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What You Need to Know About UK Mortgages as a First Time Buyer
2008-07-15 12:36:00 The time has come for you to buy a house, but for a first time buyer, the housing market can be frightening and confusing. Unethical lenders may try to ensnare you with high interest rates and a loan that will have you paying for years. Many houses are priced out of the range affordable by first time buyers. The market for mortgage loans fluctuates every year, the interest rates rising and falling without apparent rhyme or reason. All these things make finding a good deal on a house difficult.A first time buyer should consider a number of factors before going to purchase a property, such as how much they will be permitted to borrow, how much they can afford to pay per month, the initial cash outlay for fees and deposit, and what kind of mortgage they ought to use. A mortgage broker, who will act as an intermediary to find you the right mortgage, can help immensely to ease this process. It can be dangerous to borrow too much money to buy a house, no matter how tempting the idea of ho...
Your Options with Adjustable Rate Mortgages
2008-07-15 04:23:00 Adjustable rate mortgages, also called ARMs, are a useful kind of mortgage for people in certain situations. Their set terms and plans can help you decide what kind of loan to get when you buy a new home or refinance your existing one.An ARM provides flexibility, changing throughout the term of your mortgage. These changes are dependent on prevailing interest rates, and the guidelines and requirements of your lender. Generally, it starts at a lower rate than a traditional mortgage, then will fluctuate throughout the term of your loan. If you'd like to get this kind of mortgage, remember to consider several factors.An adjustable rate mortgage is based on the idea of being able to have lower mortgage payments compared to a fixed rate loan. This means that mortgage lenders can offer lower prices to those who might not ordinarily be able to afford one. The rate will stay the same over a predetermined period, then change afterwards. How long this period is will depend on your individual...
Guide to Buy-to-Let Mortgages
2008-07-14 04:37:00 One of the most popular areas of property development in recent years has been the buy-to-let facility. Favoring both professional property developers, as well as savvy consumers who can afford to do this, it allows a mortgage to be taken out for the sole reason of letting the property immediately.With recent figures showing the average price of a house in the United Kingdom now a staggering 167,000 GBP, it's becoming increasingly difficult for people to buy a home, especially in the first-time buyer's market. This has led to a dramatic increase in people choosing to rent a property, as opposed to buying, while they try and save for a deposit for a new home. Men and women are also choosing to stay single these days, as opposed to living with someone or marrying them, therefore leading to an increase in demand in the rental market as well. The benefits of someone taking a buy-to-let mortgage out are numerous. With interest rates in the United Kingdom at a good high, buy-to-let is a...
Sub Prime Mortgages: Baseless Commitments
2008-07-08 05:40:00 "Waiter, I'll have a sub-prime steak; make it medium-rare". Order with those words and your waiter will check you for two heads. If you eat meat, you want the prime-cuts. In fact, no one wants sub-par unless you're playing golf.So what motivates mortgage loan officers toward sub-prime lenders? Money of course! Typical capital formula: the greater the risk the greater the return.Mortgage lenders weigh risk, return, and value. They risk loaning money that may or may not get repaid. They risk loaning money at a rate that falls well below fluctuating interest rates over 30 years. They risk loaning money on real estate properties that lose value.High risk loans recommend high rewards. Commissions are issued and the home buyer or refinance candidate gets or keeps their home. Suspicious lending practices put the buyer at risk. The loan document may bury the facts. "Just sign here. You can move into your new house next Monday." No reason to heed "truth-in-lending"; get the sale, "seal the...
Complex Mortgages Complicate Issue Of Ownership In Foreclosures
2008-06-24 09:32:00 Usually, when distressed homeowners abandon a property when they are unable to keep up with mortgage payments, the lender takes over possession. The home is then rapidly disposed of through foreclosure auctions so that the losses are minimised and unpaid dues recovered. Recently however, more and more abandoned houses are being shunned by the lenders ...
