Mortgage & Home News

FED Chairman Ben Bernanke’s Childhood Home Is Sold After Foreclosure

David — Sat, 21 Mar 2009 10:47:53 +0000

Travis Jackson walks through his modest ranch house, admiring the kitchen’s built-in spice rack and the red-oak floors. He draws back the curtains, and sunlight illuminates the pride on his face.

The young banker just bought Federal Reserve Chairman Ben Bernanke’s childhood home at a foreclosure sale.

“This is where it all happened,” marvels Mr. Jackson, a 27-year-old loan officer at First Citizens Bancorp, which is down the street from the old Bernanke place. “Kind of a surreal feeling, isn’t it?”

Mr. Bernanke’s family sold the property more than a decade ago. It ended up on the block late last year after its former owners fell behind on their mortgage payments.

The small town that gave the Fed its chairman is suffering more than most from the financial and economic crisis he’s struggling to fix. Already hit by the long decline of the local tobacco and textile industries, Dillon County is facing a fresh assault of plant closings and layoffs that have pushed its unemployment rate to 14.2% — almost double the national average.

[ online.wsj.com ]

Tags: foreclosure

Cave Owners Are Next to Face Foreclosure

David — Thu, 26 Feb 2009 10:07:18 +0000

You’ve heard plenty of stories about foreclosures, but the latest victims of this brutal recession are about to lose their cave.

That’s right. For nearly five years, Curt Sleeper and his family have lived in a cave. His mortgage is about to come due and, like millions of other Americans, he can’t refinance.

So now, the 17,000-square-foot, subterranean home is being auctioned off on eBay. Sleeper and his wife Deborah bought the cave outside St. Louis in May 2004 for $160,000. To pay for it, they sold their old home, TV and even the DVD collection. They made a 50 percent down payment and borrowed the other $80,000 from the seller. It was a five-year loan with a single balloon payment at the end. The Sleepers now have until May 1 to pay off the remaining $83,000 or sell the property. It’s not a foreclosure sale yet, but if they can’t come up with the money, they risk losing the house.

Besides the initial $80,000 payment, Sleeper said he spent another $150,000 on renovations to the cave and the surrounding 2.8 acres he owns.

The original plan was to refinance. But Sleeper, a self-employed computer consultant, said banks struggle to appraise the cave since there aren’t any comparable properties nearby or, well any comparable properties at all. So while he might have received a loan two or three years ago, today he is in a bind.

“Right now, banks are not interested in anything odd,” Sleeper said.

[ abcnews.go.com ]

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How to Choose Mortgage Life Insurance Company Online

David — Wed, 18 Feb 2009 09:14:25 +0000

Choosing the right mortgage life insurance company online can be a daunting task, especially if you want your loved ones to truly be protected in the event of your untimely passing. Mortgage life insurance protection is really essential to anyone who is paying on a mortgage, because we never know what can happen in life… and the internet is a great place to shop for this insurance because of the wide range of choices available.

The first thing you will want to do is find some good options. Look up some different choices, compare prices, and find like three or four that you feel good about. Then, really research these final three. Check to see that they are legitimate, look for some third party reviews on the company, and check to make sure that the company is official and professional. Once you have verified that your choices are all legitimate, you are ready to start choosing your plan.

Find out what plans the companies offer, and choose the plan from each company that best suits your needs. If one company doesn’t have a plan for you, than forego it. Once you have picked out plans from all of the companies, than you are now ready to compare prices. Check the plans, prices, etc…. and decide on two companies that would be the cheapest out of your top three or four.

Now, with your decision limited to two companies, do some serious research on each. Call the companies and ask them questions. Ask them how easy it is to file a claim, or ask them what it takes to claim money. Once you have thoroughly researched both of your final choices, you will probably have one that you will feel better about. This is your company.

Choosing the right mortgage life insurance company online can be a bit of a difficult task, but remember, as with any other decision, that the key to making the right choice is careful scrutiny, research, and question asking. This is the best way to choose the right company. Unfortunately, there is no magic company that is the best… but there IS a company that is best for you… and by doing your research and planning carefully, you will find it. This is a true blessing that you can provide your loved ones with in the event of your death, and I believe that if you care enough about the future to do this for your loved ones, than you will do what it takes to choose the right life insurance mortgage company.

Tags: mortgage life insurance

‘A Cop Is Inspecting Foreclosed Home’ - Winner of the World Press Photo of the Year

David — Mon, 16 Feb 2009 09:41:24 +0000

A picture of an armed sheriff moving through an American home after an eviction due to a mortgage foreclosure won the top prize in the World Press Photo competition.

Jury members said the strength of the photo by Anthony Suau for Time magazine was in its opposites - it looks like a classic war photograph, but is simply the eviction of people from a house.

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Chinese Are Going To Buy U.S. Homes

David — Wed, 11 Feb 2009 19:05:25 +0000

Attracted by the real estate plunge on the other side of the globe, Chinese homebuyers are gearing up for visits to the United States this month to buy cheap homes.

