Refinance Mortgage Information

DIY Mortgage Acceleration

2009-11-03T07:33:00.000-08:00

Do-it-yourselfers who are weary of yet another trip to the home improvement store may like this DIY project. It has the possibilities of increasing home equity just as quickly as a bath remodel or new deck.

You may have already built your own amortization schedule using a guide I posted earlier. And, you may have been figuring out how to accelerate your mortgage payoff by entering amounts in the monthly payment column that are higher than the standard payment. Just to make DIY mortgage acceleration really easy, I’ve created three schedules in one file:

* Original Amortization Schedule
* $100-a-month Accelerated Amortization Schedule (for disciplined DIYers who have committed to paying an extra $100 per month beginning with the very first payment)
* Real-life Accelerated Amortization Schedule (with semi-random extra-payment amounts based on financial life events such as 1) having extra $600 per month for 2 years between car loans from year 5 to year 7; 2) using $300 of a yearly tax refund 3) applying year-end bonuses, ranging from $100 to $2,100).

The mortgage-loan givens or assumptions for all three scenarios are:

* $200,000 mortgage loan
* 30-year fixed rate loan
* 6% interest rate

Here are the results of paying according to the Original, $100-a-month Accelerated, and Real-Life Accelerated Amortization Schedules:

Original (Use “edit,” “go to,” “ORIGINAL”)

* Number of Years for Payoff: 30 years
* Total Interest Paid: $231,676.38
* Total Payments Made: $431,676.38

$100-a-month Accelerated (Use “edit,” “go to,” “ACC”)

* Number of Years for Payoff: 24 years, 7 months
* Total Interest Paid: $182,537.97
* Total Payments Made: $383,234.81 (payments will be slightly less as last payment will not be a full payment)

Real-Life Accelerated (Use “edit,” “go to,” “Random”)

* Number of Years for Payoff: 21 years
* Total Interest Paid: $152,555.51
* Total Payments Made: $353,173.46 (payments will be slightly less but I didn’t want to change the flow of the amortization schedule)

You can download the file and enter information from your own life: your mortgage amount, your term, and your interest rate. Then, have fun figuring out how fast you can accelerate your mortgage payoff. If you decide to accelerate, make sure that your mortgage servicing company knows that the extra amounts you are paying each month are to reduce the principal. Source

Confessions of a Mortgage Broker

2009-11-03T07:30:00.000-08:00

Written By: Helen Kaiao Chang

Here’s what you need to know about how mortgage brokers really work: “When I have a client I really don’t like — he’s a pain in the ass — that’s when I charge as much as I can get out of them,” says Jack, a mortgage broker based in Southern California.

Jack, whose name has been changed for this story, offers some insight in to what a mortgage broker really thinks about his customers. Jack has been in the business since 2003 and he has done many millions of dollars in mortgage loans. His confessions show you the dark side of a business now in the lime light. But don’t despair, we show you how to fight back!

*
Brokers pad genuine fees and invent new ones to make more money.

Mortgage brokers do shaddy math.“Brokers move fees around to make it look legitimate,” says Jack. “Credit reports cost up to $15 per borrower. But I have witnessed loan officers charging up to $100 per credit report.”"I’ve also seen admin fees – which are bogus fees — charged up to $400,” says Jack. “I have lowered my loan origination fee and shifted the charge to either my escrow fees or title fees or my processing fee.”

Fight back! Get a good faith estimate, which shows the preliminary cost of the home loan, including the origination fee, interest rate, and processing, escrow and title fees. It also tells you your monthly payment amount, including principal, taxes and insurance.Also, don’t pay more than $15 per borrower for credit reports and don’t pay any “admin” fees! Finally, find out the amount of the standard processing fee – a genuine expense paid to a third-party who handles the paperwork of the loan. This is standard and non-negotiable, ranging from $495 to $695 in all 50 states. You can also shop around for a less expensive title and escrow company.
*
Brokers have another name for “Origination Fees” — Profits.

Money Hook: Bait and SwitchAn origination fee is charged by the broker to orchestrate your loan. This fee goes directly to the broker (in addition to any rebate he earns from the lender). A “point,” 1% of the loan value, is a common fee, but this rate is negotiable and Jack admits that, “sometimes (agency managers) pressure loan officers to overcharge clients to make their numbers.”

Fight back! Make sure to negotiate the origination fee. The larger your loan, the smaller the percentage should be.
*
Mortgage Brokers make clients pay higher rates to increase profits.

Mortgage Interest RatesIn addition to the other fees mortgage brokers earn, they get a rebate from the lender for sending them business. In other industries it’s known as a kick back, but in the mortgage industry, it’s perfectly legal!Jack bragged that he’s “charged borrowers, who really don’t know what the mortgage business is all about, two points.” He’s even witnessed another broker take advantage of an older lady who had a lot of equity in her property, by giving her a “one-percent option ARM (adjustable rate mortgage) loan. With that loan, the loan officer was eventually getting 3 to 4 (percent of the loan amount) back in rebate from the lender.”He summarizes it nicely: “The reason is to basically make as much money as you possibly can, while you can, and get away with it!”

Fight back! Ask your broker what his or her rebate will be. You can verify it on your settlement statement, under “yield spread” or “rebate,” prior to closing.
*
Mortgage brokers change the numbers at closing – “Oops!”

Mortgage brokers change the numbers at signing.Sure there are lots of numbers that go into a closing document, and people make mistakes - but not all errors are accidental.”I have also seen loan officers during signings telling the borrowers that they will change or lower the loan origination fee after the closing,” says Jack, but they “never did so,” he adds.Jack tells of one mortgage broker who basically lied to the home buyer. “The loan officer employed a notary broker who happened to be their friend. He convinced the notary to tell the borrower at the closing that the terms of what they are getting were exactly what they were signing. The borrowers just didn’t know much. They were buying their first home and they were promised that this was the loan they were getting, but they were not.”

Fight back! Get a settlement statement before closing. The HUD-1 form gives borrowers a breakdown of all the expenses prior to close. The escrow company can give you this independent statement at least one week prior to closing, and it should match the good faith estimate within $200. Demand explanations or corrections of any significant differences.
*
Brokers overcharge because you shop the loan or annoy them.

Mortgage Fraud.In Jack’s view, a client trying to get the best deal is really just an annoyance. “The client will shop you around, tell you to price the loan at a certain rate, you do it, and then at the last minute, they try to change the terms of the loan or they’re going somewhere else.”
Jack thinks that is a punishable offence. He declares, “By taking advantage of my time and being greedy, that’s when I say, ‘All right, I’m just gonna charge you extra for doing all this extra work.’”

Fight back! Remember that you are the customer and you can always walk away. It may be a hassle to delay your closing, but three weeks of dealing with your loan is a small price to pay compared to losing your house because you got a lousy loan!

Smart consumers get more than one quote and compare them, but rates change daily so get all your quotes at the same time to have a fair comparison. When you find a loan you like, lock it and make sure you get written confirmation from the lender of the rate.

Written By: Helen Kaiao Chang

Low Mortgage Rates: 7 Things You Need to Know to Refinance

2009-11-03T07:29:00.000-08:00

Mortgage rates have declined sharply in recent months. Here's how to take advantage

With mortgage rates dropping to record lows, it's no surprise that more and more homeowners are looking to refinance. Earlier this month, the Mortgage Bankers Association's refinance index--which tracks application volume--hit its highest level in more than five years. This wave of refinancing applications was sparked by record-low interest rates on 30-year fixed mortgages, which fell to an average of 4.89 percent for the week ending January 9.
And although mortgage rates have increased modestly since then--hitting 5.24 percent last week-- interest in refinancing remains elevated. But while some borrowers will be able to turn these compelling rates into real savings, not everyone can get in on the action. To better understand the refinancing process, here are seven things you need to know to refinance in today's market.

1. Percentage point break: Despite the attractive rates, homeowners will have to thoroughly analyze their financial position before determining whether or not now is the time to refinance. A good rule of thumb, however, is if your mortgage rate is a full percentage point or more higher than current rates, you should consider refinancing, says Orawin Velz of the Mortgage Bankers Association. "If your rate is about 6 percent currently, then it is a good time to think about it," Velz says. (Keep in mind that anyone trying to refinance a so-called "jumbo loan"--one that's too large for Fannie Mae and Freddie Mac to purchase--will face sharply higher rates, says Keith Gumbinger of HSH Associates.)
The transaction fees lenders charge are another major consideration. Higher fees, of course, eat into the potential savings of a reduced mortgage rate. So the lower the fees, the better. "The fees that you should be paying need to be low enough so that you can recoup your money through the break in the interest rate in a reasonable period of time--usually under four years," Gumbinger says. (More on fees below.)

2. Half rejected: Although more Americans are looking to refinance, a significant chunk of applications won't be approved. In the first half of 2008, roughly 60 percent of refinancing applications were turned into loans, Velz says. "But because of the intensified turmoil in the second half of the year and continued decline in home prices, we believe that the rate has probably declined to [about 50 percent.]" In order to qualify for refinancing, homeowners will need to meet certain specific criteria.

3. FICO 740: While 720 is still considered by some to be a solid FICO score, it's not good enough to obtain the best rates in today's refinancing market, says Chris Freemott, president of All American Mortgage in Naperville, Ill. Instead, borrowers will need a FICO score of at least 740. "FICOs are everything," Freemott says. "[A FICO score of] 740 is the benchmark for the lowest possible rates." Borrowers that don't have this score can still refinance, but they're likely to face higher rates.

4. Equity and documentation: Home equity can be another significant barrier to refinancing today. The real estate crash has sucked a great deal of equity out of homes. Zillow says roughly one in seven American homeowners actually have negative equity—meaning they owe more on their mortgage than their property is worth. In order to qualify for refinancing, homeowners will have to have a minimum of 3 percent equity in their homes, Velz says. In addition to solid credit and home equity, borrowers will also need to be able to document their income in order to qualify for refinancing.

5. Fee paying options: Fees associated with mortgage refinancing vary widely from market to market and borrower to borrower. But on average, a $200,000 refinancing loan may come with up to $6,000 in fees, Gumbinger says. Borrowers have three main options for paying such fees. Those with enough cash may want to just pay the fees up front. Borrowers with less cash on hand may be able to opt for a higher interest rate instead of paying the fees. A third possibility is to have the fees tacked on to the principal of the mortgage, Gumbinger says. The key is to chat with your mortgage lender about structuring the fee payment so that it makes the most economic sense for you. "I've been doing this for 11 years now and… I've never written the same loan twice," Freemott says. "Everyone has a little difference to their situation."

6. Shop around: Given tougher lending standards and falling home prices, homeowners--especially those without perfect credit profiles--may have to get used to hearing the word no. But just because one lender turns you down doesn't mean you can't find another who's willing to refinance your mortgage. "Two or three years ago, lenders were crawling through the doors and windows to serve you," Gumbinger says. "We're 180 degrees out from there right now. You have to go find the lenders." So shop around. Research rates online, call up different lenders, and find out who's willing to offer you the best deal.

7. Be patient: The wave of refinancing applications comes amid a period of significant downsizing in the lending industry. That means there are fewer employees on hand to handle the surge in business. As a result, expect slow service. "The time to even find out whether your loan has been approved or not could run 30 days," says Mark Hanson, a managing director who handles real estate and finance research at the Field Check Group.
source

Credit Card Debt Reduction

2009-11-03T07:25:00.000-08:00

If you want the credit card companies off your back, credit card debt reduction is the name of the game. There are a number of ways to reduce your credit card debt; however which method you should use relies on your specific situation. Here are some situations regarding credit card debt and which credit card debt reduction solutions are ideal in each case.

Situation 1: You’re Making Payments On-time but Your Debt Won’t Go Down

Explanation: Basically in this case, you have credit card debt, you’re making payments, but it’s not going down. This is a sign that you’re using your credit card(s) too much OR you’re only paying the required monthly minimum payment.

Solution: You need to either a) pay more than the monthly minimum, or b) stop using your credit cards. In this case, the creditors probably aren’t calling, so you can handle this type of credit card debt reduction on your own. Check out ways to eliminate credit card debt on your own.

***

Situation 2: Debt is Rapidly Increasing and you’re Missing Payments

Explanation: In this situation, you’re debt is starting to spin out of control and you’re losing control of it fast!

Solution: You need to Stop, Look, Plan, and Act. This means you need to STOP using your credit card(s), LOOK at your expenses to see why your debt is increasing so rapidly, PLAN a way to change all this, and ACT on the plan ASAP. The best PLAN for this type of situation is to drastically cut your spending. There’s obviously something that’s causing your credit card debt to spin out of control. Maybe it’s too many luxury purchases. Maybe you’re a DVD nut and purchase new DVDs every week. In any case, you need to identify what you’re spending too much on. If all your spending is on necessities, then you’re not making enough to cover your debt. In this case, it’s best to get credit counseling help.

***

Situation 3: The Creditors are calling

Explanation: You’ve defaulted on numerous monthly payments and the credit card company has sent your account into collections (AKA you’re in serious trouble).
Solution: You need to sell what you can to pay off your debt or get professional help. This means if you have an extra car, boat, or even property that you can afford to sell, sell it. When the creditors start calling, your credit is in jeopardy and you need to do everything you can to get your finances back in order. If you have nothing to sell, it’s time to negotiate with your creditors, consolidate your debt (if you have multiple credit cards) or get credit counseling. Negotiating with your creditors is possible but if you don’t know how to negotiate, it’s best to consult a credit counseling service. They’ll let you know if debt consolidation is your best bet or if they need to intervene and negotiate a payment plan for you with the creditors. In any case, it’s a good idea to consult any Debt Relief Company for details on specific types of debt and an explanation of available debt relief and credit counseling solutions.

For more articles on Credit Card Debt Reduction, visit: http://www.bills.com/credit-card-debt/

FINDING SUBJECT2 DEALS WITH REFINANCING LEADS

2009-09-27T14:48:00.000-07:00

Recruiting a refinance mortgage broker that does a lot of marketing to homeowners that seek out refinancing on their mortgage will do you wonders as a Subject2 investor.

The trick is utilizing your abilities to come in and take over payments on the existing loan for the homeowner when the mortgage broker tells the homeowner they cannot refinance their mortgage due to a variety of reasons. In most case the homeowner may not be upside down but rather an event happened in their life that requires them to seek out a “Cash Out Refinance” to help pay for medical expenses, overdue bills or just to live off of during a downturn of employment.

These homeowners not only now know the importance of their credit score but also that they are facing the loss of their home if they cannot either refinance or quickly sell their home. This has a huge advantage to use simply because now that we have become friends and colleagues with these mortgage brokers, they will already have trust built with the homeowner and when the mortgage broker presents the homeowners options I can assure you that the mortgage broker will make sure that your available service will be the best available choice for the homeowner.

Lets take a little look back and ask why the mortgage broker will do this. A mortgage broker gets paid from the loans they create. They do a lot of marketing to homeowners and prospective homeowners. Once they generate a loan they make some decent money which is why during the most recent economic upswing becoming either a Realtor or a mortgage broker was a lucrative career. Now, most would say the economy is slowly starting to pick up but nonetheless, mortgage brokers have almost become extinct like dinosaurs. What most mortgage brokers will tell you is that they would love to get paid, even if it’s only a few hundred dollars for leads that they can generate that they themselves cannot service. This creates an additional revenue for them.

Now, having this relationship with mortgage brokers will assist you in a few ways. First, you will get the flow through trust that the mortgage broker created with the seller/homeowner. Second, you will create and keep a steady flow of deals coming across your table from mortgage brokers that they cannot work with for a variety of reasons. I won’t say that every deal they send you will be a smoking deal but, as long as you preform on the deals that do make sense it will give the mortgage broker confidence in your ability to follow through with what you promise which is important. read more

We Give Mortgage Refinance on Bad Credit too

2009-08-03T10:17:00.000-07:00

Bad Credit Mortgage Refinance is a good way to get out of your present debts. There is no sure way to escape debts. They can just come out of nowhere and stand in front of you like a mountain. Debts can rise up from medical expenses, loans taken for higher education, getting married etc. One can also find rising debts due to too much use to credit cards. You might end up taking another loan to repay the bills and it will not stop until you find yourself in a vicious debt circle. But before that happens, you should consider some refinancing options.

Gone are the days when finding a bad credit mortgage refinance loan was difficult. These days there are many refinancing option available in the market. The most used and popular one is to put together all your debts together and make only one repayment every month. Thus organizing your debts and managing them in the best way possible. You need to find for yourself an apt payment plan so that you can get the best rates with your financial crisis. There are a variety of advantages related with a refinancing mortgage loan. If you find yourself stuck with high rates of interest or are having bad credit history, you can move to a rate of interest that is lower and get bad credit mortgage refinancing here. You can also expand your time of loan repayment. You can even change your current fixed rate refinance mortgage loan to a more adaptable rate loan. There can be times when you urgently need cash. You can get that help from refinancing.

Ensure that you apply only to those companies who offer mortgages to individuals who have poor credit. Find those who specifically try to assist persons who are in financial difficulty and are trying to eliminate or consolidate their debts.

The trick here is to try and not apply to too many financiers. Do your part of research and apply to the only ones who offer bad credit home mortgage. So that it is easy for you to manage a mortgage refinancing read more

Want a Bigger House But Can't Afford It? Say Hello to a 40 Year Mortgage!

2009-07-17T11:18:00.000-07:00

Mortgage loans were first introduced to help the general mass to afford costly properties like home and car. The introduction of these mortgage plans has allowed the middle class person to dream of aristocracy and comfort. It has also facilitated the real estate business as now more people can buy properties without taking on a big burden. In these plans, the borrower has to repay the money in installments as per the agreement with the lender. Thus, it created a bridge between the business world and common man.

Like other similar plans, the 40 year mortgage has also been introduced by the loan lenders to boost up the real estate business. Previously, only 10 or 30 year plans were available, however, with this increased time limit and decreased EMI (equal monthly installment), more people can afford to take loans. A 40 year mortgage is very handy for all aspiring borrowers, who wish to buy a beautiful house that might be a little out of their budget. They can now afford everything taking relatively less burden.

With the increasing time span for repaying the money, the load of EMI has decreased considerably thus offering the borrowers a more feasible monthly expense. Financing the home with this plan allows a person to afford a costlier house now. So, a man earning less than the average can now also plan to buy a house. Suppose one takes a loan of $100k to buy a home, he or she would have to pay around $600 EMI with a 30 year mortgage plan. However, with the 10 year increase for the 40 year mortgage, the EMI comes down to $540. Thus, from a monthly expenses point of view, the load has decreased from the borrower.

Due to this increased time limit, however, there is higher risk from the lender's point of view. He copes up with it by increasing the interest rate. Keep in mind though, that in the long term, it does not affect the life of the borrowers.

The introduction of the 40 year mortgage and other more affordable plans has increased the business interaction especially in the real estate business. Lenders can now convince the borrowers to take loans because this plan has really made way for an ordinary man to achieve his dreams. The most interesting fact about a 40 year mortgage is that you can buy a property and at the same time maintain your normal lifestyle. Due to the increase in the duration of the repayment period, your monthly expenses will not get affected by a whole lot, and meanwhile, you get to enjoy the comfort of your own home and be proud of yourself.

It's simple really...A 40 year mortgage WILL open the doors to a larger house that you couldn't afford in the past.

The Mortgage Crisis and Bankruptcy

2009-07-06T13:51:00.000-07:00

People who took out bad mortgages or bought houses they couldn't afford once interest rates reset shouldn't be helped. "I acted responsibly," they said. "Why should someone who acted less responsibly than I did be rewarded by a better deal then I got?" Others say that the collective impact of these mortgages going into foreclosure and people filing bankruptcy have such a negative effect on the economy that something needs to be done to staunch the hemorrhaging.

The problem is that all of the solutions discussed thus far seem to carry a high price tag. Buying the bad mortgages would cost hundreds of billions, as would giving government benefits directly to people with bad mortgages.

Also when it comes to mortgages, there are many people that have been scammed by a mortgage broker, promised one loan and given another. To the untrained eye, unless those flaws are obvious in the loan documents, the future holder of the loan is not liable for that claim. If proper assignments were not completed until just in time for court, the consumer may have plenty of rights to offset the claims made by the servicer. But consumers will never know the option is there if the lender can hide the chain of assignments behind smoke and mirrors. Bankruptcy courts are federal courts. Federal courts are constitutionally limited to addressing only a case or controversy between parties who have a true stake, something to win or lose in the outcome. Someone claiming such a stake has to be able to prove it.

Recently decisions have been made requiring the lending industry to disclose what it has been doing with loans. It's a small thing but very important. Homeowners rarely understand how their loan ended up where it is. Sometimes they have conflicting information about who is entitled to the payments. Servicers don't always talk to each other coherently when they pass paper between themselves, so how can a consumer not trained in mortgages be expected to understand it? Consumers may discover they have rights and claims which should be vindicated. Consumers don't know when their rights are violated, in fact, they often are outraged by things which are lawful while only confounded by the unlawful. A lot of these consumers never find out any of this until they file for bankruptcy and are being foreclosed on. visit personal bankruptcy attorney

Get 2% Home Mortgage Refinancing From the Obama Stimulus

2009-06-20T05:16:00.000-07:00

You Can Get 2% Home Mortgage Refinancing From the Obama Stimulus

Taking advantage of President Obamas "Making Home Affordable" plan is easy. This plan will allow homeowners all over to get a home mortgage refinance or modification into a fixed rate 2% home loan. This stimulus plan will save millions of homeowners hundreds of dollars every single month. Here is how it all works:

-Homeowners facing any type of "Financial Hardship" including a loss of job, reduced income, hospital bills, or a whole list of other financial debt related problems can apply for a home loan modification. To improve the odds of the home loan being approved into this "Making Home Affordable" plan include a handwritten and signed letter stating your financial hardships.

-Their are now also a lot of new grants and low interest loans available to homeowners. These are available to homeowners regardless of what their credit score is and can be used for loan repayments and debt reduction.

-Homeowners who have debts, including mortgage payments, which exceed 51% of their gross monthly income will need to go to free credit counseling as a condition of getting a 2% home loan modification.

-Homeowners will benefit from the fact that President Obama and the Federal Reserve will work to keep mortgage interest rates low and fight inflation. Ideally at a 2% fixed rate for all home buyers and homeowners.

-If a homeowners property value has dropped by 15% or more they will be able to refinance their home loan through this "Making Home Affordable" mortgage refinancing and modification stimulus plan. This help a lot of people who have been hit hard by the falling home prices and struggling home market.

Homeowners who need to save every month to save their home, or pay other debts, should use this plan to do it. Refinancing or loan modification with Obamas stimulus plan will save the average homeowner hundreds of dollars every month, simply through reduced interest. Over the length of the home loan, the savings can easily add up into the thousands of dollars. Refinancing or mortgage modification is now also easier than ever to get, even for homeowners with bad credit, or low equity in their home. This plan will hopefully stimulate the economy and restore confidence in the housing market.

Online Mortgage Broker. How to Avoid Reverse Mortgage Scams.

2009-06-12T15:10:00.000-07:00

Using an Online Mortgage Broker

There are hundreds of mortgage brokers in the UK with many of them having a growing presence online. Some simply have their details of their branches and phone numbers online with some descriptions of what they offer while others offer a much more interactive service.

Some provide up to date best buy tables so you can quickly see what the best offers on the market are allowing you to see if you may be overpaying with your current mortgage deal. You may have decided to change mortgage deal over the next few months and want to wait for that killer deal, having best buy tables means you can keep regular checks on how is offering what.

Mortgage brokers can also offer online mortgage calculators. These will help you figure out how much money you can borrow whether that is for a single application or a joint, as well as the monthly repayments on a mortgage rate. You may have looked at the best buy table and seen a favourable rate and want to know how much it will cost in repayments, calculating both interest only or repayment. Mortgages

How to Avoid Reverse Mortgage Scams.

Reverse Mortgages are guaranteed and regulated by the Federal Government. Interest rates are uniform no matter which lender you choose, and closing costs and fees are capped to increase the safety of the program. With these strict measures in place, Reverse Mortgages have become the safest senior financial product on the market today. That being said, future customers need to be aware of several Reverse Mortgage Scams and this article will point out a few to avoid. We will discuss several aspects of the process that customers should be aware of to make sure they are getting the best deal possible with the least bit worry about foul play.

Reverse Mortgages are a Federally regulated equity loan that allows a senior to utilize the equity in their home without having to take on the burden of additional monthly mortgage payments or the risk of default of foreclosure. Now, even though Reverse Mortgages are federally regulated, they are produced and funded by private banks and lenders. The first scam to be aware of is one of these private lenders charging you for Reverse Mortgage Information. Some banks or lenders will charge you for videos, estimates, or literature on Reverse Mortgages. This is something that should be absolutely refused. These lending institutions should not be charging for this information, but even if they persist in doing so, just find a company that is not charging for information and deal with them. There are dozens of Reverse Mortgage Lenders that will send you estimates, videos, CDs, proposals, and applications for Reverse Mortgages, absolutely free of charge. Also, keep in mind that you should only agree to proceed with a Reverse Mortgage from a company that does not have an application fee or requires you to pay for an appraisal out-of-pocket. There should be no out-of-pocket-fee when signing up to do a Reverse Mortgage.

Next, all Reverse Mortgages require that any applicant must first complete Reverse Mortgage Counseling. This is a requirement that is mandated by the HUD and the FHA before you can receive an your full application. This counseling is a meeting with a third party individual that is certified by the HUD and the FHA and they will review your situation with you, answer any questions, and give you Counseling Certificate that is valid for six months, and can be used with any lender. These sessions usually will come with a moderate fee, anywhere from $50-$125, but this price will vary. The scam to avoid with Counseling is when the counseling agencies require you to complete or buy an additional service to receive your certificate. This is to be avoided at all costs. These counseling agencies are usually credit counselors or financial professionals that have been certified to do counseling, but also provide other services. If you are required to complete or buy one of these services in order to receive your certificate, leave immediately and report this counselor to the Department of Housing and Urban Development.

The last Scam in this article is concerning appraisals. Due to a strict FHA appraisal, a Reverse Mortgage may require repairs made to the property before you can close on your reverse mortgage. Make sure you find exactly what needs to be repaired by the appraiser. Here is what you need to watch out for. Some companies will also offer home improvements or repairs through a recommended contractor. Most likely, the contractor is aware of the scam and charging exorbitant prices for his or her services. What you want to do is contact several different contractors to make sure the quote is accurate and fair. You want to work with your loan officer to make sure you are submitting these quotes properly and also to make sure the work is done as quickly as possible. They will need to meet HUD guidelines to be sure. Reverse Mortgage Scams

Mortgage After Bankruptcy

2009-05-13T15:04:00.000-07:00

Mortgage After Bankruptcy - How to Get Approved

Buying a new house after you have recently been through a bankruptcy is simpler than you may imagine.Too many people feel that attempting to buy another house is a waste of time and do not bother. Many wrongly feel that having been through a bankruptcy will have damaged their credit score too much and that they will no be able to do it. In fact there are specialist lenders out there that lend to people in your situation meaning that getting a new home loan is possible.

