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Adjustable-Rate Mortgages Are A Relative Bargain Today
2012-01-06 14:45:00 Adjustable-rate mortgages are a relative bargain as compared to fixed-ones.
It was.. my dream home.
2011-10-26 00:33:00 So yesterday we looked at the house. The realtor was right, it does show nicely. From what we saw, there are anywhere from $15,000 to $20,000 worth of things that need to be done on top of the initial purchase price of the home. It’s primarily cosmetic, there’s a few cracks in the ceiling from ...
House Hunting Begins
2011-10-24 07:15:00 Sean and I (plus Karen!) are seeing a house tomorrow. We’ve been looking at it for a little while now and finally got ourselves hooked up with a realtor and made the appointment to take a look from the inside. The over-head views and photos listed online have sparked our interest enough to want to ...
Fixed-Rate Mortgages is Loan of Choice for Most Borrowers
2011-10-07 07:00:00 Refinancing borrowers are waking up to smell the coffee. According to Freddie Mac, 95% of refinancing borrowers in the second quarter chose a fixed-rate mortgage, regardless of whether their original loan was fixed or adjustable. Equally exciting, more than 1/3 of refinancing borrowers chose a term of less than 30 years such as a fixed-rate term for 15 or 20. Borrowers are now leaning toward common-sense principles of finance: make conforming payments and pay it off quickly. Why, just to show my age, I can remember the terms of my first car loan. It was a fixed-rate payment for 3 years. Nowadays, people think nothing about paying on their cars for 7 years. That's nuts. Cars depreciate. And, as we have all learned in a painful and horrible way, real estate can depreciate as well. Highly leveraged, long-term exotic financing is out. Low loan-to-value ratios and short-term fixed-rate financing is in. More Articles by Elizabeth Weintraub: How to Compute Mortgage Interest How to Buy D...
Comparing Mortgage Rates For Adjustable- And Fixed-Rate Mortgages
2011-01-12 14:46:00 Currently, relative to fixed rate mortgages, ARM pricing is excellent. Freddie Mac's weekly Primary Mortgage Market Survey puts the 5-year ARM mortgage rate lower than the 30-year fixed rate mortgage rate by 1.02 percent.
New Law Prohibits Short Sale Deficiency on California First Mortgages
2011-01-07 06:00:00 Section 580e has been added to the California Code of Civil Procedure, effective January 1, 2011, which prohibits banks holding a first mortgage from approving a short sale and then pursuing the seller for a deficiency. SB 931, which was signed into law on September 30, 2010, makes lenders accept the short sale proceeds as payment in full for a first mortgage secured by one to four units, providing the lender approves the short sale. Fortunately, I had 3 pending short sales in Sacramento that were set to close by the end of December. These were 3 short sales in which the bank issued approval letters containing deficiency verbiage. The solution? Roll those short sales in January by requesting an extension. We got the extensions. The bank didn't know about Section 580e. We'll see how long these short sales continue to get approved before the banks find some legal way to get around this new law. If you're contemplating doing a short sale in California, and you have one mortgage, y...
Banking's next gift: End of 30-year mortgages?
2011-01-06 21:25:00 It's complicated, but there are reasons that banks would want to end granting 30-year mortgages, a popular option for many home-buying Americans. You'll have to read through this entire article to get the picture....
What is causing Mortgage Rates to spike and what's the outlook?
2010-12-26 18:36:00 Mortgage rates have gone up every single week for last 5 weeks - now up ~.75%. (Get the mortgage rate update in this post). It all started with Fed announcing Quantitative Easing 2. The big question is why so sudden and why so steep! There are several possible reasons:Markets are increasingly more optimistic that 2011 economic growth will be stronger than what had been expected. Expectations until a couple of weeks ago were for GDP growth in 2011 to be 3.0%, now the consensus is for growth to be at 4.0% and a decline in the unemployment rate from the present 9.8% to 8.7% by the end of 2011.The extension of the Bush tax cuts, the 2.0% cut in workers contribution to social security will put more cash in consumers' pockets.Also driving rates higher, the end of safety moves generated by issues in Europe and in the US and Congress's unwillingness to cut federal spending. The $858B tax cut bill now moving through Congress is yet one more Christmas tree filled with earmarks (pork), poli...