A pioneering house-buying team of 20 to 30 people, organized by Soufun.com, one of the largest real estate portals in China, is scheduled to the United States on Feb. 12, according to an article on Soufun.com.

It is said more than 300 Chinese have registered so far on the website for a 10-day house-buying trip.

The U.S. mortgage crisis and the downturn in the global economy have presented people with a golden opportunity, said Liu Jian, an official of the Beijing-based real estate portal.

The trip, which costs up to 25,000 yuan (3,500 U.S. dollars) per person, will focus on cities with huge ethnic Chinese populations including San Francisco, Los Angeles, Las Vegas and New York, Liu said.

The prices of houses targeted by Chinese buyers are between 3 million to 5 million yuan (400,000 to 700,000 U.S. dollars), he said.

The applicants include real estate professionals who want to investigate in the U.S. real estate market, and parents who want to buy houses for their children studying or to study in the United States.

[ news.xinhuanet.com ]

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How an Austrian Man Bought a Luxury Villa Just for $128

David — Wed, 21 Jan 2009 09:19:06 +0000

Walter Egger never had much luck with lotteries. That all changed Tuesday, when he won the raffle of a luxury villa worth more than euro830,000 (about $1 million) in Austria’s southern province of Carinthia.

The 51-year-old father of three, who runs a home for the mentally ill in the Carinthian hamlet of Zweinitz, bought a euro99 ($128) raffle ticket in the hopes of becoming the villa’s new owner.

Raffle organizer and former villa owner Traude Daniel said the 9,999 tickets sold out within days in early December. The 60-year-old said she even got inquiries from as far afield as the United States and Brazil.

“The response was amazing … we got e-mails from around the world,” Daniel said.

Daniel said the 4,305-square-foot house was on the market for about half a year before she came up with the idea of the raffle.

The raffle has inspired several other home owners across the country to try their luck lottery-style.

Juergen Tatscher, who is planning to raffle off his luxury mountain bungalow, says it’s an ideal way to cover one’s costs if selling property the regular way proves to be tough.

“I think it’s a great idea,” Tatscher said.

But not everyone is as enthused.

“I’m skeptical … if people are seriously interested in a particular property, they’ll make a bid the regular way,” said Friedrich Noszek of an association of Austrian property owners.

[AP]

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How to Choose Right Payday Cash Lender Online

David — Fri, 02 Jan 2009 09:55:41 +0000

Getting payday loans online is a practice that is fast gaining popularity with our current tech-savvy generation as a means to meet unexpected payment deadlines without the face to face trouble of the payday loan establishments of yesterday. However, as quick and easy as it is to get a cash advance, these online payday lenders are not always legitimate. It is up to you as a borrower to research the website for yourself and determine whether or not the site is genuine. If it isn’t, you risk getting hammered with high interest rates and getting taken advantage of.

The Payday Loan Reform Law was established to help keep borrowers from getting taken advantage of in the payday loan department, and it is up to you to as a borrower to check the legitimacy of the site and make sure that they follow this law to the letter. There are currently 15 states and the district of Colombia that have ended payday loans at triple digit interest rates, and the rest of the states are enforcing caps of 36% or less. Knowing this, you should never do business with a site that is not meeting these requirements, as not only will you get taken advantage of, but the site is most likely illegitimate.

One good idea is to check consumer reviews on a third party site about the payday lender that you are thinking of using. These can usually offer valuable insight as to whether the lender has done good business, or has taken advantage of people with bad rates or service. Another thing you might want to look up is how the lender stands with the Better Business Bureau. If the lender is in good standing with them, than you can be pretty sure that they are going to be easy and a pleasure to work with.

You should also avoid spam-like email or phishing, because usually the payday lenders who advertise through these methods are not for real. If it is an unknown or suspicious looking site, than it just makes better sense to pass it up. There are many payday lending sites that have a proven track record of excellent service, and you should go with one of these established lenders as opposed to a nobody site. If you take your payday loan needs to an established provider with a track record of satisfied customers, than you are ensuring that your needs can be met successfully, without risk, and you can find the help you need instead of inviting the trouble of unscrupulous lenders.

Tags: loans, risk

Does World Financial Crisis Influences You?

David — Wed, 24 Dec 2008 17:29:11 +0000

Today everybody admits that this world financial crisis managed to change live of everyone. For example, today you can face numerous problems if you would like to take unsecured loans because banks must be 100% sure that you will be able to return the loan in the future. An in case you do not have property or something like that which can be sold very fast you will not be able to get it. This creates huge problems if you would like to buy sell real estate because many people used mortgage loans to pay for them. And because of the problems in the real estate sector which started in the USA and even led to serious problem in the stock market most of the people are not sure that they can be fired today. That is why they can not get loans or buy property.

But anyway everybody must hope for the better because many reports say that economies of many countries will start to grow just in 2009. This will give an opportunity to stabilize the world market and improve financial situation. So everything which is left is to wait for some time when the crisis is over.

