Getting a loan in 2012

by | Aug 27, 2012 | How to Guides, Uncategorized

The talk this year has all focused on low interest rates but with all the choices how do you know what’s right for you? Here to help sort out the options is our Real Estate Expert Nick Krautter from Keller Williams real estate and Sellpdx.com.

Q. What is the most common loan that home buyers are getting these days?

A. Almost everyone is opting for 30 year fixed rate loans. These can be conventional loans or FHA, VA and USDA but they have a fixed rate and if you pay it for 30 years you pay off the loan completely.

Q. What about jumbo loans and negative amortization loans?

A. Jumbo loans are still available and rate are great but many people are going for an 80/10/10 which allows you to get a conventional 1st with no mortgage insurance and a 10% second loan. The really exotic loans like negative amortization and no income or asset verification are all gone and have been for a few years.

Q. How do buyer know they’re getting a good deal on their loan with rates and fees being so complicated?

A. The Consumer Financial Protection Bureau is actually making it a requirement next year that all lenders offer a no fee option to borrowers. I think this is a great idea and a good way to compare apples to apples. Most people just want the lowest rate but almost every lender I know already offers a no fee option but it comes with a slightly higher interest rate.

…This is just the tip of the iceberg to all the loan options. If you have any questions give us a call and we can refer you to a top local mortgage broker!

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