to apply that in this instance. Say you have 50 million homes in America and 3% are foreclosed - that's 1.5million homes that have defaulted. I think that is a pretty huge number considering many towns don't have thousands of homes.

I agree with you...and the 97% means nothing to the person in the 3% category. But, only a fraction of the 3% are due to a "bad" loan. More often than not the cause is loss of job, death of spouse, or medical reason.