General

If Lenders Were Manufacturing Cars

Recent news about the US automakers seems very bleak. Chrysler and GM will be closing down dealerships as means to recover. Here’s some thoughts on some of the mortgage loans for borrowers:

• The Camry – best fit for a small family. Much like the Conventional loan for borrowers with equity in their home (more than 20%), solid credit scores and adequate income to support their mortgage.
• The Hummer – excessive road hog. Jumbo loans that remain at minimum a full percent higher than a conventional rate.
• The Kia (pick a model) – FHA loans are the equivalent. Low to no cost to get in, but, ongoing maintenance costs may mount up one day.
• Strectch Limos – investor mortgages. These models are for the business investors, but are not priced like they used to be.
• The Edsel – Stated income mortgages that just don’t exist anymore.