what affects a home mortgage rate?

Credit and mortgage advice Forums Home Mortgage what affects a home mortgage rate?


This topic contains 3 replies, has 3 voices, and was last updated by  Anonymous 7 years, 9 months ago.

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  • #425745


    The FBI investigates mortgage fraud in two distinct areas: Fraud for Profit and Fraud for Housing. Fraud for Profit is sometimes referred to as “Industry Insider Fraud” and the motive is to revolve equity, falsely inflate the value of the property, or issue loans based on fictitious properties. Based on existing investigations and mortgage fraud reporting, 80 percent of all reported fraud losses involve collaboration or collusion by industry insiders. Fraud for Housing represents illegal actions perpetrated solely by the borrower. The simple motive behind this fraud is to acquire and maintain ownership of a house under false pretenses. This type of fraud is typified by a borrower who makes misrepresentations regarding his income or employment history to qualify for a loan.

    The FBI will investigate this loan officer, the law states all loan officers must be licenced to practise origination. What the borrower is doing is illegal. The loan officer has a moral obligation to stop them from doing it. He’s aiding and abetting their fraudulent activities. To report your claim contact your local FBI office and ask them how to properly report Mortgage Fraud. Their website is: . I don’t think they are not investigating it, if you have already reported this loan officer, but that their work load is heavy right now due to homeland security measures.

    Believe me someone will eventually investigate the loan officer. What he’s doing is a federal offence. It’s probably not the first time he’s done this either. You have a duty to report what you know about the crime. Someones got to stop him before it’s too late. Mortgage Fraud eventually causes grief to all. It becomes more and more difficult to obtain approval for loans, and more hurdles are thrown in the way of honest credit worthy borrowers because of it.

    Good Luck!

  • #202792


    I see it changing almost daily. What changes the rate that you can get for your home. What should i do as well?

    I am getting a home and going through and have not decided on an 3-year ARM (adjustable rate mortgage), 5-year ARM or a fixed rate. Right now they are at 6.5%. with an ARM i am locked in with a rate of about .6% lower

    Any suggestions? Lock-in for 30 years or do an adjustable?

  • #260096


    Lock in on the fixed rate 30 year loan. An ARM often depends upon refinancing. In this market, there is no guarantee that will be possible. Housing prices continue to decline.
    Be sure to get a loan that allows a payment on a 15-year basis as an option. You can pay the loan off early, if you like, but can revert to the 30-year payment if necessary with no penalty.

  • #260276


    ARMs only work if you are in a market where values appreciate quickly. When the rate resets, you either need to have a boatload more cash than you do now to keep up with payments or have the ability to refinance or sell your home. To do either of the latter, you’re going to need a steep increase in your property value – and that’s unrealistic.

    Get a fixed under all circumstances. Interest rates are still really low and are only likely to go up from here.

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