Articles & News About Mortgage Loans

FHA and Mortgage Insurance to the Rescue

(PRWEB) October 28, 2007 -- People with poor credit scores are now going the way of FH and mortgage insurance. Mortgage Brokers for Lonestar Financing are pushing mortgage insurance harder than ever before. "There is a place for all mortgage services and loan options, and mortgage insurance now maybe makes more sense than in years past", says Lisa Thompson of Lonestarfinancing.com headquartered out of Dallas, Texas. Our Dallas Mortgage Brokers (http://www.lonestarfinancing.com/mortgage/texas/dallas/), have been emphasizing the "back tobasics" theme over the past few months with the current mortgage fallout, says Thompson. Current Texas mortgage rates:

30 yr fixed mortgage 5.85%

15 yr fixed mortgage 5.50%

30 yr fixed jumbo mortgage 6.50%

5-1 ARM 5.58%

5-1 jumbo ARM 6.11%

For loan officers who entered the business in the past five (5) years, they've only experienced the "good times" and will need to refocus on traditional type loan packages,said Mark Powers of the Houston Mortgage Lending (http://www.lonestarfinancing.com/mortgage/texas/houston/) office for LoneStarFinancing. Like most current mortgage companies, we have some newbies that can't even spell FHA, said Powers. Lonestarfinancing.com is an online mortgage broker that uses an advanced automated underwriting technology to shop loans with local lenders. Lonestar has been successful with this "buy local" sales approach and with a steady online marketing prowess are staying ahead of their competition during the cold months. Even with this success, Powers says they are refocusing their sales department to FHA and mortgae insurance.

Powers and Lisa Thompson, said that during the hay-day days of the housing boom, mortgage lenders would guide home buyers with subprime credit to subprime loans. And traditionally they would advise them to finance part of their down payment with a home equity loan.

Sure in hindsight, "we all wish we had trained our loan officers to sell mortgage insurance," Powers said. "The reason we're in this crisis is that we got away from the traditional safeguarded loans".

Like most brokerages, Lonestar is guiding their loan officers to steer borrowers with weak credit to loans insured by the Federal Housing Administration and advising those with little savings to get mortgage insurance if they are unable to put 20% as down payment.

FHA programs are intended for first time home buyers and homeowners with weak credit scores. Borrowers with FHA-insured loans - which they get from private lenders as they would any other mortgage - pay a small premium to the FHA every month. The FHA, in turn, uses those premiums to cover the lender in the event of foreclosure and requires lenders to pursue viable ways to help borrowers avoid foreclosure if they become delinquent.

Powers said he can remember a time when FHA loans made up clost to 30 percent of LoneStarFinancing.com's business. During the past five years however, FHA loans had shrunk to about 3 percent of their business. Mortgage Brokers Plano Texas (http://www.lonestarfinancing.com/mortgage/texas/plano/) and Austin markets continue to thrive for in spite of current market trends. If you would like to know more about Lonestar Financing, you can visit their website at Texas Mortgage Brokers (http://www.lonestarfinancing.com).

###

Other Article Sites

findabook.com moneycd.info a-mortgage.info about-lemon-laws.info aboutstudentloans.info
all-about-publishing.info auctions-articles.info bestcollege-university.com bestispconnection.com
biblefolder.com blogger-website.com books-used.info brokers-guide.info buywindows.info cable-dsl.info
career-miner.com carpel-tunnel.info cashinaflash.info cashloanreviews.info casinobell.com chat-house.info
clearmycredit.info collegeloantips.info crones.info depression-articles.info dirnic.net dishguides.info
divers-below.com expodog.info financewizz.com fire-insurance.info getgood.info handleit.net it-idea.info
health-supplies.info hosting-right.com insidealert.com insurance-facts.info jobs-employment.info
justgood.info lookgold.net lowcost-travel.info money-source.info myhostzone.info numisblog.com
peoplesearchfinder.info pr-articles.info realeas.com refinancing-guides.info spyware-remove.info
telelot.info the-law.info toppaid.info travel-deals.info travelcorrect.com wedding-guide-site.com
your-blog.info your-credit.info

MORE ARTICLES:

Mortgage Company Launches Specialized Department to Assist First Time Home Buyers Purchase California Real Estate
California mortgage company announces the launch of a specialized department that is dedicated to helping first time home buyers and low income families to purchase California real estate with downpayment assistance of home down payment grants.

