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Originally Posted by highway80west  Also: do the banks/lenders carefully, and I really do mean carefully, check the credit history and score of the potential borrower? Do they check and see how they are scored by Equifax, Experian, and TransUnion? I know they do. But as P.T. Barnum once said, "there is a sucker born every minute."
The lower the score, the higher the payments can be, and the higher the interest can be, if the lenders actually do loan the applicants the money. People who really want to mortgage their home should always look for a credible bank and use a fixed rate and lock it in. Wells Fargo, Washington Mutual, and US Bank come to mind. Countrywide appears to still be in a hole.
I can't envision any $1M homes in South L.A.  | I wouldn't envision those homes in South L.A. myself, but it wouldn't be againt any law that I'm aware of for any builder or developer to put them there.
And yes, the lower the FICO score, the higher the interest rate. We cannot punish those whom earn more money and have a better credit history by charging them more than those without such. That doesn't make any sense.
As a loan officer years ago, I can personally assure you that more regulation is needed in this area. It is actually easier to obtain a mortgage than certain department store credit cards!
I spoke of abolishing adjustable rate mortgages. This is because I know that this is a two-sided street. It is speculation in its worst form for the homeowner (or prospective homowner). |