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September 2017

Found 2 blog entries for September 2017.


Written by Robert H. Ruth 

Before I answer this question, let’s do a mortgage reality check…just so you can see how much you actually pay over time on a mortgage loan.

Let’s assume a borrower buys a house for $ 450,000 and puts down 20%, which is $90,000. They finance the remaining $ 360,000 with a 30 year fixed rate loan at 4.00%.  Here is a breakdown of their purchase transaction:

Sales Price

$ 450,000

20% down payment

( 90,000)

Loan Amount

$ 360,000

P/I payment at 4.00% for 30 years

$ 1718.70

What I want you to know is that the total amount you pay back over 30 years is much larger than what you are borrowing, and the total amount of

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Written by Robert H. Ruth 

In my last post I announced that the Agencies (Fannie Mae and Freddie Mac) have decided to allow financing on certain transactions without an appraisal being performed to determine the collateral value of the property. This is an interesting development to be sure, but it is not an entirely new concept. This has been allowed on certain refinance transactions for about a year now, and so, based upon the success of the refinance initiative, the Agencies have decided to open the box a bit wider and allow this for a subset of purchase transactions.

To review our posting from last week, this is being done because:

  • FNMA and FHLMC are becoming more comfortable with the idea that their home valuation databases
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