Tags: unsecured

US Mortgage Rates Hit 37-Year Low

David — Fri, 19 Dec 2008 19:36:55 +0000

Thirty-year fixed-rate mortgages interest rates fell to their lowest level on record, according to Freddie Mac’s Primary Mortgage Market survey released Thursday.

The national average interest rate for 30-year fixed-rate mortgages was 5.19 percent for the week ending Dec. 18, the lowest level since McLean, Va.-based Freddie Mac (NYSE:FRE) began the survey in 1971.

Rates were down from last week when it averaged 5.47 percent. A year ago, the mortgages averaged 6.14 percent.

The 15-year fixed-rate mortgage averaged 4.92 percent, down from 5.2 percent last week and 5.79 percent a year ago.

The 15-year rates have not been lower since April 1, 2004, when they averaged 4.84 percent.

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Mortgage Rate Hits a 4-Year Low at 5.47%

David — Fri, 12 Dec 2008 18:52:20 +0000

Rates on fixed-rate home mortgages fell again this week, bringing the 30-year fixed-rate to its lowest level in more than four years, according to Freddie Mac’s weekly survey.

No tag for this post.

Maryland Free Mortgage Calculator

David — Sun, 23 Nov 2008 19:52:26 +0000

Are you getting ready to buy a house? Is today’s unsettled financial situation causing you to rethink your decision? Or, maybe you just know so little about mortgage rates, that you don’t really know if you could afford to get that new house or not? Well, let me tell you something. Buying a house is an investment that can pay huge over the long run, and there is a way to understand the complexities of our mortgage rate system that anyone can understand, and it is called the Maryland mortgage calculator.

It has never been so easy to figure out Maryland mortgage rates for you, and now you can finally know for sure whether or not you make enough to make those monthly payments! Did you know that you can get a 30 year fixed loan at a rate of 5.75% at 5.79% Apr? This is correct. Not only is this an incredible deal, but it shows you that Maryland Mortgage rates just might be the best rates available, and if you know to calculate it, that can mean big dollars down the road!

The Maryland mortgage calculator is so easy to use! You simply enter the number of years and the interest. Next, you enter the loan amount. You then enter the annual tax and the annual insurance, then just click “calculate now”. And, presto! The results you get include the monthly principal plus interest, the monthly tax, the monthly insurance, and the total payment!

It has truly never been easier to get the information you so desperately need when preparing to make what could prove to be the biggest decision of your life! So, if you live in Maryland, want to buy a house, and are not sure what to do first, than do this. Decide what loan you would get. Then, check out what it would cost you per month on the Maryland mortgage calculator. Once you have the numbers, you can sit down with your budget, and figure out what it would take to buy your new home!

Whether you are interested in a 15 year fixed, a 5/1 Arm, or even a 30 year Jumbo, odds are that you will have your answer if you sit down, calculate, and make your best personal judgment. It also helps if you get in contact with an authorized professional to discuss your options. They might have advice that you would never think of! So, what are you waiting for? Get out of that place you have been living in, and get the place you really want! Maryland mortgage rates are GOOD, so why wait?

Tags: Maryland, mortgage

Car Loans for People with Bad Credit History

David — Sun, 09 Nov 2008 08:10:10 +0000

Bad credit means that a person has poor credit history, mostly because he or she, being a borrower in the past, has failed to pay off debt or had bankruptcy. People with bad credit are considered to be risky borrowers, that’s why loan interest is always higher for them. Car loan is not an exception.

As a rule, people with bad credit record can’t get a car loan from the bank or credit union because they don’t get approved because of their history. However, it’s not a problem for people with bad credit history to qualify for an auto loan, because usually car dealers cooperate with a couple of credit institutions to provide credit options for all kinds of borrowers.

To qualify for a bad credit loans for cars you need to be an American citizen or a person legally working in the USA, have full employment and documented salary of more than $1,500.

It sometimes happens that the cars sold by some dealers will not be an option for you, because the dealers will not accept your credit application. However, many of the dealers will agree to fund your auto loan initially, but applying for bad credit car loan, be ready to pay higher interest. If the rate is too high, consider extending the length of your loan in order to reduce monthly payments.

Tags: car loans

Credit Card Consolidation - How to Get Rid of Credit Card Debt

David — Sat, 08 Nov 2008 19:23:26 +0000

The growing affordability and high popularity of credit cards make more and more people use them. Therefore it gets harder not only to control spending, but also to pay the interest on every card. This can inevitably lead to increasing credit card debt and thus to bankruptcy. One of the best ways to get rid of your debt is to make credit card consolidation.

All you need to do is to consolidate all your credit card debts on one card. As a rule, people allocate their debt on a low interest card or even on 0% interest card (such interest is usually valid for no more than 12 months). Placing all your debts from different high-interest credit cards on one credit card is usually performed with the help of credit counseling programs or credit institutions which are highly specialized in this industry and wll allow you to get out of debt very quickly. However many people opt to use much riskier ways to pay off debt that can be beneficial, but very dangerous.

If you have a credit card debt, you really need to look for help. Consolidating your credit card debts is one of the options your credit counselor will probably advise you. Another ways to eliminate your credit card debt is to pay cash only, after you’ve paid your bills, and then to make double payments - to pay interest and to reduce debt.

