Posted on: 22nd Mar, 2010 01:55 pm
My parents are wanting to buy a home for under 50,000. Every bank they go to tells them they can only get a variable rate for a loan under 50,000. Does anybody know where they can find a loan for under 50,000 with a fixed rate?
Hi candyc,
A lot has changed in the mortgage market after the sub-prime mortgage crisis. I'm not sure why the lenders do not want to offer a loan of under $50k with a fixed rate. It seems they do not make much profit on a fixed rate mortgage of less than $50k, which is why they are reluctant to offer the loan. However, there are lenders in this community. You can go for a no-obligation free mortgage consultation with them and check out if any of them can offer you a loan of under $50K at a fixed interest rate.
A lot has changed in the mortgage market after the sub-prime mortgage crisis. I'm not sure why the lenders do not want to offer a loan of under $50k with a fixed rate. It seems they do not make much profit on a fixed rate mortgage of less than $50k, which is why they are reluctant to offer the loan. However, there are lenders in this community. You can go for a no-obligation free mortgage consultation with them and check out if any of them can offer you a loan of under $50K at a fixed interest rate.
it's often worthwhile to check with a local credit union or community-type small bank in the area to see if they'll make what's known as a "portfolio loan." in that sense, they'll not be working with the secondary markets (fannie mae, freddie mac, ginnie mae), but will make a loan and keep it instead of selling it.
only those lenders are at all likely to be of a great deal of assistance, it seems. unfortunately, low amount mortgage loans such as you describe still require a certain level of closing costs. when costs reach a certain percentage of the loan amount, however, you have what is called a "high cost loan," which legislatures all over the country have prohibited lenders from granting. in order to avoid the high-cost designation, they'd have to shave tons of money from the closing costs, which in turn make the loans not worth doing. again, this is speaking from the standpoint of lenders who are players in the secondary market.
only those lenders are at all likely to be of a great deal of assistance, it seems. unfortunately, low amount mortgage loans such as you describe still require a certain level of closing costs. when costs reach a certain percentage of the loan amount, however, you have what is called a "high cost loan," which legislatures all over the country have prohibited lenders from granting. in order to avoid the high-cost designation, they'd have to shave tons of money from the closing costs, which in turn make the loans not worth doing. again, this is speaking from the standpoint of lenders who are players in the secondary market.
how do i find someone to take our loan of 50,000 in wichita,ks we wish to re fi . currntly at 6.50 pct
Hi keith!
Welcome to the forums!
If you wish to refinance, then you should contact the local lenders and apply for refinance. If you meet all the required criteria of the lender, then you will be able to get a refinance.
Feel free to ask if you've further queries.
Sussane
Welcome to the forums!
If you wish to refinance, then you should contact the local lenders and apply for refinance. If you meet all the required criteria of the lender, then you will be able to get a refinance.
Feel free to ask if you've further queries.
Sussane