What is new today is that lenders are allowing for the layering of risks on top of one another, ... What we don't know is what if we put all these risks together and put them in a rising interest rate environment, a declining housing market, or a weakening economy.
More Quotes from Keith Gumbinger:
If you're a good credit borrower you can challenge fees if they seem excessive.Keith Gumbinger
Fannie Mae and Freddie Mac will even lend 103 percent of the homes value, ... You need to have very good credit to qualify for this kind of loan.
Keith Gumbinger
If you've already got one set up, you're good to go.
Keith Gumbinger
The question you need to ask yourself is, why would a bank be pitching you this product at this time The obvious answer is that bankers believe rates will rise in the future. Getting you out of a fixed loan and into a variable one helps ensure profitability on your account.
Keith Gumbinger
If you plan to be in your house for decades, on the other hand, you might consider paying points to lock in the best long-term rates. Points, which cost one-half of a percent to 1 percent of the loan and are paid up front, let you buy a better interest rate. If you pay points up front, it's harder to get your money back, ... When rates are high, borrowers have to pay points to trim rates any way they can, but with rates so low there is really no need to pay those points.
Keith Gumbinger
If you re-extend from 15 years back out to 30 years, that might reduce your monthly payment by 30 percent, ... If there isn't a likelihood that you'll pay off your mortgage, the re-extension of the term of your loan could measurably improve your cash flow.
Keith Gumbinger
Readers Who Like This Quotation Also Like:
Based on Topics: Danger & Risk Quotes, Environment QuotesBased on Keywords: layering
I loved the feeling of freedom in running, the fresh air, the feeling that the only person I'm competing with is me.
Wilma Rudolph
What can be indissoluble if a perpetual Union, made more perfect, is not?
Salmon P. Chase
I can't wait til I get the chance to be a character and how my face looks isn't the first consideration.
Kelly Lynch