Question by JacobG: How much more should an APR be than the base mortgage rate?
What is a typical spread for the base mortgage rate to APR for a jumbo mortgage?
I am applying for a 30-year fixed jumbo FHA loan and was quotes a mortgage rate of 5% but with an APR of 5.69%. Is that spread typical (i.e. 0.69% more)?
Best answer:
Answer by Itchy1977
not that simple I’m afraid. APR is an incredibly complex equation to take into account compounded interest and any hidden charges.
The flat rate is the actual interest rate. APR is simply for comparing the overall cost between lenders. It actually bears no resemblance to the rate you pay.
What do you think? Answer below!
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Question by Marian: How did the real estate business collapse?
How many billionaires were involved in this scam? When & what year will this recover?
Best answer:
Answer by kemperk
in college classes on economics, sildenafil we learn two critical terms;
micro and macro economics. that means, local and Nationwide.
RE did not collapse everywhere but in parts of many cities and states.
Thus, your query, collapse, is accurate only in the micro sense; only certain city’s RE fell
heavily………..in some cities, no RE fell.
How many billionaires were involved? Few. Much of it occurred because speculators
in CA or a few other states, got pinched with high gas prices and stopped buying RE.
Also, unfortunately, the speculators forced prices up ARTIFICIALLY. By this summer
when things will bottom out, prices will not be LOW, but actually, where they were
10 yrs ago, before the artificially High prices started.
I know, factually, in 3-7 yrs, based on where a person lives, RE prices will be where
they were 2 yrs ago. IT is a researchable roller coaster. But it always ends higher
except where political injection or land harm occurs.
What do you think? Answer below!
There are a couple of reasons that the real estate market took a dip. Like everything else there are times when certain investments have to right themselves. The same thing occurs in the stock market, this is not only a real estate happening.
Scam is thrown around a lot as if someone sat in a dark dank room trying to set this down turn in motion on a certain date and time so as to cause financial ruin or damage.
Everyone almost invariably blame the sub-prime and adjustable rate mortgages. Partially true. These programs have been around for a long time with little or no problems arising from the use of them.
You might say that in some instances the people that purchased houses bought more debt than they could afford. This often happen to a lot of individuals where they did not properly do a good job at financial planning. Then there are those that were just plain greedy. They knew from the very date they signed their loan documents that the mortgages would adjust at a certain period of time, but did not take in consideration that there would not be an increase in pay to accommodate the
increase in the increase in the monthly mortgage payment.
Loan officers were trained to tell home buyers that this is a temporary mortgage loan. Your property will increase in value over the three year period that this loan will be fixed, Once the property appreciate and your credit is better, you may refinance your home to the prevailing interest rate which will be lower than your current interest rate you have now.
The other situation that arise is that normally properties increase in value called appreciation. Well guess what there was no appreciation. Since there was no appreciation there was no equity in which to do a refinance of their current mortgage loan.
This is from the consumer’s point of view.
On the other side of the equation, you had banks and lenders that were selling the mortgage notes to other investors on the stock market. They sold these instruments to both individual investors and institutional investors.
These instruments, once the properties that did not appreciate in value, were useless and had little or no value. Thus you had the big fall out from the large investment companies that had invested in these investments. These big banks and institutional investors fell with the government bailing them out.
There are several individuals that will tell you the recovery will come about in 2011. You can not really trust these individuals could not predict that the bank failures and mast amount of foreclosures would happen. They were just as surprised as the general population.
So depending on who you believe and trust about the turn around and their reason would be about as good as anyone, therefore select one. Warren Buffet seems to think it will be in the 4th quarter 2010 or 1st quarter of 2011. I sorta like his prediction as he was not actively involved in the purchase of these mortgage instruments.
I hope this has been of some benefit to you, good luck.
“FIGHT ON”