Mortgage Tip - Pay Off Your Mortgage Early

Borrowers can pay off their mortgage early and save $1,000's of dollars on finance charges. Borrowers that choose to pay off their mortgage early save on the interest they would of paid over the entire life of the loan. Many borrowers will pay an additional payment per year applied to the principal to pay down their loan early.

However, not every person is able to pay an addtional payment. Borrowers can receive a benefit bay paying a small amount to the principal every month. Just make sure that you write on the check that the money should be applied to the principal balance. If you do not write this on the check, mortgage companies will apply the additonal payment to the princpal and you'll loose the benefit fo saving on future finance charges.

Fannie Mae will Purchase Delinquesnt Loans - Quick Update

Fannie Mae announced that it will significantly increase its purchase of mortgage backed-securities with loans that are least four months delinquent.

Guidelines Maybe Loosening

Many borrowers and mortgage professionals alike did not expect guidelines to tighten and were planning to refinance out of their adjustable rates. Although several years ago guidelines were very loose and almost anyone was able to qualify for a mortgage within the past few years guidelines have conversely changed making very difficult for borrowers to obtain financing.


Borrowers in this difficult situations are caught between rising monthly payments and the inability to refinance.  Luckily, the pendulum swings both ways. Recently, MGIC Mortgage insurance lifted their DTI cap from 41% to 45% for FICOs of 740 or higher. Although this is not a significant change to guideline across the board it is potentially a sign that guide line may be loosening. 


Hopefully, we see more positive changes to guidelines and the mortgage industry as a whole.