What is a “TOXIC” loan?

Toxic loans are loans that:

  • terms of over 30 years
  • negative amortization, or paying less than the full amount of monthly interest (increasing principal)
  • interest-only payments (your loan principal doesn’t decrease)
  • balloon payments (a large, lump sum that must be paid at a certain point in the loan)
  • LENDER fees and points that total more than 3 percent of the loan ( 3% limit on lender fees applies to loans above $100,000; those below may include fees as high as 8%)

Appraisal Q&A

Q. What is an appraisal?

Many different factors can go into estimating a value for a home. These factors include sales of similar homes in the area, and other information about the property and the surrounding area. For example, the appraiser can estimate a higher value if the home or yard is bigger, or if the home has more bathrooms or a newer kitchen than other recently sold homes. If the home is smaller, needs repairs, or is missing features (like a second bathroom, for example), the appraiser can assign a lower value. The appraiser then determines the home’s value based on differences between the home and recently sold homes in the area.


Q. Will the homebuyer receive a copy of the appraisal?

A. Yes. The Equal Credit Opportunity Act of January 2014 requires creditors to automatically send a copy of home appraisals and all other written valuations on the property after they are completed, regardless of whether credit is extended, denied, incomplete, or withdrawn.

Q. Who do I talk to if I feel the appraisal value is incorrect?

A. In order to ask an appraiser to correct errors in the appraisal report or consider additional information, you must have your Realtor submit a written request for correction to the appraiser’s client – NOT THE APPRAISER

Q. Who orders the appraisal?

A. The mortgage LENDER orders the appraisal and is the appraiser’s client. Not the homeowner, and not the buyer.

Q. How much does an appraisal cost?

Depending on the complexity of the appraisal, you can expect $800 – $1,000 for single family homes.

Q. Does a buyer’s choice of financing impact the appraisal process?

A. Yes.  For instance, some loans will require the property to meet certain minimum property requirements.

Q. How long does the appraisal take?

A. The turnaround time for a full residential appraisal report in Nome is 2-3 weeks.

AHFC HomeChoice class cancelled

If you were registered for the HomeChoice class this weekend please be aware that it has been cancelled.

Mining Claims, equipment and more!

Nome Sweet Homes has 9 listings for ocean mining claims and dredges; and several of our land listings are for patented mining claims – we are here to assist all of Nome’s residents and visitors – if you don’t see what you are looking for, feel free to give one of our agents a call!

Summer  means

turning off your circ pump!

Nome Property Tax

2015 Tax Bills are being mailed this week and first half payment is due by July 15th. If you would like to know your amount due in advance of receiving the paper bill, feel free to call City Hall at 443-6663.


Is your home a liability?

You may be surprised to hear me say this, but odds are it is!

Your residence is a liability as long as it costs you money to live there; but once it is paid for, your home becomes an income producing asset, because it will appreciate more rapidly than almost any other asset.

Investing in a personal residence is the very best investment a person can make. Not only does it provide shelter, it also functions as a ‘forced’ savings program and protects your investment against inflation!

Remember, you can purchase your own home or you can purchase a home for the landlord, the choice is yours!


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