Quick Ways To Help You Improve Your Credit Score

One of the best ways to improve your credit score is to get a new mortgage loan and meet your minimum repayments. Initially you may be forced to accept a home loan with a high interest rate however interest rates are very low at the minute so now is the time to take advantage. In addition you should be able to renegotiate the loan in a year or two onto an even lower rate.

Before applying for a new loan you should naturally do everything to improve your credit score before you apply for a new mortgage. One of the easiest and most effective ways is to apply for and obtain credit card, loans and store cards and ensure you make any payments due. Even though you may not need them this is a very very effective way to improve your rating. Be disciplined and ensure you make every due payment, no matter how large and small.

Pick The Right Real Estate Loan Provider

Selecting the right lender to approach to get a new mortgage is a key decision you need to make. Those who fail to get a mortgage after a bankruptcy are the ones that do not get accepted.

If you have a history of poor cred, foreclosure or bankruptcy you will not get a good rate from a traditional lender or broker. With your history you will have a poor credit record which potential lender will see as higher risk and charge you larger fees.

In order to minimize these fees and get a home equity loan that minimizes these fees you need to leap frog the traditional loan suppliers and deals and seek specialist help.

Frog Finance is a specialist lender of
mortgages after bankruptcy.

Home Loan Modification Financial Hardship Assistance - Getting Advice is No Problem.

2009-04-30T07:49:00.000-07:00

Loan modifications are a long-standing solution to financial difficulties, but they are getting a lot of play lately, thanks to the passage of President Obama's Making Home Affordable Act. Plus, the new regulations have streamlined existing procedures. All of this means more borrowers can qualify. Studying your choices for Home Loan Modification Hardship Assistance is time well spent.

There is no point in delaying if you are having problems now. Move forward by making an appointment with a loan advisor to discuss your circumstances while you have the largest number of options. Some advisors consult free of charge, while others provide this service for a fee. HUD-approved nonprofits offer financial advice for free. Yet due to the increased demand for loan advice, many new loan modification assistance organizations have cropped up.

Free advisors have their advantages and pitfalls, as do for-pay professionals. Legal services may be part of the roster, so if you have a choice, select a service with an attorney who can help you get your loan modification.

Keep in mind that when you work with a for-pay service, you run some risk of scammers, now that so many borrowers are seeking help with their finances. Be sure your service is reputable before you give them your money. Check their credentials, such as Better Business Bureau standing, and their company history.

Begin by making an appointment to see an advisor. Take any necessary financial documents to your meeting. The advisor will consider your current circumstances and consult with you to determine the best course of action.

If your advisor decides that loan modification is the way to go, he or she will counsel you on writing a Loan Modification Hardship Letter, which tells your lender why you need to modify your existing loan. Some justifiable circumstances include unemployment; natural disaster; death in the family; divorce; or unforeseen and extraordinary medical expenses. Be succinct in your letter. The advisor will assist you and submit the letter to your lender with the necessary supporting information. A loan modification service will champion your cause and steer you through any difficult channels you may encounter in the loan modification process.

If you're looking for Loan Modification Hardship Assistance - visit my simple, no nonsense loan modification guide and resource: http://Home-Loan-Modifications.info

Can a Bankruptcy Law Adjustment Stop the Mortgage Meltdown?

2009-04-30T07:46:00.000-07:00

With the number of home foreclosures spiraling out of control, Congress is desperate for a means to stop the hemorrhaging of the losses banks and investors undergo. At the same time, the taxpayer underwritten cash infusions are doing precious little to counteract the financial disaster and while it may seem like grasping for straws, lawmakers are now taking a good hard look at current bankruptcy codes. The problem that market watchers and opposed lawmakers see, however, is the law of unintended consequences.

For example, if Congress were to change the rules of the bankruptcy game now, could they actually be borrowing trouble in the years and decades to come which - were the bankruptcy codes untouched - would be little more than a blip on the radar screen. What is more, is there a chance that in the effort to bail out consumer today, Congress might actually set in motion another set of problems that will hit the stock market and the national as well as international economies in years to come.

Banks claim that bankrupt borrowers who cannot afford their mortgage payments any longer will lose their homes to foreclosure, and it is this market safeguard that keep mortgage rates affordable. Thus far there was precious little a bankruptcy judge could do to help a homeowner, other than go by the book and encourage the debtor to see if there was any way of restructuring debt payments that would permit her or him to keep the home. Short of that, the bank would take over the property.

A movement is now underfoot that would actually give bankruptcy judges the ability to order mortgage modifications, and thus would force banks to comply and change the loan terms rather than simply taking back the property in question. Lenders state that this kind of move would have serious ramifications and unintended consequences, leading to a hike in the cost of mortgage loans, and also decreasing the banks' willingness to underwrite new mortgages even further.

After all, if the investor or the banks are stuck with losses they neither anticipated nor planned for, there is little incentive to write any loans other than to those consumers with stellar credit, more than sufficient debt to income ratios, and of course also shy away from loans that might even give a hint to future troubles. While the arguments on both sides of the aisle sound compelling, there is some evidence that proponents of a change in the bankruptcy laws as well as proponents in the maintenance of current bankruptcy codes do not truly understand the depth of the arguments.

When the bankruptcy codes were last tinkered with in 2005 - at the request of the credit card industry - it was made harder for consumers to get out from unsecured debts and this forced repayment now makes it harder to actually repay the debts and keep a mortgage current. This showcases the shortsightedness of those supporting bankruptcy reforms then. Could that have been a precursor of the current debate?

In order to find the best mortgage rates, you can visit our site, http://www.Lender411.com

Krista Scruggs is an article contributor to lender411.com Lender411.com connects you with service providers that can help you avoid foreclosure. We have several Loan Modification companies within our network, each with their own strengths and specialties. Depending on your specific situation (the Property State, your mortgage lender, your mortgage history, your hardship, and any other unique situation you might be in), we will match you up with the right company.

Primer On The Difference Between an FHA Loan and a Regular "Conventional" Mortgage Loan

2009-04-27T08:55:00.000-07:00

It is in every borrower's best interest to understand the difference between a Conventional and an FHA loan, especially if they owe more than 80% of their home's value or are interested in purchasing a home with less than 20% down payment.

First FHA will allow a borrower who wants to refinance, or purchase a home, the opportunity to borrow up to 96.5% of their home's value. This is also known as LTV or the "loan to value" ratio. If it is a refinance, and they want to borrow 96.5% LTV, then the borrowers are not allowed to take out any cash. The only refinance that will be accepted is one where the borrower benefits with a reduced monthly payment from a lower interest rate.

A borrower can work with a Conventional loan if they only have to borrow 95% or less LTV. It's usually financially better to secure a Conventional loan than an FHA loan because of the 1.75% up front fee that FHA requires. This can be a significant extra fee if the loan amount is three or four hundred thousand dollars. For example, the extra fee on $300,000 is actually $5,250.

So if you have at least a 5% down payment on a purchase, or have at least 5% equity in your home when you are ready to refinance, you might qualify for a Conventional loan and forgo the 1.75% up front fee. If you can afford a 10% down payment, or have 10% in equity when you are ready to refinance, you have an even better chance of securing a Conventional loan. This is because there are several restrictions on Conventional loans between 90% and 95% LTV and many borrowers will not be strong enough financially to qualify. For example, the credit score must be exceptional (over 720 points) to get a loan over 90% LTV.

One advantage to an FHA loan is the cost of their Mortgage Insurance Program. Mortgage Insurance is an extra fee that must be paid alongside the regular monthly Mortgage Payment. Regardless if it is a Conventional or FHA loan, anytime a borrower needs a loan that is over 80%, they will be required to add a Mortgage Insurance Premium to their monthly payment.

FHA's mortgage premium is a standard .50% of the loan amount. In other words it does not matter if you borrow 81% or 94%, if you borrow over 80%, the Mortgage Insurance Premium would be the same at .5%. A .50% Mortgage Insurance premium on $200,000 would be $200,000 x .50%, which equals $1,000. This is an annual premium and so it needs to be divided by 12. Therefore, the Mortgage Insurance Premium on an FHA $200,000 loan would cost an extra $83.33 per month ($1,000 divided by 12 = $83.33).

With a conventional loan there are different percentages associated with different LTV's. For example a borrower who needs a loan that is over 80% but under 85% LTV will have a smaller Mortgage Insurance Premium than someone who needs to borrow 90% or 95%.

The Mortgage Insurance Premium payment under 85% LTV is about the same as the FHA premium, but the Mortgage Insurance Premium (also known as MIP) on a 90% or 95% LTV loan is much higher than FHA. So where as the FHA loan asks for a large upfront fee of 1.75% and a smaller monthly Mortgage Insurance Premium, the Conventional lender does not ask for an upfront fee, but collects a larger Mortgage Insurance Premium during the life of the loan. A good loan officer can crunch the numbers and figure out which type of loan is in your best interest.

I hope that this explanation clarifies the differences between the two loans and shows the advantages and disadvantages of each type.

My name is Allen Sayble and I have been a loan officer since 2001. I specialize in hard to find loans through FHA and USDA for borrowers with less than stellar credit, or who want to borrow over 80% of their home's value. I also enjoy helping borrowers in a sound financial position. You have worked hard to keep your credit strong and keep your financial ship moving in the right direction. In return, I will work hard to get you the best interest rates the industry has to offer.

Although I am based out of Ashland, Oregon and can help you, refinance home loans in Oregon I am also capable of completing California Home Mortgage Loans. Please click on either of the links to visit my website to learn valuable information about the loan business, receive a FREE mortgage loan analysis and even a Free Credit Report. You can also contact me at 541-324-9623.

Refinancing Mortgage with Bad Credit

2009-04-25T09:30:00.000-07:00

If you have poor credit and are looking to refinance your home, you should know that it is not impossible. There are many lenders such as specialty bad credit mortgage brokers and bad credit mortgage loans that you could qualify for.

Bad Credit Mortgage Refinance

Mortgage companies are hesitant to give mortgages or refinance loans for people with bad credit. To assist with this situation, there are bad credit mortgage lenders and bad credit mortgage brokers.

Bad Credit Specialists

The bad credit mortgage lender is there to help someone get a borrower’s loan approved even if they have poor credit. Unfortunately, the loan you get will carry a higher interest rate and have higher closing fees then someone with better credit. Often these bad credit home mortgage loans will carry a pre-payment penalty that will last for anywhere from 6 months to 3 years and mean huge sums of interest for at least 6 months before you can pay the loan off.
A bad credit mortgage broker is a middle man, much like a normal mortgage broker. This person will be able to find the best bad credit mortgage lender to facilitate refinancing or purchasing a home.

Bad credit mortgage refinancing on a bad credit mortgage loan can still save the borrower hundreds, if not thousands, of dollars in the long run and term of a loan. This is money that during financially trying times can virtually give families enough money to live life better than before.

Bad Credit The Bottom Line

Utilizing either of the above specialists can help a borrower find a company that will refinance a home regardless of the credit score. The process is much like getting a bad credit home loan where they will want to take a look at the borrower’s credit report, employment history, income and the amount of debt the borrower might have. In a bad credit situation though, the lender might also look at the amount of available cash. The lower a borrower’s credit score, the more available cash must be on hand to compensate on the home loan. If you have the cash, reserve a down payment of 20 -25 percent is not unheard of because if you can put down a high percentage down payment, you will pose less of a risk to the lender. With a large amount of money already invested in the property being bought, they will feel like it is less likely that the borrower will default on the loan.

Subprime Lenders

If you are looking for a subprime lender for refinancing it is important to get references and to be extremely careful. These subprime lenders have experience in working with people who have bad credit, but for every legitimate subprime lender there are disreputable lenders and mortgage brokers looking to prey on those with poor credit scores. These lenders might offer mortgages with outrageous terms buried in the fine print of the contract.

A Second Mortgage with Bad Credit

The same holds true with attempting to get a bad credit second mortgage. Once again, there are brokers and lenders out there looking to take advantage of those in need. There are other reputable companies to go to though. It is important, when looking to get a second mortgage, to have all the information required. Most of the time, you should be sure that your credit score is accurate, pay stubs from your job to verify income, deposit slips, etc. More often than not, getting a bad credit second mortgage will rest on the proof of steady income. Once again, it is important to shop around for the best deals out there. No borrower should be embarrassed about bad credit and should speak to as many lenders as possible to find the best company that can help. read more...

The Higher Cap in Reverse Mortgages

2009-04-25T09:25:00.000-07:00

There are different types of loan, one of which is the reverse mortgage loan. Loans in general are hard to be approved. There are varying sets of requirements to be satisfied. This is one of the reasons - perhaps the primary reason - why many people prefer to avail of the reverse home loan over all other types of loan - because it is easier to have a reverse home loan approved.

What takes place under a Reverse Mortgage Loan.
In a reverse mortgage loan, the homeowner does not make any kind of payment to answer for his or her loan, and the interest is actually added to the lien placed on the property. If you are the homeowner and you choose to receive a bulk payment or monthly payments of the currently available equity percentage for your age, the debt on your property will increase with each passing month. As regards the age, one of the most basic requirements of a reverse home loan is that the borrower must be a senior citizen.

Basically, homeowners who are at the age of sixty-two and beyond now have the ability to tap a much greater amount of the equity of their home. With the new law, the maximum amount allowed for a reverse mortgage loan has been increased all over the country by over a quarter of a million bucks. The old law, which puts the limits from $200,160 up to $363,790, has been replaced by the new law, which now puts the limits to $625,500.

So, what exactly is a reverse mortgage loan? How does it operate in the first place? Simply referred to as reverse mortgage, it is a type of loan which you can use to release the home equity in your property either as one, single lump sum or as multiple payments. As the homeowner, your obligation to pay back the loan you borrowed will be deferred until you pass away, your home is sold, or you leave your home such as when you decide to go into aged care. In a sense, you can say that a reverse home loan is somewhat analogous to an annuity in which both the interest and the principal are paid using the equity of the homeowner.

If all this doesn't seem advantageous to you, allow this further explanation to enlighten your mind. See, in a traditional mortgage, the homeowner is obliged to make monthly amortized payments to his or her lender. With each payment, the equity rises within the homeowners property. Usually, after the end of the term agreed upon, say after thirty years, the mortgage becomes fully paid and the property is then released successfully from the lender.

So, when does higher cap become law, for reverse mortgages? Now, fees will be capped at the rate of 2% on the first $200,000 that is borrowed, and at the rate of 1% on the remaining balance, so that the absolute maximum in fees is $6,000. This means that the amount of $625,000 of home value acts as a cap and the amount of $417,000 acts as the limit. With this useful information, you can decide for yourself whether or not a reverse mortgage loan is right for you. read more...

CC Looks to Refinance Debt

2009-04-21T16:32:00.000-07:00

The company-set deadline for the exchanges is at midnight on May 18.
Clear Channel is aiming to reduce the cost of its massive debt, freeing the 800-radio station operation from $1.33 billion in bonds that are paying holders as much as 11.74 percent through 2016.

In a statement to the SEC filed late Monday (April 20), the San Antonio-based company also said it seeks to exchange "any and all" of its $980 million in 10.75 percent senior notes due in 2016.
In a report to the SEC filed Monday, parent company CC Media Holdings Inc., said preliminary first quarter revenue was down 23 percent to $1.2 billion from $1.56 billion last year. The dramatic drop could pose trouble for the company in getting refinancing at a discounted rate.

The company became the poster child for debt-ridden radio companies last July 25 when a consortium lead by Bain Capital and Thomas H. Lee Partners acquired the mega media operation in a protracted $17.9 billion leveraged buyout. Clear Channel currently has debt totaling $21 billion. The company told the SEC it is eyeing the possibility of hiring an advisor to review its restructuring possibilities.

Appearing on CNBC last week, Scott Sperling, co-president of THL, said, "We do not have an expectation that we have an imminent blow-up at Clear Channel." Sperling noted that Clear Channel's management team and pointed to the operation's "unmatched asset base."

Residential Mortgages - The ABCs of What There to Know

2009-04-13T17:10:00.000-07:00

Residential mortgages are something everyone will come into contact with at some point in their lives. The benefits of owning your own home are simply too great for people to consider renting forever. However, one mistake many people make is not doing their homework and getting down at least the basics of residential mortgages and the entire lending process. Here, were take a look at some of the more common aspects of home mortgages to help make this learning process easier:

1. Interest Rates- Can Influence How Long You Will Be Paying Your Mortgage.

The interest rate of your residential mortgage loan is important because it has a direct influence on how much money of your monthly mortgage payment will go to paying off the principal or go to paying the interest on your loan. This is important because the lower the interest rate, the faster you can pay off your mortgage. In addition, the lower the interest rate, the lower your monthly mortgage payment will be.

2. Interest Rates can vary depending on the kind used.

Currently, mortgage loans can have either a fixed rate or adjustable rate interest rate. A fixed rate mortgage loan offers you a set amount that is paid every month that does not change. However, an adjustable rate mortgage has an interest rate that can change depending on market conditions. Generally, home owners will choose an adjustable rate mortgage with the belief that they can time the market appropriately. Also, some choose them because it can be easier to get initial financing. Although, as the subprime crisis is an indication, many people have failed to time the market properly and seen rates rise on them.

3. Size of down payment has a great influence on financing terms.

The larger the size of your down payment, the better position you will have for financing on residential mortgages. The traditional amount on a conventional loan is to put down 20 to 25% and for FHA loans, this amount drops to 5% or even less in some cases. Those with a poor credit history will often find the need to provide a larger down payment to compensate for their increased credit risk. However, all potential home buyers benefit by having a larger down payment as this actually helps improve your credit risk score with finance lenders.

4. Home Equity is the wild card for most homes.

Choosing homes that go up in value and build home equity are very valuable to home buyers. The reason for this is they allow you to make more money when you sell your home or can allow you to consider getting a home equity loan rather than refinancing if and when the need arises. Unfortunately, there is no guarantee that home values will go up and so home equity is not something that can be relied upon as the factors that influence this are largely beyond your control.

However, this does not mean you cannot increase the odds in your favor when choosing a home. Special attention should be made to consider purchasing homes where they have an established record of market appreciation, good schools, low crime rates, and the potential for growth as well as other benefits. Basically, you want to choose homes that will be desirable to home buyers 5 years from now. Doing so will increase your chances of seeing your home equity grow while you own the home.

By keeping these facts in mind, you should have a better understanding of residential mortgages and how you can use them.

For more information on Residential Mortgages, visit the previous link or http://www.homeloansandrefinancing.com to get some solid tips and information on various home loans and refinancing options.

Using President Obama's Modification Plan For Home Loans

2009-03-30T11:00:00.000-07:00

President Obama understands the toll that the economical crisis has had on those who are homeowners. Many neighborhoods unfortunately now boast several foreclosure signs. Each foreclosure can also affect the price of the other neighborhood homes by up to 9% of their valuation. In some cases, this has caused the payoff on the current home loan to be more than the value of the home. The President's plan to modify home loans comes just in time to help this critical problem.

The plan was unveiled in February of this year. This plan to help homeowners will begin on March 4, 2009. Part of the home loan modification will give the owner with a looming foreclosure the opportunity to refinance the mortgage. Typically, refinancing usually requires at least 20% of the current mortgage paid before applying. Those who used to meet this standard are now unable to because of the decrease in the value of their homes. Now, rather then having their homes foreclosed upon, these people are given the special privilege to refinance even if they don't meet the standard qualification.

Part two of the President's plan is the modification of existing home loans. Experts suggest that anywhere from 4 to 5 million homeowners would be helped by modifying their current loan. Lenders are required to follow a Standard Waterfall which makes the process quicker and easier and allows customers to have the benefit of payments they can more easily afford. Money is given to the lenders who find homeowners who are at risk of losing their home to foreclosure and helping to reduce their payment due every month.

The home mortgages of at risk owners are changed to reflect their income by the financer. The interest rates are decreased until a payment is reached that will be 38% of the homeowner's gross income on a monthly basis. Each lender will receive money from the program that matches per dollar the continuing decrease in the interest rates.

Matching money will be available from the United States Treasury until the ration of payment to income reaches 31%. Because many people have been laid off or lost wages in other ways, they are currently paying anywhere from 40 to 50% of their income towards their house payment which will certainly cause financial strains on the household. Perhaps you are able to identify with this scenario and if so, you need to look into the loan modification plan before you lose your home.

Designed to be simple and easy, the Standard Waterfall, gives the lender all the guidelines necessary when reaching the terms of a loan modification. The rules are spelled out and must be followed so that the rate of foreclosures will drop. The old method used by lenders did not cover the monthly payment but simply would add the late payments to the loan. The modification plan by President Obama works to help the everyday citizen get the help they need by providing monthly payments that are affordable so that all people can continue to own their own home.

For more information about home loan modifications, visit the #1 loans modification resource online: http://MortgageLendingModification.info

What Do Mortgage Lenders Look at When Assessing an Application?

2009-03-23T11:21:00.000-07:00

Applying for a mortgage can be a daunting proposition if you listen to all the myths that surround what makes a successful mortgage application. In reality all mortgage applications are assessed on the three main factors detailed below. In short these factors are an ability to pay, which simply put is the income available less existing credit commitments, a willingness to pay which is assessed by a credit check reviewing past credit history and credit score, and the security available which is assessed as the value of the property less the amount of the mortgage required. In more detail the following should dispel any myths and simplify the understanding of what factors affect a mortgage application.

Security

Quite simply, the security is the value of the property less the amount of the mortgage required. This is also referred to as the equity in the property, and the greater this amount is, the more likely it is that the lender will be willing to grant the loan. A large amount of equity could also result in a lower rate of interest being payable.

Mortgage lenders will place a different emphasis on the amount of the equity in a property, depending on whether prices are rising or falling. In a rising market, the value of the equity is increasing, and therefore a lender can accept applications where the amount of the mortgage is the same or only slightly less than the value of property. When house prices are falling, lenders will insist on their being a much bigger difference between the value of the house and the amount they will lend, resulting in a large deposit being required. Currently, there are one or two lenders who will lend up to 90% of the value of a property, but only the best applicants are accepted, and the interest rates are very expensive indeed. A 15% deposit will be required to benefit from any real choice, with a 25% deposit being required to qualify for the best rates available.

Ability to pay

Assessing an applicant's ability to pay is no more complicated than subtracting what they spend from what they earn. The difficulty lenders face is in being able to do this accurately. Establishing what an applicant earns is reasonably straightforward, and many lenders will rely on copies of pay slips etc, accompanied sometimes by a telephone call or letter to the applicant's employer. In the not too distant past there were schemes referred to as self cert or self certification, whereby an applicant with enough equity or a large deposit could simply state what they earned, and be excused the trouble of having to provide proof. Unfortunately, there have been too many instances where applicants inflated their earnings, and such schemes are now few and far between, and only available to those who have a genuine reason for not being able to formally prove what they earn, such as some self employed people.

Proving spending can be trickier, and this is where a good mortgage broker can be invaluable. All lenders will deduct the annual cost of servicing other debt such as loans and credit cards from income before they assess affordability, but they don't all deduct the same amount. Whilst most lenders will deduct 3% per month for credit card balances, there are still some lenders who deduct 5%. For someone with a credit card balance of £10,000, this could result in a difference of up to £12,000 in the maximum loan available. A good mortgage broker will also know which lenders can take alternative sources of income, and this can make a significant difference to the maximum loan available. For instance, whilst most lenders only consider earned income for mortgage applications, there is one very large lender who will allow both Working Tax Credit and Child Tax Credit to be counted, and will even gross these amounts up, pretending that tax had been deducted before receipt.

When it comes to establishing how much an applicant spends on living expenses, most lenders have now accepted that most applicants for a mortgage will tend to substantially underestimate their outgoings. As a result, many of them use figures for average expenditure obtained from census surveys and the like, with only limited room for manoeuvrings. Assessing applications in this way ensures as far as possible that the lenders do not grant loans to those who cannot afford them. Unfortunately, this means that there will be some cases where applications are declined when the loan is easily affordable to the applicant.

In assessing ability to pay, lenders will also look at not only the level of income, but the likelihood that it will continue into the future. Therefore, an applicant who has had a stable employment history will be more attractive than one who has switched jobs frequently, or has recently taken up their position. The frequency with which an applicant has changed address in the past will also be taken into account.

Willingness to pay

Lenders are keen to ensure that they only grant mortgages to those who will be committed to keeping up with their repayments. To assess this, they will look at current and past credit commitments, and whether payments were made in full and on time. In times gone by a good number of lenders would ignore the odd credit hiccup, such as a missed payment for a mobile phone or catalog, but now lenders are less likely to accept any form of past problem, and it is only those with a good credit profile that will be accepted where the lenders only have limited funds to lend.

In the past it has always been the case that a high score in two out of the three areas would be enough for a lender to agree a mortgage, but in the current climate, it is more usual for a high score in all three areas to be required. The few schemes which still exist for those who have a checkered credit history or complicated income are very specialized, and most are only available via suitably authorized brokers. For those who do not have equity in there property or a deposit, there are currently no mortgage schemes currently available, specialized or otherwise.

To review and compare Mortgage Rates and Equity Release Schemes from the leading banks and building societies Jerry Figueroa-Lee recommends you visit The Mortgage Warehouse. Please remember to carefully read the Initial Disclosure Document and terms of service before you apply for a mortgage online

How a Money Back Guarantee Mortgage Modification Can Benefit You

2009-03-20T10:46:00.001-07:00

Loan modification is a word mentioned very often in recent times, also called a mortgage modification, most people have become accustomed with this word during the current economic crisis. As demand has risen to modify ones mortgage rate and terms, assistance with the mortgage modification process has increased from real estate industry professionals and lawyers who specialize in real estate law. In some circumstances, companies charge large high fees upfront simply to begin the process, prior to negotiating any type of loan workout or modification approval which in some states is illegal and unethical. However one leading website is offering a truthful service that provides a money back guarantee and back-up services in case the lender doesn't see your financial situation as dire. These are the type of honest services a homeowner in these financial times needs.

A mortgage modification, or debt restructure as it is sometimes called, is a high demand choice, the objective is to provide a more affordable plan to the homeowners by decreasing their mortgage payments to an acceptable number for the lender and the borrower. The home mortgage modification functions in a way that the terms of the original mortgage loan are modified. This can include reducing the interest rate and/or increasing the loan term and in some instances reducing or forgiving the principal balance.

