Just say the words yield spread premium to certain people and you will have pushed one of their hot buttons. These people believe the YSP, as it is called in the industry, is a giant rip off.
This article doesn’t delve into its moral, ethical or political facades. That is left for each individual borrower to […]

In order to understand the nature of a correspondent lender, a person needs to understand the other types of mortgage lenders in the market place. Everyone is familiar with banks, credit unions, thrift institutions and savings and loan associations.
However not everyone understands mortgage bankers and mortgage brokers even though they make mortgage loans like the […]

If you have a 2nd mortgage on your home, you are one of the millions of people in a very large pool. In the “old days” a person with a second mortgage was considered financially unstable. Fortunately that perception has disappeared.
The reason you have a 2nd mortgage depends on your circumstances at the time you […]

80/10/10 loans are easy to understand as they have only one purpose. The type of loan and rate of each loan will be determined by availability and interest rates available at the time you are in the market for a loan.
These loans are generally considered creative financing but in truth they are merely combination financing […]

With all the ballyhoo about adjustable rate mortgages (ARMs) in the media over the last six months, most people aren’t aware of a special feature in almost all ARMs. That feature is the conversion clause.
This clause presents the easiest and quickest way for a homeowner to refinance out of their adjustable rate mortgage without having […]

Property can be owned in any number of ways. Just ask your attorney and he’ll explain the fine details and nuances. This article will look at the four most common as they exist in today’s market place.

If you are not getting any younger and you would like to experience the finer things in life, then a reverse mortgage may be able to help.
A reverse mortgage allows you to take out a loan based upon the equity that is tied up in the home. Giving you either multiple payments or one lump […]

Home ownership is touted as the American Dream. However for some it turned into the American nightmare. You can bet these people never did a complete pro/con analysis.
Mind you, the factors you are about to read aren’t the end all be all. They are merely a start to help you frame your thoughts about buying […]

A glossary is an alphabetized list of terms with their explanation/definition. When it comes to home mortgage loans, there are so many terms it would take ten pages to cover them all. However, I’ve extracted the most important and put them below.

Private mortgage insurance (PMI) is something people bump up against for the first time when they apply for a home loan. Unfortunately, given its inherent nature, it is quite confusing.
But, if you as a borrower understand this is insurance that protects the lender and not you the borrower, you should have no problem with the […]

It is just common sense that anyone who qualifies under a mortgage lender’s underwriting guidelines can obtain a mortgage. Given that is true there must be a system in place to regulate those guidelines.
The good news is the United States federal government has 4 core laws that make the guidelines uniform and administered fairly and […]

The Federal National Mortgage Association is better known by the name Fannie Mae. As you can guess, Fannie Mae is the pronunciation of the acronym FNMA.
What isn’t widely known is that the FNMA is considered a government sponsored enterprises (GSE). It isn’t the only GSE created by Congress but it is probably the best known […]