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With "only" 10% down, I've heard many lenders are no longer offering 30-year fixed rate Interest-only mortgages. I know Wells Fargo got out of offering these. Does anyone know any big lenders that are still doing this type of loan?
If the property is not in a declining market then Taylor Bean & Whitaker will go to 90% LTV with a 720 credit score (720 is needed to get mortgage insurance). Taylor Bean doesn't do any direct lending though, only through community banks & mortgage brokers. Community banks probably aren't going to advertise "we offer Taylor Bean & Whitaker mortgage programs" so you are going to have to dial banks up. A mortgage broker will be more likely to tell you if they can offer you Taylor Bean & Whitaker's programs though.
I also think you will find it at B of A and most likely JP Morgan Chase. Regional banks (like Chevy Chase and SunTrust) also offer the loan program. We are a $50B (small, but not tiny) bank and we package and sell our loans after settlement, which is another way lenders market their loans. Sometimes we will sell the servicing (collecting of payments) and sometimes we will sell the note and retain servicing. That is the "secondary market," where we (the banks) obtain funds for the loans. <<<I wrote the above and then consulted my other pc so I could give a range in rates......I receive our daily rates via email - today I had to testify in court, so I never really looked at them....I just opened my email and at 7 PM and LOL, below is what greeted me>>>>
That said, we received an after hour "major announcement" regarding rates. Investors have realized the "miasma" created by Fannie and Freddie, with all kinds of bumps, unannounced, and catching everyone unaware. Earlier, there was a strange and wild rumor about Fannie and Freddie "being done w/ mortgages" and the concensus was the person voicing the rumor got into some magic brownies. If I don't laugh, I'll cry....(not really, but close). We still have FHA to 625K!!! We still have many with A credit that need to refinance in the next 6 months. I will post more as I get concrete details. I imagine the financial networks will be carrying this.
Quite honestly, I don't know what to think, except, we are in unchartered waters and a long way from being out of this mess. The government markets still appear to be unaffected. But as of earlier today, we had IO on our 30 year. Will it be a case of here today, gone tomorrow? If you aren't under contract and ready to lock, you may be better off waiting to decide on financing once you find the home.
Last edited by SmartMoney; 11-03-2008 at 08:00 PM..
Reason: fixing my whining and sentences I repeated.
Lenders are still offering a vast array of interest only products.
Many have told me, at least, that they are no longer doing them. My broker is also telling me that all of the lenders he deals with are no longer offering them. I'm not sure if that is because they are not offering them on the 'secondary market', or the lenders have dropped the loan completely. That is what I was wondering...
They are still being offered. Try a mortgage broker. They will offer a variety of products.
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Interest only loans