Commercial Real Estate Investing - The Refinance Nightmare
2008-06-08 19:28:00 Howdy from the metropolis of Cedar Crest, New Mexico. I just got back from my father-son retreat with my boys Colt (9) and Dakota (7). It was fun to hang out with other fathers but it was a lot more fun to be with my boys when they wanted to hang out with me. I was competing with their friends for time. What is up with that? When did I become ?not cool?? I am thirty seven years old! I am too young to be ?not cool? ?right? Anyway?. I am currently refinancing my shopping center in Southwest Texas. I am on my second attempt to refinance and I have been trying to do so for six months now. The shopping center is a solid performer with regards to cash flow, tenant strength and occupancy (100%). It is also in a great city with regards to the local economy. So?what is the problem? Where do I start? There are a plethora of items that I did not see coming…NO ONE did. But from what I understand?.my mortgage broker(s) are telling me about a ?perfect storm?: Interest rates are ...
Dang it. I meant to hit forward, not reply all
2008-06-07 17:55:00 Angelo Mozillo, chairman of Countrywide, called a customer seeking loan modification “disgusting,” when he accidentally replied to his email rather than forwarding it to his staff. The customer had gotten Mozillo’s email address off of Loan Safe (a forum I blogged about earlier), and then used one of the Forum’s templates to request the modification. View the entire ...
No End In Sight For U.S. Banking Crisis
2008-06-07 05:31:00 The Wall Street Journal, with a little bit of help from federal regulators, managed to torpedo hopes earlier today that the United States was approaching an end to a banking crisis brought on by the housing bust. Michael Corkery, Jonathan Karp, and Damian Paletta wrote: Until now, most of the damage to banks from the ...
By: Boom2Bust.com
All Good Housing News, All The Time
2008-06-07 02:43:00 It amazes me how much adults can revert back to acting like children. Confronted with a harsh economic reality, I see more and more people refusing to acknowledge what is actually going on around them. On a day when the New York Times ran a story that said almost one in eleven mortgages ...
By: Boom2Bust.com
Bailouts and moral hazard
2008-06-06 13:09:00 This from CNBC: Lacker: Fed May Have Made Financial Markets Worse Federal Reserve intervention to calm financial market panic runs a moral hazard risk of encouraging more reckless behavior and may make matters worse in the future, a top Fed policy-maker said. Richmond Federal Reserve Bank President Jeffrey Lacker, in a telephone interview, also said saving troubled U.S. ...
By: National Bubble
Lender Guideline Changes That Effect All Investors
2008-06-05 19:53:00 There are two major player in the lending industry right now, Freddie Mac and Fannie Mae, both of these companies are very important because they more or less dictate the rules and guidelines for lender and banks across the USA. Freddie Mac recently released a guideline change - ?We are revising our requirements for Investment Property Mortgages to reduce the number of financed properties in which a Borrower who owns more than one financed Investment Property may have an individual or joint ownership interest (including the subject property) from 10 to 4. Also, effective for Mortgages with Freddie Mac Settlement dates on or after August 1, 2008, the borrower on a cash-out refinance mortgage must have owned the subject property for at least six months prior to the note date of the new refinanced mortgage.? Investors that hold properties titled in an LLC?s, will have to wait 6 months after they quit claim into their personal name to refinance. Who is Freddie Mac and why are they s...
Home mortgages: the easy money is over
2008-06-05 18:57:00 Interesting article from Bankrate.com: In recent weeks, mortgages quietly became harder to get. Mortgage insurers require higher credit scores and bigger down payments than they did a month or two ago. Underwriting software used by brokers and loan officers is issuing fewer approvals than at the end of May. Most buyers can still get home loans, but some ...
By: National Bubble
Foreclosures keep increasing
2008-06-05 17:45:00 According to CNBC: Mortgage Foreclosures Rise to New Heights U.S. home foreclosures and the rate of homes entering the foreclosure process rose to record highs in the first quarter with increases across many loan classes, the Mortgage Bankers Association said on Thursday. The rate of failing loans was led by a growing wave of subprime borrowers unable to ...