Applying for a Home Mortgage Loan Online - The Pros and Cons
If you have considered applying for a home loan mortgage online, there are a few pros and cons to think about with getting a home mortgage loan online:Pros:1. The process of applying for an online home mortgage loan is very simple, unlike some lenders who operate in the 'real' world and ask for heaps of information.

Reverse Mortgage – Be Sure You Need It Before Applying For One
Reverse mortgages used to be considered the last resort of desperate retirees who needed to borrow against their home equity in order to pay for medical expenses. With home prices across the country rising at astonishing rates, more and more retirees, aged 62 and over, are taking out reverse mortgages to fund better retirement living.

Beyond Home Mortgage Rates: What's In Store If You're Not Careful
Home mortgage rates may be at its lowest, good for borrowers seeking a practical mortgage solution to untangle some urgent money problems But experts agree that if this is the reason for you to get a mortgage, it's not financially sound

Primary Capital Mortgage Offers Alternative to Subprime Mortgage Loans
Enhances Solutions Program gives more people a chance to qualify for a home loan.

Mortgage Marketing - Broadcast Advertising vs Direct Advertising
Do you know how to design and deploy a marketing campaign?Even if your ad budget is small you should still plan and measure the results of you advertising. This process is the key to your ultimate success.

Mortgage Pre Approval - Getting Pre Approved For a Home Loan Online
A pre-approved mortgage is a must in a competitive housing market. It also gives you an idea of what you can afford to buy as you look at houses.

Chris Hill's of Global Home Mortgage Announces Launch of the New Virtual Loan Department Chrishills.net.
Global Home Mortgage, Inc. of MA announces the launch of their Virtual Loan Department www.chrishills.net . Global's virtual loan department allows consumers to research and get approved for a mortgage 24 hours a day, 7 days a week.

Is the New Millennium Method Really $1.204,000 Better then a Bi-Weekly Mortgage
This Article will compare and Contrast the Old-School Bi-Weekly Mortgage Method with the New Millennium Invest the Difference Method. Can The New Millennium Method really result in over $1,200,000 more money in your Retirement Account.

US Commercial Mortgage Basics
Commercial mortgage loans are used when purchasing structures such as office buildings, apartment complexes, health care facilities and retail outlets. Whether it's a hi-rise tower or a family-owned restaurant, buyers typically need additional funding to complete the transaction.

The Mortgage Market Finally Draws Breath ? Does That Mean Better Deals For Consumers?
Hometrack, one of the housing industry?s leading sources of market-related intelligence, predicts that: ?2008 may just provide the pause for breath the mortgage and housing market really needs? Gary Styles, the Strategy Risk and Economics Director at Hometrack predicts that ?lenders will take stock in 2008 and review and analyse their lending practices and policies to see if they match the long and short term outlook for the market and indeed review their own objectives

NameYourLoan.com Diversifies Current Lending Environment for Borrowers with New Approach to Online Mortgage Loans
New online mortgage auction site, NameYourLoan.com, has revolutionized the way borrowers obtain mortgage loans online. As a unique and creative online community, borrowers can easily connect with the best mortgage lenders while lenders benefit from a wealth of real time mortgage leads and opportunities for business growth.

School's In: Home Loan U Educates Consumers Before Shopping for a Mortgage
With all the turmoil in the mortgage market, it is more important than ever that consumers be informed and educated about the entire lending process and are diligent in selecting a reputable lender. To help with this, Quicken Loans, one of the nation's largest mortgage lenders, has recently created Home Loan U, a series of personal finance education guides that are available as free downloads at http://www.HomeLoanU.com

First Mortgage ? Steps To Saving
The property market is in good shape. Prices continue to rise and sold signs are popping up like mushrooms. This is all wonderful news and we?re all going to be property-rich.

Cover Your Monthly Mortgage With Mortgage Payment Protection
Getting behind on your mortgage could mean that the lender would take steps to repossess your home If you are unable to work or have been made redundant then this is the last thing you need to worry about