I am doing a topic on home loans for today's contest topic (go me!) and I realized that I have a personal story about how the banks have kind of messed themselves up by offering loans to people who shouldn't own a home.
Federal home loans are the easiest ones to get, like they are super easy but are kind of meant for the poor to get loans. Anyway, my ex husband (when we were married) got a home loan. He didn't default on the loan, he ended up selling the house. The process of buying the home was really loose, though. I'd just moved our bank accounts over to a new account and my then husband forgot and he overdrew on our old, empty account. Also, we'd just moved up from college where he'd dropped out and he'd been working his new job for less than six months. Even the federal loans require that you work at least two years, better off with the same job.
He didn't apply for a federal loan either, he got a private loan which is supposedly much more difficult to get. We paid everything on time and were never late, but it's kind of scary that the bank gave him the loan on six months work. All they wanted to see of our banking is a one month statement. We did all our banking online so its was just a print-off... that's it. It wasn't an expensive house, though, just an old foreclosure build in like 1917.
I handled the bills, so although it was his house, I made sure everything was paid every month and one thing I found was strange was that we started with paying our mortgage monthly to one company, and then our mortgage was sold to another company, and then later during the divorce it was sold to another company. This was in the course of probably a year and a half. It was a fixed home loan (I'd never get a variable) but the price each month would change because the bank made an error with the money we'd put down -- they put all the money toward the down payment and NONE toward the mortgage insurance. Since the mortgage insurance wasn't paid "at the table" it was wrapped up in our monthly payments along with the current mortgage insurance -- it's hard to explain but each payment was comprised of:
The house payment + the current month's mortgage insurance premium + back payment on the mortgage insurance that was supposed to be presented at the table. The reason the payments would change each month, however, is because we would pay more than asked each month to knock out that premium. Our plan was to do that from the get-go in order to knock out the house payment, anyway.
Did you have a strange experience with your home loan?
by crankalicious 19 months ago
On Friday, his first day in office, Donald Trump's administration reversed a decision that would have cut the FHA mortgage insurance premium, which would have saved the average home owner about $500/year. It was set to go in effect on Jan. 27 and has been suspended indefinitely.Are you happy about...
by Shepherd's Lamb 20 months ago
I just want to discuss what's going on in my little head right now and hope to hear from those of you more educated on the subject.I qualified to buy a condo in 2004 (six years ago). I paid $6,000 cash for closing. Two years later I refinanced to get into a fixed interest rate of 5.5%...
by ewigfall 6 years ago
can I get a reduction in my mortgage insurance permiumsI Have a fannie mae mortgage and pay $511/mo in insurance. I need a reduction
by cknlgs2950 7 years ago
I owe $408,000.00 on a 6% interest only mortgage. My monthly payments are $2125.00 per month. ...If I pay the loan down to $143,999.00, what would my monthly payments be?
by Ralph Deeds 7 years ago
I just refinanced my home mortgage today--4% for 15 years. Closing costs around $1,900. This is the lowest interest rate in 50 or so years.
by edgreene 6 years ago
how to get mortgage insurance
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