By: National Bubble
The housing depression
2008-06-05 13:22:00 According to CNN Money: Toll Brothers head says market could fall by 20% and recovery could be up to three years away PHILADELPHIA (AP) — The chief executive of Toll Brothers Inc., the nation’s largest luxury-home builder, said Wednesday the housing industry is in a “depression” and any recovery could be two or three years away. In candid ...
By: National Bubble
What is Your Buying Situation? - Part 3
2008-06-05 09:40:00 Protection Protection on your new purchase is very important and something to consider when buying a home. Yes, you do need to understand the finance side of things and part of that is whether you are protecting yourself and those involved with you.
Foreclosure Relief With Reverse Mortgages
2008-06-05 06:28:00 Fidelity Reverse Mortgage, a reverse mortgage company headquartered in Denver, Colorado, has announced a foreclosure relief program under which it will waive certain costs for qualified borrowers facing foreclosure. “Under our relief program,” said David Miner, Chief Executive Officer of Fidelity Reverse, “Fidelity will identify a senior homeowner to be reimbursed for some of the costs ... read more
Wall Street Strategists Warn Of ?Credit Recession? Lasting More Than Two Ye
2008-06-04 23:01:00 Earlier today, some Wall Street strategists sounded the alarm over a ?credit recession? which may last more than two years and result in a massive consolidation of the U.S. financial sector. Reuters? Jennifer Ablan, Dena Aubin, and Walden Siew reported: The fallout from deteriorating subprime mortgages and the broader housing and credit crisis will eventually ...
By: Boom2Bust.com
Foreclosures are flooding the market
2008-06-04 17:11:00 This from CNBC: Homebuilders Face Off With Foreclosures Grappling with the worst U.S. housing market downturn since the Great Depression, home builders have curbed their building activities. They’ve also been slicing through their inventories of unsold homes by slashing prices even at the expense of profits, all to pay off their own debt and keep afloat. Now, in ...
By: National Bubble
Home Values affecting reverse mortgages
2008-06-04 17:00:00 For seniors seeking reverse mortgages, the qualification is pretty simple: you must be 62 years or older, own your home and live there. You must also have a certain amount of equity in your property, though it?s ok if you still make monthly mortgage payments.
The Eye of the Mortgage Storm or the Aftermath?
2008-06-04 16:25:00 Imagine deciding to pursue a career in the mortgage industry…. A few months of studying, revision and exams followed by several weeks of ‘feet-finding’ and ‘on the job’ learning. Only to end up in an industry bearing the brunt of the now infamous ‘credit crunch’. Why do these thing always happen to me! OK, I know, there are lots ...
Why Deal with a Mortgage Broker?
2008-06-03 17:30:00 Brokers search for the best lender package to suit your specific financial situation, whether it?s with a Chartered Bank, Trust or Insurance Company. There is a wide variety of options and features available to homebuyers today. To find the best offer takes a lot of time and effort. The mortgage process within today’s very competitive ...SHARETHIS.addEntry({ title: "Why Deal with a Mortgage Broker?", url: "http://montrealrealestateblog.-com/why-deal-with-a-mortgage-br-oker/" });
Is it Worth to Take Debt Consolidation Mortgages?
2008-06-02 18:18:00 With the recent rise in the interest rates individuals are finding hard to keep up with certain high interest debt repayments. One of the options is taking out debt consolidation mortgages which are easy to obtain and which have lately risen in popularity.
