WASHINGTON — The heads of Fannie Mae and Freddie Mac said today the mortgage finance giants are developing new types of loans to help distressed borrowers with high-risk mortgages keep their homes at a time of rising foreclosures.

The moves by the two government-sponsored companies, the biggest buyers and guarantors of home mortgages in the country, came in response to the turmoil in the market for so-called subprime mortgages, higher-priced loans for people with tarnished credit or low incomes who are considered greater risks.

In recent weeks, the distress has roiled financial markets and stoked anxiety that it could spill over into the broader economy.

(more…)

Area Realtors and loan officials saying that the rush to judgement against the sub-prime loan market may hurt the ability of people who need special assistance in getting home loans or refinancing their existing loans to do repair work.

‘‘Sub-prime loans are not bad,’’ Daniel Crouse, president of the Warren Area Board of Realtors, said. ‘‘It is the abuse of them that has been bad.’’

The sub-prime loan market has been getting a lot of scrutiny by legislators, federal regulators and others, because some of these loans — often called predatory — have led tens of thousands of people across the country into foreclosure and bankruptcy.

However, Crouse and others are saying that people should not paint all of these loans with the same broad stroke of being bad.

(more…)

Although many of the ‘pre-approval’ letters you get through the post are worthless, there are types of pre-approval from lenders that can help you greatly when buying a house. If you can get pre-approval on your mortgage loan, then you will find it much easier to get the house you want quickly. If you want to know more about pre-approval for mortgage loans, then here are some facts to help you out.

Apply before you buy

Although many people used to look at homes before applying for a mortgage loan, nowadays it is critical that you apply for the mortgage loan first. This will allow you to know exactly how much you can afford to spend on a house, and so find the property you want much more quickly and easily.

(more…)