Patrick

Repent, everyone repent before its too late - the earth is about to spin off its axis and crash into the sun!

Pulaski

ROFLMAO!


I'll quit while I'm ahead!

..... Time for bed said Zebedee! Boing!

Taffyles

Yes with a decent deposit - if you default they just swipe your house and get their money back- much less risk. They usually need at least 30% deposit if you have no credit, don't they Pulaski?

Thanks for explaining the sell on- always wondered why they did that.

Taffyles

Thanks for the laugh Patrick!

Pulaski

Currently a "standard" minimum deposit is 20%, I guess that they could ask for more but the "rules" for most mortgages are set not by the banks but by Fannie Mae (the Federal National Mortgage Association). There is no absolute compulsion to issue mortgage loans on Fannie Mae's terms, but in order for a bank to be able to readily sell-on a mortgage the mortgage has to conform to those standards, and a 20% deposit is one of those standards, which is why if you borrow more it is often (usually) structured as a "split mortgage" with an 80% mortgage and a top-up amount as a second mortgage, or "equity line", at a higher interest rate.

A mortgage that is larger than Fannie Mae's maximum, which is currently $300,700, is a "jumbo", or "non conforming" loan. so those of you that live in Nw York or California might be looking for one of those. The bad news is that there is a higher rate of interest on a jumbo. This reflects the fact that the loan is harder to sell-on in the secondary market.

In the case of the split mortgage Fannie Mae isn't interested in the second mortgage, and the bank will have to sell that separately, typically to an investment bank.

smiler125

Do you know if it's possible to get a prepay mobile? SIM only?

Thanks

Patrick

To buy a house?

Pulaski

I don't know about the "SIM" thing, but we have prepay phones from a company called Tracfone and they are pretty good, and much cheaper than having a cell phone account. We use ours for emergencies and arranging a meeting point ("I'm driving up X street, I'see you on the corner"), and confirming arrival times ("I am at Y and I'll be home in half an hour"), i.e. no lengthy "gossip calls", and it hasn't cost me $100 so far this year.

excpomea

We even have 'Virgin' pre paid phones here in town.
That Branson man gets everywhere !!!