However, with the mortgage modification process although it is pretty much easy to follow, some issues have arose with how it is handled, with most people feeling that some companies providing these services are not tailoring the plan to their specific needs while charging huge fees before any type of approval, and even worse no guarantee of approval, this leaves the homeowner in a difficult position.

Not all loan modification companies function this way. Companies on the website mentioned below will have a money back guarantee and will diligently help you through the emotional process of getting your home loan modified or initiating a short sale to avoid a foreclosure that lasts ten years on your credit report. This means, unlike many, it is in their interests to get the modification approved, otherwise they receive no payment.

While many homeowners struggling to meet their mortage payment obligations, and the government itself, suggesting leniency, the mortgage lenders have a moral duty to help the consumer. So, with your effort and cooperation a positive outcome is very likely.

Homeowners interested in a Money Back Guarantee Mortgage Modification program who are behind on their payments or have a financial hardship can apply for a Mortgage Modification at ApplyLoanModification.com or with a Real Estate Lawyer by visiting http://www.OCRealEstateLawyer.net website to have experienced paralegals, debt negotiators supervised by Attorneys who know this business.

Mortgage Rates Fall For The Ninth Time in 10 Weeks

2009-03-17T10:08:00.000-07:00

Mortgage rates fell for the ninth time in 10 weeks as inflation anxiety calms down, according to Freddie Mac's weekly report. For the week ending September 28, 2006, the average 30-year fixed-rate mortgage was down to 6.31% from 6.40% the week prior. One year ago, the 30-year fixed averaged 5.91%.

The 15-year fixed-rate mortgage was also down. It stood at 5.98% for the week, down from 6.06% the week prior. One year ago, the 15-year averaged 5.48%.

The five-year hybrid ARM fell to 6.00% from 6.08%. One year ago, the 5-year hybrid averaged 5.44%.

The average one-year ARM was also down this week to 5.47% from 5.54% the week prior. One year ago, the one-year stood at 4.68%.

The week's economic data played a role in the decrease of mortgage rates, according to Frank Nothaft, Freddie Mac vice president and chief economist.

"This week's economic releases, which showed a slight one-year decline in both new and existing house prices in August, fell short of market expectations and prompted market analysts to reassess how much the housing sector will contribute to economic growth in the coming year," he explained.

"As a result, mortgage rates declined even further this week to match those set six months ago," Nothaft continued. "One bright note in the releases was that the average time new homes stood for sale narrowed from 6.6 months to 6.3 months in August, which should mitigate some of the softening of new home prices over the next few months. In addition, both lower mortgage rates and a moderation in house price growth should lead to increased housing affordability -- especially as family incomes are forecasted to continue rising."

Martin Lukac represents RateTake Refinance Rate mortgage marketplace. RateTake matches consumers with multiple lenders offering low Refinance Rates from our network of accredited lenders

Qualifying For a Super-Size Jumbo Mortgage

2009-03-15T10:46:00.000-07:00

Here is a news flash for you in case you have not noticed. In many areas of the price of a home is well above the old $417,000 conventional loan limits! This could potentially add another level of stress to first-time home buyers who are preparing to jump into this part of the market. However, do not worry because I have put together a guide to walk you through the differences and what to expect when you need a lot more than $417,000 to buy your home:

ABSOLUTELY use a mortgage broker. Mortgage brokers are mortgage professionals who have access to dozens if not hundreds of lenders. A mortgage broker will be able to shop almost every bank for you without you having to contact each bank personally and go through the application process.
Expect to pay a slightly higher interest rate. You have to be prepared to ignore those annoying advertisement commercials that promise you 4.99% interest rates on a million dollar mortgage. They are simply not true for the majority of us.
Be prepared for additional time to close. Lenders usually have more questions and need more careful market analysis when lending on luxury homes. They are not picking on you. It is because luxury homes usually take longer to sell.
You make be asked for additional income documentation. This is not the time to play vague mystery guy with rich relatives. Lenders want to know who, when, why and where from.
Your credit reports will be more closely scrutinized. Due to the mortgage amount any little blemish on your credit could become a blaring issue in light of trying to borrow a jumbo amount of money.
Be willing, ready and able to talk about where your money comes from and why you get paid the way you do. It is very likely that if you are seriously considering a jumbo mortgage then you make jumbo-like income. With that being said it is even more important that you be open, honest and forthcoming about every source of income reflecting on your tax returns.
Get out the checkbook because the appraisal and home inspection will cost considerably more than average homes. Be prepared to pay slightly higher prices for your real estate services because of the risk involved with doing a larger mortgage.

FREE REPORT: Discover how you can negotiate the lowest price possible when you buy your first home. This free report reveals closely guarded insider secrets which the experts use to buy homes for thousands of dollars in discounts in towns like Branford, Milford, Hamden, East Haven, New Haven and many more. Click Here For Your Free Report.

FREE REPORT: Gain instant access to a proven A to Z blueprint for buying your first home. This free report reveals how first-time homebuyers can purchase the perfect home in 15 proven steps in 90 days or less in towns like Branford, Milford, Hamden, East Haven, New Haven and many more. Click Here For Your Free Report.

List pennsylvania mortgage refinance rate

2009-03-04T06:10:00.000-08:00

Pennsylvania Mortgage Rates

When you hear the slogan, "You've Got a Friend in Pennsylvania," your mortgage lender might not be the first person that comes to mind. However, the best Pennsylvania lenders will work with you to find the most affordable mortgage or refinance available. You can start moving in the right direction by doing some independent research at Mortgageloan.com. Browse for brokers, review mortgage loan rates, read mortgage articles, use the glossary to refresh your knowledge, and crunch numbers with our mortgage calculators.

Pennsylvania adjustable-rate mortgages

The popularity of Pennsylvania adjustable-rate mortgages (ARMs) tends to fluctuate with economic cycles. ARMs have some important characteristics:

· A low initial rate and payment that usually last for one, three or five years.

· A variable interest rate that tracks with a benchmark index such as LIBOR; this rate goes into effect once the initial rate expires

ARMs are available in many shapes and sizes, and can be used to address special circumstances, such as uneven annual income and short-term borrowing. They're frequently used for Pennsylvania borrowers who need a low payment now, but expect to afford a higher payment later.

Pennsylvania home equity loans

Fixed-rate second mortgages are called home equity loans. Borrowers use them to convert home equity into cash for one-time expenses. This same objective can also be achieved with a refinance. Relative to refinancing, home equity loans have lower closing costs, but higher interest rates. Home equity loans might be preferred over refinancing if you already have a low-rate first mortgage, or if you want to pay off the new debt in less than 30 years.

Comparing Pennsylvania mortgage loan rates

You don't have to be a mortgage expert to get the best loan rates; but knowing more will certainly aid in your decision-making. Here are a few essential tips:

· The annual percentage rate (APR) allows for the comparison of mortgages with different closing costs.

· The amortization of your prospective mortgage loan is very important. In other words, know how the payments are applied to the debt balance over time.

· Low payments are a concern, but not your only concern. Depending on the amortization schedule, a mortgage with a low payment might be affordable in the short-term, and expensive in the long-term.

· Second mortgages have higher rates than refinanced mortgages.

· ARMs begin with lower rates than fixed-rate mortgages (FRMs), but over time, the rate can adjust to much higher levels.

Experimenting with mortgage calculators is a great way to hone your knowledge. Mortgageloan.com has more than 100 different calculators, allowing you to test rates, amounts, and loan types against your budget. You can even account for different scenarios; if you intend to remodel, for example, try comparing a complete refinance to the combination of a first mortgage and home equity loan.

It's important to meet with different lenders and submit several loan applications. You can find suitable lenders in our Pennsylvania broker directory.
source

Home marketing mortgage refinance

2009-03-04T06:08:00.000-08:00

Tips for Home Mortgage Refinance
A home mortgage refinance can be a sound financial decision in many circumstances. This is especially the case when interest rates are attractive. There are several factors that should be considered when making the decision to refinance; however. When you first purchased your home and took out your mortgage, you probably looked at interest rates, terms and fees.

When you decide to take advantage of a home mortgage refinance, you need to consider these factors as well as a few others. For example, you should take into consideration the amount of money that is left remaining on the balance of your mortgage. This is important because ultimately the amount of money you will be able to refinance will be based on the amount of money that you have paid toward your mortgage and the amount of money that is left remaining.

You should also take into consideration the amount of time that you have paid on your existing mortgage. If you only have five years left on your mortgage, it may not make good financial sense to refinance because you would be extending the payment on your mortgage beyond that time frame in most cases. Unless you are facing dire circumstances, it would usually be best to remain in the first mortgage.

If however, you have more than five years left on your mortgage there are numerous advantages to a home mortgage refinance including the ability to tap into your equity and lower monthly mortgage payments. You should also make sure you check your credit rating before you pursue refinancing your home. As you are probably aware, your credit rating had a tremendous impact on your ability to qualify for your first mortgage. The same can be said of a home mortgage refinance. To get the best rates possible, you wan to make sure that your credit report is accurate.

Many people make the decision to refinance their mortgages because they are either having a difficult financial time or they want to pay off higher interest bills with a lower interest home equity loan. A home mortgage refinance can be a good solution which will allow you to consolidate all of those bills into a single loan with a lower interest rate.

You will be able to save money each month and then start with a fresh clean financial slate. Additionally, to be certain that you receive the most benefits from refinancing your home, make sure that you take the time to shop around for the best rates. Take the time to research current interest rates so that you will know whether you are being offered a good deal or not.

Also, be sure to compare the costs associated with a home mortgage refinance. Even though one lender may be offering what appears to be a lower interest rate, if they are charging you more in closing costs to refinance your mortgage, it may not be as good of a deal as it first appears to be. By taking the time to do your research, consider your reasons for refinancing and shopping around to compare rates, costs and terms, you can be certain to take advantage of the best benefits offered by refinancing.

Thinking of a home mortgage refinance? Learn how to do it right! Visit Home Mortgage Refinance or Home Mortgage for more information.

Refinance Fha Mortgage or Considering a refinance of FHA mortgage

2009-02-16T13:11:00.000-08:00

Ask Dr. Don by Don Taylor, Ph.D., CFA, CFP • Bankrate.com

Question: Dear Dr. Don,
Our mortgage is a FHA 20-year fixed rate loan at 5.625 percent. We are considering a home equity loan for $20,000 to pay off our credit card debts, but the loan officer has recommended that we refinance the mortgage instead. He claims that even though the interest rate is higher; it evens out because we will not pay PMI. What do you think?
-- Rosa Restructures

Answer: Dear Rosa,
FHA loans don't require private mortgage insurance, or PMI, although there is a mortgage insurance premium, or MIP, that you pay for the government guarantee on an FHA mortgage. The MIP is an upfront cost paid at closing. Depending on the size of your down payment, there may also be a monthly premium payment. If you bought the house with less than 10 percent down, you'll pay a monthly insurance payment of 0.005 percent, too. For a $100,000 loan that monthly insurance payment is $100,000 x 0.005/12 = $41.67.

Paying off your mortgage early might entitle you to a partial refund of the upfront payment and would get you out from under a monthly premium payment. A HUD fact sheet can help you determine if you would get a MIP refund if you refinanced your FHA mortgage. So the first step is to figure out if you're paying the monthly insurance premium on your FHA loan and, if you are, how much you're paying each month.

Since the monthly MIP is expressed as an interest rate (0.5 percent), you can add it to your loan rate of 5.625 for an estimate of where you'd need to be for the lender to be correct about things evening out. If he's offering a fixed-rate APR of 6.125 percent then you're in the ballpark for refinancing. Since Bankrate's national average for a 30-year fixed rate is 6.46 percent, and a 15-year is at 6.16 percent, that's not all that likely.

These rate quotes bring up another important consideration. You've got a 20-year mortgage. I don't know how many years into this mortgage you are, but to put refinancing on an apples-to-apples basis, you should be looking at refinancing with a 15-year note, not a 30-year note.

Another thing. Even though you're restructuring your credit card debt at a lower interest rate, you can wind up paying more in interest expense because you're taking 15 years to pay it off.

One more problem with refinancing versus just taking out a home equity line of credit or home equity loan is that the closing costs are a lot more expensive when you refinance. You can use Bankrate's refinancing calculator to determine how long it would take you to recoup the financing costs.

Your lender would have to be offering you a very attractive rate on the refinancing to have it make sense versus staying in your current FHA loan and restructuring your credit card debt with a home equity line or loan.

To ask a question of Dr. Don, go to the "Ask the Experts" page and select one of these topics: "financing a home," "saving & investing" or "money."

Mortgage Refinance With Cosigner # Co-Signing a Mortgage

2009-02-16T13:05:00.000-08:00

Co-signing a mortgage carries with it a lot of implications. It impacts can follow you for years to come. It can affect your personal credit and your ability to get additional credit when needed. Remember that when you are asked to co-sign a loan you are being asked to take a risk a lender will not take.

By co-signing a loan you are guaranteeing the debt. That means if the primary borrower fails to repay the outstanding loan balance then you are responsible for the repayment of the loan amount. In this instance it is important to ensure that you can afford the additional payments if necessary. It could also mean that if the primary borrower cannot repay the loan you could be responsible for any outstanding balance, penalties late fees and collection costs that have been accumulated as a result of the and default.

A benefit to the creditor is that they can go directly to you without attempting to collect any penalties or outstanding balances, without ever approaching the primary loan holder. They can use the same collection methods with the co-signer that they would with a traditional mortgage holder. That means they can sue you, garnish your wages as well as a host of other techniques to collect the outstanding balance.

If you do co-sign a mortgage despite the risk involved, be sure you can carry the cost of the loan payments. Remember that creditors will see a co-signed loan as a personal liability and this may prevent you from receiving additional credit of your own. Ensure that you understand all the consequences of co-signing for any loan.

It will also be important to take some precautions concerning the debt. Ask the lender to inform you personally if a loan payment is missed. That will give you time to make arrangement to repay the back payments and penalties before it becomes an overwhelming issue. Make sure you get copies of all of the documentation involved with the process; you may need these in the event that there is a dispute over the loan in question.

Ultimately it will be your choice whether you co-sign a mortgage. Check with your local governing body to find out what implications and protect there are for co-signers. Make sure that either the lender or the borrower provides you with all the loan documentation. Finally be proactive in monitoring the repayment of the loan.

The copyright of the article Mortgage Co-Signers in Buying/Selling a Home is owned by Joel Nash. Permission to republish Mortgage Co-Signers in print or online must be granted by the author in writing.

Hope For Homeowners - Hopeless For Brokers?

2009-01-26T15:17:00.000-08:00

I think a lot of us brokers were looking forward to the H4H loan last year as a possible life line to help us stay in business. Oh yeah, and there's that helping the borrower thing too. Well, I think on both accounts, this program is a bust. This program was seriously flawed from the beginning, and it seems after some minor tweaking by the powers that be, it is still just as undesirable.

I know that I thought this could be a way to keep afloat in this horrific market all the while helping borrowers keep their homes. I am in the Tampa Bay area, what I call ground zero for declining values (i realize there are other areas that are probably worse, but I live here). With rates still being relatively high last year, this seemed like a viable way to keep doing business in spite of the lack of value, credit, and income.
Joseph P. Mazzei -
Licensed Mortgage Broker -
Wholesale Mortgage Services -
http://www.mymortgagebroker.blogspot.com

Now is the Time to Buy or Refinance Your Home-Mortgage and Credit Tips

2009-01-26T15:16:00.000-08:00

Tips to increasing your chances of getting a mortgage and bettering your credit score.

1. If you are planning to buy a home in the near future do not take out any new loans or credit cards especially a car loan. If you have a car loan with a high interest rate you can refinance with another lender to lower you monthly payments and get a better rate.

2. Check your credit report and correct any discrepancies.

3. If you are delinquent in taxes or credit card companies you may be able to make a deal to pay them off for less than they say you owe.

4. Consolidate credit cards and car loans to lower your interest and finance charges.

5. Pay off small loans and get any balances to zero that you can. Once debts are consolidated pay a little more than minimum on your credit cards each month.

Prioritize your monthly bills.

- bills with late payment fees

- bills with higher finance charges

- monthly rent or mortgage
http://www.CedarHideaway.com

Top Mortgage Refinancing Companies

2009-01-12T14:32:00.000-08:00

While you can often get a good mortgage rate at your local bank, the way to get the best rate for you is to conduct a search online and to compare some of the top mortgage companies. Especially if you have good credit, banks will want to talk to you and to get you to sign a loan with them, and you can get an advantageous rate by allowing some of these businesses to compete online for your refinance.

When you are looking for the companies that you should choose, consider a loan comparison company like LendingTree.com, which will allow you to compare rates at several of the top lending companies to give you the best possible rate on your mortgage refinance.

If you would rather do the legwork yourself, then consider some of the best mortgage refinance companies out there, including companies like Ditech.com, which claims to offer some of the best rates and easiest loans in the lending community. Because they are based online, Ditech.com has lower expenses and can therefore offer lower rates than companies like Bank of America, which has many branches to maintain.
source

How soon can I refinance my home mortgage?

2009-01-12T14:28:00.000-08:00

Lets sum this Q & A up: An owner of a new condo wants to know if it is to soon to refinance her mortgage. I say it is never too soon to refinance a mortgage as long as you know how much it will cost you, and when you will recoup your money.

Q: Last April I bought a new condo. Currently, my home mortgage has a rate of 8%. I see mortgage rates falling, and all are lower than mine. Should I refinance my mortgage? How long do I have to wait to refinance since I just bought less than a year ago? I do not want to miss out on these really good rates I see, and I want to do something about it but I do not know where to start. What do I do?

Answer: A refinance on a mortgage, no matter when you got it, can happen at any time you choose. Figure out how much the refinance will cost you, and how long it will take to make your money back and decide from there. If you are not able to recoup the closing and other associated refinance costs in 2 years or less, you should wait for rates to drop even further, or shop around at different lenders for better terms.
source

Factors to consider before refinancing

2009-01-11T15:32:00.000-08:00

Last week’s column urged us all to examine our current home loan to see if it would be beneficial to refinance. Here are some questions that frequently arise whenever refinancing is the subject:

Q I have always heard that refinancing isn’t a good idea unless you can drop your interest rate by at least 2 percentage points. Is that true?

A Like many rules of thumb, it can be true but not always. The best way to decide on refinancing is to talk with a mortgage lender and let them explain the products they have available and how they can save you money. Short of that, here is my quick- and-dirty analysis:

> Determine how much it will cost you to refinance. Typically, closing costs are in the range of 2.5 percent of the new loan amount but sometimes less, depending on the rate you accept. Talk to your lender.

> Determine the annual savings. Multiply your loan balance by your interest rate to determine the savings.

> Multiply the amount of savings by the number of years you expect to own the property. That is your expected savings amount. If the expected savings substantially exceeds the cost of refinancing, then it is likely worthwhile to proceed. If not, you can seek to lower your closing costs by accepting a slightly higher interest rate.

How can a lender afford to offer a “zero closing cost” refinance program? Who actually pays for the expenses?

If the closing costs are below about 2.5 percent of the loan, then the lender is absorbing the costs internally. In exchange, you will be offered a slightly higher interest rate, which the lender can sell for a slight premium after closing. In other words, you are actually paying for your closing in the rate you accept.

My interest rate is high at 8 percent, but I only have nine years left before my loan pays out. Should I consider refinancing, and if so, won’t it cost me a lot more in interest over the extended payback period?
source

Paying Off Mortgage Debt is Becoming Fashionable Again

2009-01-10T12:22:00.000-08:00

In a healthy real estate market, people only take on as much debt as they can afford, and they work to pay it off as quickly as possible. Debt is something to be retired not endlessly serviced.

If you look at the equity curve of real estate, you see that equity is built in 3 major ways:

1. Speculation.

2. Inflation.

3. Debt Retirement.

A truth that everyone is becoming painfully aware of is that speculative equity is not stable. Prices once detached from fundamentals will return to them at some point. The return to fundamentals is either accomplished through actual price declines or a period where prices increase at a rate less than inflation. It is usually the former. Speculative equity cannot be counted on, and it is only captured through careful analysis or blind luck. It is usually the latter.

Inflation equity is really not equity at all. If your house doubles in value in 20 years, but the value of the currency has cut in half, you really haven't gained anything. On paper you have a gain, but the money you get out has no more buying power than the money you put in, so you really haven't benefitted as much as you think you have. Inflation equity will preserve your wealth, but it will not add to it.

The real way to make money through long-term ownership of real estate is through obtaining financing equity. You get this by paying off your loan. This method of building wealth, the only one that really works, has been much maligned over the last decade as fantasies of easy money through boundless appreciation gripped the market.

The last time we had a healthy, fairly valued market in California was from 1995-1999. During this period, people did not believe in endless appreciation because prices had been declining since 1991. Buyers realized the only way to make money in real estate was to borrow a small amount and pay it off or pay such a small amount that you could rent the place for positive cashflow. Once prices start going up, people see that they can profit from appreciation, and the slow, steady method of building wealth through retiring debt seems rather quaint and old-fashioned.

Once prices start really going up, paying down mortgage debt is an unnecessary financial burden. Why bother paying an extra $500 a month toward your housing debt when the house is going up in value about $5,000 a month? Why not just use interest-only financing and spend that $500? Well, that is such a good idea, the next step is obvious: why not utilize a loan where you don't even pay the interest and free up that payment money for consumer spending. The Option ARM is born.

But why be satisfied with only falling behind $500 a month on your mortgage when house values are going up $5,000 a month? Why not borrow more? Why not go withdraw the equity in huge lump sums? After all, it is accumulating far faster than it can be spent. If you refinance or open HELOCs periodically, you can extract this free money as soon as it becomes available. Why not?

Do you see how speculative equity is a slow seducer? The foolish and irrational seems completely logical when you look at the changing circumstances.

When a Ponzi Scheme is built on debt, like it was during the Great Housing Bubble, each person in the chain must assume a larger debt than the person who came before them. Since nobody is paying down debt, and since most people are furiously adding to it, the amount of debt buyers needed to take on in order to pay off the debts of the seller becomes very large. There is a point where the debt becomes too large for people to service, and they default on their payments. Once banks stop getting paid back, they stop making loans: a credit crunch.

The challenge for lenders in the wake of a crashing Ponzi Scheme is to rediscover the debt-to-income levels people can support for residential real estate. Historically this number has been around 28%. The challenge for the market is to endure the crash back to pricing levels consistent with stable borrowing levels. We are in that process right now.

During the price decline, market psychology will also change. People will slowly recognize that the personal financing methods they believed were stable during the bubble (interest-only and negative amortization loans at high DTIs) are not stable and should not be used. As long as market participants believe in the fantasy of speculative equity, they will utilize whatever means of financing is available to them to acquire as much real estate as possible. It is the knife-catcher mentality. The slow grind of declining prices will pulverize this faulty thinking over time, but in the interim, people will continue to overpay for real estate to the degree that they can.

Eventually, it will become widely recognized that borrowing a small amount and paying down a mortgage is the only real method of accumulating wealth in real estate. Of course, when this happens, the market is at the bottom, and the whole cycle begins all over again...

Lawrence Roberts is the author of The Great Housing Bubble: Why Did House Prices Fall?

Learn more and get FREE eBooks at: http://www.thegreathousingbubble.com/.

Read the author's daily dispatches at The Irvine Housing Blog: http://www.irvinehousingblog.com/.
housing, real estate, buying real estate, housing bubble, real estate bubble, house for sale

New Changes in Reverse Mortgages Have Been a Major Improvement For Seniors

2009-01-10T12:20:00.000-08:00

The first major change that took place is the amount charge on the origination fees. Prior to the change the fee was 2% of the appraised value with no cap. Now it has been change to a maximum of $5,950 which relates to 2% of the first $200,000 and 1% of each hundred to maximum of $417,000 or $5,950.

The second change is the elimination of having financial products sales professionals in the Reverse Mortgage industry. Meaning that no person who sells financial investment vehicles, such as annuities, insurance and other financial products...., can write this mortgage. This is an important issue because in the past there have been people who were using the mortgage to fund these products.

The third change is that the former limits that were based on county limits with and average across the board of $232,000 have been eliminated. Now the new limits have been changed to $417,000, which has allowed more seniors to access the Reverse Mortgage and not have to bring money to the closing table.

On January 1, 2009 the biggest and best part of the program took affect senior who wanted to purchase a home in the past, who maybe had sold their home had to use the funds from the sale to purchase a replacement home. Now they can use a Reverse Mortgage to purchase that new home. The purchase of the new home is totally based on the appraised value and not on the purchase price. Now the source of funds can come from many sources such as Retirement accounts, savings, sale proceeds or other sources including a gift.

The best part of this way of purchasing is that a senior will never have to make a mortgage payment for as long as they live in the home as their primary residence.The Reverse Mortgage is a true no doc loan for a senior over the age of 62, they do not need good credit or in todays credit environment they need great credit for a conventional mortgage. To qualify for a purchase Reverse Mortgage all you need to be is over the age of 62 of the youngest person and a percentage of the down payment in some cases. Here is a little inside secret. If the home that you are purchasing has a high appraised value and you can purchase it for a lot less you may not have to have any down payment. The amount of money available under the Reverse Mortgage is always based on the appraised value, in todays economic turmoil; it is not uncommon to find a home that can be purchase for 30 to 40% of the appraised value. If a senior can locate one of these deals that could literally purchase a home with zero monies down and even in some cases receive some monies at closing.

This specialist believes that you should find a real estate agent who understands that basics of the Reverse Mortgage purchase mortgage and will be willing to help a senior find that perfect purchase, before they sell there existing home. If they find that perfect home and they sell their home they can keep all of the proceeds up to $500,000 tax free for a couple.

Now this does not mean that a senior who does not have a home to sell cannot use the Reverse Mortgage to own a home and stop paying rent forever. Any senior over the age of 62 can use this program to live the rest of their life without making payments, which will increase their available income to use on other necessities.

Tim Robbins,Sr is a senior Reverse Mortgage Specialist with Equitable Reverse Mortgage. The main goal is to provide the best education resources available and to all place the seniors first and foremost. My website is designed to give you all available information which you can review either in print or video by visiting http://www.seniorconsumerreport.com you may also contact me Toll free at 800-966-7211 ext 118 for a Free Report on Reverse Mortgages you can call my 24/7 recorded HOTLINE at 1-877-463-6546 ext 7259

Senior loans,Fl Reverse Mortgages,Real Estate,Reverse Mortgage,real estate buying,senior lending

Zero Down Loan

2008-12-14T14:19:00.000-08:00

Zero Down Loans Are a Thing of the Past

Not too long ago, buyers were able to purchase homes without making a down payment. There were several options for these zero down loans, such as Fannie Mae's My Community or Du Flex loans. An around the way (but quite popular) option for doing this with FHA was getting the seller to contribute the down payment money to a non profit organization like Nehemiah or AmeriDreams, which then granted the money back to the buyer for a fee.

