Misconceptions About The New Rules About Mortgage Lending
Google has an uncanny ability to figure out your vulnerabilities and exploit them, no matter how much you try to keep your poker face on while choosing search terms. Google knows that you are in debt, and it taunts you with promises of quick fixes to your debt situation. If you subscribe to anything on any social media platform, then you are even more awash in promises of easy paths to prosperity. Therefore, if you have been trying to improve your financial situation in the hopes of qualifying for a home mortgage, you have probably heard the rumors going around online about how, this summer, people with credit scores in the 600s will pay less for home mortgages than people with credit scores in the 700s. This is not true. The most recent Loan Level Price Adjustments (LLPAs) implemented by the mortgage lenders Fannie Mae and Freddie Mac will provide some relief to mortgage loan applicants with credit scores below 700, you will always pay less for home mortgages and other financial products in the long run if your credit score is higher. A Plantation foreclosure defense lawyer can answer your questions about qualifying for a home mortgage or getting out of trouble with an existing mortgage loan.
No, You Should Not Tank Your Credit Score in Order to Get a Better Rate on a Mortgage Loan
Mortgage loans have always been less expensive for borrowers with higher credit scores, and that is unlikely to change. This year’s LLPA reduces the fees that borrowers with credit scores in the upper 600s will pay, compared to what they paid last year. Therefore, the fees for borrowers with less than stellar credit scores are closer to the fees paid by borrowers with the best credit scores, but when you look at the big picture, mortgages are still less expensive the better your credit is.
No, You Cannot Get a 40-Year Term on a New FHA Mortgage
Another Internet rumor that has been circulating frequently says that it is now possible to get FHA mortgages with a 40-year term. This is only partially true. For a new mortgage loan, the maximum term is 30 years; this has been the case for a long time. The truth is that borrowers who are struggling to keep up with their mortgage payments can modify their mortgage loans by extending the repayment term; this fact is also not new. Therefore, if you fall behind on your mortgage payments and modify the terms of your mortgage loan in order to avoid foreclosure, you can extend the term of your mortgage loan so that you end up with a repayment term of up to 40 years.
Work With a Debt Lawyer About Protecting Yourself From Mortgage Foreclosure
A South Florida debt lawyer can help you extend the term of your home mortgage loan so that you can avoid foreclosure if you are struggling to keep up with payments. Contact Nowack & Olson, PLLC in Plantation, Florida to discuss your case.