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In trying to avoid making bankers and lenders rich with interest on my money and house purchase, from all the mortgage options available, which is the best option?
-30 year fixed rate conventional, Adjustable Rate Mortgage, 15-year fixed rate conventional, interest only, or 80/20 piggyback?

Depends on your circumstances? The key being, how long do you plan on living there?

If over 5 years, go for a fixed rate conventional. 15 year if you can afford the payments, otherwise 30.

If less than 5 years, an ARM may make sense. Get one where the rate is locked for 3 or 5 years.

During high interest times, ARMs also make sense, because you get the lower rate now, and can easily refinance for cheaper later.

Interst only loans are dangerous. If your home loses money, you can wind up upside-down and may have to sell for a loss later on. But if you are OK with the risk, they make a good way to get in cheap while your property grows in value.

80/20 piggybacks are good for when you don't have much of a downpayment, or none, yet want to avoid Private Mortgage Insurance.

If this will be your primary residence, and you plan on living there for over 5 years, go with the fixed rates and avoid all the pitfalls of the other loans.

Where can I obtain the lowest fees on closing cost when refinancing a mortgage? Also, why does conventional bank around the corner usually has one of the highest closing costs than a smaller mortgage company? Which mortgage company has the best deal and what is reasonable amount to pay on closing costs for an mortgage amount of $360K?

Look up Atlantic Bancorp of CA..or Atlantic Bancorp of America..they may have changed their name. But I've been closing deals with them for 3 years. They're pretty great. You can look at www.atlanticloan.com

I am considering refinancing my home. My two year ARM is about to expire. I am thinking about getting an interest only loan and making "principal only" payments in addition to the scheduled "interest payment". This should allow me to reduce the principal much faster than following the amortization schedule that would come with a conventional 30 year fixed mortgage. If I do this I will be reducing the principal and correspondingly the interest due each time I make a principal payment. How do finance companies adjust the monthly interest payment, when the balance due constantly changes, on this type of loan.

I think this adquately explains the situation.

A reasonable plan.

Check your current ARM and any new mortgage, however, for any prepayment penalty on refinancing or payment of principal. This is not an uncommon feature during the first 3 years of a loan particularly with ARMs.

I understand that from a sub-prime loan a broker can make more of a commission from a "yield spread". Is it possible for a "conventional" loan to have a yield spread as well?
I think that brokers were motivated to sell sub-prime loan since they made more money on their commission from a "yield spread". Is it possible for a "conventional" loan to have a yield spread as well?

I think they make the same amount either way. I do hope they have or will stop giving out those sub-prime loans.

The fed is poised to drop prime today by 25bp and possibly the discount rate as well. I am curious if anyone knows how it will affect the interest rates on conventional 30 mortgages. Thanks,

There is no direct correlation between rates on 30 year mortgages and how the Fed manipulates the prime rate. A better indicator to watch is the 10 year Treasury notes.

a day in the life of a mortgage broker/loan officer trying to close FHA Deals and short sale purchase.
FHA, Home Loans, Refinance, Purchase, Conventional, Jumbo, Cashout, First Time Homebuyer, Real Estate, Mortgage, Wholesale, Lending, Borrow,

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I am buying a home that appraised much higher than I am actually paying. Is there a way to use the difference in the appraised value versus the selling price to lower the monthly payments? (Example: House appraised at 200K I am buying it for 150K. Can I use that 50K difference to lower my monthly mortgage payment?) I will be in a 30 yr conventional mortgage at 5.85%. I am looking to live in the home for a while, this is not investment property(buy/fix/flip). Any suggestions are most appreciated.

Probably not. if you're already a Prime borrower (meaning you have good credit), and it sounds like you are with a 5.85% 30yr fixed, the mortgage lender is not going to offer you a lower rate based on the extra equity in your home.

Borrowing against that equity with a home equity line of credit (HELOC) will also not lower your monthly payment, both because by definition it means INCREASING your debt it you take out a HELOC, as well as because HELOCs are always at a higher rate than conventional 30yr mortgages.

HELOCs do have their advantages, however, in terms of flexibility, so its worth looking into getting one for that extra $50K or so that you have in your home. You may never need to draw on it, so simply having a line does not increase your monthly debt, but it allows you to pay quickly, for example, for opportunistic situations. For when that investment property does come along!

A jumbo loan is a loan that exceeds the maximum limits set by Fannie Mae and Freddie Mac. These limits are what this two organizations are willing to spend to buy a mortgage from the mortgage originators. They usually have a higher interest rate because they are not as marketable.

i donot look good with my credit report but because of being in the paycheck to check guy so if you have nothing left you cannot make payment.

Well at http://www.justgetaloan.net we have been able to help our clients find loans to fit their particular needs despite their credit history. Feel free to contact me at 866 530 7300 ext 7305 or by email at jfreeman@justgetaloan.net for further assistance

direct result of the policies of Bill Clinton?

In 94, Clinton lowered the requirements for conventional mortgages for minorities, including, the common down payment and such trivial ideals such as being able to show the ability to repay the loan?

Why do you think this is not being reported?

http://www.ekodialog.com/Articles/mortgage_metamorphosis_secondary_market.html

Because the MSM is biased toward Liberals and people don’t really want to hear about what happened 15 years ago, they want someone to blame that is in Office NOW!