Shadow Inventory Revisited: Silent Alt-A Mortgages, Southern California RE
2009-09-12 19:10:00 I think you saw this coming. In the most e-mailed story on Friday, many of you sent in a link from the L.A. Times showing a confirmation of shadow inventory. One home does not make a trend. But connect that home to Bernard Madoff and you got yourself a fantastic story of absolute cronyism and ...
20 Percent of Americans are delinquent on their mortgages.
2009-08-21 18:31:00 If you don't pay your mortage out of freshness, you deserve for the bank to take it away
Refinance Mortgages
2009-08-21 07:52:00 When borrowers refinance mortgages they pay off existing home loans by taking out a new loan. Many reasons exist to refinance home loans. However, the most common is to obtain a lower interest rate over the duration of the loan. Reduced interest rates can save borrowers thousands of dollars on a 15 or 30-year mortgage note. When homeowners refinance mortgages they must submit a loan application to their preferred lender. Experts recommend organizing financial documents and taking account of finances before contacting lenders. Mortgage refinance requires impeccable credit with a history of paying on time and a solid employment history.
Key Aspects of Adjustable Rate Mortgages
2009-07-10 10:36:00 When shopping for different mortgages and mortgage rates it is especially important to take the length and structure of the mortgage into consideration among other things.As the name suggests, an adjustable rate mortgage (ARM) is one with a fluctuating interest rate. While considered riskier than a conventional fixed rate mortgage, an ARM can provide numerous financial benefits for borrowers in certain situations. Therefore, before considering an ARM it is best to understand the key aspects of these mortgages and how they work. How ARM Interest Rates are Calculated The interest rate on an ARM is linked to an economic index. In the US, there are six commonly-used indices, including the London Interbank Offered Rate, the Constant Maturity Treasury, and the Cost of Funds Index. The indices increase and decrease according to economic activity, and the interest rate on the ARM adjusts accordingly. Depending on the terms and conditions of each ARM, these adjustments might be made annually...
Why Borrowers Default ? Interesting Reading
2009-06-06 06:24:00 I saw this on a blog on the Wall Street Journal, but a recently released paper by the Federal Reserve Bank of Atlanta looked at loan defaults on loans with a high mortgage payment to income ratio, and found that rising interest rates DID NOT significantly correlate to default rates. The two main indicators of a ...
Delinquent Mortgages Not As Bad In Colorado - The Daniels Team Real Estate
2009-05-05 04:06:00 Delinquent Mortgages Not As Bad In Colorado - The Daniels Team Real EstateColorado Real Estate Resources www.danielsteam.com www.danielsteamhomes.com www.realestatecoloradosprings.o-rg
Minnesota: Shariah Compliant Mortgages Now Available
2009-03-02 04:23:00 Creeping Sharia alert. A handful of private banks and lending institutions offer Islamic mortgages in the U.S., but Minnesota Housing is the first state agency to offer such a product. The program is the brainchild of Hussein Samatar, director of the African Development Center in Minneapolis."The process is different, but the outcome will look the same," Samatar says. "We wanted to be as conventional as possible, while respecting the tenets of Islam."Samatar, who used to work for Wells Fargo, tried for years to launch Islamic financing. He says the fact that Minnesota Housing has agreed to participate is a nod to the Muslim community's growing economic power.Chicago-based Devon Bank is underwriting the loans for the New Markets program. Devon is one of the largest Islamic lenders in the country. Corporate Counsel David Loundy says he expects the demand for Islamic financing to grow as more Muslims make their home in the U.S. Loundy says Muslims tend to be good risks."If they worked...
Reverse Mortgages are a great option for cash strapped seniors
2009-01-28 16:00:00 Reverse Mortgages have been steadily rising over the past few years ? doubling every year for the last three to four years. In November, housing legislation cut fees on reverse mortgages while raising the amount homeowners can borrow against, which is now $417,000 nationwide.
95% Mortgages
2008-12-17 09:31:00 Nationwide are the first major building society to bring back a 95% mortgage. This may be helpful for first time buyers who are struggling to get a deposit. However, the rate at 7.19% is far above the base rate of 2%. Also there are still expectations of falling house prices so that many who take a 95% mortgage could be left with negative equity - where the value of the house is less than the value of the outstanding mortgage.Variable MortgagesFixed Rate MortgagesInterest only mortgages90% mortgagesWill rate cuts revive flagging housing market?