Tags: consolidation, debt

One in Five Homeowners With Mortgages Under Water

David — Tue, 04 Nov 2008 15:33:18 +0000

Nearly one in five U.S. mortgage borrowers owe more to lenders than their homes are worth, and the rate may soon approach one in four as housing prices fall and the economy weakens.

About 7.63 million properties, or 18 percent, had negative equity in September, and another 2.1 million will follow if home prices fall another 5 percent, according to a report by First American CoreLogic.

The data, covering 43 states and Washington, D.C., includes borrowers nationwide, even those who took out mortgages before housing prices began to soar early this decade.

Seven hard-hit states — Arizona, California, Florida, Georgia, Michigan, Nevada and Ohio — had 64 percent of all “underwater” borrowers, but just 41 percent of U.S. mortgages.

reuters.com

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Lower Mortgage Quotes Don’t Boost US Housing Market

David — Thu, 23 Oct 2008 20:18:27 +0000

Easing mortgage rates this week failed to give the beleaguered housing market a boost as potential buyers continue to sit on the sidelines, lacking the confidence to come to the closing table.

Earlier Thursday, Freddie Mac (FRE) said the 30-year fixed-rate mortgage averaged 6.04%, with an average 0.6 point for the week ending Oct. 23. That’s down from last week’s 6.46% and last year’s 6.33%. The weekly drop was the largest since the end of November, 1981.

The Northeast came in with the highest average, 6.11% with the same point average. The Southwest’s 5.99%, with a 0.7 point - what is paid to buy down the mortgage rate - was the lowest. Fifteen-year fixed, meanwhile, averaged 5.72%, with an average 0.6 point, down from last week’s 6.14% and last year’s 5.99%.

The rates fell “amid news of tame inflation and a weaker housing market,” noted Frank Nothaft, Virginia-based Freddie Mac’s vice president and chief economist.

The trend could continue. With 10-year treasury yields down and the credit market beginning to thaw, rates should slip below 6% by this time next week, said Mark Zandi, chief economist of Moody’s Economy.com.

“There are many other problems the housing market is struggling with and these lower rates aren’t going to win the day, but at least they help,” he said, adding that 6% is a psychological “benchmark.”

Even though better rates could help lure buyers into the market - lower rates mean a cheaper payment andhelp with refinancing - the news did little to ease the frazzled market. Shares of Freddie, which has plunged 98% year-to-date, fell nearly 9% to 76 cents, while the Dow Jones US Home Construction Index plunged nearly 18%, dragged down after three major builders detailed painful quarters this week. Beazer Homes USA (BZH) led the decline, with a 27% drop to $2.29. Several of largest saw daily drops topping 20%.

Even if rates drop again next week, consumers still face the same problems. Scores of lenders are now out of business.

The crisis spread to Wall Street, and job losses are mounting: The Wall Street Journal reported that Goldman Sachs Group Inc. (GS) is preparing to cut about 10% of its 32,500 employees, while General Motors (GM) is laying off salaried workers.

That, combined with falling home prices, is adding to a foreclosure glut. Earlier Thursday, RealtyTrac said that third-quarter foreclosure filings - default notices, auction sale notices and bank repossessions - soared 71% from a year earlier. Last month, filings were recorded on one out of every 475 housing units last month.

While buyers are snapping up bargain-priced foreclosures - some selling below replacement cost - mortgage applications filed last week decreased a seasonally adjusted 16.6% from the week earlier, the Mortgage Bankers Association said recently. Weekly application volume hasn’t been lower since the end of 2000.

As it announced the lower average mortgage, Freddie Mac pointed out the home builder’s pain: New construction on one-family homes fell 12% in September to an annual rate of 544,000 homes, the lowest since February 1982; single-family housing starts are 70% below the January 2006 peak; and builder confidence is at an all-time low.

“In short, it’s a tough market that just got more difficult with the current uncertainties,” said

Steven C. Petruska, Pulte Homes Inc.’s (PHM) executive vice president and chief operating officer, during the company’s earnings conference call earlier Thursday.

But one mortgage broker thinks the presidential election will help calm the ” fence sitters,” or people who need to buy a house, but are waiting as prices and rates fall.

“We will see a return probably relatively quickly to normalcy after Nov. 4,” said Ritch Workman, president of the Florida Association of Mortgage Brokers. ” They’ve got their rates, they’ve got their prices. The last thing left is consumer confidence. There’s a period at the end of the sentence finally.”

Tags: home, house, housing market, loan, mortgage, property, risk, us

Home Loan Rates - Closing Costs

David — Sat, 20 Sep 2008 04:15:00 +0000

Closing costs have a significant impact on the home loan rates that is paid when obtaining a new mortgage loan. Here are a few of the major closing costs and how they affect the rate of the loan.

