Archive for February, 2007
Do you qualify for Prime Lending Rates
The Prime Lending Rate is normally available to borrowers where their profile would match all the requirements set out in each of the following categories.
CREDIT RECORD
The Prime Lending Rate would be offered to borrowers who have demonstrated their ability to satisfactorily service both existing credit commitments and mortgage / rent payments.
EMPLOYMENT / SELF EMPLOYMENT - INCOME VERIFICATION
To qualify for the Prime Lending Rate borrowers must be able to provide evidence of income. This would normally be income considered for taxation.
RESIDENCY
Borrowers would be expected to provide proof of residency for recent years in order to qualify for the Prime Lending Rate. Acceptable proof of residency could be council tax bill or utility bills.
AFFORDABILITY
The Prime Lending Rate is available to borrowers where the debt to income ratio is acceptable to The Lender. All Lenders have their own underwriting criteria which sets out maximum levels of borrowing based on income. In their calculation existing commitments are taken into account.
You may freely reprint this article subject to the following conditions. The full content of this web page must be copied in its entirety to include the author biography and live hyperlinks.
Author Biography
Nigel Uglow is Lending Director of Flagstone Finance Ltd
With over 30 years experience in the Mortgage & Finance Industry
Directly Authorised by the Financial Services Authority
Lawmakers Seek to Halt Mortgages to Some Immigrants
WASHINGTON - New legislation on Capitol Hill seeks to curb an increasingly popular mortgage concept: providing home loans to applicants using their Individual Taxpayer Identification Number (ITIN), in lieu of a Social Security number.
ITINs are issued by the Internal Revenue Service to assist immigrant workers who do not qualify for a Social Security number — but do have taxable income — to report their income and pay federal taxes.
Dozens of banks around the country have begun offering home mortgages to undocumented immigrants using ITINs, but their programs generally have been low-key and small in volume. Bank of America stirred controversy earlier this month when it announced a pilot program in Los Angeles to provide credit cards to resident alien customers who lack Social Security numbers but have ITINs.
Some critics charged that the bank was seeking to profit by helping illegal immigrants. Bank of America said its program is legal, and may be rolled out nationwide if the pilot is successful.
Now a bill has been introduced in Congress that would prohibit financial institutions from providing home mortgages to anyone who lacks a Social Security number. The bill (H.R. 480), introduced by Rep. John Doolittle, R-Granite Bay, would amend the Truth in Lending Act to make ITIN mortgage lending illegal.
Doolittle’s office released a statement which said in part: “The government should not be in the business of creating incentives to encourage illegal behavior. Nor should companies be permitted to reward those individuals in clear violation of our laws.”
Proponents of ITIN-based lending to home buyers say Doolittle has it all wrong. Tim Sandos, president and chief executive of the National Association of Hispanic Real Estate Professionals, said Doolittle’s bill would be “extremely disruptive,” and affect far more people than the illegal immigrants the measure purports to target.
Sandos estimates there are as many as 7 million to 8 million resident aliens in the United States who do not have Social Security cards, but are in some phase of the immigration process leading to citizenship. That process can take years — often more than eight years — and “meanwhile, these individuals are working here, earning incomes, paying taxes, contributing to the economy.”
They “are not illegal,” said Sandos, “they are undocumented. The government knows exactly who they are and where they are.” Doolittle’s bill, he added, “is the equivalent of trying to drive a tack with a sledgehammer.” Sandos’ group, which is composed of Latino and non-Latino representatives of banks, real estate firms, developers, home builders and real estate service providers, conducted a study which concluded that if mortgage companies made greater use of ITINs to extend home loans to qualified buyers, $44 billion in new mortgages — primarily to first-time buyers — could be originated.
Geoffrey F. Cooper, director of emerging markets for MGIC Investment, a major private mortgage insurance firm, said lenders in roughly 40 states already are making mortgages to customers using ITINs. MGIC’s role is to provide insurance against losses to lenders in the event borrowers default or go to foreclosure.
Cooper said his company’s program was initiated at the request of community banks and other local lending institutions that found many of their customers who lacked Social Security numbers — but had ITINs for tax purposes — earned solid incomes, had stable employment histories and excellent payment histories on debt obligations.
Under MGIC’s program, underwriting standards are strict, with mandatory documentation of income, assets, residency and other criteria — stricter standards, in fact, than many lenders impose on applicants who have Social Security cards.
Home buyers with ITIN mortgages “perform like ‘A’ credit borrowers,” said Cooper, and they qualify for MGIC’s favorable “A-premium” insurance rates because they are so dependable.
Janis Bowdler, senior housing policy analyst for the National Council of La Raza, a Hispanic advocacy group, said the home buyers who use ITIN mortgages should be seen simply as “hardworking, taxpaying families who want to participate in the American dream,” even if they do not yet have Social Security numbers because of their immigration status.
