Why Trump Is Wrong On Mortgages
Donold Trump — a possible candidate for President in the coming election and the organizer of a Republican presidential debate — thinks mortgages are tough to get, maybe impossible.
“If somebody wants to buy a house,” he told CNN’s Piers Morgan , “it’s virtually impossible to get the money from a bank. And it’s — even if they have good credit. Even when mortgages are coming due, and people that have been paying a mortgage for 10 and 15 and 20 years, they can’t get money or they can’t get an extension from a bank. So the banks are really not behaving properly, that can I tell you.”
Really? I’d argue that mortgages today are widely available, as millions of people in just the past year can attest.
For instance, the National Association of Realtors says existing home sales were running at an annual rate of 4.97 million units in October — that’s up 13.5 percent from a year ago. If people can’t get mortgages then how are they buying homes? Yes, some buyers pay cash — 29 percent — but that means 71 percent got financing when they bought and 71 percent of 4.97 million existing home sales tells us that 3.5 million existing home transactions involved a mortgage.
Of course, people use mortgage money not only to buy real estate but also to refinance. The Veterans Administration , as one example, reports in fiscal 2011 that the government guaranteed 357,600 VA loans , including 186,600 purchase money mortgages and 171,000 refinances. Obviously, for these folks, mortgages were not “virtually impossible” to get, they are instead entirely accessible.
The same is true with FHA loans. In fiscal 2011 the government insured 777,521 purchase money mortgages and 420,561 loans to refinance, a total of 1,271,211 FHA loans.
Not everyone got an FHA loan. But roughly four out of five applicants did. There were 1,603,669 FHA mortgage applications in fiscal 2011, meaning 332,458 did not go through. But in any year some portion of all loans applications are declined or withdrawn, often for reasons which have nothing to do with the financing — think of a home with a structural problem or title issue.
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Of course, people use mortgage money not only to buy real estate but also to refinance. The Veterans Administration, as one example, reports in fiscal 2011 that the government guaranteed 357600 VA loans, including 186600 purchase money mortgages and
What are you doing to prevent home foreclosures in the Inland Empire, where home values have plummeted and foreclosures are still at historically high numbers? bring mortgage rates down and dropped fees for refinancing. The legislation, which was
RoomStore has also secured a commitment from its current lender, Wells Fargo Bank, for a $14 million Debtor-In-Possession credit facility. The restructuring process will facilitate RoomStore's financial and operational plans, which are designed to
In addition, it mentioned enhancements to the Certificate of Eligibility for VA loans (A Certificate of Eligibility (COE) is a form issued by the VA that states the maximum entitlement available to a veteran for a VA home loan program.)
We announced -- on our own -- a new policy that will help families refinance their mortgages and save thousands of dollars. A lot of the young people who are in New York and around the country, they're worrying about student loans.
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If a person misses payment, makes late payments, or has too many outstanding debts, then that person gets a bad credit or poor credit rating. With bad credit, refinancing is nearly impossible. In such cases, mortgage lenders help to refinance the current mortgage and qualify for home loan.
Unemployment, illness, and unexpected expenses affect bad credit. With refinancing, it is possible to get cash back to pay off debts and restore credit rating. VA home loan refinancing helps to take the benefit of existing lowest interest rates and converting the loan into a low-interest-rate mortgage compared to what you are currently paying. This ultimately translates into huge savings. You can refinance existing VA home loans with a lower rate loan by using a VA IRRRL (Interest Rate Reduction Refinancing Loan).
For a VA home loan refinance, the mortgage rate may range from half a percent to 3%, 4% or slightly more, depending on the personal situation. For those who finance the fee with the home, some unknown cost may be involved. A surviving partner who has obtained a VA home mortgage with the veteran prior to his or her death may obtain a guaranteed interest rate decline on VA loan refinancing. Though most lenders do not provide construction loans, after the home is complete, the borrower can take a VA home loan in order to refinance the construction loan. This loan can be used to refinance an existing home loan up to 90% of the VA-established reasonable value or to refinance an existing VA real estate loan to reduce the interest rates.
By applying to refinance a mortgage, one can save money on monthly mortgage payments in a very short period. Lenders will offer advice to improve the credit rating. VA home loans are more secure, so the risks for the lender are much less than with a non- secured loan .
VA Home Loans provides detailed information on VA Home Loans, VA Home Loan Refinance, VA Home Loan Rates, VA Home Improvement Loan and more. VA Home Loans is affiliated with VA Student Loans .