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Happy Friday everyone. I’m back with our weekly update of content from the web’s best consumer mortgage blog: Mortgages Unzipped. Enjoy!

Justin McHood brings us his weekly Mortgage Definition. This week it’s Subordination.

“…when someone refers to a subordination, they are referring to a process involving second mortgage on a property. If you are interested in refinancing your home and you have a second mortgage, you will need to get a subordination agreed to by the lender who holds the second mortgage.”

I enjoyed writing a post introducing our newest contributor, Scott Schang

“His (Scott’s) unique perspective into real estate has been developed from a diverse industry experience that spans positions as a loan processor, loan officer, office manager, owner of a mortgage brokerage, real estate agent and real estate broker.”

Chris Jones warns us about: More Bad News on Loan Modifications

“Loan modifications have been fading in and out of favor since the idea was floated that the federal government could pick up a portion of the tab for lenders being willing to grant them. modification is a change to the terms of the mortgage to reduce the principal, forgive some interest, or drop the interest rate. Basically, anything that changes the terms of the original note. Banks have been slow to grant them

Scott Schang asks how important is the lowest interest rate.”

“Here’s the rub. Your interest rate will not be determined until after you have been approved for your home loan.
In most cases, those in the market to purchase a home can not secure an interest rate until the offer has been made.”

Evan Vanderwey adds another entry to a series of posts that take us “Back To Fundamentals” This time it’s all about “Source of Funds”

“I had a client case not too long ago where in every month’s bank statement for the past six months we saw deposits that were not from the borrower’s income source. When we inquired about this we were told various things from “I got a gift from my parents” to “I took a cash advance on a credit card” and even “I made a loan from my 401k account.”

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Photo Credit: Uwe Hermann Via Creative Commons License

  • http://addicted2scents.com/products.aspx Scentsy Products

    I understand needing to learn from history and not make the same mistake, but it seems to be getting very difficult for many to purchase a home. Something that seemed the norm, especially back in the 50’s, is getting out of reach for most.

  • http://nashvilleshortsaleblog.com Reggie

    I have enjoyed reading your post. I appreciate your touching on subjects that need addressing. There is so much misinformation floating around the internet, it’s good to see someone attempting to clear things up a bit!
    Keep up the good work!

  • http://thechicagoluxuryagent.com Chicago Luxury Properties

    It was great to hear different opinions from other people, rather than those skeptical theory from reports, glad you shared this

  • http://www.dougfrancis.com Doug Francis

    I just touched on “source of funds” with a client today, and how wiring funds will make sense to a mortgage lender if there ever is a question.

  • http://garyfales.com nevada trust

    that’s why we always buy with cash.

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