I know about all the bad over blown hype from the media about the mortgage industry. I have also heard each of our presidential candidates run down the economy over and over again. This happens every election year.
Unfortunately people with busy lives hear and read all of these exagerations and begin to think it is true. “If you tell a lie often enough people will believe it is true”. There you have it in a nut shell!
Is our economy a little slow right now? Yes, but it is not in the dumpster.
Independent mortgage brokers and independant appraisers are not the cause of the mortgage scandals. In fact, it is their integrity and concern for their client’s well being that helped to fulfill the American Dream.
The real scoundrels are the large corporations, and giant lenders. Don’t let me forget to mention the politicians like the New York Attorney General, Andrew Cuomo, who is using the situation to his benefit by “saving the consumer” with new laws that will only hurt the consumer by putting the independent appraiser and broker out of business. But of course he is making a name for himself. What does he care. Guess who wants to run for president in 2012?
Forget all that. I received a very simple question and I am writing about it here for a few reasons I think you will understand afterwards.
The question was: “What is CLTV and LP?”
The answer is CLTV stands for Combined Loan To Value. This is used when there is more than one loan on a property. As an example, if the first mortgage is 80% of the appraised value and there is a 2nd loan of 15% of the value, the CLTV is 95%. In the industry we call these Combination Loans.
LP is a term for Loan Prospector. Loan Prospector is a computerised program that reviews and approves or disapproves an FHA, VA, or Freddie Mac loan. DU, DeskTop Underwriting, is a similar program used for Fannie Mae, FHA, or VA loans. When an application is put through these programs, basically, … sort of, the live underwriter then only has to verify the documentation because the computer has given an approval. If a loan isn’t approved because of an unusual circumstance, a lender can chose to do a manual underwriting in which case the loan may still be approved.
My first point for posting this is to let you know that Lenders ARE lending money. The mortgage industry is alive and well in spite of the media and presidential candidates.
As a consumer you should take full advantage of these unbelievable low interest rates. Refinancing to lower your interest rate will save you a ton of money.
In the case above, combining a 1st and 2nd mortgage is a very smart financial move and will also lower her payments.In the
If you are thinking about buying a home there is no better time than now. I really mean like, … NOW. As soon as a new president is elected, and it doesn’t matter which one, the rates will go back up. I promise you this will happen. It happens EVERY election year
Just make sure you go to a reputable broker and don’t buy more house than you can afford.