First time home buyers or borrowers are often rather unpleasantly surprised at the time of closing or just prior when the good faith estimate of closing costs is received. These closing costs can sometime add a significant cost to the dollar amount that the borrower is expected to provide to clear the escrow account at the time of closing or shortly thereafter. The home loan rates are not directly tied to each of the closing costs, but indirectly, you will pay the closing costs. You should make sure you realize and understand each of these costs and how they impact your total cost of the loan.

Definitions

'Closing costs' is just one of the definitions that you should understand when considering obtaining a home loan. The 'home loan rates' is another. Closing costs are expenses related to the obtaining of the loan, such as document preparation, title search, appraisals, and various other expenses. These costs are typically listed as part of the closing process on the loan. The closing of the mortgage at the title company or with the loan officer will spell out each of these costs and who is responsible for payment of the cost at closing.

Title search

One of the responsibilities that must be met is a search by a title company of court records to insure that the ownership or title to the home in question is clear. They will be looking at sales and deed records to determine that the sellers actually have the legal authority to sell the property. There is a fee charged by the title company to conduct this search. The clear title means that the title company can guarantee the title is correct and that you will have a clear title to the property in question after closing. The title company actually provides a type of insurance, known as title insurance. The cost of the title insurance is one of the closing costs built into the home loan rates.

Origination fees

Another factor in the home loan rates is that of origination fees. These are costs associated with the work the lender or broker does in opening an application file and working to collect and pass on all the necessary documentation required to complete the loan according to the contract. These fees can be sizable or modest, depending upon the broker, but in most cases are negotiable also that fact is not commonly known.

Points

The borrower may be required to pay 'points' as part of the loan fees. There are two types of points that you may be asked to cover. Origination points are the fees you pay your broker or lender to secure the loan while discount points are essentially interest that you prepay in order to manage the best interest rates on your loan. Both types of points are usually paid at the home of closing. Payment of the discount points can significantly lower your home loan rates meaning thousands of dollars less in cost over the life of the loan.

In order get more information about Home Loan Rates or Home Loan , visit the website located at http://www.homemortgageloan-refinance.com . Here you can learn about interest rates, types of mortgages and related subjects in an easy-to-understand format.No tag for this post.

Another mortgagee / tenant eviction case

David — Tue, 09 Sep 2008 20:54:00 +0000

I have another mortgagee evicting innocent tenant case for you. Here I was consulted by the letting agent who had been contacted by the distressed tenant. She had just found out she was being evicted, after having received the normal notice which is served on the occupier of the property in these cases. My client was furious as he felt that the landlord had deceived him, plus he was concerned that this situation would reflect badly on his agency business, although it was no fault of his. The property had apparently been owned by the landlord for some time, had been previously rented out by another agency, and there was nothing to alert him to the mortgage problems, otherwise (he told me) he would never have taken the property on.

His main concern was for the tenant however, and he attended Court where he spoke to the Judge about the case.

Apparently this was a second mortgage, and the mortgage company had not been paid since the tenancy started three months ago. The agent asked the Judge, on behalf of the tenant, if he would grant a stay or make a 56 day order, to allow the tenant to continue to live in the property until the end of her tenancy. The solicitor for the mortgagee asked for a 28 day possession order. After considering matters the Judge decided to make a 28 day order. However the tenant will have in the region of 2 months in the property before any bailiffs appointment, which will allow her time to find somewhere else to live (although apparently she had fallen in love with the property and will be sad to leave).

I suggested to the agent that he might want to review his agency terms and conditions and consider including a clause (assuming there is not one there already) specifically providing for the landlord to warrant that all mortgage payments for the property were fully paid up and would continue to be paid for the period of the tenancy. This would mean that if the landlord did default, he would be in breach of his agency agreement, which might give the agent more freedom of action. Agents might also want to consider calling for proof that the mortgage is paid up when taking on new instructions, so as to avoid a situation such as that in my previous post , where an order for possession had been made before the property was ever let to the tenant.

With the property crisis deepening, we will probably be seeing more and more of these sad cases.No tag for this post.

ARMs Length?

David — Tue, 02 Sep 2008 21:46:00 +0000

Millions of Home Owners are facing the dilemma right now to decide whether or not to Refinance their Adjustable Rate Mortgages. If you are one of the few that have around the 4.0% Rate, when your ARM adjusts, you may only increase to 6%. Most people that have ARM Loans are in the 5.50% - 5.875% range. Standard ARM Loans have a 2% Maximum Cap on increases each year. Some may go up 1% every 6 months, others may go up 2% at one time! If your current rate is at 5.875% you may adjust up to 7.875%! This huge jump will drastically increase your monthly payment!
Do you have a Negative Amortized Loan or the Payment Option ARM Loan? If so, you may probably be in an even worse situation. You could possibly owe more now than what your original Mortgage was taken out for, or even owe more than the current value of your property!
Now is the time to look at your refinancing choices! There are new Loan Programs from FHA and Conventional Programs available to help refinancing out of your ARM, Neg Am or Pay Option ARM Loans. I will meet with you and go over your current situation, review your Mortgage Note and find you a new Loan that will be fixed, stable and help with your Monthly Budget. Please give me a call direct at 763-557-5608 or stop in to see me at Bremer Bank – Plymouth Branch.
If you or anyone you know are interested in buying a new property, or refinancing a current property, please call me at 763-557-5608. To start the Pre-Approval process, please stop in at the Bremer Bank -Plymouth Branch. I will be happy to answer any questions you have.
Referrals to family, friends, neighbors and business associates are always appreciated and welcome!
Regards,
StevenNo tag for this post.