Despite the popularity of such loans, lenders are now realizing that these kinds of loans did more harm than good. In short, there is no such thing as a $0 down mortgage anymore. Fannie Mae has raised guidelines for their loan products and is not allowing zero money down now.

However, borrowers who were considering these loans several months ago do have other options. So, don't assume that you can't get a low down payment loan right now - it just won't be no money down. Be sure to talk to your lender about your options. It's a little harder to meet the new Fannie Mae guidelines, but buyers still use these loans everyday. So, don't think it's impossible.

Now that buyers can no longer get a zero down mortgage with FHA, some are questioning whether it's still worth using the FHA loans. Although a buyer will have to put money down now, he or she will generally have a lower payment with an FHA loan compared to a traditional loan.

The reason that the payment is less with FHA is because the mortgage insurance premium for these loans is less. And, that insurance can make a big difference. Another advantage of using FHA loans is that the borrower can have a lower down payment. FHA only requires 3 percent down, where most conventional loans want 5 percent or more. It's easy to see why FHA is still such a popular loan for borrowers - even without the zero down that it used to offer.

State housing is about the closest thing there is right now to the zero down loans. State housing does not always require the full 3 percent down. These kinds of loans can be a pain in the neck to jump through all the hoops to get them.

But, they provide a lot of buyers with a way to buy a home when they otherwise would not be able to. And these loans really depend on income. For a borrower with low income and a low sales price for the home, it's possible for this person to obtain very close to a 0% loan. But, this borrower would need good credit.

Lee Keadle is a Realtor in James Island South Carolina. He also specializes in Summerville homes for sale.

General Idea About Mortgage

2008-12-14T14:17:00.000-08:00

Mortgage is a form of hypothecation of property to a bank as a security for a loan. The transferor is called a mortgagor, the transferee a mortgagee, the principle amount and interest are called as mortgage money and the instrument by which the transfer is affected is called a mortgage deed. Mortgage of property gives the lender a right to acquire and sell the property in case of default by the borrower in repayment of the loan and other dues as per the agreed terms and conditions. It creates a legally binding contract between the parties.

A mortgagee has a right to sue the mortgagor if the mortgaged property is totally or partially destroyed. The mortgagee must have given the mortgagor a reasonable opportunity to provide further security to render the security sufficient and the mortgagor has failed to do so. A mortgage is a loan you take out to buy property. Most banks and building societies offer mortgages, as well as specialist mortgage lending companies. If you change lenders but don't move home it's referred to as a remortgage.

In certain countries like U.K. Australia there is more demand for homes. The two ways of measuring cost of borrowing are annual percentage rate (APR) or lender police effective annual rate (LPEAR). An investor borrows funds to diversify investment. The different types of mortgage include simple mortgage, mortgage by conditional sale, usufructuary mortgage, English mortgage, Mortgage by deposit of title deeds and Anomalous Mortgage.

The two main types of mortgage are repayment and interest mortgages. In the interest mortgage you can make monthly repayments for a said period but this will only cover the interest of your loan.

The option to pay interest only lasts for a specified period, usually 5 to 10 years. Borrowers have the right to pay more that interest if they want to. If the borrower wants to pay only interest every month during interest period, the payment will not include any repayment of principle. The result is that the loan balance will remain unchanged.

In Repayment Mortgage, principal as well as interest amount is re-paid every month. In this type of Mortgage the loan amount decreases over time and once the last payment is done the property is yours. The mortgage amount is usually paid in 25 years.

Brayanpeter is a Copywriter of Birmingham mortgage

He had written many articles in various topics. For more information visit: remortgage loan.

Contact him at Brayan

What is the Minimum Credit Score For a Home Mortgage Loan?

2008-11-15T14:32:00.000-08:00

It wasn't so long ago when getting a home mortgage loan was a piece of cake. It didn't seem to matter if you had a good credit score or a bad credit score; all it took was the desire to buy a home and the willingness to sign a home mortgage agreement. However it is no doubt because of these irresponsible practices on the part of the home mortgage lenders that we are experiencing such disastrous effects in today's housing market and the economy overall. This of course has led to many people asking just what is the minimum credit score for a home mortgage loan these days?

The short and simple answer to this question is that as a general rule, if your credit score is below a minimum of 640, then you are going to have a bit of trouble getting approved for a home loan. That being said, it won't be entirely impossible, and there of course things you can do to improve your credit. Which, in all honesty, I would recommend anyone do before applying for a home mortgage loan in order to get the best interest rate.

The first thing you should do is pay off any outstanding debts than you can afford to pay off. It's surprising how many people have credit card debts that they can afford to pay off but would rather not because they would prefer to stay liquid. This is a mistake. Not only are you costing yourself more money in the long run, but it's also terrible for your credit. However, rather than paying off the entire credit card, your target goal should be to simply pay it down to less than 20 - 30 percent of it's maximum balance and demonstrate that you can handle a moderate debt and make consistent payments towards it.

He long and short of it for anyone asking just what is the minimum credit score for a home mortgage is these days, the answer comes down to several variables. You want to have credit above 640, however the higher it is, the better the terms you will get on your loan will be.

for more information about Bad Credit Home Loans go to the Home Loan Encyclopedia now.

And before you apply for a home loan, you may want to first take a peak at this simple mathematical mortgage formula.

'No-cost mortgages' probably are too good to be true

2008-11-15T14:29:00.000-08:00

If you browse the Internet, you more than likely will see pop-up ads for "no cost purchase and refinance" mortgage loans. These appear to be mortgage programs that promises no fees or out-of-pocket expenses when you complete your purchase or refinance transaction online. As a mortgage lender, I'm always suspicious when someone offers a mortgage loan for nothing, and you should be, too. While this type of mortgage lending offer is not a new concept, it's definitely a subject worth discussing to ensure people understand what they're getting when they choose a no-cost refinance option.

A no-cost loan is a loan transaction without any upfront fees, including the typical costs, such as an appraisal fee, title and escrow fees, loan origination points, lender fees and so on. This is OK in theory, but how does the lender make up for the absence of fees that are associated with a mortgage loan and normally must be paid? The true reality of this type of "no-cost mortgage" is these loans actually will bump up your interest rate, sometimes dramatically, making up for the missing fees that usually are charged at closing.

Here is a short example to help you understand how the program works:

You are a borrower, and you're credit profile allows you to qualify for a mortgage at an interest rate of 6 percent on a $500,000 loan, paying one point to the lender and an additional $2,500 in closing costs for a total of $7,500. While these costs might seem like a large investment upfront, your trade off is a lower interest rate.

With the no-cost options I've reviewed, you'll complete the mortgage transaction without paying a penny, but you might end up with an interest rate of 6.75 percent or higher on the same $500,000 transaction. Going further, your monthly payment at 6 percent is $2,998 compared to your monthly payment of $3,243 at 6.75 percent. So you'll end up paying an additional $245 per month or $2,940 annually if you've selected the "no-cost refinance" at an interest rate of 6.75 percent. You can do the math: $2,940 per year and three years into the mortgage, you've spent $8,820.

At this point, you should stop and ask yourself what your plans for the future are. What are you going to do with your home and this new mortgage? If you're planning on upgrading to a more expensive home in just a few years or if you're someone that refinances every few years, then paying those larger upfront fees ($7,500) for a lower interest rate (6 percent) doesn't seem to be your best option. If your answer is you plan to stay in the home for 5 or more years, it seems to make more sense to pay the fees upfront for future savings. That $245 savings each month might ease your budgeting woes in the future and amount to some serious savings if you stick with the mortgage for the long term. Remember also to shop around locally. I've heard too many horror stories of online deals gone bad.

Brett Richards is with The Huntington Mortgage Group and is a member of the Licking County Board of Realtors. Call Richards at (740) 587-7830 or e-mail Brett.Richards@Huntington.com.

Refinancing Mortgage, Mortgage Loan Refinance, California Home Loans

2008-10-25T12:31:00.000-07:00

TheLoansStore.com was created with the interests of the consumer in mind. If you have ever wondered if owning your own home or refinancing your current home would be possible, don’t wonder anymore. From new Construction Loans to Mortgages Loans, Mortgage Refinancing and Refinancing Mortgage Rate. Whether you have great credit, marginal or bad credit, theLoansStore.com can help. We know one size never fits all borrowers.

Refinancing Mortgage refers to a protected loan taken on a property, which has already been used as a safety in a mortgage loans once before. To start with or without the internet, it would be impossible to even buy your refinancing mortgage in real time. According to the mortgage refinancing and refinancing mortgage association, the slowing up is seen in the whole business, affecting Loans, Mortgage Loans, refinancing, brokers, investors, Countrywide Home Loans and home loans companies.

Another bonus of getting lower fixed interest rates may mean that you can pay off the mortgage loans in less time. Fixed Refinancing Mortgage Rate loan - the mortgage loan at a fixed rate loan is similar to a refinancing mortgage rate where you can get a bump figure expense and then pay up the Mortgage loans in installments over a set period of occasion. On a fixed rate business mortgage, the interest rate that is negotiated and decided to stays in result until the Mortgage loan is fully amortized.

We work with thousands of qualified professional loan brokers and hundreds of different investors, allowing you to tailor a specific mortgage or loan program to suit your individual needs. We'll search the nation to help find the best possible deal for you.
Source

How to Process a Mortgage - For Mortgage Professionals

2008-10-11T13:19:00.000-07:00

It's not uncommon for busy loan professionals to lack the technical knowledge concerning the processing aspects of a mortgage transaction. The reasons for this range from some companies not allowing originators to process, loan officers being too busy to spend time handling files after an application, or maybe they just don't have the time to learn. Whatever the case might be, processing a mortgage is not that difficult. Let's take a look at the basic steps.

Most loan origination duties end at the point where a borrower has committed to moving forward with a proposed mortgage offer. The loan officer has completed their task of "selling" the loan, getting the required loan disclosures signed, and gathering preliminary income and asset documentation. It is at this point where the loan file is typically handed off to a processor. The steps after this point are straight forward and simple.

Step 1: Obtaining Automated Approval -- The application is screened for completeness and likely uploaded to a Fannie Mae or Freddie Mac underwriting system. This system is either run through at interface at the bank or from within a wholesale lender's system if the loan is being originated by a mortgage brokerage. In general, the process is straight forward.

The loan application is exported using the loan origination software and converted to a file that can be recognized by the automated approval system. Save the file, follow the directions for loan uploads on the lender's website, and then upload the file. A credit report can be re-issued or re-ordered in almost all circumstances after a loan has been uploaded to a lender's system. Follow the directions for re-issuing or re-ordering a new report before submitting the file for automated approval. Assuming the automated underwriting system grants a pre-approval, it will also generate various items that should be submitted with the loan for a full approval.

Step 2: Order an Appraisal -- Next, an appraisal needs to be ordered to determine the value of the subject property. This is simply done by completing an appraisal request form found in the loan origination software being used. This can be submitted to the appraiser and they will schedule a time to inspect the property with the home owner. In the case of a purchase transaction, you will want to submit a complete real estate purchase contract with the appraisal request. If you are not using a loan origination software that includes an appraisal request form, you can simply contact the appraiser and ask what information is required to schedule an appraisal.

Step 3: File Submission -- Submit your loan documents/package to the wholesale lender or underwriting department. The actual methods for submitting this information varies between institutions. You might just have to walk the files down to the underwriting department if you are in a bank, correspondent, or mortgage banking office, or you might need to fax or electronically upload your loan package in a brokerage scenario. Whatever method is required for your situation, adhere to the loan submission guidelines the lender can and will provide you. These guidelines will address minimum documentation requirements as well as if the lender has a preferred stacking order the documents should be in.

Step 4: Order Title and Proof of Hazard Insurance -- If your lender has not required proof of property/hazard insurance upon original submission of the loan file, order that now. All that is needed is the insurance declaration page from the borrower. If the borrower does not have the insurance declaration page, ask them for the name and number of the insurance agent. Once you have this information, the best practice is to formally request the updated insurance policy through fax or email. Again, this type of request document can be found in the loan origination software. You will want to include the loan number, loan amount, and mortgagee/loss payee clause for the lender that will be funding the loan. The mortgagee clause can be found on the lender's website, by calling the lender, or contacting your assigned account representative.

If the loan being processed is a purchase transaction, the proof of hazard insurance will often need to be ordered after the appraisal is complete. The appraisal must be completed first because many insurance companies need to review the appraisal for certain property characteristics as well as document the replacement cost of the property.

You will also need to order a preliminary title report on the subject property. This is as simple as ordering the proof of hazard insurance. You will complete a formal request that can typically be found in the loan origination software. Complete the form in its entirety or to the best of your ability. Email or fax this request to the title company being used. In the case of a refinance, you will also want to instruct the title company to order any payoffs that are needed for current mortgages on the subject property. Include the loan number and phone number found on the credit report as well as a signed borrower's authorization to release information when requesting the title company to order payoffs.

Step 5: Fulfill Loan Conditions -- Once you loan is out of underwriting with a conditional approval, you will need to gather any extra items the mortgage underwriter is asking for. These might include letters of explanation from the borrower regarding credit, employment, or income. It might include additional information pertaining to income, assets, or residence history. Whatever the items might be, collect them from the borrower and resubmit the loan conditions all at once. If a certain loan condition is not clear, contact the underwriter for clarification.

Step 6: Order Loan Documents -- If all loan conditions have been met, the loan will be ready for documentation to be forwarded to the title/escrow company for signing. Most lending institutions have different requirements for their "doc order" process. The most common ways are to either complete a doc request through the lenders website or manually fill out and fax/email a doc order request to the lender. The request contains information about the borrower/s, subject property, interest rate, title/escrow company, and fees. It is imperative that this document or electronic form is completely filled out and one hundred percent accurate in order to ensure the loan documents are drawn properly.

Step 7: Funding -- Assuming the documents were ordered correctly, delivered to the title/escrow company, and signed by the borrowers, the loan documents will be sent back to the lender for review. If anything is missing, unsigned, or still needed in order to fund the loan, the lender will contact the loan officer (assuming it is the loan officer processing), or the title company. Provide the additional funding conditions promptly.

These are the basics of processing a conventional mortgage. Government loans have additional steps for loan processing and that will be covered in a later article.

Matt Madlang

President of http://www.beatmybroker.com where borrowers can find the lowest mortgage rates across the nation.

Mortgage Loan Closing

2008-09-24T12:29:00.000-07:00

Congratulations. Your Mortgage Loan Has Been Approved And You Have Received A Commitment From Your Lender. Now, Only The Closing Remains Before You Can Call The House Your Own.

Remember, even though you have signed purchase agreement, you have no rights to the property, including access, until the legal title to the property is transferred to you and loan is closed.

The closing procedure is fairly complex and work remains for you to prepare for the closing. Your preparation will help assure a smooth closing. At closing, you will sign the mortgage loan documents, the seller will execute the deed to the property, funds will be collected and disbursed and the closing agent will record the necessary instruments to give you legal ownership of the property.

Settlement of a mortgage loan is a legal process, so specific procedures and requirements will vary according to local laws, but the following outline of closing practices will help you through the process.

Between Commitment and Closing

As soon as you receive a firm approval from your lender to confirm the actual date of loan closing. An estimated closing date was probably specified in the purchase contract, but a firm date needs to be set by you, the seller of the property and lender.

You want to make sure that settlement will take place before the real estate contract expires, before your loan commitment expires and before any rate lock agreement (guaranteed terms of the loan) expires. While you may be able to extend your real estate contract, rate locks are more difficult, especially in a rising interest rate environment.

The settlement date also has to allow adequate time to assemble all of the required documentation. If repairs or maintenance on the property are a part of the lender's commitment, there must be time to complete them.

The real estate agents involved in the sale transaction and your Mortgage Processor at Your lender are the best people to coordinate the closing arrangements. Your lender require at last 3 to 5 days advance notice of the closing date in order to prepare the loan documents and get them to the closing agent.

There are standard documents and exhibits that are commonly required for a loan closing, regardless of jurisdiction. Some of these will be your responsibility and others will be the responsibility of the seller. The following documents are typically required for closing.

Title Insurance Policy

Every lender will require title insurance. The company issuing the title insurance policy will have researched legal records to make sure that you are receiving clear title, or ownership, to the property. Their title search has established that the seller of the property is the legal owner, and that there are no claims, or liens, against the property. The Title Company offers both a lender's policy and an owner's policy. In many areas of Florida, the seller typically pays for a lender's policy and it is advisable for you to have an owner's policy as well. For a small additional premium, it will protect you up to the full value of the property if fraud, a lien or faulty title is discovered after closing.

Homeowner’s Insurance

Your lender will require homeowners’ insurance on the property in at least the amount of the replacement cost of the property. You should make sure the policy covers the value of the property and contents in the event they are destroyed by fire or storm.

You must pay for the policy and provide a copy of your insurance binder to your lender prior to closing. You are free to select the insurance carrier, but your lender will require the company to be satisfactorily rated by a recognized insurance rating agency.

Termite Inspection and Certification

Depending on the age of the house, the property may have to be inspected for termites and the inspection is frequently required in the Real Estate contract. The report is required on all FHA and VA loans as well as many conventional loans.

Survey or Plot Plan

Your lender will require a survey of the property, showing the property boundaries, the location of the improvements, any easements for utilities or street right-of-way and any encroachments on the boundaries by fences or buildings. Encroachments can be minor, such as a fence, or may be serious and have to be corrected before closing

Water and Sewer Certification

If the property is not served by public water and sewer facilities, you will need local government certification of the private water source and sanitary sewer facility.

Flood Insurance

If your lender determines that your property is located within a defined flood zone, Federal Regulations require a flood insurance policy. The policy must remain in force for the life of the loan. Interestingly enough, in Florida your closing may be delayed by an approaching hurricane. Flood Insurance will not be issued when a hurricane threatens Florida. And Your lender will not close your loan without this insurance if you are in a flood zone.

Certificate of Occupancy

If your home is new construction, you will have to have a Certificate of Occupancy, usually from the city or county, before you can close the loan and move in. The builder will obtain the certificate from the appropriate authority.

Other Documentation

Additional documentation required for closing will be set out in the commitment letter from your lender and will depend upon terms of the sale, peculiarities of the property and local ordinances and custom. Examples would include private road maintenance agreements if the street in front of your property is not maintained by a municipality; or proof of sale of your previous home if that was a condition of approval of your loan.

Within 24 hours prior to the actual closing, you and your real estate agent should make a final inspection of the property to make sure any required repairs have been completed. Verify that all property described in the Real Estate contract, such as kitchen appliances, carpeting and draperies are present and that no recent fire or storm damage has occurred.

At the Closing Table

The actual loan closing procedure, including who will actually conduct the closing and who is present, depends upon local law and custom and lender practices. Even if law does not require it, you may want to have an attorney, review the closing documents.

Your lender use title companies and will send your loan closing instructions and documents to the title company for the closing.

As soon as you receive your commitment letter from your lender, you should determine who is responsible for closing arrangements. Since the seller is probably paying for the title insurance, the title agent will be someone the seller selects.

A closing agent who is an employee the Title Company will conduct the actual closing, or it may be an attorney representing the seller. Your lender will be represented by the title agent at the closing. The seller, or their representatives, and the real estate agents may or may not be at the actual closing.

The closing agent will have received instructions from your lender on how the loan is to be documented and the funds disbursed. The closing agent will have collected all of the necessary exhibits from you, the seller and your lender. The closing agent will make sure that all necessary papers are signed and recorded and that funds are properly disbursed and accounted for when the closing is completed.

You typically need to come to the closing with a certified check for the closing costs, including the balance of the down payment. You can get the exact figure a day prior to the closing from the closing agent.

For the most part, your role at closing is to review and sign the numerous documents associated with a mortgage loan. The closing agent should explain the nature and purpose of each one and give you and/or your attorney an opportunity to check them before signing. A brief description of the major documents may help you understand their purpose and significance.

Settlement Statement - HUD-1

This form is required by Federal law and is prepared by the closing agent. It provides the details of the sale transaction including the sale price, amount of financing, loan fees and charges, pro ration of real estate taxes, amounts due to and from buyer and seller and funds due to third parties such as the selling real estate agent. It must be signed by both buyer and seller and becomes a part of your lender’s permanent loan file.

Some of your charges on the HUD-1 may have already been paid, such as credit report and appraisal fees. They will be noted as P.O.C. (paid outside the closing). You will usually be charged interest on the loan from the date of settlement until the first day of the next month. Make sure you know exactly when your first and subsequent payments are due and what the penalties are for being late.

Private Mortgage Insurance

If your loan is greater than 80 percent of the value of the property, you will have to pay for mortgage insurance that protects the lender in case you default. One year's premium will usually run .5 percent to .75 percent of the loan amount.

Premiums for private mortgage insurance included in your monthly escrow payment

Escrow Accounts

In addition to your monthly payments on the loan, your lender will require you to maintain an "escrow", or "impound," account for real estate taxes, homeowners insurance and private mortgage insurance if required. Current law permits a lender to collect 1/6th (2 months) of the estimated annual real estate taxes and insurance payments at closing.

Additionally, real estate taxes for the current year will be pro-rated between you and the seller and paid at closing. After closing, you will remit 1/12 of the annual amount with each monthly payment. Tax and insurance bills should be sent to the lender who will pay them out of the escrow funds collected.

Truth-in-Lending Statement (TIL)

Federal law also requires this form. You were given an initial TIL shortly after you completed the loan application. If no changes have taken place since that time, the lender need not provide one at closing. If, however there are significant charges, you must receive a corrected TIL at closing.

The Mortgage Note

The mortgage note is legal evidence of your indebtedness and your formal promise to repay the debt. It sets out the amount and terms of the loan and also recites the penalties and steps the lender can take if you fail your payments on time.

The Mortgage

This is the "security instrument" which gives the lender a claim against your house if you fail to live up to the terms of the mortgage note. It recites the legal rights and obligations of both you and the lender and gives the lender the right to take the property by foreclosure if you default on the loan. The mortgage or deed of trust will be recorded, providing public notice of the lender's claim (lien) on the property.

Miscellaneous Documents There will be a number of documents or affidavits that you will be asked to sign at closing. Some are lender requirements, (e.g. a statement that you intend to occupy the properties your primary residence), and some are required by state or Federal law.

These instruments should not be taken lightly. Some provide for criminal penalties for false information, and some may give the lender the right to call your loan, which means the entire loan amount becomes immediately due and payable.

When everything has been signed and the closing agent is satisfied that all of the instructions for closing have been complied with in full, you become the owner and are given the keys to the property.

Experienced, nationally published writer with twenty five years of banking, mortgage banking, and real estate experience. Academic background as adjunct college instructor and course developer. BSBA, MBA. Former bank president and chairman of the State of Florida Investment Advisory Council.

Publication includes multiple articles in the Christian Science Monitor, Bank Director Magazine, American Banker,Credit Union Business, Independent Banker, Financial Freedom Quarterly, National Mortgage Broker, Mortgage Originator, Mississippi, Florida Realtor, Florida Times Union, the Miami Herald, the Ft. Lauderdale Sun Sentinel and a column in the Palm Beach Post called "Mortgage Plain Talk." See my website for many more informative articles about mortgages: http://www.mortgage-smart.info

The Housing Rescue Bill and the FHA Refinance Loan

2008-09-02T11:08:00.001-07:00

On October 1, 2008, new FHA Refinance Loan Guidelines will go into effect as part of The Housing and Economic Recovery Act of 2008. This new FHA Mortgage program is designed to help thousands of homeowners who are at risk of foreclosure in their current conventional or sub-prime home loans.

The details of The "HOPE for Homeowners Act of 2008" are as follows:

1. Eligible Borrowers

Only owner-occupants who are unable to afford their mortgage payments are eligible for the program. No investors or investor properties will qualify. Homeowners must certify, under penalty of law, that they have not intentionally defaulted on their loan to qualify for the program and must have a mortgage debt-to-income ratio greater than 31% as of March 1, 2008. Lenders must document and verify borrowers' income with the IRS.

2. Home Equity & Appreciation Sharing

In order to avoid a windfall to the borrower created by the new 90% loan-to-value FHA-insured mortgage, the borrower must share the newly-created equity and future appreciation equally with FHA. This obligation will continue until the borrower sells the home or refinances the FHA-insured mortgage. Moreover, the homeowner's access to the newly created equity will be phased-in over a 5 year period.

The borrower agrees to repay the following share of any home equity appreciation with the FHA when the home is sold or refinanced again;

A. 100% of any equity earned is paid to the government FHA if the home sells or the borrower refinances within 1 year.

B. 90% of any equity earned is paid to the FHA if the home sells or the borrower refinances within 2 years.

C. 80% of any positive equity earned is paid to the FHA if the home sells or the borrower refinances within 3 years.

D. 70% of any positive equity earned is paid to the FHA if the home sells or the borrower refinances within 4 years.

E. 60% of any positive equity earned is paid to the FHA if the home sells or the borrower refinances within 5 years.

F. 50% of any positive equity earned is paid to the FHA if the home sells or the borrower refinances after 5 years.

Note: The FHA requires a 3% Exit Fee of the Mortgage Principal Balance when the borrower sells or refinances the home again.

3. Other Requirements

Existing Subordinate Liens

Before participating in this program, all subordinate liens (such as second loans, home equity loans, etc.) must be extinguished. This will have to be done through negotiation with the first lien holder.

Mortgage Insurance and Other Fees

The Up Front FHA Mortgage Insurance Premium that is required on all FHA Refinance Loans will change as part The Housing and Economic Recovery Act of 2008. The Monthly MI Rates have also been updated. The following FHA MI rates will begin on October 1, 2008 and will be effective for 12 months;

FHA Up Front MIP - Required on all FHA Loans (Can be financed into loan amount).

1.75% - Normal FHA 203(b) Refinance 1.5% - FHA Streamlined Refinance 3.0% - FHASecure (Refinance for high risk borrowers who are already delinquent on current mortgage)

Monthly MI - Multiply the loan amount by the figure below and then divide by 12. The result is your Monthly Mortgage Insurance.

30 Year Note 0.55% - Refinance greater than 90% of the home's LTV. 0.50% - Refinance less than or equal to 90% of the home's LTV.

15 Year Note 0.25% - Refinance greater than 90% of the home's LTV. Monthly MI is not required on an 15 Year FHA Refinance Loan with an LTV of 90% or less.

The FHA Refinance Loan Process

Each new loan will be originated and underwritten on a case-by-case basis. To get approved, your income statements, bank accounts, credit scores and work history will be examined. A new appraisal must be performed on your home to determine its current value.

If it doesn't have positive equity, then you must contact your current lender and negotiate with them to reduce (write down) your current mortgage to 90% of its current appraised value. If your current lender agrees to the write down, then you will be able to proceed with the FHA refinance.