More Regulation Sought For Reverse Mortgages
2008-06-02 06:28:00 You can’t help noticing that reverse mortgages are growing like financial weeds while much of the mortgage marketplace is withering. Speaking in Chicago last month, Kieran P. Quinn, chairman of the Mortgage Bankers Association, said the following: “We want laws and regulation that give no quarter to fraud and irresponsible practices, and that will also set the ... read more
Mortgages is it time to remortgage and reap the results
2008-06-02 04:19:00 Mortgages – is it time to remortgage and reap the results? Over the last few years the number of people choosing to remortgage their home has rocketed, with two in five of all home loans being accounted for as a remortgage. It is a great decision to make most of the time, with it basically being ...
Shared Ownership Mortgages The Basics
2008-06-02 04:10:00 Shared Ownership Mortgages - The Basics There are three facts about Shared Ownership Mortgages that will help you understand the process better. The first fact is that Shared Ownership Mortgages make home buying affordable for those who cannot afford to buy or privately rent. This is because Shared Ownership works on a ‘part rent, part buy’ ...
First Time Homebuyers And FHA Mortgages
2008-05-31 15:17:00 When is a First Time Homebuyer not a first time homebuyer? According to our loan programs a first time home buyer is anyone who has not owned any property in the past three (3) years at the time of credit application. … [visit site to read more] Don't forget to listen to Real Estate Radio USA ...SHARETHIS.addEntry({ title: "First Time Homebuyers And FHA Mortgages", url: "http://www.realestateradiousa.-com/blog/2008/05/31/first-time--homebuyers-fha/" });
Reverse Mortgages & The $1 Million Home
2008-05-30 07:03:00 Patrick writes and says, “our California home is valued at approximately $1,000,000 but we owe $450,000 on it. What will a reverse mortgage do for us? I am turning 61 and my wife will be 60 in 5 months. I need input for planning purposes.” I would make the following suggestion: Don’t plan yet. The reason for ... read more
Mortgages That Attract Homebuyers
2008-05-29 16:29:00 Do great rates and great service fail to impress you? Well you are not alone. We are in a time where you need to find out who can create value with their services and ideas. And what I mean by value is, attracting customers. A good number of investors plan to sell their property at some point and awareness of loan programs can help your potential sell. Here are a few loans of value over the last few years: 100% purchase, non-owner, stated income, interest only 1% pay option ARM 100% cash out refinance 100% Jumbo Loans There is great debate on whether these loans are good loans, but few can argue these loan did attract customers for Realtors, Builders, and Mortgage Companies. What are the next generation of loans to attract customers? 3-2-1 buy-down PITI Abatement FHA/VA My Community Credit Repair One might say that 2008 is the year of government backed mortgages. All the loans high lighted above are directly tied to the government through Fannie Mae, Freddie Mac or FHA...
What is Your Buying Situation? - Part 2
2008-05-29 08:06:00 Joint Mortgage A joint mortgage when possible allows you to borrow money based on two incomes. This means that you can get a higher amount to buy a home that you would be able to do as a single borrower. In some cases borrowing from family can help the person trying to borrow. ...
This Week In Mortgages
2008-05-28 07:51:00 Mortgage rates dipped last week to a two month low. But we will likely see them bounce back up in response. Additionally, there is no indication they will go down any further. Inflation is the key driver here, and it is not letting up as the summer gets into full swing. We recommend getting a ...
Mortgages for Chicago Real Estate
2008-05-28 00:00:00 Illinois is one of ten states that enjoy some of the lowest average rates on fixed mortgages. Perhaps this is due to the high price of real estate in Chicago or the large number of real estate sales the area enjoys, but no matter what the reason, low interest rates are still a nice ...
A Chilling Look Behind the Mortgage Crisis?
2008-05-27 19:35:00 UPDATE: Thanks Andy for the heads up on the podcast link not working. It looks like they changed the link on me over the weekend… but I hunted down the new link and updated the links below w/ the correct link. Enjoy. I’m not even sure how I came across this podcast … but I ...
Jumbo Mortgages - What Are They? How Can We Work With Them?