Home Loan Rates - ARM or Fixed?

David — Fri, 22 Aug 2008 05:54:00 +0000

This article defines the characteristics of and differences between the two major types of a home loan rates. It also discusses some of the advantages and disadvantages of each.

There are many ways to structure home loan rates, but the two most common type of loan structures are the Fixed Rate Mortgage and the Adjustable Rate Mortgage. The type of mortgage rate that you choose will depend upon your own situation. The interest rate is the amount the loan costs you over time and varies according to the initial rate set or according to the changes in the index rate applied to your loan. The fixed rate loan will carry the same interest rate throughout the life of the loan, while the ARM changes according to a predetermined index rate.

Definitions

There are two major types of mortgage loans. Home loan rate that is set at the beginning of the loan and doesn't change during the course of the loan is known as a fixed rate loan, for obvious reasons. The loan rate is often based on what the economy is doing at the time. Lenders want to protect themselves if there is an indication that loan rates may change drastically during the course of the loan.

The adjustable rate mortgage is flexible and helps to protect the lender in situations where the interest rates are rising over a period of time. If the increased in rates reach a certain level, the lender is allowed to adjust the interest rate and thus the payment amount upward for the balance of the loan term

ARM Advantages and Disadvantages

The ARM is relatively new on the home loan rates picture. The ARM or adjustable rate mortgage was created at a time when fixed mortgage rates were high. The ARM allowed initial interest rates to be set lower than the prevailing fixed rates and to be adjusted upward according to a predetermined formula in the future. For example, the ARM might be set with the rate two points lower than the fixed mortgage rates at the time with the provision that after two years, the rate would be adjusted in accordance with a predetermined index in the future. More borrowers could qualify to obtain the loan, while the lenders didn't have increased risk so long as the interest rates or index were increasing.

Fixed Rate Advantages and Disadvantages

Fixed rates are often set slightly higher than ARMs in order to lock in a loan rate when rates are rising so that the lender doesn't lose money on the opportunity to lend money at higher interest rates. At the same time, with a fixed rate, if the rates are falling, the lender has the older fixed rate loans that are bringing more interest money than the current loan. Fixed rate type home loan rates packages are believed to be more favorable to the borrower than the lender.

Another advantage of the fixed rate loan is structure. You can not be priced out of your home by increasingly painful mortgage rate adjustments with corresponding payment amount adjustments. This makes it easier to budget and to plan your expenditures over a longer period of time.

Visit the web site located http://www.homemortgageloan-refinance.com/Fixed-or-Adjustable-Home-Loan-Rate--and-%238211%3B-Factors-To-Consider-When-Choosing-One.php for the best information about common Home Loan Rates or Home Loan types such as fixed rate and adjustable rate mortgages.No tag for this post.

Cuffo Online Mortgage Quotes

David — Mon, 18 Aug 2008 23:58:00 +0000

Cuffo Online Mortgage Quotes.
Several websites overture free ride online mortgage quotes owing to one of their vital mesh quality.

These sites are major oftentimes than not online mortgage companies who proposition the services of their loan advisors to generate online mortgage quotes for their customers. Websites that suggestion complimentary online mortgage quotes may not always put on online mortgage lenders. Sometimes, these websites are apart associated dissemble a network of online lenders.

When a consumer uses their for free characteristic, the online mortgage quotes that they prepare comes from these associated lenders.No tag for this post.

New Home Mortgage - Choosing the Right Mortgage

David — Sat, 09 Aug 2008 02:50:00 +0000

Since a new home mortgage is probably the largest financial obligation most people will make during their lifetime, it is important to select the right mortgage. You want one that provides payments that will fit within your budget and helps you achieve the goal of home ownership.

What kinds of mortgages are available?

The major types of loans that borrowers find available include fixed rate mortgages, adjustable rate mortgages, interest only mortgage, negative amortization mortgage and balloon payment mortgage. Each of these new home mortgage types has different advantages and disadvantages. Selecting the right mortgage for your particular financial situation should be done after reviewing the major factors in each of the above loan types to find one that fits. Be sure you have looked at the immediate results of a specific mortgage type as well as the long term effects of the loan. Three years into the mortgage payment period is not the time to discover you can't afford the loan.

How much can you afford?

This is a critical factor in choosing a new home mortgage that will enable you to meet your financial obligations easily without undue financial stress on you and your family. Lenders often use a guideline for affordability of your proposed home purchase based on 2.5 times your annual salary, but this figure can vary depending on the lender and upon the level of your income. It may also be affected by other characteristics such as your credit score, the economy of the region or the country, and whether it is a new home or a pre-owned home.

