Mortgage rates have improved to the low 5% range to help jump start the refinancing and housing markets. However, jumbo loans are 2% higher because of the higher risk. Underwriters are fearful of approving jumbo loans at the risk of losing their jobs.
Harder to Get a Reverse Mortgage
No comments »With declining home values, lenders are hesitant to participate in a reverse mortgage. These are specialty loans only available to borrowers 62 years of age and older to release the home equity of the property in lump sums or multiple payments.
When home prices are falling, no lender wants to pay one dollar for a property that could be valued at fifty cents in a few years.
Predatory Lending
No comments »If you are looking to refinance a mortgage, make sure you are not dealing with sharks who practice predatory lending. When you are taking out more debt to cover existing debt, you are basically digging yourself a bigger hole.
Refinance Commercial Real Estate
No comments »If you are looking to expand your commercial real estate, the US Small Business Administration’s (SBA) 504 loan lending may be the perfect financial vehicle for the job. Borrowers qualify for $50,000 on every job they are creating or retaining on the commercial real estate projects. Most loan sizes range from $200,000 to $10 million.
http://www.sba.gov/services/financialassistance/sbaloantopics/cdc504/index.html