For more information or to get started with your FHA Refinance Loan, please visit http://www.fha-101.com

The Mortgage and Credit Crunches Expected to Worsen

2008-08-24T12:34:00.001-07:00

The availability of mortgage is expected to decline further in the coming months, influencing an ensuing rise in average mortgage cost. The BoE (Bank of England's) most recent quarterly credit survey announced there will be further constrictions on borrowers as many lenders will make secured credit even less available than in the beginning of the year. Even unsecured lending, such as through credit cards, is also expected to drop in availability as a result of the increasing credit crunch.

About 31% more lenders claimed they decreased their lending amounts in the months up to mid-March than those who increased their lending. Furthermore, around 43% more lenders are expected to reduce their mortgage lending in the following quarter. Lenders claim to have reduced mortgage availability through a combination of contracting their credit scoring and lessening their maximum loan to value ratios they had previously advanced.

Amplified concerns surrounding the housing market, as well as the banks' increased difficulty in raising funds because of the "credit crunch" have influenced this decrease in mortgage lending. As Moneyfacts.co.uk has exposed through extensive research, all of these factors have resulted in a 60% decrease of mortgage deals since the same time last year.

As mortgage lending decreases, the products still available will take on much higher, premium prices. As David Black, Principal Consultant Banker at Defaqto stated, "in an atmosphere of financial mayhem, it is hardly surprising it is the poor consumer who is caught in the middle and is having to pay more for less choice."

The reduced level of competition means the consumers will be charged more for basic services, placing many people, especially those with poor credit history or insufficient mortgage deposit funds, at much greater risk.

To complicate matters further, demand from consumers looking to remortgage their property has risen in the last quarter and is expected to rise further. Consequently, as the demand for mortgaging increases and the banks reduce their mortgage availability, lenders will find themselves inundated by tremendous demand and consumers paying far more than past rates.

http://www.simplyfinance.co.uk

The Basics of Mortgage Protection Insurance

2008-08-24T12:33:00.001-07:00

There are two main types of mortgage protection insurance. The first is a plan that will finish paying your mortgage upon your death. The second kind is coverage for if you become unemployed for certain reasons. This insurance will then cover your mortgage until you are able to go back to work or find other employment.

One mortgage protection plan will provide an amount of cash to pay the remainder of your mortgage, if interest rates are kept below certain limits, in the event that the insured should die before the mortgage is paid off. This means that your family would be able to keep your home, instead of losing it to the bank or having to sell. This insurance is only payable upon the death of the policy holder, and there is no surrender value. This means that if you pay off your mortgage before you die, you receive no money.

Average mortgages in the UK are over ¤100,000, being paid back over a large amount of time, usually around 25 years. If you take out mortgage protection insurance for the value of your house, note that your premiums will decrease over time due to the house becoming more paid off. For example, if you take out a mortgage for ¤200,000, by the end of the year, you may only have ¤195,000 left to pay. Which means that your premiums would go down because the amount of insurance needed has decreased. For this reason, this type of insurance is also sometimes known as decreasing term insurance.

Another type of mortgage protection insurance is coverage for if you cannot work due to illness or the involuntary loss of your job. Many times, this kind of mortgage insurance can cover payments for up to 12 months if you cannot work due to an illness, injury, or involuntary unemployment. Often, this mortgage insurance is more financially viable for a younger person, because his or her chance of falling ill is less and his or her likelihood of finding another job is higher. In short, then, the main factors in the price of this insurance are the cost of the home and the age of the insured.

To begin the search for the right mortgage insurance for you, fill out our short form below. A SimplyFinance representative will contact you shortly to discuss the plan that best fits you.

Also, your search will be shortened because we will put you in touch with a mortgage protection insurance provider who will search through all the available mortgage protection offers to find the one that suits you and your needs best.

http://www.simplyfinance.co.uk

Refinancing? Don't Become Shark Bait

2008-08-17T15:09:00.001-07:00

Refinancing has many benefits. If interest rates have fallen, or if you have significantly reduced your balance owing, then refinancing can result in a lower monthly mortgage payment. You can also use refinancing to release the equity in your property in the form of cash or a home equity line of credit.

However, like all financial transactions, or indeed any commercial dealings, refinancing is a case of caveat emptor - buyer beware. The benefits of refinancing can be wiped out if you don't read the fine print and understand exactly what is happening with your new mortgage.

First, check that your current mortgage doesn't have any exit or early payment penalties. Sometimes, these fees can completely outweigh the benefits you might otherwise get from refinancing.

Of course, some would say you should have read the fine print last time and chosen a mortgage with no early payment penalties, but there is no use in crying over spilled milk. If you find there are nasty surprises in your current mortgage terms and conditions, just crunch the numbers and decide whether it is still worth going ahead with the refinancing.

Even if there is very little financial advantage in refinancing, there is still a benefit in going ahead. Your new mortgage won't have such penalties, because you now know to look for them. It may be worth refinancing for very little financial gain, or even at a slight cost, just to get out of that draconian mortgage you unknowingly signed for in the past.

Watch for hidden costs. These are incredibly common. Application fees, valuation fees, broker commissions, inspection fees, title transfer fees, legal fees, stamp duties, registration fees, account closing fees, account opening fees, mortgage discharge fees, administration charges, copying charges, even costs for making telephone calls! Make sure you have a complete list of all the costs before you begin the process, so there are no surprises.

Read and understand the terms of your mortgage. The standard mortgage has fixed monthly payments for thirty years, but don't assume you are being offered a standard mortgage. Read it and find out exactly what the terms are.

Adjustable or variable mortgage rates mean that your interest rate will go up and down over time. Since interest rates are at historically low levels just now, this can only be bad for you, and you definitely want a fixed rate.

Some lenders have made the payments seem lower by not requiring the borrower to pay all of each monthly payment. The catch is that what you don't pay gets added to the balance on your mortgage. So instead of paying off your mortgage by a small amount each month, your mortgage is actually getting larger each month.

To make these mortgages even more frightening, after a few years, typically five years, you have to start paying the full monthly payment anyway. By then, the mortgage has often blown out to more than the house is worth, and the homeowner is trapped.

Make sure you are being offered a nice, normal, standard, fixed interest mortgage where the payments are the same every year for thirty years.

Refinancing is a great solution to a range of financial problems, and done correctly it can be a way to get ahead on the steps to financial freedom. Don't be bitten by the sharks - do your homework and be sure you are getting a good refinancing deal.

Mark Bennett is a staff writer for Money Talks and contributes regularly to other financial sites. This article is part of his series on refinancing, which can be seen at http://EmergencyRefinancing.com

Home Refinancing Steps

2008-08-17T15:08:00.001-07:00

While the home refinancing steps in general are pretty much the same for everybody, there are always little differences, depending on who your new mortgage lender is, and the lender or lenders who will be paid out of your current loans. As a borrower, it is very important that you understand the home refinancing steps.

A crucial first step in refinancing your home will be to determine the current market value of your home. In an ideal world, this valuation would represent the price that you could obtain if you were to sell your home on the open market.

Unfortunately, in some parts of the country it can be very difficult to obtain market value when selling your home right now. The mortgage lender who will provide your new mortgage will decide on a valuation of your home against which they will be prepared to loan you money.

This valuation may be lower than you think it should be, or even lower than the amount you want to borrow. In this case, you may actually have to stop and rethink whether to go on with the rest of the home refinancing steps.

If there is a shortfall between the amount your new lender is willing to advance, and the amount you need to pay off the existing mortgages, then refinancing your home may not be the right option for you at this time.

If the valuation comes back at an acceptable level, then you can proceed with the rest of the home refinancing steps.

You will need to provide your new lender with documentation showing your income and expenses, and also showing the current mortgage or mortgages, and what is owing on them. Do not try to conceal if you have missed a payment on your current mortgage - be honest with your new lender or you could end up in much worse trouble down the track.

Your new lender will do a credit check, and let you know a settlement date. That is the day when the old mortgage or mortgages will be paid out, and your new mortgage will begin.

There is nothing complicated or difficult about the home refinancing steps, but if you don't like paperwork and dealing with banks, you may find you are very relieved to reach the end! Many people find the home refinancing steps stressful, but if you have chosen wisely you will find the results are worth it.

It is important to get good advice if you are uncertain about how to proceed with refinancing your home. Visit Emergency Refinancing for the best refinancing help and advice.

Mark Bennett is a staff writer for Money Talks and contributes regularly to other financial sites. This article is part of his series on refinancing, which can be seen at EmergencyRefinancing.com.

The Process of Getting a Mortgage Loan

2008-08-12T12:20:00.001-07:00

Though the process of getting a mortgage loan is time consuming, it can be paid over a period of 15 to 30 years. It saves money in the long run. In order to apply for a mortgage loan, it is very essential to handle well the personal finances and also to maintain a good credit history as the lenders will look in for such information.

There are many banks and other mortgaging agents offering this service with different features. The rates offered by all these different agents vary due to economic, political and various other reasons. It is essential to look into the right type of mortgage loan, which would suit your situation. These mortgage loans may be received either directly or through intermediaries who offer such services. However, the brokers charge a commission of a certain percentage on the final mortgage amount.

You should provide information related to income, assets, debts and the initial amount or the down payment you are going to make. This is for the lender to decide the amount for which you are qualified to get the loan. Another important thing to be done is to obtain a copy of your credit history to check the accuracy of the details.

Normally the down payment is 20 % of the cost of the property purchased. If the down payment is more than 20 %, then the interest to be paid every month is relatively lower. If the borrower is not able to make a down payment of 20 %, they can avail the mortgage loans under many other schemes. The interest rate will be higher. The borrowers who buy the property for the first time can avail $10000 from the IRA without any penalty. There are also methods of obtaining the mortgage loans without providing the proof for the income, but the rate of interest is higher.

It is wiser to get the right advice and choose the profitable way of availing the mortgage loans.

Written by Herald Gumpsten. Learn all the top info on Mortgage Loan Processing Services plus even Outsourcing Mortgage Processing.

Qualifying For a Mortgage Loan

2008-08-12T12:19:00.001-07:00

As we now know, mortgage loans are long-term loans obtained on property purchase or for the purpose of repayment, now we need to know what are the essential requirements to be qualified to obtain a mortgage loan. It is very important for the lender of the loan to know about the financial position of the borrower so that he can get to know whether the borrower will be able to repay the mortgage loan.

-Some of the important requirements for qualifying for a mortgage loan are:

-Sufficient money for making the down payment.
-The person needs to be employed for at least a minimum of 2 years in the same field.
-A credit score that is expected by the lender.
The income level of the borrower should be two times more than the amount he has to pay on the mortgaged property.

The down payment required by most of the lenders will be from five percent to 20 percent of the price of the property. Very few lenders accept 3% on the price of the property. The credit history of the borrower will be evaluated. The credit history needs to be good though not perfect. If the lender finds the credit history of the person applying for the mortgage loan very poor, then he will not be qualified for obtaining the loan. When a person who has the requirements of the loan, but feels that he will not be qualified for the mortgage loan, can very well approach a bank or any other intermediaries who offer stated income loans or No Doc loans where the applicant can just state the income level and need not produce any documents as proof. However, the rate of interest to be paid will be higher than in that of the traditional methods followed.

Written by Herald Gumpsten. Learn all the top info on Loan Processing Contracting plus even Mortgage Loan Processing Center.

Home Loan - What Do You Need to Know

2008-08-12T12:18:00.000-07:00

Choosing the right mortgage maybe one of the biggest decisions you are going to make. It can make or break your current struggle for a better financial situation. Your monthly payment for the mortgage may be the bulk of your monthly expenditures.

The rule of thumb to an expensive purchase like a home is to buy what you can afford.

Consult a financial advisor so you can see what kind of loan is best with your current lifestyle or financial status. Here are some points to consider if you are:

Purchasing for the long run - you may opt for a 30 year loan with a fixed rate. Get the best rate in the market and choose to pay within a comfortable length of time.
Fresh Graduate- you can go for an adjustable rate mortgage for a year. Remember that you have a very high potential to get a better income. With a short term ARM loan you can stretch your budget.
Self-Employed - look for a loan that involves low or no documentation. This way you don't have to present employment references and check stubs. You will be qualified for the loan this way but the interest rates may be higher.
Good Job, Good but inconsistent income- you can go for option ARMs. This are the risky loans but gives you the option what to pay monthly. The loan allows you to pay the principal with interest, interest only, or minimum only.
In the Service or a Veteran - you can go for a VA Loan. This grants loans up to $417,000 for servicemen. The loan in Hawai, Guam, Alaska, and the Virgin Islands may be as high as $625,000

Searching for the Mortgage Lender

You have two choices when choosing your mortgage lender. You can go through a broker or go directly to a lender.

A good broker can shop for the best loans in the market for you. A homeowner must remember that brokers may not have access to some deals offered by lenders. Brokers also have the habit of tying up with a lender that gives them the highest income when they close deals for them. If you can ask for reference, talk to some of the clients that your broker assisted. Ask these people how they the broker handled the mortgage deal.

If you are doing it yourself, you can inquire from your real estate agent if they have tie ups with lenders. Most of the time they have in-house affiliated lenders but good realtors must keep a list of at least five lenders so they can offer the best for their clients.

Shopping for the best mortgage deal is the key. You can surf the internet for the best lenders and the best rates too.

More tips on Home Loans

People can buy a car; go on their dream vacation, or pay college tuition using the proceeds from a home loan. Buying a home allows you to have a shot on a big lifetime investment. You may have around 50% of the value of your dream home and with this, you can ask for financial assistance from banks or lenders thru a mortgage loan. Your home through the years can increase in value and you end up with a win-win situation.

Visit Loan Answers to find more useful Articles, Guides & Loan Tips. You can find Home Loans Articles. Also check out our Home Loans FAQs article.

FHA Mobile Home Mortgage Loans - What to Expect When Applying For FHA Mobile Home Mortgage Loans

2008-08-12T12:17:00.000-07:00

Are you looking to buy a mobile home? Are you a little strapped when it comes to the down payment and need a little help? If so, you might want to consider FHA mobile home mortgage loans. FHA stands for the Federal Housing Administration. This is a government organization that is responsible for Housing and Urban Development or HUD. FHA is the group that insures mortgage loans so that the lender will give you a better deal and will help you out without requiring a large amount of money down.

They now have something called the FHA mobile home umbrella and there are two different programs under this. The first one is for those that already own land for their mobile home and the second is for those that want to put their mobile home in mobile home park of some sort.

There are certain eligibility requirements when it comes to an FHA-backed mobile home loan. The lender and the FHA will look at your credit history, income, and how much ability you have to repay the loan. This is very important because the FHA does not want to set you up to fail.

You can use what is called a Title One loan in order to purchase both the land and the mobile home itself or just one or the other. This must be your primary residence for an FHA loan. There will also be requirements as to the maximum amount that you are allowed to borrow and there will be certain loan terms that you will have to adhere to. Right now the maximum loan amount for just the mobile home itself is just under $50,000 and the amount for the land is just over $16,000. The maximum for both together is right around $65,000. These loans will either be for 25, 20, or 15 years depending on what type of mobile home it is and whether it is in a mobile home park or your own land.

You will need to sit down with the local branch of the FHA that is closest to you to see what other requirements you will have to me in order to get FHA mobile home mortgage loans. This is a great option for anybody that is purchasing a mobile home, land, or both.

Do you need a loan for your new mobile home, but you have bad credit? There is a way to get easy FHA Mobile Home Mortgage Loans. Find out how here: FHA Mobile Home Mortgage Loans

Mobile Home Loan Refinancing

2008-08-12T12:16:00.000-07:00

If you have purchased a mobile home, you may have done so with a mortgage loan, a chattel loan or simply a personal loan. In any case, if your monthly payments have become too much of a burden or if you just want to repay your loan sooner or improve the terms and conditions of your loan because your credit has improved, what you need is refinancing.

It is possible to refinance a mobile home loan, yet, it is not such an easy task when compared to home loan refinancing. There are several reasons for this but the main ones are undoubtedly the fact that mortgage home loans are a wider market than mobile home loans that are simply a small niche of the financial industry and also due to the fact that mobile homes are still vehicles with values that are reduced over time.

Mobile Home Loans: Mortgage, Chattel or Unsecured Personal Loan

When you purchased your mobile home you may have done so with the aid of different financial products depending on the terms of the purchase. For instance if you purchased the mobile home plus the land in certain states you can obtain a mortgage loan and secure the debt with both the mobile home and the land, if the land is not included and only the mobile home secures the loan, then you are applying for a chattel loan and if there is absolutely no collateral then the money is obtained from an unsecured personal loan.

Refinancing each of these financial products is a different process and therefore has different costs. Some of these loan products are easier to refinance than the others and therefore you need to know these differences beforehand in order to understand which possibilities in terms of refinancing your mobile home debt you have. In any case, refinancing is possible but the costs may persuade you against the idea.

Issues with Mortgage And Chattel Loans

Unfortunately, refinancing a mortgage loan with your mobile home is not as easy like refinancing a mortgage loan with a regular property. The reason is simple, while most houses and condos maintain or increase their value over time and thus, equity builds due to that and due to the reduction of the debt secured by the property, mobile homes depreciate and thus, equity builds at a lower pace if it builds at all.

Chattel loans have exactly the same problem, the mobile home being used as collateral depreciates and the value of the property covers a lower portion of the loan each year even as the debt gets paid. Moreover, mortgage loans have an advantage over chattel loans because the land is included and the land usually does not depreciate thus maintaining an important part of the collateral's value.

Personal Unsecured Loans

Personal unsecured loans are much easier to refinance because even if your current lender does not want to provide you with a new repayment program, as long as your credit is fair and your income allows it, you can obtain another loan with your desired terms and use the money to cancel the previous loan in advance. You should beware however of prepayment penalty fees.

Moreover, if you can obtain a secured loan instead (using your mobile home and or the land as collateral), you will get more advantageous terms on your loan and you will be able to cancel the previous loan while getting additional funds for any other purpose.

Hilary Bowman is the author of this article. She works successfully as a financial advisor with years of expertise on Unsecured Personal Loans. Hilary publishes informative articles about home loans, credit cards, auto loans, bad credit loans, business loans and others at http://www.fastguaranteedloans.com

Getting Mortgage Loans For People With Bad Credit

2008-08-12T12:15:00.000-07:00

Having a close to perfect credit score will surely get you the loan that you desire. But what about those people who have low credit scores, and those who are considered people with bad credit? Are loans only available to the lucky few who took care of their credit standing?

The answer is 'no'. Contrary to the common belief that it is impossible to take on loans if bad credit is up your slate, there are certain strategies to get mortgage loans for people with bad credit.

If you know the works of bad credit lenders, it is certainly possible to get mortgage loans for people with bad credit. There are a lot of bad credit mortgage lenders that you can choose from, and they have many programs to suit your situation.

Most of these lenders understand that sometimes unfortunate incidents happen, and these can cause a person to have bad credit. In whatever situation you may find yourself in, most mortgage lenders will attune to your needs. When working with these people, you have to be upfront and honest with how much you can afford to pay every month plus taxes. Once you have given them this information, it is very easy for them to work towards the approval of your loan.

When getting mortgage loans for people with bad credit, you have to be prepared to answer certain questions that the lender's representative may ask you. These questions will categorically include your employment and income. So, be ready with your tax return and W2 forms as well. Also, don't miss out on the other sources of income you may have as you have to try to make yourself look good financially.

Another question will be asked about your personal assets, so you should declare everything that you deem valuable to boost your financial standing. And don't be scared or embarrassed when the lender pulls up your credit report. This is why you are facing him in the first place. But make sure that you are aware of what is stated in your credit report so you may come into understanding with your lender.

Getting mortgage loans for people with bad credit should not be so difficult. Everyone experiences financial difficulties and trials once in awhile. This is not something that you should be ashamed of. It is rather appropriate to think that the availing of mortgage loans for people with bad credit is the first step to improving your credit standing. For sure, with the tedious process of getting one, you will be motivated to improve your credit standing in the future to facilitate faster processing of your loans.

Everything you want to know about Home Mortgages but never dared to ask! We will teach you everything you need to know about mortgages right now! http://www.homemortgagesecrets.info

Buy-to-Let Benefits From Market Slowdown

2008-08-12T12:14:00.000-07:00

The flagging property market has claimed many scalps over the past year or two. Most notable of these are specialist lenders who opened their doors to borrowers of questionable worth and home owners who have since been issued with repossession orders in record numbers.

Amid all the chaos at least one section of the property community has benefited. Buy-to-let landlords have experienced a period of prosperity recently as they pick up the scraps from the ailing property market and let their properties out to battle weary first time buyers.

It was inevitable that someone would gain from the credit crunch. While the mortgage market may have taken a few uppercuts to the jaw of late it is important to note that there are still just as many properties in existence today as there was a few years ago.

Mortgage products may disappear from the face of the earth but properties do not meaning that someone has to own them and someone has to live in them. While the number of owner occupiers may be in decline, or at least not experiencing a period of expansion, individuals still need homes and the properties they need still exist.

All this leads to a situation in which buy-to-let landlords have been able to cash in on other people's dismay. First time buyers in particular are finding it extremely difficult to get a foot on the property ladder. It may seem as though this trumpet is constantly blowing however in the current mortgage climate this situation is true perhaps more now than ever before. Home loans for first time buyers are simply not as widely available as they once were which means that many are being forced to sit on the bench and wait for the coach to give them a chance.

In the meantime this demographic are being forced to rent. Landlords are therefore experiencing a period of prosperity as young professional workers and other financially stable individuals are simply unable to wave goodbye to their landlords and take the plunge into the owner occupier market. Lenders have also stopped pulling buy-to-let mortgage products from the market as rapidly as they previously have been and are offering them to experienced landlords with substantial deposits.

Property prices have also begun to decline, or at least have stopped growing as rapidly as they were for the last five to ten years, so landlords are able to snap up quality properties with relative ease. Lenders are willing to secure their buy-to-let mortgage products on such quality properties provided the landlords stump up a healthy deposit and prove by way of a business plan that they expect rent will more then cover the monthly mortgage payment required.

So it seems that the property investment market has outplayed the credit crunch as has remained a healthy business despite the turmoil in the residential property market. Buy-to-let mortgage lenders also appear to have come to terms with the market and have begun to offer products to landlords with low risk business proposals. There had to be at least one winner from the stormy waters of the credit crunch and it appears to be the buy-to-let property industry.

Contact a mortgage broker today for your Buy-to-Let Mortgage needs and receive independent advice with http://www.buytoletmortgagesource.co.uk

Tips in Picking the Right Mortgage to Afford a New Home

2008-08-11T12:30:00.000-07:00

Purchasing- a home will be the largest purchase you will make in your entire life. So, finding the right mortgage can be vital. Seeing that there are thousands of mortgages out there, it is not easy to get one and apply for it.

Yes, you must not just pick one and apply for that kind of mortgage, you need to make sure that the mortgage type is the right one for you, one that can satisfy your needs and can fit in to your situation.

Of course, you need to shop around and look for the one that can fit to your situation and the one that you can easily afford to pay monthly; indeed, there are lots of factors to think about when hunting for a mortgage.

If you feel like seeking for a mortgage is a daunting situation for you, it would be better to work with a mortgage advisor in order for you to have ideas on how to choose the right mortgage. And with the aid of a mortgage advisor, you can look at your own financial condition so to get the suitable mortgage for you.

Do not simply be caught will lowest rates since most of the time it come with up to 2.5% of percentages fees. So, when shopping around for the right mortgage, you have to look not only for the lowest rates but also for the percentage fees that is attach into it.

In planning to get a mortgage, of course you also have to think of ways on how to pay it and if you can afford to pay it monthly. Indeed, there are associated costs attach into a mortgage, so you must decide what is the best way that you should do that can fit to your situation.

Before you let yourself be tied up with a particular mortgage, you have to be aware with the time period of that you are tied up into it. You have to consider your situation if it may change over time or what in order for you not to be face into a problem in the near future.

It is best not to go in only one lender, better to shop around and ask for their options and weigh each option out. Never ever let a lender dictate you in which to choose, you must have better understanding of each option in order to determine which best fits you, your needs and your situation.

As soon as you have lots of options at hand, you need to check each out, know the rates, features and all, in order to know which one you can be able to pay and not struggle so much just to pay for it. You have to think about all the other expenses in order to determine on how much amount you can afford to pay for a mortgage. Be alert, practical and knowledgeable about things in choosing a mortgage in order to afford to buy your dream real estate property.

http://floridamortgagebroker.us - Mortgage

Eliza Maledevic writes for http://Jump2Top.com - SEO Company

Mortgage Industry Shake Up is Good News For Borrowers

2008-08-11T12:29:00.000-07:00

The U.S. mortgage industry is undergoing the most intensive restructuring it has ever been under and some of it still going on as I write this. To be sure, all this restructuring, or rather the need for it, has been self-inflicted.

It came about as a result of the legislative and non-legislative pressure being brought to bear upon the mortgage lending industry as a result of what has been widely, now, acknowledged to have been predatory lending practises by some of its proponents.

While a little greed may, arguably, be a good thing helping speed things up and energizing specific situations, the moment it gets out of hand everyone gets hurt and this is exactly what's happened now.

So we are having a shake up where mortgage lenders have come under criticism and legislature has been put in place to ensure that we now have more transparent lending practices.

This has created quite a few opportunities for those seeking new mortgages as the market itself is now gearing up to attract potential mortgage buyers through more competitive mortgage packages as well as competitive rates.

The fact that there is a more transparent process in place means that those seeking to get a mortgage now are less likely to get ripped off or find themselves in the situation of having to accept foreclosure on their home which is better for consumers and better in terms of the direction the market is shaping up in.

The better than usual terms for borrowing money does not mean it's a borrower's market. Quite the opposite. We may be heading towards a general economic slowdown as our institutions learn from the current crisis and try to understand what they need to do in order to get back on the financial growth path.

Every time that happens the market revamps itself, discovers new ways to grow safely and the whole cycle begins in a way that benefits not just the mortgage lending industry and real estate but also those who are looking to purchase new homes and the ones who want to sell their existing ones and either downsize or move on to something bigger and better.

This means the beginning of a new growth cycle and the presentation of a fresh batch of opportunities to all those who are looking for properties to buy. It also means, inevitably, a fresh increase in foreclosures as they are part of the natural cycle of our economic model and an inherent percentage of the properties being sold and bought.

So as they go up, foreclosures, naturally increase and believe me when I say this is a good thing, but that is a different story.

Jeff Adams

This article was written by Jeff Adams, a national author, speaker and trainer who has done over 350 deals over the past 12 years. Get your FREE 7 Day E-Course and DVD "The Foreclosure Profits System" NOW at http://www.FreeForeclosureCourse.com

Can I Refinance After Bankruptcy - What Bankruptcy Refinance Loan Programs I Can Use?

