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Joe Knows Mortgages Minute

News & Article

What are Fannie Mae and Freddie Mac?

What are Fannie Mae and Freddie Mac?
No they aren’t actual people. Fannie Mae is also known as the Federal National Mortgage Association and Freddie Mac is just another name for the Federal Home Loan Mortgage Association.
Fannie Mae and Freddie Mac are government-sponsored enterprises. This shareholder-owned corporation was created by Congress in 1938 to provide stability, liquidity and affordability in the mortgage market as part of President Roosevelt’s New Deal. They are now our nation’s largest purchaser of home mortgages.
Basically, Fannie and Freddie purchase Mortgages from lenders, so that the lenders have more money to lend out. They then securitize the loans and sell them as mortgage backed securities to investors.

July 20, 2018 4:04 pm
What is Loan to Value?

The loan to value is the amount of money your are borrowing divided by the the value of the property.  SO if you are borrowing $80,000 on a home that is worth $100,000, your loan to value would be 80%.

July 2, 2018 11:25 pm
 How does my credit score affect my loan?

On this week’s Joe Knows Mortgages MINUTE, we answer the question: How does my credit score affect my loan? Most loans have a risk-based pricing model. In other words, the loan is going to be priced according to the risk that the lender takes by making the loan. Through statistics, lenders have realized that loans with lower credit scores ultimately present a higher risk than those with higher credit scores. If you have a higher credit score, you will typically pay less for a loan than someone with a lower credit score.

July 1, 2018 4:54 pm
How Do You Cancel Your Mortgage Insurance?

How do you cancel your mortgage insurance? With a conforming loan, you may qualify to cancel your mortgage insurance. To cancel your mortgage insurance, you must have at least 20% equity in your home.

May 30, 2018 10:50 am
How Long Is My Rate Locked in For?

A rate lock period can vary in length; longer rate locks usually cost more.  They cost more either in the rate or in the fees or both.

May 30, 2018 9:36 am
What is a Rate Lock Period?

A rate lock or a rate commitment is a lender’s promise to hold a specific interest rate and fee for you for a specific period of time while your application is being processed.

May 29, 2018 3:55 pm
What is a COE?

COE stands for “Certificate of Eligibility”. The COE verifies, to the lender, that you are eligible for a VA-backed loan

May 24, 2018 5:40 pm