2008-05-27 04:41:00 Anyone in a price range over $400,000 is probably aware that the jumbo loan market has been out of whack for nearly 18 months. "Jumbo" loans, those amounting to more than $417,000, were significantly affected when mortgage investors stopped buying subprime and alternative loans. As a result, jumbo rates can be as much as 1.50 percent higher than conforming rates. Historically, jumbo rates were only about a quarter of a percent higher than a conforming rate, but this new spread has kept many out of the housing market. So what exactly is "just jumbo?" It's a loan amount that just exceeds the conforming limit of $417,000 and typically reflects a sales price in the $500,000ÂÂ-$600,000 range. In the Richmond Metropolitan area we have a number homes and communities in this price category, and the significant difference in rate from conforming to jumbo is slowing down sales. What is the difference in payment between a conforming loan at 6 percent and a...
Dollars Backed by Mortgages, Fed Gives Away Billions, Why OPEC Isn?t Happy,
2008-05-23 20:23:00 by Addison Wiggin & Ian Mathias Fed exchanges billions more CDOs for IOUs? how the U.S. dollar is now 20% mortgage-backed securities Home prices showing no signs of a bottom? which famous investor just tripled his stake in the U.S. housing market Gold holds firm despite market chaos? Ed Bugos on ...
Home inventories go up
2008-05-23 16:40:00 According to CNBC: Sales of existing US homes fell 1% in April, slightly better than expected, but inventories of unsold homes surged 10.5%, according to the National Association of Realtors. It was the eighth decline in sales in the past nine months, while the backlog hit the highest level in more than two decades. Inventories rose to 4.55 ...
By: National Bubble
World?s Leading Banks React To Write-Down Pain
2008-05-23 06:28:00 Rules. We?re all taught to follow them at a young age. You know how to spot someone who has real authority and influence? No, it?s not those chumps who break the rules. Rather, it?s those who change the rules of the game to fit their needs. And that?s what we ...
By: Boom2Bust.com
Money Magazine Columnist Looks at Reverse Mortgages
2008-05-23 06:05:00 Walter Updegrave, Money Magazine senior editor, has now written about reverse mortgages. In his article, Reverse mortgages: Beware the come-ons, Updegrave says “reverse mortgages can help cash-strapped retirees generate extra money for living expenses, pay for home improvements, lower other debts or fund the occasional splurge. “There’s also a downside to reverse mortgages’ growing popularity, however. Loan-origination ... read more
The end of easy money
2008-05-22 16:02:00 This from CNBC: Housing Crunch: Return of the Big Downpayment As U.S. banks mop up the mess from billions of dollars of bad home loans, buyers are finding the days of cheap money are over and, in many cases, tougher versions of old lending rules now apply. People of modest means have seen the American dream of home ...
By: National Bubble
First Direct Closes Doors To Non-Customer Mortgages Posted By : Mark Skinne
2008-05-22 09:00:00 HSBC subsidiary First Direct has withdrawn the offer of mortgages to non-customers, further fuelling the crisis in the lending industry. Recently the bank has been receiving a deluge of applications and simply does not have the staff and resources to efficiently process the information.
Reverse Mortgages are Just One Option Available
2008-05-22 08:59:00 A reverse mortgage is a loan against a home?s equity that doesn?t need to be paid back until the homeowner dies, sells the home, or moves out. Available to homeowners age 62 and older, it can be paid in a lump sum or in monthly installments. There are benefits to using a reverse mortgage, but ...
