A question about a mortgage I can't think of right now

wildstorm_films · Joined: 22 Aug 2007 Posts: 131 8.66 Dollars($)

What are those mortgages called that go 120% LTV of the houses equity? Are they called hard money loans?

ezmortgageloanz · Posted: Sun Aug 26, 2007 4:46 pm Post subject:

Hard money loans tend to cap off at 65-70 LTV---back in the day, there were 2nd mortgage lien holders like Aegis that would offer a 2nd mortgage that would allow for a CLTV loan amount of 115-125%, however those days are gone.

Regards,

Scott Miller

larry · Joined: 27 Jun 2007 Posts: 3328 473.51 Dollars($)

Hi Wildstorm,

Loans with 120% LTV is not called hard money loans. But they are termed as No Equity loans.

No equity loans are those type of fixed rate home loans which provide larger loan amount than the equity available on your home. Such type of loans are for fixed term and the interest charged on them are also tax deductible. To know more on no equity loan, you may refer to http://www.mortgagefit.com/125-percent.html

wildstorm_films · Joined: 22 Aug 2007 Posts: 131 8.66 Dollars($)

Thanks for the info guys. I'll look into it.

larry · Joined: 27 Jun 2007 Posts: 3328 473.51 Dollars($)

Hi Wildstorm,

It is our pleasure to help you. If you need any further help, please feel free to ask.

wildstorm_films · Joined: 22 Aug 2007 Posts: 131 8.66 Dollars($)

I read that linked that you posted Larry but not alot of lenders are doing that anymore correct? I imagine that the credit score needs to be high also.

miller_st · Joined: 17 Jan 2007 Posts: 917 168.84 Dollars($)

Thats true Wildstorm.

For some time now very few lenders are willing to do this type of loan because of the turmoil in the mortgage industry. It has become a lot riskier for lenders to do such type of loans.

Miller

wildstorm_films · Joined: 22 Aug 2007 Posts: 131 8.66 Dollars($)

These type of loans wouldn't be risky if the companys would lower the interest rates on these loans. Pretty much interests rates are determined by how good your credit score is. The better the score the lower the rate. The lower the score is, the higher the rate is. And for people who want to save their home or whatever this is the only option for them. But the fact of the matter is the people won't be able to afford the payments soon afterwards because the interest rate is high. Thats why the foreclosure rate is high. Thats why the housing market sucks right now because mortgage companys are just charging to high of an interest. I'm all for making the almighty dollar but c'mon! Things can get better if they give people a chance, especially those who have maintain good standing on their credit before they hit a big slump.

The only way the housing market is going to improve is if mortgages and refinances are affordable for people.

Guest 0.10 Dollars($)

Wildstorm,

I agree with you that with a better credit score, the interest rate on the loans should be less. The mortgage companies should lower the interest rates on the loans which will help the borrowers to manage their payments in a better way.

Jessica · Posted: Sat Sep 01, 2007 4:52 am Post subject: RE:

Hi Wildstorm,

It's not that lenders don't want to offer a low rate. Yes, I agree with certain companies offering loans, borrowers hardly get low rates but that's their own strategy of lending I suppose. The interest rate of most borrowers who've defaulted within the past few months are high because they have been going for mortgages even when they had poor credit and in order to make business (because lenders have to survive) lenders have offered them credit but at higher rates.

I am neither speaking in favor of lenders nor that of borrowers but the foreclosure rate is high mostly because of both the lenders and borrowers. Less creditworthy borrowers have applied for loans; some have even shown false documents to prove they have good credit and thus lenders have offered loans sometimes knowingly and sometimes unknowingly. The result is default rate being higher followed up by high rates of foreclosure and a downturn in the market altogether.

Regards,

Jessica

0.10 Dollars($)

How is it that someone can provide false documents to prove they have good credit? Lenders request to check your credit report.

wildstorm_films · Joined: 22 Aug 2007 Posts: 131 8.66 Dollars($)

By the way, thats me^^

larry · Joined: 27 Jun 2007 Posts: 3328 473.51 Dollars($)

Hi Wildstorm,

Nowadays, the practice of providing good credit record of a person to another person's credit report is quite a common thing. The purpose behind this is to get a less creditworthy borrower qualified for a loan by showing the credit record of the other person. This is what is known as piggybacking on other's credit report.

With this concept of piggybacking, the credit repair services add the credit card account of the credit worthy borrowers to the credit report of poor credit borrowers. By adding this, the latter shares the same credit history with the former. In this way, the credit score of the less credit borrower increase artificially.

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