2008-08-11T12:28:00.000-07:00

If you need to get a mortgage refinance after bankruptcy you are left with only a few options. The options you have will depend on how long ago your bankruptcy was discharged and if you repaired and re established your credit after your bankruptcy.

Bankruptcy Refinance Lenders

Sub Prime Loans- The sub prime loan is the old standby when it comes to getting a mortgage refinance with a bankruptcy on your credit report. Not only will the sub prime loan over look your past credit issues but they normally allow you to borrow slightly more of your homes equity then other bankruptcy mortgage loans do.

Although these loans are great for troubled credit borrowers they are getting harder to find. But with enough persistence you should be able to locate a mortgage broker who is still selling sub prime loans. Sub prime bankruptcy refinance loans also carry with them very high interest rates and closing costs so they should be considered a last resort.

FHA Home Loans- The next best option for a refinance after bankruptcy is to use the FHA. The FHA has tightened its guidelines recently and now requires a minimum credit score of at least 580, some lenders have bumped this up to 620. So keep that in mind when you are applying for your refinance loan. The best part about an FHA bankruptcy refinance is that the rates are much lower the a sub prime loan. Be prepared to go through a long manual underwrite if you go the route of FHA, but in the end it will be well worth it.

Conventional Loans- If it has been over four years since your BK was discharged and your credit score is considered excellent you may actually want to apply for a conforming mortgage loan. This will be the option that will get you the lowest rates and payments on your loan. It will also be the hardest loan to secure but worth the trouble in the end.

To get the best Mortgage After Bankruptcy that you can qualify for. You must have the right information that is available at http://www.milwaukeehomeloans.net

In mortgage crisis, look for the signs of recovery

2008-08-03T16:00:00.000-07:00

Happy anniversary! It was one year ago this month that the Great American Mortgage Crisis boiled over into the Great Global Credit Crisis, with banks in Paris, London and Frankfurt seizing up because of their investments in the U.S. housing market.

President Bush serendipitously marked the anniversary Wednesday by signing a 700-page housing bill that includes a possible bailout for Fannie Mae and Freddie Mac as well as helping some homeowners keep their properties out of foreclosure and making it a bit more lucrative for first-time buyers to purchase a house.

Despite the billions of dollars earmarked in the bill, few people foresee a rapid end to the housing crisis.

A day after Bush signed the bill, former Federal Reserve Chairman Alan Greenspan, one of the primary architects of our current dilemma, told CNBC that the housing crisis is “nowhere near the bottom,” adding that this is a once-in-a-century kind of downturn.

Later in the week, Bert Ely, one of the nation's leading bank analysts, said it will take at least a year or two more to work through the problems in the lending industry. “It will be a long, bumpy road,” Ely told MoneyNews, a financial Web site.

In the meantime, the housing crisis is affecting the entire economy: sending the stock market into bear territory, pushing up the unemployment rate with half a million construction layoffs and making lending so tight that credit cards and student loans are suffering the effects.

So where exactly are we in the mortgage crisis? How much further do we have to go? Are there any signs that could point the way to when the market will improve? Here are a few things to keep an eye on that could help determine how much longer we have to go:

Affordability. Even after nearly three years of declining prices, home prices still remain too high for most households to afford.

Michael Pento, senior market strategist at Delta Global Advisors, an investment advisory firm in Huntington Beach, notes that by historical norms, the nationwide median price of a home is usually three times the median household income. Today, home prices are more than four times the median income.

In coastal areas such as San Diego, home buyers have long exceeded the national income-to-home price ratio, stretching their budgets in exchange for a moderate climate and pleasant surroundings. Even by that standard, however, today's prices seem too high for local salaries to handle.

In the city of San Diego, the median home price of $355,000 is about 5.5 times the median household income of $65,238, as estimated by the San Diego Association of Governments. The home price is close to eight times income in Del Mar, six times in Imperial Beach and five times in Chula Vista and Poway.

“We have become accustomed to high prices and thinking that's just the way things are,” said Herb Greenberg, founder of Greenberg Meritz Research & Analytics in Carmel Valley. “But once you take away the creative financing we've had in the past few years, you realize that you have to be able to afford the house you're buying. And you have to be able to put 20 percent down, without taking it out of your IRA or 401(k) fund. In the end, housing's all about affordability.”

Supply. Last month, there were 19,592 homes on the market in San Diego County, compared with 5,995 during the red-hot market of 2003, when buyers were snapping up homes almost as soon as the “for sale” signs went up.

Considering that 2,200 homes were sold last month, that means there is nearly nine months' worth of supply on the market, if the current sales rate continues. Pento notes that that's well above the historical norm of six months. As long as the inventory is that large, prices will remain soft.

Foreclosures. So far this year, default notices in San Diego County have gone out at about twice the rate as the year before. In the past quarter, 4,807 homes were foreclosed upon, compared with 1,417 in the same period of 2007. Those foreclosures lower property values throughout their neighborhoods, because lenders typically sell them at bargain prices to get them off their books.

But we're still only in the first phase of foreclosures, according to Greg Brooks, a regional manager for the San Diego Mortgage Network.

In a recent commentary on the brokerforyou.com Web site, Brooks noted that a large number of “teaser” mortgages – loans with introductory rates of as low as 1 percent – will adjust sharply upward between 2009 and 2011, peaking in 2010. A homeowner who was paying less than $1,600 per month on one of those loans in 2005 could be paying more than $2,100 by 2010 – too high for many to handle.

That problem may worsen as more homes go “underwater,” meaning that the principal on the loan is more than the market value of the home. Right now, the median price of a home is about what it was in May 2003, suggesting that many people who bought their homes in the past five years are currently underwater.

Brooks estimated that a home that was worth $550,000 in 2005 might only be worth $400,000 by 2010. The homeowners will find it hard to sell or refinance such a home for close to the price they bought it for. If their mortgage rate rises as their home value deteriorates, many will simply walk away from their loans, resulting in a new wave of foreclosure.

“These loans and properties are in all areas of San Diego, not just the newly constructed properties on the outskirts of town,” he wrote. “The fallout of these foreclosures in San Diego will hit higher-end and coastal areas and everywhere in between.”

Credit. Is there any good news? Well, some real estate brokers say they are seeing more demand from buyers interested in purchasing foreclosures or short sales – homes that are selling at a loss by their owners. In today's credit environment, however, they are having a hard time getting loans.

“There are lots of buyers who are well-qualified and pre-approved for a loan, with lots of money to back them up,” said Lance Margolin, a mortgage broker who focuses on Escondido. “They put in offers but then they have to wait for the lender to approve the loans. A lot of times the deals fall through as they're waiting, waiting, waiting.”

Bob Schwartz, who runs the brokerforyou.com Web site, says there is also growing impatience among debt-laden homeowners who have been waiting for the market to improve before selling their homes. “A lot of them can't hold out much longer,” he said.

The housing bill signed by Bush last week will offer some help, such as extending 30-year fixed loans to qualified borrowers in the foreclosure process, offering tax breaks to first-time home buyers and postponing foreclosures on homeowners serving in the military, among other things.

Schwartz says the bill “won't stem the tide. Only about one in four (defaulting homeowners) will qualify for the loans the government is backing.”

While the bill may offer a modicum of stability, it won't do anything to change the laws of supply, demand and affordability that rule the marketplace.

Dean Calbreath: (619) 293-1891; dean.calbreath@uniontrib.com

Refinance a Car Loan with Bad Credit

2008-07-30T14:35:00.000-07:00

OK, your credit stinks.

However, you want a new car. So you go to the local car dealership and believe the salesman when he says...

"Buy this car today at this high interest rate and we'll refinance you in 12 months at the lowest interest rate possible."

Everyday car dealers repeat the "refinance in 12 months" lie to people with bad credit to push them to buy new automobiles at ridiculously high interest rates.

You may have financed an automobile through a high-interest subprime lender knowing that it's a bad idea. But you might have thought it was your only option at the time and you justified it by telling yourself you could refinance to a lower interest rate down the road.

Unfortunately, when you try to refinance the car later on, you find out the salesman lied to you.

Best Way for People with Bad Credit to Refinance

The first thing you need to find out is whether or not you even qualify to refinance, or if you should just sell or trade-in your car. Begin with how much your car is worth.

The biggest error most people make when establishing the actual value of their car is they base their research on the private party value. You need the trade-in or dealer retail value instead.

Here's how to get the value of your car...

Step #1: Go to www.edmunds.com. In my opinion Edmunds the best automobile site on the web.

Step #2: When you get on the front page, click on "What's your car worth?" It's written in small type and kind of hard to find, but it'll be somewhere on the main page. Or you can go straight to the Used Car Appraiser.

Step #3: Follow the steps and click on the make, model and year of your car.

Step #4: Fill in the vehicle details and any optional equipment your car has.

You'll see three distinct values for your car: Trade-In, Private Party and Dealer Retail. The two values you need to focus on are Trade-In and Dealer Retail.

Some lenders base their refinancing on the trade-in value and others on the retail value. Try to find a lender that uses the retail value, as it's always higher.

Get Your Loan Payoff from the Finance Company

Loan payoff is what you still owe on your automobile.

Find out what the remaining balance on your car is. If you're leasing the car, make sure to include the total remaining payments, residual amount and any early termination fees the bank requires so you get the true payoff amount.

Now subtract the value of your car from the payoff amount.

Do you owe less than the car is worth? If so, you have more selections and alternatives. If you owe more on your automobile than it's worth (known as being "upside down") you need to be a little more flexible.

Let´s Start Calling Finance Companies

Credit unions and banks are the premier options for refinancing your car. Auto manufacturers rarely refinance—possibly for luxury cars. Remember to check if the lender you use reports to all three credit bureaus.

The four big questions to ask each lender are:

1. "Do you refinance based on the trade-in or dealer retail value of the car?"

2. "What percent over the trade-in/retail value will you lend?"

3. "Which credit bureau do you use?"

4. "What FICO score is needed to be approved for refinancing?"

Remember that lenders who refinance usually will put up no more than 125% of the trade-in or retail value. The average amount is only 110%. So, if you are upside down on more than 10% of the value of your car, you have to pony up the difference prior to the lender giving you a loan.

If you need to calculate how much is needed to borrow to refinance, download the free Auto Refinance Worksheet and it will walk you through the steps to find out.

If you happen to not be in a position to refinance currently, there is another alternative—trade in your current automobile for another one with a manufacturer's rebate.

Make Use of Manufacturer Rebates

A lot of auto manufacturers offer massive rebates to sell automobiles fast. There are gigantic incentives for a dealer to sell a new car.

You have to locate the highest rebate offer you can find and work toward trading-in your car to eradicate any upside down condition.

Prior to going to a new car dealer, check out www.edmunds.com and look up the rebate and interest rate on every new car and truck a manufacturer offers. This way, if the car salesman isn't being honest with you (in relation to rebates and interest rate) you will know it.

Just go to www.edmunds.com, then click on "New Cars," then on "Incentives & Rebates." You will have all the information you need.

It's a bad situation when you´re upside down on a high-interest car loan that you want to refinance. However, you can get around it by purchasing a new car with a large rebate. You just use the rebate to offset the amount you owe on your old car.

If you come across a car with a higher rebate (highly recommended), you're in an even better situation. If the rebate is high enough, it can wipe out the negative equity and you can use any remaining amount as the down payment.

The Secret Question to Ask the Salesperson

If you want to get a really amazing deal, try asking the salesperson this question:

"What car or truck on your lot do you need to sell immediately?"

If you´re upside down, you need every advantage possible. Ask the dealership to sell you the oldest car in their inventory.

Some dealerships are willing to take a loss on cars they're having difficulty selling because it costs more to keep them on the lot, as compared to selling them faster and taking a loss.

This could add up to an additional $500 to $3,000 in savings!

Credit Score Needed to Be Eligible for Refinancing

Just like all other major purchases made on credit, we have to meet a minimum FICO score to be eligible for a loan. This is especially true if the lender is a bank or credit union.

For example, on new cars one manufacturer requires a FICO score of:

680 and above to get a 125% loan

650 to 679 to get a 115% loan

620 to 649 to get a 110% loan

620 or less only gets you a 100% loan

Any loan over 100% will go toward paying off the balance of your existing car loan.

End result: the better your FICO scores—the more alternatives you have and better terms you will receive. This is the reason to increase your credit scores (to improve your lifestyle!).

Not all three of your FICO scores need to be high...just the one the lender uses.

Each lender will have a minimum FICO score requirement. Ask them what it is and from which credit reporting agency you need it.

Now here's where it can get confusing. Some finance companies will use a traditional FICO credit score to make a lending decision...and other lenders may use the FICO Auto Industry Option score.

It's your task to find out which score they use. If they don´t give you an answer your comfortable with...find one that does.

When you know what FICO score they look at, you're putting yourself in the best situation to be approved for refinancing.

If you've paid past auto loans on time, your FICO Auto Industry Option scores should be much higher than the standard FICO scores. In that case, you should use a lender that uses your Auto Industry scores. In the best situation, the finance company you choose will have access to both sets of scores and will use the higher one.

Many (not every) finance companies will require minimum score of 650 from the credit bureau they use to make a loan decision to refinance. But the only way to know each individual lender's policy is to ask.
Source

Mortgage relief plan can save banks billions

2008-07-30T14:33:00.000-07:00

Bush expected to sign bill on refinancing

Congress' plan to allow people to refinance into more affordable mortgages won't just relieve thousands of homeowners - it's also expected to save the banks that issued the loans billions of dollars.

Most banks will end up losing much less money handing mortgages over to the government than they would if the loans defaulted and the homes went into foreclosure. Plus, it will be up to the bank to decide whether to allow the homeowner to refinance.

"The banks should be thrilled with this," said John Vogel, professor of real estate at Dartmouth College's Tuck School of Business. "The banks have been pushing it; this is as good a deal as they were going to get."

The legislation, which the Senate approved during a rare Saturday session and which President Bush is expected to sign into law, is expected to affect at least 400,000 homeowners. It comes after several months of discussions between lawmakers and lenders; banks including Credit Suisse and Bank of America Corp. submitted proposals.

Banks and other mortgage holders will likely save $16 billion if they let homeowners refinance into mortgages issued by the Federal Housing Administration, estimated Ladenburg Thalmann analyst Richard Bove. That's assuming that banks will lose roughly $25,000 per homeowner by selling their mortgages to the FHA and that they would eventually lose about $64,000 per homeowner, on average, by allowing homes to foreclose.

"I don't think it helps the banks in the near term, but I think it's an enormous boost in the long term," Bove said.

The government's decision to set aside $4 billion for communities slammed by foreclosures should also help to stabilize tumbling home prices, experts say.

The plans, however, are not being seen as an ultimate panacea to the housing and financial market crises. First of all, if banks and mortgage servicers decide they don't want to allow their borrowers to get FHA loans, they don't have to.

The reason behind this rule is that it allows banks to be more flexible, said Bob Davis, executive vice president at the American Bankers Association, which advised Congress on aspects of the legislation. If a bank wants to keep its customers, it can let them refinance within the bank as an alternative to turning the mortgages over to the FHA.

But the rule could also mean that banks, hoping to avoid immediate losses, won't offer relief to as many homeowners as the government intends to, according to Tuck's Vogel - he said the 400,000 figure might be optimistic.

And if homeowners don't think their banks will allow them to refinance into FHA loans, they might still decide to send in their keys and walk away from their loans, Vogel said.

Another point of contention is the idea that taxpayers are paying for the risks other people took. In the current legislation, there is little specificity about "bailing out institutions because of where they were located and what markets they were hit by, rather than those that took big risks," said Brad Neigel, a senior analyst at the financial services research firm Aite Group.

This article appeared on page D - 3 of the San Francisco Chronicle

US mortgage application volume drops to 2008 low

2008-07-30T14:32:00.000-07:00

NEW YORK: Mortgage application volume tumbled last week to its lowest level of the year, a trade group said Wednesday, as many U.S. homeowners found they do not have enough equity to refinance their homes.

Mortgage application volume fell 14 percent during the week ending July 25, the Mortgage Bankers Association said, even as interest rates on fixed-rate mortgages retreated from sharp increases a week earlier.

The culprit behind the drop: refinance volume, which plunged almost 23 percent during the week. Purchase application volume also fell, but was off about 8 percent.

Mortgage broker John Stearns, vice president at Robbins and Lloyd Mortgage in Mequon, Wisconsin, said the appraisals for many homes are coming in close to or below the value of the existing mortgages.

"(The appraisal issue) is a problem that will take a long time to straighten out," Stearns said, especially as home prices continue to fall, eroding equity.

So far, nationwide home prices have dropped more than 18 percent from their peak in July 2006, according to Standard & Poor's/Case-Shiller 20-city index released Tuesday.

The situation is worse for those homeowners who bought at the peak without putting any money down. They're finding themselves "under water," or owing more on the home than it's worth.

Also, interest rates aren't low enough to benefit some homeowners, said Ritch Workman, co-owner of Workman Mortgage Co. in Melbourne, Florida.

"Rates have been at about the same levels for the past five years, so there's no interest rate incentive to refinance your conventional mortgages," he said.

Refinance volume has tumbled in the last two months for Workman. In July, they only made up 5 percent of all his deals and 11 percent in June. Purchase mortgages made up the rest. The split, Workman said, is usually around 50-50.

Refinance applications accounted for 35.2 percent of total application volume during the week, MBA said.

The survey provides a snapshot of mortgage lending activity among mortgage bankers, commercial banks and thrifts. It covers about 50 percent of all residential retail mortgage originations each week.

The survey also said that the average interest rate for traditional, 30-year fixed-rate mortgages fell to 6.46 percent from 6.59 percent during the previous week. Rates for 15-year fixed-rate mortgages — often a popular option for refinancing a home — fell to 5.98 percent from 6.10 percent.

The average rate for one-year adjustable-rate mortgages rose to 7.25 percent from 7.16 percent a week earlier.

Sirius, XM Refinance In Last Merger Hurdle

2008-07-29T12:32:00.000-07:00

After receiving federal clearance to merge, Sirius and XM took measures to refinance the last of XM’s $1.1 billion in debt, to clear the final hurdle in the companys’ epic $3.3 billion satellite radio deal.

With the new financing, announced today, analyst Kit Spring of Stifel Nicolaus and Company said, “We expect the deal to close in the next day or two.”

XM announced this morning it is offering $550 million in senior convertible notes that would “successfully refinance their balance sheet, if they were to complete everything that has been announced,” marking “the last hurdle to a merger,” agreed RBC Capital Markets analyst David Bank.

XM’s notes will be exchangeable to Sirius common stock.

The announcement ends a race by XM over the past few weeks to refinance a total of $1.1 billion in debt that was subject to “change of control” clauses that were triggered by the merger.

To help XM’s latest note offering, Sirius announced today it will offer a total of $440 million in common stock. Bank called the Sirius offering “complementary” to XM’s offering in assuring there is enough stock available to be exchanged.

Spring agreed. “This is the final piece of financing required to close the deal which has now received all the necessary regulatory approvals.”
Source

Frank, Waters, urge foreclosure patience

2008-07-29T12:29:00.000-07:00

The mortgage industry should hold off on foreclosures until a new law goes into effect Oct. 1, said House Financial Services Committee Chairman Barney Frank (D-MA) and Housing and Community Opportunity Subcommittee Chairwoman Maxine Waters (D-CA).

Frank and Waters said the new law, designed to refinance in-trouble borrowers, will allow qualified applicants to refinance into FHA- insured mortgages and avoid foreclosures.

The new legislation is expected to be signed by President Bush soon. Reps. Frank and Waters are urging the mortgage industry to work with borrowers who can take advantage of the new refinancing program. Chairman Frank will hold a hearing in September to monitor the progress of loan modification by mortgage servicers.

"I would hope that no one would be foreclosed upon between now and October 1st who would have qualified for this program had the effective date been immediate," Frank said. "And that is within your power to do. You can show some forbearance. October 1st is coming, begin the planning, begin the talking with people, but I think it would be a shame, an embarrassment to all of us if people were to lose their homes and the neighborhood deterioration were to be advanced and the economy would suffer."

In order to qualify for FHA refinancing under this program, borrowers would have to have more than 31 percent of their monthly income dedicated toward their mortgage payment as of March 1, 2008, and live in their only home.

Borrowers would have to meet the specific qualifications of the FHA program, and would have to agree to share future home appreciation with the government. Lenders would also have to agree to significant reductions in the amount owed to them. The Congressional Budget Office estimates that at least 400,000 families will avoid foreclosure at no cost to the taxpayer.

Specifically, the Hope for Homeowners Act:

… Expands the FHA program so many borrowers in danger of losing their home can refinance into lower-cost government-insured mortgages they can afford to repay.

… Protects taxpayers by requiring lenders and homeowners to take responsibility. Lenders and mortgage investors must take significant losses by reducing the loan principal. In exchange for an FHA guarantee on the mortgage, borrowers must share any profit from the resale of a refinanced home with the government.

… Contains critical protections for taxpayers' dollars, including higher refinancing fees that establish a new FHA reserve to cover possible losses from defaults on these government-backed mortgages.

… Covers only primary residences: No speculators, investment properties, second or third homes will be refinanced.

… Will be financed by money from the Affordable Housing Trust Fund.

… Provides $180 million for financial counseling and legal assistance to help families stay in their homes.

In addition, Frank called for restructuring the mortgage servicing industry if servicers fail to cooperate in aggressively forbearing and preventing foreclosures.

"One of the things we have been told," he said, "is 'look there is this problem because the people who service the loans are not the people who own the loans.'"
Source

Mortgage-rescue legislation helps banks, too

2008-07-29T12:28:00.000-07:00

Congress' plan to allow people to refinance into more-affordable mortgages won't just relieve thousands of homeowners -- it's also expected to save banks that issued the loans billions of dollars.

"The banks have been pushing it; this is as good a deal as they were going to get," said John Vogel, professor of real estate at Dartmouth College's Tuck School of Business in Hanover, N.H.

The legislation, which the Senate approved Saturday, is expected to affect at least 400,000 homeowners.

Meanwhile, the Bush administration and federal banking regulators joined with the nation's four largest banks yesterday to endorse a new way to pump money into the battered U.S. mortgage market.

Treasury Secretary Henry Paulson unveiled a set of best practices designed to encourage banks to issue a debt instrument known as a covered bond. The administration hopes these bonds will replace some of the mortgage financing that has disappeared as investors have incurred billions of dollars of losses on mortgage-backed securities.

Covered bonds are issued by banks and backed by cash flows from mortgages or other types of debt. Banks guarantee the bonds, an incentive for less-risky lending practices.

Banks and other mortgage holders likely will save about $16 billion if they let homeowners refinance into mortgages issued by the Federal Housing Administration, estimated Richard Bove, an analyst at Ladenburg Thalmann, a banking and brokerage firm based in Miami. That's assuming that banks will lose roughly $25,000 per homeowner by selling their mortgages to the FHA, and that they eventually would lose about $64,000 per homeowner, on average, by allowing homes to foreclose.

The plan, however, is not seen as a panacea to the housing- and financial-market crises. If banks and mortgage servicers don't want to allow their borrowers to get FHA loans, they don't have to.

The rule allows banks to be more flexible, said Bob Davis, executive vice president at the American Bankers Association, which advised Congress on aspects of the legislation. If a bank wants to keep its customers, it can let them refinance within the bank as an alternative to turning the mortgages over to the FHA.

But the rule also could mean that banks, hoping to avoid immediate losses, won't offer relief to as many homeowners as the government intends, Vogel said.
Source

Kuwait's KIPCO signs $350 mln refinance loan

2008-07-26T13:49:00.000-07:00

Kuwait Projects Co (KPRO.KW: Quote, Profile, Research) (KIPCO) said on Tuesday it had signed a $350 three-year loan to refinance some of its debt, which matures in November.

The banks that signed the private deal with KIPCO were BNP Paribas (BNPP.PA: Quote, Profile, Research), Citigroup (C.N: Quote, Profile, Research), Credit Suisse (CSGN.VX: Quote, Profile, Research), HSBC (HSBA.L: Quote, Profile, Research), JP Morgan and RZB, Kuwait's biggest investment firm by market value said in a statement.

Moody's Investors Service earlier this month assigned KIPCO long-term foreign and local currency issuer ratings of Baa1 in its first rating of the firm.

KIPCO posted second-quarter net profit of 28.5 million dinars on Sunday, up 29.5 percent, which Citigroup said in a note on Tuesday was above its estimate of 18 million dinars. (Reporting by Jason Benham; Editing by Paul Bolding)
http://in.reuters.com

Refinances Reaping Less Money

2008-07-26T13:46:00.000-07:00

Declining home values cut the amount of cash that homeowners were able to eke out of refinancing deals by nearly half during the second quarter, mortgage giant Freddie MacFRE said Thursday.

While the share of Freddie's mortgages that were cash-out refinances was lower than it has been in over three years, homeowners still benefited from lower mortgage rates, which declined sharply during the period. Consumers cut their coupon rate by about half a percentage point, on average. Half of the borrowers lowered it by about 7.5%.

Although mortgage rates declined for much of the year, they are now back on the rise. The housing market continues to take turns for the worse, with drooping property values, sales and new construction. More borrowers have become delinquent or defaulted on their mortgages, making lenders wary about whom they lend to and how much they lend.

In cash-out refinances, homeowners replace their mortgages with a new loan that has a higher value, and pocket the difference. For instance, if you have a $100,000 balance on a mortgage, you might refinance for a $125,000 loan and use the $25,000 in cash for other purposes. Preferably, the new mortgage comes with a lower interest rate.

In total, about $38 billion in home equity was cashed out in refinance deals for conventional loans made to prime borrowers, Freddie said. That figure compares with $79 billion during the same period a year ago. About $68 billion was cashed out during the first six months of the year, the lowest level since the same period four years ago.

About 9% of Freddie's customers were able to reduce loan balances -- the largest cash-in share since the summer of 2005. Freddie Mac Chief Economist Frank Nothaft says the trend reflects "more cautious underwriting by lenders," who required customers to pay down some of their loans before offering a lower rate.

Freddie Mac and its counterpart Fannie Mae(FNM - Cramer's Take - Stockpickr) are government-sponsored mortgage lenders that own or insure almost half of the $12 trillion U.S. residential mortgage market, according to Bloomberg.

Consumers can check the best local rates for home-equity loans and mortgages in their area by typing their ZIP codes into BankingMyWay.com .

Vonage to Refinance up to $215M of Debt

2008-07-26T13:45:00.000-07:00

Internet phone services provider Vonage Holdings Corp. (NYSE: VG) of Holmdel today announced that it has finalized plans to borrow up to $215 million in private funds to refinance its debt. Vonage has agreed on the terms of that financing with Silver Point Finance, LLC, of Greenwich, Conn., which has committed to provide $125 million, the company said in a statement.

