Monthly Archives: October 2008
A Closer Look At Take Over Mortgage
Posted October 31, 2008 – 9:00 pm in: Foreclosure, Mortgage rates, Mortgage recovery, rating agencies, refinanceThere are different varieties of mortgage loans, one of which is known as the take over mortgage. In this type of home loan, it is possible to transfer the loan from one consumer to another.
The term is also used to indicate an assumable loan. This means that those who want to buy homes assume the mortgage of the sellers. But first of all, you will need to seek the permission of the lender. When you are involved in a take over mortgage, you will assume the monthly payments and interest rates.
A take over loan can help you to make significant savings. This is due to the fact that current mortgages may incur higher interest rates than the one you are assuming. Be aware though that the lender may decide to review the terms of the take over mortgage.
In a take over mortgage, you will not just assume the the monthly payments and interest rate. In addition, you will also be responsible for the liability of that loan. This means, for example, that in case you are not able to make the needed payments, the lender has the power to foreclose your home. In addition, if the sale of the house fetches a lower price than the amount due, you risk being sued for it.
This means that in spite of the advantages of a take over loan, you should understand that things are not always rosy. If you would like to secure a take over loan, you will need to undergo scrutiny where you have to be pre qualified. You will still also be needed to pay the closing fees. In addition, you will likewise be required to pay for title insurance and appraisal costs.
Take over mortgages are not a recent phenomenon - they have been around for quite some time. Indeed, take over loans have gained increased popularity due to the advantage aforementioned - that of making lower payments than the prevailing market rates. It is because of this benefit that take over loans were greatly used between the 1970s and the 1980s, during this period, interest rates were particularly high and take over loans offered home buyers some reprieve. During this period, mortgage interest rates rose from around 5% and 7% to between 10% and 15%. Many buyers resorted to take over mortgages in order to assume loans with significantly lower rates of interest.
When you go for a take over loan, you should make your calculations well. There are some sellers who will offer very cheap prices, which you may want to take advantage of. However, you should be aware that you may have to pay the difference between the selling price and the balance that really remains from the take over loan. Never the less, the value of houses usually increase with time, which may give you the opportunity to cash in later.
This article was written by Arek Zbikowski. For more information on <A HREF="http://www.atozmortgageguide.com">take over mortgages</A> feel free to visit my site at www.atozmortgageguide.com.
No Comments | Tags:FHA Is The Lender of Choice Today!
Posted October 31, 2008 – 9:00 pm in: Foreclosure, Mortgage rates, Mortgage recovery, rating agencies, refinanceFHA is the lender of choice these days, however, you should be aware that new guidelines have been established which is making it even more difficult to qualify for FHA financing:
1) Individuals wanting to make a new purchase can no longer just present a signed lease on the home they are leaving and expect that rental income will be used in the debt to income ratio calculation unless it can be determined that the current residence to be rented has a minimum of 25% equity. The FHA is concerned that some borrowers were leaving their old home behind and the associated debt so that they could purchase another home at the current, lower prices. In some cases, the borrower after closing stops making mortgage payments on the former residence. The FHA has now plugged that possibility. So unless a borrower has sufficient income to qualify for a new loan with the debt service on both homes being considered, the borrower will be, for practical purposes, barred from moving on.
2) Another change which has been instituted is that a relocating borrower can no longer just show an offer of employment to satisfy the income requirement. The new rule says that for the offer of employment to be valid, it must be an actual employment contract — otherwise, the closing could not occur until the borrower has actually relocated and started the new job and can show the first paycheck. This same guideline is being applied to conventional Fannie Mae loans.
3) Beginning January 1, 2009, the required down payment from the borrower will increase from 3% to 3.5%. Borrowers are still able to use funds received from relatives as a source of a down payment. Sellers can continue to contribute up to 6% of the purchase price towards the buyer’s closing costs.
4) The move to implement risk-based pricing effective October 1, 2008 has been put on hold for one year. This would have provided for a varying amount of upfront mortgage premium as well as varying amount of annual mortgage insurance premium depending on a person’s FICO credit score and the loan-to-value. During the next year, a flat 1.75% of the loan amount will be added to the loan amount and either an annual premium of .50 or .55 depending on whether LTV is greater or less than 95%.
Bob Lefcort provides help and information for people about many different aspects of the mortgage and credit process. Visit http://www.mortgagebobusa.com for help with your mortgage loan or to improve your credit score.
Bob has been a mortgage broker and realtor for over fifteen years. Prior to that he was a corporate excecutive with a national staffing company. Bob specializes in helping people with challenged credit.