Sandos noted that making Social Security numbers mandatory to obtain a mortgage also could affect the ability of Asian, European, South American and other foreign investors who simply want to buy a house or condominium in the United States for periodic visits, but not full-time residency. That, in turn, could prompt foreign governments to impose restrictions on the ability of U.S. citizens to buy real estate abroad.
Bob Roscoe, Mortgage Marketing Associates, Minneapolis, Minnesota
Mortgage Rate History
NEW 4.84% Mortgage / Remortgage Product
7.34% current variable rate terms for rest of mortgage…
7.3% APR is the overall cost for comparison
Fast Track Discount Mortgage service
No Higher Lending Charge
Early Repayment Charge payable if you repay all or part of mortgage within first 2 years
A fee is payable on completion, typically 0.5% of the mortgage amount and not to exceed £750
Your home may be repossessed if you do not keep up repayments on your mortgage
Provide Us With The Opportunity To Assist In Placing Your Mortgage Enquiry
APPLY NOW - CLICK HERE
VIEW SELECTION OF SIMILAR PRODUCTS - Flagstone Finance Ltd
MAKE TELEPHONE APPLICATION - Tel 01923 840995 ( 8.0 am - 9.0 pm 7 days )
Which Mortgage Lender to Choose
The profile and needs of a borrower vary considerably but virtually all will fit into one of the following four categories. It is therefore imperative at the outset of any mortgage application care is taken to ensure the Mortgage Lender will accept this category of lending.
CATEGORY ONE - PRIME WITH VERIFIED INCOME
The Mortgage Lender definition of Prime is a borrower with a clean credit profile. This would normally be interpreted as servicing all financial commitments without default.Verified income would normally be interpreted as evidence of taxable income. Examples would normally be pay slips, P60, accounts etc.
CATEGORY TWO - PRIME WITH SELF CERTIFIED INCOME
The Mortgage Lender definition of Prime is a borrower with a clean credit profile. This would normally be interpreted as servicing all financial commitments without default. Self Certified income would normally be interpreted as income declared by the borrower where further verification is not required.
CATEGORY THREE - SUB PRIME WITH VERIFIED INCOME
The Mortgage Lender definition of sub prime is a borrower without a clean credit profile. This would normally be interpreted as various levels of default in servicing financial commitments.Verified income would normally be interpreted as evidence of taxable income. Examples would normally be pay slips, P60, accounts etc.
CATEGORY FOUR - SUB PRIME WITH SELF CERTIFIED INCOME
The Mortgage Lender definition of sub prime is a borrower without a clean credit profile. This would normally be interpreted as various levels of default in servicing financial commitments. Self Certified income would normally be interpreted as income declared by the borrower where further verification is not required.
You may freely reprint this article subject to the following conditions. The full content of this web page must be copied in its entirety to include the author biography and live hyperlinks.
Author Biography
• Nigel Uglow is Lending Director of Flagstone Finance Ltd
• With over 25 years experience in the Mortgage & Finance Industry
• Directly Authorised by Financial Services Authority
Provide Us With The Opportunity To Assist In Placing Your Mortgage Lender Enquiry
Apply Now - CLICK HERE
How interest rate effects your secured loans ?
As the name suggests, secured loans are secured against your property; so, you are charged low interest rates on your borrowing amount. This loan not only enables you to acquire fast cash but also ensures you a flexible repayment term with smaller monthly repayments.Secured loans can be borrowed at a favorable interest rate by keeping any property as collateral against the loan amount. It means that even if you have poor credit score, you will be eligible for borrowing this loan.
Secured loan rates are of two types:
Based on your financial circumstances and convenience, you can choose the type of interest rate and avail the loan.When you pay the loan at a fixed rate of interest that is fixed rate secured loans and other one is Variable rate secured loans.If you take secured home loans at a variable rate, your repayments will be affected with the change in the financial market.
While searching low apr secured loans
A small research will be beneficial for you when applying for secured loans. You should know about the loan package and its all terms. The most convenienent and time saving way is to search various financial websites where loan experts give you free quotes and comparisons, advices, and its related information. It helps you choosing best available secured loan matching your loan requirement.
Bad Credit Secured Loans-Best Loans To Improve Your Credit History
Bad credit secured loan as other secured loan is secured against the amount. But this loan is especially targeted to the people with bad credit history who have no other option left rather than going for such bad credit loans. These bad credit secured loans not only assist the person in their financial crisis but also help them to improve their credit rating.Be carefull While choosing lender
The person must be careful in choosing the lender. The person is also recommended to take professional advice from any expert or the credit counselor before reaching the decision. Sometimes the lender may mislead you by offering certain gifts, incentives or even by lower rate of interest. But the person should make choice wisely that by considering the whole cost of the loan. He must see that the loan must be cheap throughout the life of the loan rather than cheap in the beginning.