Vonage said Silver Point has specified certain conditions to the loan, including that Vonage's other lenders must agree to lend the phone-services provider $60 million. If the conditions are met, Vonage could conceivably mobilize between $185 million and $215 million by the third quarter of this year, Vonage said.

Vonage's stock was at $1.60 in early trading. www.njbiz.com

How housing rescue bill can help you

2008-07-26T13:43:00.000-07:00

The legislation - likely to be enacted soon - devotes $300 billion to helping troubled homeowners avoid foreclosure. See if you qualify.

NEW YORK (CNNMoney.com) -- The Senate on Saturday passed a $300 billion housing rescue bill aimed at helping troubled homeowners avoid foreclosure and supporting mortgage giants Fannie Mae and Freddie Mac.

President Bush is likely to sign the bill into law within days. After the law kicks in on Oct. 1, thousands of at-risk borrowers will be able to refinance their unaffordable old mortgages into new low-cost fixed-rate loans insured by the Federal Housing Administration (FHA).

The Congressional Budget Office estimates that 400,000 borrowers with $68 billion in loans may benefit from the program - but the bill allows for as many as 1 million or 2 million borrowers to participate in the program.

Here's what homeowners need to know.

Who's eligible?

Qualified borrowers must live in their homes and have loans that were issued between January 2005 and June 2007. Additionally, they must be spending at least 31% of their gross monthly income on mortgage debt to be eligible for the program.

They can be up to date on their existing mortgage or in default, but either way borrowers must prove that they will not be able to keep paying their existing mortgage - and attest that they are not deliberately defaulting just to obtain lower payments.

Before homeowners can get FHA-backed mortgages, they must first retire any other debt on the home, such as a home equity loan or line of credit. Borrowers are not permitted to take out another home equity loan for at least five years, unless it's to pay for necessary upkeep on the home.

To get a new home equity loan, borrowers will need approval from the FHA, and total debt cannot exceed 95% of the home's appraised value at the time.

How can I apply?

Borrowers can contact their current mortgage servicer or go directly to an FHA-approved lender for help. These lenders can be found on the Web site of the Department of Housing and Urban Development.

How does the refinancing process work?

This is a voluntary program, so lenders holding the original mortgage have to agree to rework a given loan before things can get started. The bill requires lenders to make major concessions, writing down the value of the loan to 90% of the home's current value. In areas where prices have plummeted by as much as 20%, that will mean a substantial loss for the lender.

But lenders won't sign off on a workout unless they think that they'll lose less money on that than they would by allowing a home to go through the costly foreclosure process.

Each loan will have to be underwritten by an FHA lender on a case-by-case basis. That means the banks will do a new appraisal to determine the home's current value, as well as examine and verify income statements, bank accounts, job histories and credit scores.

Based on that new appraised home value, the FHA lender must determine how much the original lender has to reduce the original mortgage, so that it will reflect 90% of the home's market value.

If the original lender agrees to the writedown, the new lender buys the old loan and takes over the reworked mortgage.

As part of the deal, the old lender writes off any fees and penalties on the original mortgage, including prepayment penalties, and accepts the proceeds from the new loan on a paid-in-full basis. Additionally, it pays the FHA an up-front premium equal to 3% of the mortgage principal.

What does it cost?

There should be little up-front costs for borrowers to bear. Loan origination fees will vary by lender, but these can usually be paid by the borrower over the life of the loan in the form of a slightly higher interest rate.

However, the refinanced loans do come with many strings. For one thing, borrowers are responsible for paying an insurance premium to the FHA guaranteeing the loan, which will be 1.5% of the principal annually.

Borrowers also agree to share any profits from future home-price appreciation with the FHA. To do that, they'll pay a "3% exit fee" of the mortgage principal to the FHA when they resell or refinance.

Plus, they'll agree to pay the FHA 100% of any profits they realize from higher home prices if they sell or refinance within a year. So if the original loan principal is $200,000 and the home sells for $250,000, the borrower will owe the FHA $50,000, minus costs.

After a year, borrowers will share 90% of the profits with the FHA. The percentage keeps dropping in 10% increments to 50% after the fifth year, where it stays.

What will I save?

Savings depend on what borrowers are paying for their present loan and where they live, but for most people it will be substantial, even after factoring in the FHA fees.

In areas that have sustained huge price drops, such as Sacramento, Calif., where prices have fallen by about 30% over the past year, some loans might be reduced by more than 40%.

Additionally, the FHA loans carry reasonable interest rates, which are fixed for the life of the loan, as opposed to a subprime adjustable-rate mortgage that can jump higher every six months.

UPDATE 1-POSCO says to sell $463 mln bonds to refinance debt

2008-07-22T04:10:00.000-07:00

SEOUL, July 18 (Reuters) - South Korea's POSCO (005490.KS: Quote, Profile, Research), the world's No.4 steelmaker, said on Friday it would issue 468.8 billion won ($463.2 million) in overseas debt to refinance maturing exchangeable bonds.

In 2003, POSCO sold 51.6 billion yen ($478.4 million) of bonds exchangeable into 1.7 million shares of SK Telecom (017670.KS: Quote, Profile, Research) owned by POSCO.

The bonds were exchangeable into SK Telecom shares at 304,890 won apiece, far above the current share price of 178,000 won.

POSCO said on Friday the new 5-year bond offering worth 49.3 billion yen would be made to investors in Asia and Europe.

Analysts expect POSCO to sell more bonds later this year, as the steelmaker has said it is interested in bidding for Daewoo Shipbuilding and Marine Engineering (042660.KS: Quote, Profile, Research), which will be put up for sale by its top shareholders in the second half.

The planned sale of a 50.4 percent stake in the world's third-largest shipbuilder could be the country's biggest M&A transaction this year, fetching around $3.6 billion, based on the Daewoo's market value of 7.3 trillion won.

Shares in POSCO closed down 4.3 percent at 488,000 won, as Asian steel shares followed a tumble in their U.S. peers.

Shares in U.S. steel firm Nucor Corp (NUE.N: Quote, Profile, Research) dropped 11 percent on Thursday after the company issued a weaker-than-expected forecast for the third quarter. [ID:nN17275991] ($1=107.84 Yen) ($1=1012.1 Won) (Reporting by Miyoung Kim; editing by Keiron Henderson and Jonathan Hopfner)

Bond commission approves Cenla projects

2008-07-22T04:08:00.000-07:00

BATON ROUGE - At the July 18 meeting of the State Bond Commission, $119 million in funding was approved for projects in Central and north Louisiana, according to State Treasurer John Kennedy.

Cenla projects approved:

uA $120,000 loan for Catahoula Parish, Town of Jonesville to purchase a bucket truck and for public improvements.

uA $250,000 loan for the LaSalle Parish Police Jury for purchasing a new building adjacent to the LaSalle Parish Courthouse to house the District Attorney's office.

uA $3.5 million loan for the Natchitoches Parish Law Enforcement District for improvements to correctional facilities including equipment.

uA $500,000 loan for the Vernon Parish Law Enforcement District for current expenses.

u$25 million in bonds in Rapides Parish, City of Alexandria for capital improvements.

u$10 million in bonds for the Rapides Parish School Board, Pineville School District to refinance debt, saving $333,029.

u$15 million in bonds for Rapides Parish, City of Alexandria for capital improvement projects.

u$15 million in bonds for the Rapides Finance Authority (Mortgage-Backed Securities Program) to provide housing for low and moderate income families in the area.

u$10 million in bonds for the Rapides Finance Authority (Louisiana College Project) to refinance debt, saving $2.9 million.
Source

Sabic set to refinance GE Plastics debt

2008-07-22T04:05:00.000-07:00

Saudi giant to change covenants as subsidiary struggles to meet cash projections in deteriorating market.

This content is only available to full MEED package subscribers (MEED magazine and MEED.com).

If you are already a subscriber to the MEED package and have activated your online subscription, sign in

If you are already a subscriber to the MEED package but have not activated your online subscription, please activate here

If you would like to subscribe to the full MEED package and get access to the whole of the website, please subscribe here

If you are a MEED magazine only subscriber and would like full access to MEED.com, please contact Customer Services who will upgrade your subscription.

Home Loans Are a Way to Fulfill Your Dreams, But Do Not Let Them Become a Nightmare!

2008-07-20T12:31:00.000-07:00

Buying a house will probably be one of the most important things that will happen in your life. Having the desire of doing it is nothing compared with the moment in which you make the real decision. It is also in that moment when you have to face all those many times forgotten details that could turn a beautiful dream into the most awful nightmare if you do not pay attention to them in the right moment.

The Right Moment

After thinking it carefully, you have decided that the right moment to buy a house is now. You have a good income to afford the loan payments and you will have time to enjoy your home for the next ten or so years while you repay the home loan. Now, what are the next steps to take?

Get To Know Different Home Loan Options

The most common home loans are home purchase loans, offered and used for purchasing a new home. But there are also other options that may be good to analyze:

Home construction loans are used for constructing a new home, these are suitable if you already own the land. In the other hand, there are also land purchase loans, that are a good choice if you want to start for buying the land first and constructing later or purchasing a mobile home.

If you already own a home and had purchased it whit a home loan, and now you would like to move to another home that will also need extra finance, you could resort to a home conversion loan. In these kinds of loans, the actual loan is placed into the new home, including the extra amount required.

Choose A Lender

Define how much would you be willing to pay, based on how much would you be able to pay. Be honest to yourself at this point, remember that you will still have to live while you afford your new house's expenses. Sometimes the things that we can really get are not exactly the same as those we dreamed of. But, having sense on this, can help us avoid getting into a big debt that could ruin our plans if we cannot afford the home loan expenses after a few months.

Visit your bank, shop around your neighborhood, ask your friends or relatives, or just search for a lender on the Internet. However you decide to look for your lender, take your time to do all the questions you may have. Get to know all the terms and conditions from different lenders and the options they offer to you.

Make sure to also get to known all the eligibility requirements and which ones do you fulfill, before applying, these will give you the chance to improve your eligibility or to avoid being rejected if the lender has many conditions.

The most important, make sure you have found yourself a good deal and that you will be able to accomplish it, before signing the home loan papers.

Find YOUR Home

After the lender was chosen and the loan has been pre approved, the next thing to do is to decide of which kind of home do you want to be owner.

Once you have a good idea of how much would you be able to spend, start looking for your new home. Contacting real state agents is always a good place to start. It will be easier to find the ideal property, if you could also make a list of which features would you like to find in your new home. By combining both, your ideal price and what would you like to get, a real state agent will be able to select faster those properties that could suit your wishes best.

When you find THE home you want, make your offer and discuss the terms until getting to an agreement with the seller. Remember to get a home inspection before closing the deal. By doing this you could save a lot of money on mayor repairs that are not so obvious to your eyes.

If the home inspections goes fine, congratulations! you just have to close the deal and become a homeowner. If the home inspection does not goes as expected you can either decide to keep searching until you find another home or you can also modify your offer according to those needed repairs and close the deal anyway. If you decide to do this, be sure that those repairs will not cost you more money than you will be able to pay.

Whatever your decision may be, if you reached this point you are closer than ever to get your home. So, cheers to you!

Sarah Dinkins is a financial advisor who has been associated with Unsecured Personal Loans since long ago. She also holds a master degree in economics from Harvard University. To find Online Bad Credit Loans, Personal Loans, Debt Settlement Programs, Bad Credit Auto Loans, Poor Credit Mortgage Home Loans visit http://www.badcreditfinancialexperts.com

Canadian 40 Year and 100% Deposit Mortgages - A Thing of the Past?

2008-07-20T12:30:00.001-07:00

The Canadian mortgage market has been very resilient through the global economic slowdown when compared to the US and Europe. Some of this has been due to the fact that the Canadian government and lenders have been fairly conservative in the financing options available to homebuyers.

A step towards more innovation in the market occurred with the introduction of the 40 year and 0% deposit mortgages, however, this change has been reeled back with the July 9th, 2008 announcement of new rules for government-backed mortgages by the Department of Finance:

Fixing the maximum amortization period for new government-backed mortgages to 35 years;

Requiring a minimum down payment of five per cent for new government-backed mortgages;

These new rules come into effect on October 15, 2008 and a few banks have already removed their 40 year and 0% deposit mortgage products from the market.

The effect of this is that the government has decided to stop insuring lenders through the Canadian Housing and Mortgage Corporation (CMHC) for these riskier loans, as they want to avoid a US style housing slump.

It will be interesting to see whether the private mortgage insurance companies decide to follow suit, or if they will keep insuring these high risk mortgages in order to take market share and have a possible advantage over the CMHC.

As a result of these changes, many people are predicting that potential home buyers who don't have a 5% deposit or need the longer amortization period in order to afford a house in high price areas such as Toronto, Calgary and Vancouver will be rushing into the market to make their purchase before the October deadline.

If this is the case, it should be an exciting three months for lenders, mortgage brokers and home shoppers buyers and interesting to see how the housing and mortgage markets react once the dust settles.

Kelvin Mangaroo is the founder of RateSupermarket.ca, Canada's mortgage rate comparison site, enabling you to compare the best mortgage rates in Canada from top lenders and brokers

Mortgage Applications Continue to Increase for a 3-Week Rally

2008-07-16T16:06:00.000-07:00

The Mortgage Bankers Association (MBA) released its Weekly Mortgage Applications Survey for the week ending July 11, 2008. The Market Composite Index, a measure of mortgage loan application volume, was 522.2, an increase of 1.7% on a seasonally adjusted basis from 513.4 one week earlier. On an unadjusted basis, the Index increased 27.0% compared with the previous Independence Day holiday shortened week and was down 17.4% compared with the same week one year earlier. This marks the third week in a row that the MBA announced mortgage applications increasing, following last week’s 7.5% increase.

The Refinance Index increased 6.9% to 1474.9 from 1379.3 the previous week and the seasonally adjusted Purchase Index decreased 1.7% to 359.7 from 365.8 one week earlier. The Conventional Purchase Index increased 1.4% while the Government Purchase Index (largely FHA) decreased 8.2%.

The four week moving average for the seasonally adjusted Market Index is up 0.7% to 493.7 from 490.2. The four week moving average for the Purchase Index edged up to 350.5 from 350.4, while this average is up 1.8% to 1333.9 from 1309.8 for the Refinance Index.

The refinance share of mortgage activity increased to 39.2% of total applications from 37.3% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 9.1 from 10.0% of total applications from the previous week.

The average contract interest rate for 30-year fixed-rate mortgages decreased to 6.22% from 6.43%, with points increasing to 1.21 from 1.06 (including the origination fee) for 80% loan-to-value (LTV) ratio loans.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 5.74% from 5.94%, with points increasing to 1.13 from 1.10 (including the origination fee) for 80% LTV loans.

The average contract interest rate for one-year ARMs decreased to 7.16% from 7.24%, with points increasing to 0.36 from 0.26 (including the origination fee) for 80% LTV loans.

The survey covers approximately 50% of all U.S. retail residential mortgage applications, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts. Base period and value for all indexes is March 16, 1990=100.

For more information, visit www.mortgagebankers.org.

Housing Advocates Relieved Over Mortgage Firms Bailouts

2008-07-16T16:03:00.000-07:00

by Ilya Marritz

Local housing advocates say they're relieved that the Treasury Department and the Federal Reserve have intervened to keep Fannie Mae and Freddie Mac solvent.

Sarah Gerecke of the not-for-profit Neighborhood Housing Services says the government sponsored lenders are playing an increasingly important role, especially for New York City homeowners with subprime loans.

GERECKE: They can't refinance with their original lender cause their original lender is out of business. So loans that are bought by Fannie Mae and Freddie Mac are providing one of the few ways that existing homeowners can maintain affordability through refinance.

REPORTER: Gerecke sits on an advisory board for Fannie Mae. Fannie and Freddie will only refinance loans worth $417,000 or less.

Fed in tug of war over mortgage rules

2008-07-12T14:30:00.001-07:00

Federal Reserve on Monday is expected to tighten regulations to protect homebuyers. Consumer groups and lenders each hope arguments win out.
By Tami Luhby, CNNMoney.com senior writer

NEW YORK (CNNMoney.com) -- The Federal Reserve is caught in a tug-of-war as it prepares on Monday to unveil final rules overhauling mortgage lending.

Consumer groups are arguing that the regulations, as proposed in December, contain too many loopholes, allowing reckless lending to continue. Industry executives say the proposals place too great a burden on lenders and will prompt them to further restrict credit.

It appears the Fed was swayed by the more than 2,500 comments submitted on the proposals since it has signaled it has revised them, industry insiders say. But it remains to be seen which side the Fed favored.

"The question is which way will the Fed head?" said Kurt Eggert, law professor at the Chapman University School of Law and former Fed Consumer Advisory Council member. "That's what we're all waiting to see."

Though the proposals won't help the millions of homeowners who've already fallen behind in their mortgages, the Fed is aiming to prevent another such crisis by tightening lending standards, particularly for subprime mortgages.

"Our goal is to promote responsible mortgage lending, for the benefit of individual consumers and the economy," Fed Chairman Ben Bernanke said when the standards were proposed.

Bernanke said the proposals "were carefully crafted with an eye toward deterring improper lending ... without unduly restricting mortgage credit availability."

To better protect subprime borrowers from getting into loans they couldn't handle, the Fed proposed four new requirements. The rules would:

Require lenders to verify income and assets.
Prohibit them from engaging in a "pattern or practice" of making loans borrowers can't afford
Limit prepayment penalties.
Require lenders establish escrow accounts for taxes and insurance.

Also, for all loans regardless of rate, the regulator would ban the practice of allowing banks to pay brokers for steering homeowners into higher-priced loans, unless that compensation was disclosed in advance. And it would prohibit brokers from coercing appraisers into misstating a home's value.

Consumer advocates: More is needed

With the proposals, the Fed is attempting to answer critics who charged the agency could have flexed its muscles several years ago, clamping down on unscrupulous lenders during the real estate boom.

"Had these rules been in place, many of these things wouldn't have happened," said Ken Wade, chief executive of NeighborWorks America, a national community revitalization group chartered by Congress whose board is made up of bank regulators. The late Edward Gramlich, a former Fed governor who served as chairman of NeighborWorks' board, pushed unsuccessfully to rein in the mortgage industry.

Still, Wade and other consumer advocates say the proposed rules need to be tightened further to be effective.

For instance, the Fed should outright prohibit lenders from originating loans without considering the borrower's ability to pay. It's very difficult to prove a "pattern or practice" of such behavior, said Jim Carr, chief operating officer of the National Community Reinvestment Coalition, an advocacy group.

"We really need to just have firm rules that close the door on the potential and the incentive for misbehavior," Carr said. "Considering we're in the midst of the worst housing collapse in half-a-century, one would think the rules would be stern enough to make clear these practices are not acceptable."

Advocates also want the Fed to ban all prepayment penalties, not just limit them. As proposed, the regulation would prevent lenders from imposing a penalty at least 60 days before a jump in monthly payments.

Also, they say the agency should eliminate so-called "yield-spread premiums," which some call a kickback to mortgage brokers for signing up borrowers for higher-cost loans when they could afford traditional ones. All parties in the mortgage industry should clearly disclose their fees, advocates say.

"No lender should be able to hide the additional fees they charge," Wade said. "It creates confusion for the consumer."

Industry warns credit could be restricted

Industry executives, meanwhile, say increased regulation would prompt lenders to originate fewer mortgages. The proposals would raise lenders' liability and workload.

"If the rule passes, I'm afraid the Fed will have to back off on some of it because it will hurt homeownership," said Bill Howe, vice president of the National Association of Mortgage Brokers.

Many brokers, bankers and trade associations submitted comments critiquing the Fed's proposals and warning of the consequences.

High among their concerns is that the Fed's measure for what constitutes a subprime loan - one with a mortgage rate three percentage points above the yield on a comparable Treasury note - would capture some prime loans as well, subjecting borrowers to greater scrutiny.

They are also asking for clear guidelines on how they should evaluate a borrower's ability to repay the loan. However, the final rules should allow the lenders some flexibility in assessing borrowers' capabilities, executives say.

Also, the industry doesn't want the Fed to impose too many limitations on the penalties lenders assess borrowers who pay their mortgages early. Lenders are more willing to extend credit to subprime borrowers when they know the homeowners can't quickly refinance into a lower cost loan without a big penalty.

"Prepayment fees allow borrowers access to lower rates and, for some borrowers, whose risk profiles are more challenged, their only opportunity for mortgage financing," wrote Kieran Quinn, chairman of the Mortgage Bankers Association.

For community banks, requiring escrow accounts would be an expensive hurdle.

"To require community banks to do so would cause extraordinary time and expense to purchase additional software and computer systems and to hire additional staff," wrote John Barrett, president of First National Bank of Oxford in Mississippi. "That expense would quickly find its way into the pricing of loans and the addition of fees. Conceivably, community banks would find themselves driven to avoid those loans that trigger the escrow requirement, thereby denying credit to those customers the regulations seek to protect."

Enforcement essential

However the Fed tilts, a key question left unanswered is who will make sure the rules are followed. While all lenders would be subject to the new rules, oversight is divided up among various state and federal agencies, depending on the business' charter.

"You have to make sure the rules are enforced or else they don't mean anything," Wade said.
Source

Ripple Effects From Fannie And Freddie

2008-07-12T14:25:00.000-07:00

Mortgage Giants' Problems Could Mean Higher Loan Rates

By Nancy Trejos

Washington Post Staff Writer

The crisis at Fannie Mae and Freddie Mac, once the unwavering giants of the mortgage finance industry, could make getting a home loan even more difficult at a time when lenders are already tightening their grip on credit, industry experts and financial advisers said.

If you're thinking of buying or refinancing a home, expect to see a rise in mortgage rates, the experts said. But if you already have a mortgage, even one backed by Fannie Mae or Freddie Mac, you should have nothing to fear as long as you have no pressing need to refinance, they said.

A spike in rates could also drive homeowners into foreclosure as hundreds of thousands try to refinance out of adjustable-rate mortgages that are scheduled to reset this summer.

What caused this latest panic in the already-crippled mortgage market? Investors have lost confidence in the government-sponsored entities at a time when they need it the most. Badly bruised by the downturn in the housing market, Fannie Mae and Freddie Mac need to raise cash to stay afloat.

"It's unclear what twists and turns this will take, but they have to raise capital," said Keith Gumbinger, a vice president at HSH Associates, which publishes loan information. "In order to attract investors to buy bonds issued by a company that is struggling, they would need to offer higher yields. . . . That higher cost of getting capital would have to be passed along."

This would not bode well for a recovery in the housing market. Rising foreclosures have already shrunk the pool of potential home buyers by spooking lenders into requiring bigger down payments and stronger credit histories from borrowers. Higher interest rates would keep even more people from buying homes that have been lingering on the market for so long.

Don't be surprised if this crisis affects other forms of lending, such as car and student loans.

"As people are already finding, credit tightness translates to the entire system," said Michael Kitces, director of financial planning for Pinnacle Advisory Group in Columbia. "A bank that loses millions of dollars on mortgage loans is a bank that has less money for loans for other purposes."

These are also dark days for anyone who has a stake in Fannie Mae or Freddie Mac. Shares of the companies plummeted last week on speculation of a government bailout. The turmoil shook the stock market -- and investor confidence. Financial planners said they have been fielding calls from worried investors.

"People are nervous. They really are right now," said Christopher N. Brown, a financial adviser at Ivy League Financial Advisors in Rockville. "Any market like this, when investments are getting whipsawed, most of the time it's emotional and people are reacting."

Advisers recommend that you look at your portfolio to make sure you are not too heavily invested in any one area. Shift money around if need be, but don't make any decisions based on fear. Try to stay the course, they said, and keep plenty of cash in reserves. "If you are keeping a cool head while everyone is losing around you, you'll be okay," Brown said.

But what if you have shares in Freddie Mac and Fannie Mae? "Your options are limited," said David Fleisher, executive vice president of Firstrust Financial Resources in Philadelphia. "For those people with an immediate or urgent need for their cash, they might consider taking what they can get. But at this point the damage has been done."
Source

What Makes Modular Homes So Inexpensive?

2008-07-10T14:43:00.000-07:00

If you add this change of heart in mortgage lenders to the fact that modular homes are usually less expensive than similarly designed and sized traditional ones, you'll understand why the chances are good that a modular home mortgage will mean lower monthly house payments for you!

What Makes Modular Homes So Inexpensive?

The secret to the low cost of modular homes is that they are built, as their name suggests, of modules, which are assembles in the sanitary conditions of climate-controlled
manufacturing facilities. The production of these modules is never halted, as traditional home construction can be, by costly weather-related and material-damaging delays.

This assembly line approach to home building lets the modular home manufacturers order their supplies at discounted bulk rates, and those savings can be passed along to the home buyers. All modular homes are pre-ordered so that their makers can order only and exactly as much of the materials they need, and the waste associated with modular home production is absolutely minimal.

The modules themselves are cut on machines which are computer-controlled, further eliminating waste, and their precision cutting is what makes them fit together so tightly that modular homes are amazingly energy-efficient. Every cost-cutting measure taken at the modular home factory translates to both a lower end price and a smaller modular home mortgage for the buyer.

Your Modular Home Construction

When all the modules for your modular home are finished, they will be crane-loaded onto a shipping trailer for delivery to your building site. Some Modular Homes

manufacturers offer share-loading, allowing you to split your shipping costs with those of other modular home buyers in your area by shipping your home's modules on the same trailer as theirs.

You will have had a foundation dug and poured on your lot while awaiting the arrival of your modular home, and you will also have a crane ready to lift the modules off the trailer and position them correctly on the foundation. When all the modules are firmly in place, your modular home construction crew will join them to the foundation and to one another with specially designed fasteners.

Because all the cutting and measuring for your modular home was finished at the factory, the time it takes to complete construction will be minimal. A tow section modular home can usually be in move-in condition in no more than two or three weeks after it is delivered to a building site. The reduced labor costs associated with assembling a modular home will once again reduce the owner's monthly modular home mortgage payments. The entire modular home building process, from factory assembly line to finished house, is planned to result in savings, and a lower modular home mortgage, for the home buyer!

You can also find more info on Modular Homes Construction Modularhomesbasic.com is a comprehensive resource which provide information about Homes.

Refinance Home Mortage.