Chgo Trib: ?Higher? Home Foreclosures Report Ignores Most Paying Mortgages
2008-10-25 19:45:00 -By Warner Todd Huston This is the kind of sensationalistic reporting that just makes all “news” agencies look like scaremongers. A recent Chicago Tribune report on homes in foreclosure in Illinois focuses on “higher” rates and says alarming things like, “Illinois foreclosures were up 49.55 percent.” These numbers the Trib bandies about seem shocking. Up 49.55 ...
By: Publius Forum
Epic Drop 10/24/08: 'Constitution-Free Zone', Fed to back Mortgages, Sued
2008-10-24 10:48:00 The last Epic Drop of the week is once again here for you to enjoy. Don't get too upset though, it will be back like herpes late Sunday night, Monday morning. Tonight I have some humorous video... Hi, want more? Visit http://starfeeder.com for more StarCraft 2 news, rumors, videos, contests & more!
Reverse Mortgages: The Hottest Product in the Market Right Now
2008-10-23 17:14:00 Every other week, I make the trip down from Pennsylvania to Investment U’s headquarters in Baltimore. While I’m in the area, one of my favorite places to enjoy an evening meal is P.F. Chang’s China Bistro (Nasdaq: PFCB) - an outstanding…
By: Jutia Group
Calling the Old Media: Five Million Illegals Have Illegal Mortgages in U.S.
2008-10-11 06:42:00 -By Warner Todd Huston A single report by KFYI radio of Phoenix, Arizona highlights a shocking claim made by the Department of Housing and Urban Development (HUD). HUD says that five million illegal aliens hold illegal mortgages. This is just one more example of the lax lending laws put into place by Democrats like Barney ...
By: Publius Forum
McCain plan would buy bad homeowner mortgages
2008-10-08 21:19:00 McCain plan would buy bad homeowner mortgages WASHINGTON (AP) - John McCain’s proposal to buy up bad home mortgages would use nearly half the $700 billion from the recent Wall Street bailout package to assist Americans directly, instead of indirectly by rescuing the nation’s financial markets. The Republican presidential candidate announced during Tuesday’s debate that he ...
By: TexasFred's
Cheap Mortgages and Secured Loans
2008-10-01 08:14:00 The BRITISH industry of the mortgage and loans is hypothecating and is present much by means of ?tuna? which is the worse period that the market has ever considered. To find a loan hypothecating and cheap is very difficult which was never considered to be a problem earlier. If one is looking for a ...
Understanding Different Types of Mortgages
2008-09-06 15:07:00 If you decide to take the big leap and sign a mortgage, there are many options available to you. Let’s investigate some of these: 30-Year Fixed-Rate Mortgages A 30-year fixed mortgage is repaid by the borrower making 360 equal monthly payments over a period of 30 years. Since your payments are fixed, you can expect to make the same monthly payment for the entire term of the loan, regardless of any changes in the housing market. This is a popular loan used to buy a private house and is available for conventional, jumbo, FHA and VA loans. You can also get a 15-year fixed rate mortgage, which is basically the same except your monthly payment is 25 percent to 50 percent more, and you pay it off in half the time. With a 15-year program, you’ll also be paying a lot less interest. Adjustable Rate Mortgages Adjustable Rate Mortgages (ARMs) are nice because of their low beginning interest rate. This low introductory rate is used to calculate the mortgage payment for a specified p...
Reverse mortgages can pay off in the long run
2008-08-21 17:00:00 Reverse mortgages still have a tainted reputation for some seniors who believe the product hasn?t changed since it first came to the market in the eighties.
Housing Bill makes reverse mortgages more attractive
2008-07-30 17:00:00 The Foreclosure Prevention Act of 2008 is designed to help many people, not just home owners. The act has many supporters, but also many who feel it will fall short of what is needed to turn this market around.
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 ...
How is the current housing slump affecting reverse mortgages
2008-06-09 17:00:00 The current housing situation is not affecting those who have already taken out a reverse mortgage in a different way than those with a regular mortgage. One of the problems with the housing slump is that property values are dropping in many real estate markets.
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 ...
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 ...
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 ...
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 |
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