By: cash For Debt
FDIC Talks About Reverse Mortgages
2008-05-22 06:03:00 The Federal Deposit Insurance Corporation — the federal entity which insures bank accounts — has just issued a new publication entitled Money Tips for All Ages: Your Finances at Different Stages of Life. The subjects covered include: ___Before You Retire: Getting Your Finances Ready for Your Golden Years ___After You Retire: Managing Your Expenses on a Fixed or ... read more
Turning the Real Estate Ship Around: Why It Hasn?t And How It Can
2008-05-21 17:32:00 Okay…so what’s wrong with this picture? In communities all across America the value of homes has dropped faster than the New Year’s Eve ball in Times Square. Lower prices should mean bargin prices. Bargin prices should mean people jumping back into the housing market. People jumping back into the housing market should help inflate the value of homes….. But things aren’t working out that way and it is all because of the credit markets. Most “experts”–and- I do use that word with great caution when talking about the real estate mess–seem to agree that lenders are sitting on the fence because they still are not sure just when this mortgage crisis will hit rock bottom. The banks and other financial institutions worry, and not without good cause, that if they do start freeing up credit and people buy up those cheaper homes, the homes will still continue to loose value leaving the lenders holding the bag. What will turn this around? Fo...
Homeownership Through Residential Mortgages
2008-05-21 00:00:00 First of all, what is a mortgage? A mortgage is promising of a piece of property to a lender as collateral for a mortgage loan. Be careful to note, however, that a mortgage is not a loan. It is a proof of a loan. Through mortgages, individuals and businesses are able ...
Meredith Whitney says credit crisis is ?far from over?
2008-05-20 18:30:00 According to AP via Yahoo Finance: NEW YORK (AP) — Oppenheimer & Co. analyst Meredith Whitney predicts the credit crisis gripping financial companies is “far from over,” and believes losses could be far worse than even the most pessimistic estimates suggest. In a research report issued late Monday, Whitney forecast that the credit crisis could extend well ...
By: National Bubble
Useful info about reverse mortgages
2008-05-20 17:00:00 There are many tips and tools for retirement from many specialists across the world. Here are a few bits of information that I found useful and worth reading about reverse mortgage loans.
The rich are also suffering with the housing crash
2008-05-20 16:58:00 I admit it took longer than I expected but we’re seeing the first signs of weakness in the most exclusive neighborhoods. According to the LA Times: At the luxury end, home prices are falling The rich may indeed be like the rest of us. Prices of their homes are now falling too. Gated mansions and hillside estates have ...
By: National Bubble
Halifax cuts some rates!
2008-05-20 15:00:00 From tomorrow Halifax are reducing their 3 and 5 year Product Transfer fixed rates by 0.1 or 0.2% and their 3 year tracker rate by 0.2%. In addition they are increasing the maximum loan size on the tracker up to 75% LTV from £500,000 to £2m. These Product Transfer rates are only available to existing customers coming to the end of a deal but I think Halifax will have a very large number of borrowers coming to the end of a deal on 31/7/08 because they were offering some extremely competitive fixed rates 2 years ago - 4.69% for purchases and 4.79% for remortgages, both with a fee of only £499, and a market leading 2 year tracker at Bank Rate - 0.11%. This suggests that, unlike some lenders, they are keen to retain as many borrowers as possible.
Reverse Mortgages & The Matter of Prudent Risk
2008-05-20 06:33:00 It was nearly two years ago that the Alliance for Retired Americans, a group with some 3 million members, wrote about reverse mortgages. What’s interesting about what they wrote is that in the past two years real estate markets in many areas have gone from boom to bust and yet their analysis remains largely on track. As ... read more
The casualties of the burst of the housing bubble
2008-05-20 00:05:00 The chickens are coming home to roost. Irresponsible people who took money out of their homes to buy boats are now losing them. According to the New York Times: When a boat owner defaults on his loan, the bank hires Jeff Henderson to seize its property. The former Army detective tracks the boat down in a backyard ...
By: National Bubble
A Calculator For How Much House You Can Afford
2008-05-19 14:57:00 Smart Money has a good calculator for figuring out how much money the bank will lend you based on some basic income information and factor in the down payment you can shell out to figure out how much house you can buy. I liked the calculator, because it used a fairly conservative ratio for ...SHARETHIS.addEntry({ title: "A Calculator For How Much House You Can Afford", url: "http://www.moneycrashers.com/a--calculator-for-how-much-house--you-can-afford/" });
By: Money Crashers
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