2008-07-07T05:35:00.000-07:00

Additional Commerce Mortage Resources

Commerce Mortage Lenders Home Loan Mortgage Brokerss - Georgia Real Es ...LOAN-SEEKER.COM specializes in Commerce Mortage Lenders Home Loan Mortgage.....real estate, Commerce real estate agents, Commerce realty, Commerce homes for sale.....Whether you need a ... [ Click To Open In A New Window ]

	www.zivnobanka-open.cz Do you want to buy this domain? It's for sale! ...educational game site web.. e commerce.. mortage broker ..mortage broker.. best.....airporter banff ..airporter banff.. mortage rates ..mortage rates.. credit card.. [ Click To Open In A New Window ]

	www.kolster.olsztyn.pl This domain is for sale. ...virus norton.. 2 hiv testing ..e commerce.. mortage broker ..mortage broker.. post.. [ Click To Open In A New Window ]

	Full Package Templates ...templates, product templates, services templates, commerce templates ... Keywords used to find this template: mortage templates, group templates... [ Click To Open In A New Window ]

	Virginia Commerce Bank Mortgage Lending Virginia Commerce Bank Mortage Lending is a full-service mortgage lender that provides an easy application process and competitive interest rates. [ Click To Open In A New Window ]

	Commerce Mortage Lenders Home Loan Mortgage Brokerss - Texas Real... FINANCIALSEEKER.COM specializes in Commerce Mortage Lenders Home Loan Mortgage Brokerslisting nationwide lenders, direct lenders, and home loan... [ Click To Open In A New Window ]

	Finance Made Easy mortage refinancing complaints ...term possibilities of electronic commerce mortage refinancing complaints merchants.....Finance Made Easy mortage refinancing complaints....Home.....refinancing.. refinancing loans.. Home ... [ Click To Open In A New Window ]

	home refinance home mortage refinance ...mortage refinance and select a couple of the very best sites for you to visit. Being a part of the growth of electronic commerce home mortage... [ Click To Open In A New Window ]

	Commerce Mortgages , Mortgage, Mortages, Mortage Calculator,... Every bar in Commerce Mortages - Commerce Casino, Mortages, Mortage Calculator... [ Click To Open In A New Window ]

Free frontpage hosting

...business to business electronic commerce mortage broker ..fönster.. ; slot machine..

[ Click To Open In A New Window

Refinance FHA Mortgage. Considering a refinance of FHA mortgage

2008-07-07T04:49:00.000-07:00

Ask Dr. Don by Don Taylor, Ph.D., CFA, CFP • Bankrate.com
Dear Dr. Don,
Our mortgage is a FHA 20-year fixed rate loan at 5.625 percent. We are considering a home equity loan for $20,000 to pay off our credit card debts, but the loan officer has recommended that we refinance the mortgage instead. He claims that even though the interest rate is higher; it evens out because we will not pay PMI. What do you think?

Dear Rosa,
FHA loans don't require private mortgage insurance, or PMI, although there is a mortgage insurance premium, or MIP, that you pay for the government guarantee on an FHA mortgage. The MIP is an upfront cost paid at closing. Depending on the size of your down payment, there may also be a monthly premium payment. If you bought the house with less than 10 percent down, you'll pay a monthly insurance payment of 0.005 percent, too. For a $100,000 loan that monthly insurance payment is $100,000 x 0.005/12 = $41.67.

To ask a question of Dr. Don, go to the "Ask the Experts" page and select one of these topics: "financing a home," "saving & investing" or "money."

Bankrate.com's corrections policy
Source

Home Marketing Mortgage Refinance

2008-07-07T04:34:00.000-07:00

eLancer Marketplace
Global Outsourcing Marketplace for companies or consultants to bid overseas projects and promote services. It is also for companies to post projects, find services, make contracts with international service providers, and outsource their businesses. eLancer is a global marketing consulting, technology services and outsourcing company. Committed to delivering innovation, eLancer collaborates with global companies to help them become high-performance businesses.

Simple home marketing mortgage refinance - www.westmichigandj.com
... winter open money means which home marketing mortgage refinance, plan out name cut what ... will sentences Indian last home marketing mortgage refinance, certain fish living earth ...

Instant home marketing mortgage refinance - www.chriscentofanti.com
... among needed fast may vary home marketing mortgage refinance, cold open looked given Indians large ... ever American big men home marketing mortgage refinance, line oline full then ...

mortgage broker marketing - Mortgage Resource- mortgage broker marketing
mortgage broker marketing- The best mortgage resource on the net ... home mortgage rate ... mortgage. florida refinance mortgage. refinance mortgage rate. refinance mortgage loan. mortgage refinance calculator. mortgage loan refinance and debt consolidation. home marketing ...

Teleten Marketing Refinance Home Mortgage Loan Quote, Calculator, Refinance Rate
Teleten Marketing Refinance Mortgage Quotes provides free online mortgage quotes for refinance, refinancing and other mortgages such as New Home Purchase, Conventional Refinance, Refinance VA & ... Teleten Marketing Refinance Mortgages offers free online home loan mortgage quote for refinance and other mortgage ...

home marketing mortgage refinance
home marketing mortgage refinance. www.second-mortgage-loans.net. home marketing mortgage refinance. Find what you're looking for? Search our database for more.

Teleten Marketing Mortgage Loan Quote & Home Refinance Mortgage Loans
Teleten Marketing Loans provides free mortgage quotes on home mortgage loan programs at incredibly lower mortgage rates available in the market. Teleten Marketing Loans provide mortgage quotes for... visiting ! Teleten Marketing Loans provides you FREE, No Obligation Mortgage Quote on all types of Home Mortgage Loans ... Why not refinance your mortgage and get a ...

Everything about visitors , guaranteed traffic , guaranteed hits
Welcome to Everything about visitors , guaranteed traffic , guaranteed hits at internetsuccessformula.com! This website is a portal for everything!

Teleten Marketing Loan Quotes - Mortgage Rates, Home Mortgage Loans
Teleten Marketing Mortgage Quotes provides loan quotes for all types of mortgages such as New Purchase, Refinance, Second Mortgage, Home Equity Loans, HELOC, Debt Consolidation Loans, Refinance VA... home purchase, first mortgage, second mortgage, refinance, debt consolidation, home equity loans, home ...

The Loan Page, online mortgage reduction quotes, mortgage refinance, debt consolidation, commercial loans and refinancing.
The Loan Page, mortgage refinance, online mortgage reduction quotes, debt consolidation, commercial loans and refinancing. Mortgage Loans Online - Offering mortgage advice, daily mortgage ...

refinance home mortgage
Search Results for: refinance home mortgage. home mortgage refinance loan. home marketing mortgage refinance. home loan mortgage refinance loan. refinance. refinance home mortgage interest rate. calculator home mortgage refinance

KW: Home Marketing Mortgage Refinance

List Pennsylvania Mortgage Refinance Rate

2008-07-07T04:28:00.000-07:00

KW: list pennsylvania mortgage refinance rate


	Mortgage Employment Stabilizing 2nd Quarter 2008 Estimated Mortgage Job Losses Top 5 States Rank State Net Job Losses 1. Washington -2000 2. California -542 3. Florida-244 4. Pennsylvania ..

	Ex-broker to serve 12 years in Pa. mortgage scam 1:03 PM ET A former mortgage broker sentenced to federal prison Wednesday blamed his poor business acumen for causing hundreds of Pennsylvania ..

	Pennsylvania Man Sentenced to 12 Years in Prison for Involvement HARRISBURG, Pa. , July 2 /PRNewswire-USNewswire/ -- A Berks County, Pa. man at the center of a multi-million dollar mortgage fraud scheme has been sentenced ..

	Ex-broker faces sentencing in Pa. mortgage scam HARRISBURG, Pa. ? A former mortgage broker who pleaded guilty to mail fraud in a scam that prosecutors say cheated hundreds of Pennsylvania homeowners out ..

	Former Pa. mortgage broker sentenced to prison AP MEDIA, Pa. - A former mortgage broker has pleaded guilty to stealing mortgage payments in Delaware, Montgomery and Bucks counties and faces 18 to 36 ..

	Prudential Bancorp, Inc. of Pennsylvania Announces Redemption of The decline in the NAV reflected the decline in fair value of the underlying mortgage-related securities held by such fund and the ongoing turbulence being Prudential Bancorp to take $2.3M charge Bizjournals.com Prudential Bancorp Announces Redemption of Mutual Fund Investment RTT News Prudential Bancorp, Inc. of Pennsylvania Announces Declaration of Business Wire (press release) all 23 ..

list pennsylvania mortgage refinance rate ...and narrowed our list of list pennsylvania mortgage refinance rate websites down to only.....the very best. list pennsylvania mortgage refinance rate.. CLICK HERE to.....information on ...

[ Click To Open In A New Window ]

Refinance Co op Refinance Co op. Refinance information and resources. About Me. Name:Oscar. Saturday, January 29, 2005. home and mortgage refinance dal... refinance a home and mortgage calculator ...

[ Click To Open In A New Window ]

Best Loan Site Best Loan Site. Sunday, April 03, 2005. posted by Simon Thorne at 9:16 PM 0 comments ... mortgage ... county pa realtor, sciota pennsylvania ... mortgage-rate.com/mortgage/calcu Mortgage ...

[ Click To Open In A New Window ]

List pennsylvania mortgage refinance rate At Large sportbooks.ru pills, health, drugs, phentermine, adipex, tramadol, valium, propecia, vioxx, cialis, wellbutrin, pharmacy List pennsylvania mortgage refinance rate on sportbooks.ru Editor picks on list ...

[ Click To Open In A New Window ]

DigitalWealth - Affiliate Marketing Center Affiliate Marketing Information Center. May 24th, 2005. This is only a testing. May 24th, 2005. Testing 1, 2, 3.... April 24th, 2005. Testing WB Editor 2. April 24th, 2005. Testing 1. 2. 3.

[ Click To Open In A New Window ]

Compare Mortgage Rates - Shop for Mortgages - Use Our Mortgage Calcula ... Compare Mortgage Rates Before You Buy or Refinance your Home! ... consumer information on mortgage rates, points, rate locks, PMI, and ... State from the map or the list below. ...

[ Click To Open In A New Window ]

List pennsylvania mortgage refinance rate Summary travelinsurance.cc pills, health, drugs, phentermine, adipex, tramadol, valium, propecia, vioxx, cialis, wellbutrin, pharmacy List pennsylvania mortgage refinance rate on travelinsurance.cc Editor picks on ...

[ Click To Open In A New Window ]

list pennsylvania mortgage refinance rate and mortgage information ...list pennsylvania mortgage refinance rate and refinance can be.....found here.....list pennsylvania mortgage refinance rate.. Managing to locate.....outstanding list pennsylvania ...

[ Click To Open In A New Window ]

list pennsylvania mortgage refinance rate ...if the returned list of list pennsylvania mortgage refinance rate sites is useable. We.....you are looking for the list pennsylvania mortgage refinance rate, use a directory.....genres ...

[ Click To Open In A New Window ]

refinance mortgage - refinance mortgage ... mortgage quote rate refinance of loan can against her top ... simple before of refinance mortgage you rate lower go can ... types ct in mortgage rate refinance deductable closing tax a ...

[ Click To Open In A New Window ]

List pennsylvania mortgage refinance rate At Large hydrocordone.ru pills, health, drugs, phentermine, adipex, tramadol, valium, propecia, vioxx, cialis, wellbutrin, pharmacy List pennsylvania mortgage refinance rate on hydrocordone.ru Editor picks on list ...

[ Click To Open In A New Window ]

Getting a Real Estate Mortgage Loan

2008-07-06T01:09:00.000-07:00

Once the real estate economy and pricing are understood, the next factor a person has to know is real estate mortgage. Generally people have low income levels; they can't afford a home spending huge amount. In order to give them safety and security most of banks today provide mortgage loans. Before going for a mortgage loan from a bank it is compulsory for you to understand mortgage loan amount and interest. There are many nationalized banks providing cheap interest rates and huge loan amounts. When you are going for a loan, it is compulsory for you to calculate amount payable to a bank for a year or month. There are some mortgage calculators available online; these calculators will be of good help. They make you understand mortgage loans and they help you in finding the loan amount to be paid monthly or year.

Before going for a mortgage loan, you should analyze legal issues of the bank. Some banks foreclose the properties within short time. They take away property when the bank loan amount is pending for duration of 6 months. When you are going to buy a real estate you should check out the laws and regulations of that bank in order to be on safe side.

Short sale will be a good idea for you when you intend to buy a real estate. Short sale happens when a bank or mortgage lender agrees to give a discount on the property. This discount is generally given based on the economic hardship of the mortgagor. Short sales are generally provided for people in order to prevent a home from foreclosure.

Some of governments provide a special policy for getting a stay on the house when you won't be able to pay amount in proper time. How ever this stay won't come quite easily it needs a strong reason. First you should understand government rules, federal taxes etc so that there won't be any threat from them in the future.

Once you have planned everything for buying a real estate, it is a good practice for you to go for a real estate investment trust. This trust helps you to reduce income taxes, and increases your house rent allowance. This trust helps you to invest some amount as mutual funds on real estate. It helps you in understanding estate trends and lets you maximize profit.

Property guide and real estate career training information. For property and real estate investment resources, visit http://www.PropertyDirectory.In

Help Pay the Mortgage With a Lodger

2008-07-06T01:08:00.000-07:00

With the stock market dipping and even Marks and Spencers not doing very well you would think that the Government would do something to help. This is unlikely though and realistically there is not much they can do. The Bank of England along with other world banks have reduced the base rate but all this seems to have done is increased the Banks profits.

Maybe now is the time to think about how you can raise some extra income and possibly you could help pay the mortgage with a lodger. Have you got a spare room, could you actually live with a stranger?

Taking on a lodger has obvious financial advantages, one of the best is that you can earn £4,350 per year tax free thanks to the Government's rent-a-room scheme. With average rent about £100 week you shouldn't have to pay much Tax, if any.

But don't rush into it there are lots of things you have to consider before you become a landlord.

Choosing the right lodger is absolutely crucial.
Do Identity checks
Do Credit checks
Ask friends if they know of anyone.
Can you cope with having a stranger in your house
Will your lender allow you to have a lodger

You need to be careful, so please do a credit and identity check or you could end up paying dearly.

You might think letting to good friends is a good idea, but think VERY carefully before doing this, after six months of being in the same house you may not be friends any more.

A personal recommendation, a "friend of a friend" this is probably the best option to help pay your mortgage with a lodger.

If you can't find anyone that way then try your local employers, universities, local authorities or hospitals. You can also advertise in you local paper or look to see if anyone is looking for a room.

When you have found a Lodger you need to have a plan.

Always lay down clear house rules - attention to detail is vital so that everyone knows where they stand.
Insist that payment is via standing order, the last thing you want is having to remind them every week/month.
Photograph their room at the beginning so that there is no argument as to whether that hole in the wall was always there.

One thing you shouldn't worry about is the lodger becoming a permanent feature in your home. Lodgers occupy your home without any security of tenure rights. Because of this, they have no right to stay once you give them their notice.

Mind you, although you don't need a formal legal agreement to help you pay your Mortgage with a lodger as you would with a full tenancy, I would recommend that you get one. Protect yourself against things that could go wrong, and hope, as will probably be the case, that all goes well

"It worked really well for me," says my friend Shirley, who had a lodger living with her in Hastings. She is on her second Lodger and says that she hardly ever saw the first one. They even became good friends.

Making new friends is a great bonus if it happens but paying your Mortgage with a Lodger is the bottom line.

So, Letting your room could be a good financial move for a variety of reasons, extra income for little work, £4,350 pa Tax Free, reduced stress when money is tight.

From a purely financial viewpoint, you should see Mortgage Broker as well as they may be able to suggest alternative mortgage arrangements.

If you go decide to help pay your Mortgage with a Lodger, you should always contact your mortgage lender beforehand as you might be breaking the conditions of your agreement. Most are happy with this and all should be fine, but be absolutely sure.

Colin Warburton is a qualified Mortgage Broker and can help if you want to help pay your Mortgage with a Lodger and a Network Marketer. If you are looking for a Residual Income, Colin can show you how to get prospects to come to you. You haven't got the time to waste dealing with people who aren't interested in whatever you have to offer.

Dubai Mortgage Market

2008-07-06T01:07:00.000-07:00

With ever growing prices of property in Dubai, it is becoming increasingly difficult for a normal buyer to pay the entire amount in one go. Mortgage facility comes in handy for such buyers. In mortgage loan, creditor possesses the title of purchased property till the debt amount, along with interest is paid off. In case the debtor fails to repay, creditor can retain the property. In Dubai, mortgage market is all set for an upsurge. Some important features of Dubai mortgage market are discussed below.

Growth Potential:

Dubai mortgage market is on the rise since 2002 but according to the experts and research reports, we still have to witness the real expansion boom. EFG-Hermes has predicted a growth of up to 10 times by 2012 in a recent research report. Dr Sabahuddin Azmi, an Islamic finance expert reaffirmed, while speaking to a summit held by the support of Shaikh Saud Bin Saqr Al Qasimi, the Crown Prince and Deputy Ruler of Ras Al Khaimah. The growth trend by far has been parallel to real estate market.

Shariah Compliant:

Amlak Finance and Tamweel, the leaders of Dubai mortgage market, with 60% market share collectively, are both shariah compliant. Given that the majority of the Dubai residents are Muslims, and Islam prohibits any kind of interest on loans, shariah compliant lenders are likely to capture the larger market share in future as well. Some people argue that Islamic mortgage is high-priced. The fact is that you may be paying a bigger amount as "down payment" compared to conventional mortgage, but you are also getting a better payment plan afterwards. This is the reason that non-Muslims are also getting increasingly interested in this type of home finance.

Interest Rates:

Interest rate (or profit rate in case of shariah compliant mortgage) is slightly higher when compared to rest of the world, but with competition getting bigger and intense, soon one company or other will be cutting its interest rate to gain competitive advantage over it's competitors. Commercial bank of Dubai has already slashed its interest rates, soon other banks will have to catch up with similar reductions or they will loose their business to CBD in no time.

Dubai real estate market along with its mortgage market is getting larger day by day. With expatriates and foreigners taking more interest in buying property, competition in Dubai mortgage market is heating up. This competition will surely help in resolving issues like processing delays and making it more consumers friendly.

William King is the director of Wholesale Dropshippers & Dropshipping Directory and Pakistan Property & Pakistan Properties Portal He has 18 years of experience in the marketing and trading industries and has been helping retailers and startups with their product sourcing, promotion, marketing and supply chain requirements.

Reverse Mortgages & Oil

2008-07-03T16:50:00.000-07:00

What is the connection, you might ask between reverse mortgages and the price of oil? And if you or a loved one are a senior homeowner age 62 and over but don't drive, maybe you've been thinking that you are lucky because the price of gas and oil really doesn't affect you as much. But the simple truth is that the cost of oil and the rising cost of gasoline affects everyone who has to eat or drink and that includes us all, drivers or not!

Stop and think about it for a minute. Take a look at the price of the food on the shelves in your local grocery stores. That food was trucked in and that requires fuel to get there. When the costs of oil are so high, then it costs so much more to bring those groceries to your local supermarket. And then take a look at the cost of the produce.

With the high cost of oil, many different forms of alternative fuels are being developed and several of these alternative fuels require things like corn to make them. This drives up the cost of not only corn, but everything else that uses corn. That includes feed for almost all other animals and that also drives up the cost of chicken, beef, some dog foods and well, you get the picture! Add to that the floods in the central states where the most corn is grown and the damage to the crops and that means that this year's harvest is going to be smaller and even more expensive.

So how does this all tie to Reverse Mortgages? When you're living on a fixed income, all of this rising cost may be too much to bear. That's where senior borrowers age 62 and over may be able to utilize the equity in their home to meet the rising cost of living in this economic environment.

The government-insured Reverse Mortgage known as the Home Equity Conversion Mortgage (HECM or Heck-um) is designed to allow senior borrowers to access the equity in their home for any purpose. Senior borrowers can use the money to retire existing debt, for medical expenses, to make their homes more senior-friendly, or for any purpose they choose. But this can be especially helpful now that other costs have risen so dramatically.

So whether you or your loved ones drive or not, the rising cost of oil, the increased demand for corn and the flooding and lower crop production is going to take a bite out of everyone's budget. There's just no escaping the far reaching effect that all these factors have on everything else. The reverse mortgage may be just the bridge many senior homeowners can use to cross the rough spots brought on by rapidly rising costs that may be out pacing fixed incomes.

Michael G. Branson (CEO All Reverse Mortgage Company) is a Mortgage Broker who has over 31 years of mortgage banking experience. Toll Free (888) 801-2762

Reverse Mortgage Lender
Reverse Mortgage Programs

A Dallas Mortgage Broker Can Help Save You Money

2008-07-03T16:49:00.001-07:00

If you are fortunate enough to own a home, you know that you have to make a monthly mortgage payment. The benefits of having a mortgage over renting are many: building equity in your home, writing off on your taxes the interest paid on the loan, and having a space to do with as you please. Having said that, it can be a problem to find yourself in an adjustable rate mortgage that is about to change rates. If you would like to refinance your current house loan, or purchase a new house and need a new mortgage, a Dallas mortgage broker can help you find just the right loan.

What is the difference between adjustable and fixed-rate mortgages?

Your Dallas mortgage broker can help you select the best mortgage for your financial situation. It is advisable to understand the terminology lenders use, so that you can make an informed decision about your new or refinanced mortgage.

An adjustable rate mortgage, also known as an ARM, offers a good solution for the person who wishes to own a home but knows that she or he will be selling the home soon. Your monthly mortgage payment is typically quite a bit less than you would pay for a fixed rate mortgage, and this is the attraction of the ARM. However, that low payment only lasts through a predetermined grace period. Once that grace period is up, then the monthly payment increases, or balloons, upward. Unscrupulous lenders enticed people to jump into these types of mortgages without the proper amount of salary to cover the increased payments, and this is one reason why people who secured adjustable rate mortgages outside of their budget are going into foreclosure around the country. ARMs can be a good option if you are going to sell the home very soon, usually in two to five years, because if you sell the home before the payment increases you can pay low monthly mortgage payments. Your Dallas mortgage broker can advise you on this type of home loan.

The Dallas mortgage broker of your choice will be able to offer you several options in terms of fixed rate mortgages.

The advantage of the fixed rate is that you will have a consistent payment amount for the life of the loan. You can budget for it, and know that it will not increase at some later date. Your Dallas mortgage broker will show you all the options in terms of the length of the mortgage, and the interest rates charged, so that you will find the best mortgage to meet your financial needs. The advantage that a Dallas mortgage broker brings you is the plethora of loans on the market. Because they are not tied to one particular insurer, but are allowed by law to represent many, you can be sure of getting the best deal for your specific situation.

Jonathan Blocker has years of experience with mortgages and refinances in Texas. He deals with companies that provide the most affordable mortgage rates for existing and soon to be homeowners throughout Texas

The Declining Direction of Mortgage Rates in Texas

2008-07-03T16:47:00.000-07:00

Interest rates are a topic of conversation for everyone who takes part in the home buying process. Home owners need to be informed about mortgage rates and how they will impact the monthly mortgage payments on your new or refinanced home. One thing is for certain: the direction of mortgage rates in Texas is down. Because rates are low right now, it can be a good choice to talk to a Texas mortgage broker who can show you a variety of loan programs and help you select the one that is right for you.

What is APR?

Your mortgage broker will help explain why the downward direction of mortgage rates in Texas is to the advantage of the home buyer in our current economy, but it is good to be familiar with some terms before entering into that conversation. One of them is the acronym APR, which stands for annual percentage rate. The annual percentage rate is not the same as the interest rate. You will see both rates listed on loan instruments, so knowing the difference is important in understanding what it is that you are being offered.

The APR is the interest rate percentage, along with the amounts of the loan fees and charges also applied to the particular mortgage loan you are considering. This is the real percentage that you will pay month to month for the duration of the loan term. The interest rate is the charge you will pay for borrowing the amount of money you need to purchase the home. It is a percentage of the total amount of the loan. The good news is that the declining direction of mortgage rates in Texas means that home ownership is much more affordable now.

What is the Advantage of the Current Direction of Mortgage Rates in Texas?

There are several benefits that come to Texas home buyers due to attractive interest and annual percentage rates. One is that it makes home ownership much more affordable. Lower mortgage rates means that you can afford to buy more home for your money. Another advantage is that the interest that you do pay each month on your mortgage payment is tax deductible. This makes for a nice write off when tax time rolls around in April.

It is also to your benefit to take advantage of the direction of mortgage rates in Texas because you will be able to lock these low rates in if you select a fixed rate mortgage. While ARM, or adjustable rate mortgage, payments will increase after you reach the end of the grace period, a fixed rate mortgage will remain stable throughout the length of the loan term, making it easier for you to budget for you mortgage payment.

With rates as low as six percent, now is the time to utilize the direction of mortgage rates in Texas so that you can afford to buy the home of your dreams.

Poor Credit Home Refinance

2008-07-02T10:43:00.000-07:00

When an owner obtains a new first mortgage on his real estate, the homeowner has undergone a home refinancing. Simply put, think of home refinancing as trading in an old first mortgage for a new first mortgage.

To refinance a home, the homeowner must apply for a new mortgage. During the application process, the subject home will undergo a new appraisal to determine its value, and the homeowner's credit file will be reviewed. The lender will also order a title report on the property to search for any other liens that may appear. Assuming all these items meet with the lender's approval, the loan will be approved by the lender.

Once approved, the homeowner will meet typically at the office of the lender or title company to sign the new mortgage. The proceeds of the new loan will be used to pay off the old first mortgage as well as any additional mortgages and liens on the property. Accordingly, the only mortgage showing on the home after the refinance will be the new loan itself.

These days almost anyone can offer you a home refinance loan in a matter of a few hours. And most of them have only one intent – making you pay lots of interest. Many directory sites can supposedly tell you where to go on the internet to find the best loan for you. But all they actually do is provide you with a list of useless links to companies that no longer exist, or more companies that want you to pay more money then you have to.

Most of these websites will milk you for all your information and will contact you later and try and sell you something at the back end whether it is a car loan, school loan, or other loans you don’t need. But in reality, 50% of these websites offer you nothing more than the following:

Outdated directories & resources.

No customer service or help available.

No real explanation about the process of home refinance.

As a watchdog for home refinance with bad credit, we have thoroughly reviewed hundreds of home refinance sites, talking to their owners, reviewing their offers, and speaking to many of their clients & workers. Based on our research, as of August 2005, We came up with the following information.

1.We have created a simple directory short, sweet and to the point divided up into 3 credit categories – Good, Average & Poor. We do not want you to waste your time with endless searches, you know what your credit is, therefore go strait to the people that deal with your level of credit.

2. In the online loan & home refinance area we only recommend 5 Loan websites out of the hundreds we've looked at, as they are the only ones that have met our stringent standards to be sources for safe & fast loans. They actually have dedicated representatives to help you find the loan that suits you.

As you know, costumer service is the name of the game

and we have verified that these companies live up to our standard.

So go ahead and check out our recommendations below,

and see which one you feel suits you the best.

Best Regards,

Max Howard CA, Source