What other factors enter into the type of mortgage selected?

In addition to reviewing your ability to repay the new home mortgage, other factors are important in selecting the mortgage type for which you should apply. For example, your past history in managing your credit obligations may be a factor in choosing your new mortgage. You will also need to look at your debt load and whether you have excessive credit card debt or other payments. Your job history may be reviewed to see whether you typically stay with an employer or whether you bounce from job to job. If you have moved several times in the recent two year period, you will probably need to be able to explain why that was necessary to a potential lender.

Your credit score

Your credit bureau score often called the FICO score is a representation of your creditworthiness as perceived by the three major credit bureaus. Lenders often use the FICO score in determining your qualification for various types of mortgage loans. When you have a low FICO score, the type of new home mortgage that you can qualify for may be limited. Conversely, you have more options both in the type of mortgages that are available to you and the terms of the mortgage when your credit score or FICO score is high.

Saving money on your mortgage

No matter which type of new home mortgage that you select, there are ways to reduce the cost of the mortgage. For example, you can lower total interest costs by reducing the term of the loan, such as getting a 25 year loan instead of a 30 year loan. This can save a significant amount in overall costs.

Selection of a new home loan is facilitated by finding internet resources that provide information and assistance about the subject. One of the best sites for the subject of home loans is located at New Home Mortgage or Home Mortgage .No tag for this post.

Property Mortgage Insurance. Accordingly what is property mortgage insurance?

David — Tue, 29 Jul 2008 21:59:00 +0000

Property mortgage insurance. When youre on the concernment considering a mortgage, you hold homely stumbled upon this period exceeding than a copulate of times. Accordingly what is property mortgage insurance?
roperty Mortgage Insurance Connotation
Property mortgage insurance is a hopefulness labor that financially insures lenders censure termination should problems transpire further the borrower defaults on a mortgage. Property mortgage insurance also provides lee from ending when a lender is forced to foreclose on a property. Monopoly addendum, property mortgage insurance reduces or eliminates the euthanasia to the lender when a borrower constraint no longer detain developing duck his daybook mortgage payments.No tag for this post.

New Home Mortgage : How Your Credit Score Affects Your Loan

David — Sat, 26 Jul 2008 02:56:00 +0000

A credit score is a representative number calculated by each of the credit bureaus, including the three major bureaus that purport to show potential lenders how good or poor a risk you are. When you apply for a new home mortgage, the credit score will affect your ability to obtain a loan.

Ability to obtain a loan

The first indication that there may be a problem with your credit score might be when you try to obtain a new home mortgage and are unable to find a lender that will talk to you. Actually, most people, even those with a really low credit score will be able to find a loan of some sort to purchase their home. It just may cost a lot more in interest rates than you had planned. If you can obtain a loan, it may take more justification and documentation than would be required with a good credit score.

Which lender to select

If your credit score is too low, you may not be able to get a new home mortgage with your lender of choice. The difficulty with having to switch to another lender is that you need to document your second try just as thoroughly as your first effort. In the meantime, because of the reviews on your credit bureau report, your score may actually drop, particularly if the report that the first lender denied you credit before the second lender is approved hits the report. The extra time to document your information for the lender can be one of the most discouraging parts of applying for a mortgage loan.

Loan term

The length of time that you will set in order to complete repayment of your new home mortgage loan will be affected by your credit score. This factor is probably of less significance than some of the others, but still must be taken into consideration. The direct impact is caused when a low credit score causes the requirement of higher interest rate. This may make the payment too high for the borrower if the shorter term loan is selected. So, the borrower ends up paying more interest over a longer loan term just to keep the payment within manageable levels.

Loan rate

The new home mortgage loan will almost certainly be impacted by the credit score of the borrower. Generally, the lower the score, the higher the interest rate. If the score is too low, the borrower may not be able to obtain a conventional home mortgage at all. Conversely, better terms will be available to the borrower who has high credit scores. It is important to know your credit score and make certain that the reports by the major credit bureaus are cleaned up and accurate.

Type of loan

Another way in which the level of your credit score affects the new home mortgage loan you can obtain is in the type of loan that is available. The major types of loans that are available include adjustable rate mortgage, fixed rate mortgage and balloon payment type mortgages--usually paired with ARMs. Again, sometimes lenders will steer the borrower to an adjustable rate mortgage so that increasing interest rates will be borne at least in part by the borrower rather than the lender. The borrower should avoid getting into a loan that results in negative equity in the property.

Finding resources on the internet to help you obtain information about a New Home Mortgage or Home Mortgage is simple when you take advantage of the links available at http://www.homemortgageloan-refinance.com . Know what to look for and where to find it with this all purpose website.No tag for this post.

Home Loan Rate : Facts You Should Know About Adjustable Rate Mortgage

David — Fri, 18 Jul 2008 05:47:00 +0000

An adjustable rate mortgage makes a different in the amount of the home loan rate that you qualify for in purchasing a house and obtaining a mortgage loan. The adjustable rate mortgage or ARM allows for lower monthly payments initially.

Definition

An ARM or adjustable rate mortgage is a type of mortgage loan where the home loan rate fluctuates periodically depending on any of an index measurements. Common indexes used include Prime rate plus x, LIBOR (London Interbank offered rate) or other index, including one developed by the lender. This causes the payment amount to vary or the term of the loan to vary to cover the increased (or sometimes decreased) amounts owed. Adjustable rate mortgages have the effect of transferring part of the risk of making the loan from the lender to the borrower. The rates of ARMs usually start lower, but can increase at a much faster rate than the borrower is prepared to cover.

Advantages

In times of expanding earnings and economy, adjustable rate mortgages are a good deal for the borrower, because it allows them to get a larger loan than they would have been able to afford otherwise. The home loan rate starts out at a lower level and then increases (usually) after a waiting period to keep pace with increasing interest rates. The ease of obtaining an adjustable rate mortgage and the lower payments in the beginning are two major advantages of this type of loan. If the borrower's income increases over time, the ARM is the ideal way to get started with home ownership.

Disadvantages

The major disadvantage of obtaining a mortgage with a home loan rate that is tied to an outside index is that in most instances, the rates increase over time. If the borrower has obtained a loan with payments at the top end of the borrowing capability, and the interest rates on the loan rise dramatically, the borrower may find that pay raises or earning capacity have not increased as rapidly as the payments on the mortgage loan. It can be very easy to find oneself in a foreclosure mode when this happens.

Prime rate

The prime rate, or the rate at which the best banks can borrow money is one of the favorite indexes used to calculate the home loan rate. For instance, the mortgage loan may be listed as prime rate plus two percent. If the mortgage loan is an adjustable rate mortgage, the loan may be structured to start at prime rate plus two percent. If the prime rate increases by one quarter percent, the loan can be increased over time to cost the extra one quarter percent. Usually, the amount cannot be increased more than so many times in a time period. There is also usually a top limit to growth for the loan payment.

How are they obtained?

Any mortgage lender can agree to lend the borrower money using an adjustable rate mortgage. In fact, lenders approve of such loans since they remove part of the risk of lending money from the lender and place it upon the borrower. When the home loan rate increases to the lender, it can in turn be passed on to the borrower. Personal financial advisors often suggest that adjustable rate mortgage are something to be very sure you understand what you are getting and what can go wrong.

Choosing a home loan rate is easy, understanding what it is and what your options for obtaining a good rate is something entirely different. Check out a good web site for the best resources on the internet. Click here at Home Loan Rate or Home Loan to learn more.No tag for this post.

Home Loan Rate : What Can You Afford?

David — Fri, 11 Jul 2008 05:43:00 +0000

The question of what a home is worth versus what you can afford is one that can best be answered by reviewing some of the factors that go into the determination of what size of a home loan rate will best fit within your budget.

Amortization Schedule

The amortization schedule is typically a part of the loan documents package that you will receive when you sign the papers on your loan. The home loan rate amortization scheduled tells you each payment period what the amount of your total payment is and what portion of the payment goes toward principal and what portion is retained to pay the monthly interest. Each month, if the payment is monthly, the amount of the payment going toward the interest is smaller and the amount going to pay against the principal is larger. If you pay extra against the principal, the results are even more noticeable.

Income to Debt ratio

Another factor that helps you to know what you can afford is a measurement by the mortgage company when preparing the amount of your home loan rate. This is your income to debt ratio. Credit bureaus often include this figure in their report to the lender. The calculation to determine whether or not you qualify for one of the best rate loans depends on factors such as the income to debt ratio. In recent years, the debt to available credit has been used more widely to measure affordability of the mortgage loan.

Credit capability

The amount you can afford on your home loan rate is certainly driven by the credit history and capability of the prospective borrowers. The person with a high credit score can qualify for a better deal on the loan terms than one with a low or non-existent score. Even with a very good score from the credit bureaus, you should not over extend the size of the loan which you negotiate. By taking on too much debt, you can place yourself in a position where you are only a few days and a weekly paycheck away from being in trouble financially and those type of stressors are not healthy.

Market Value

The market value of the house you purchase is essentially whatever you are prepared to pay for the property. Your home loan rate doesn't depend directly on the market value, but indirectly is a factor in determining whether you can afford a specific loan and the terms associated with it. Sometimes the market value is based on what neighborhood properties that are similar in design are selling for. A real estate buyer's agent can help you to determine what the market value of a particular property would be.

Assessed value

The assessed value of the home doesn't have a direct bearing on whether you can afford the home loan rate of a specific piece of property, but it does make a difference indirectly. When the county tax assessor looks at the value of the house, it is known as the assessed value of the property. The assessed value is typically quite different than the market value of the property. The assessed value is driven by such things as the value of other houses in the neighborhood, and what the market price of the previous property sale was pegged at.

Finding a web site that contains a wealth of resources to help you in your search for the best Home Loan Rate is not difficult. Just log in to http://www.homemortgageloan-refinance.com and take advantage of all the tips, links and helps you will find there.No tag for this post.

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