No Comments | Tags:Government Aid Package To Help First-Time Home Buyers - More Stamp Duty Exemption
Posted October 31, 2008 – 4:57 pm in: Foreclosure, Mortgage rates, Mortgage recovery, rating agencies, refinanceThe newspapers might be full of doom and gloom but the credit crunch and general economic downturn has to be good news for someone. Despite the stories about first time buyers being forced out of the market by banks refusing them large mortgages, the housing recession poses a great opportunity for those wishing to get their first foot on the ladder.
No Comments | Tags:Mortgage Loans And Foreclosures - What You Should Know
Posted October 30, 2008 – 11:53 pm in: Foreclosure, Mortgage rates, Mortgage recovery, rating agencies, refinanceJust how much can a government do? This seems to be the question on the rise when it comes to stemming mortgage foreclosures, now that there is a continuous slide in the current economic set-up that is changing the financial climate across the globe.
No Comments | Tags:The Pros And Cons of 80/ 20 Mortgages
Posted October 30, 2008 – 9:00 pm in: Foreclosure, Mortgage rates, Mortgage recovery, rating agencies, refinanceGiven that the cost of owning a home is increasingly getting more expensive, many people turn to mortgages in order to buy their homes. Some of them entirely depend on such loans to make their purchases.
One example of home loans where mortgage insurance is not included is the 80 20 mortgage loan. This type of mortgage enables the borrower to secure two loans. The initial part of an 80 20 mortgage loan involves 80% of the home’s purchase price. The other part is 20% of the actual price of the home. The borrower needs to come up with the closing costs of this type of loan.
According to some experts, the 80 20 mortgage loan gives consumers the opportunity to purchase homes with no need of making any down payment. This is advantageous to those people who would not like to interfere with their savings in a bid to purchase a home.
Young professionals form a bigger percentage of the people who opt for 80 20 mortgage loans. These are usually individuals who hold good posts at work.
80 20 mortgage loans are a good alternative to those whose credit savings are good yet have not yet made enough savings to commit to such a purchase. This type of loan is also convenient for those who are renting where they live in. The costs of paying rent every month is in the same range as the cost of paying for a home. In many cases, renters often are not able to make sufficient savings to cater for the required down payment. Hence in an effort to buy their own homes, such people go for loans where they do not need to make a down payment, or at least make just a small payment.
However, in order for them to qualify for such loans, these people are required to give a private mortgage insurance. It is the 80 20 mortgage loan that does not need the PMI. Instead, an 80 20 loan backs up your initial loan by the issuance of a second mortgage. As had been stated, the first mortgage is 80% of the purchase price of the home. The second mortgage is 20% of the home’s price, apart from the down payment.
Generally, the interest rate you will have to pay on the second loan is usually higher than what you pay on the first one. The 80 20 mortgage allows you to combine your payments, effectively affording lower payments. This type of loan has lower monthly payments than the one with a PMI.
Different lenders structure their 80 20 mortgage loan programs differently. The interest of the 80% of this type of loan may take various forms ie., fixed, adjustable, or even interest only rate.
This article was written by Arek Zbikowski. For more information on<A HREF="http://www.atozmortgageguide.com">mortgages</A> feel free to visit my site at www.atozmortgageguide.com.
No Comments | Tags:Mortgage Calculator UK And Fixed Rate Mortgage
Posted October 30, 2008 – 5:15 am in: Foreclosure, Mortgage rates, Mortgage recovery, rating agencies, refinanceIf you are looking to know how much you can borrow for a mortgage in the UK, you may need a mortgage calculator UK. This mortgage calculator UK can give the figures you may need to know in order for you make that sound decision when the time comes to buying your dream home.
No Comments | Tags:How To Effectivly Use A Mortgage Calculator
Posted October 30, 2008 – 2:30 am in: Foreclosure, Mortgage rates, Mortgage recovery, rating agencies, refinanceMortgage calculators are used to help a current or potential real estate owner determine how much they can afford to borrow to purchase a piece of real estate.
No Comments | Tags:What Is A Home Mortgage?
Posted October 29, 2008 – 2:50 am in: Foreclosure, Mortgage rates, Mortgage recovery, rating agencies, refinanceIn most all cases when filling out an application for the mortgage, there will also be a fee included when you submit the application. Mortgage companies do this for a reason, a reason which most other facilities also do for a certain reason; only serious applicants would bother to pay the fee.
No Comments | Tags:Refinance Mortgage for Better Saving
Posted October 19, 2008 – 9:00 pm in: Foreclosure, Mortgage rates, Mortgage recovery, rating agencies, refinanceMortgage refinancing may be a good way for one individual who has a hard time paying a mortgage. If a person has a mortgage that takes up much of his monthly income, then it must be necessary that he should find another way of getting additional income or find a better way to pay for the loan.
So the question that must be answered is that if should you refinance your mortgage. Refinancing is done when there is an outstanding loan balance and the medium in which you will use to pay for it is through getting another loan. There are different situations that would be beneficial to refinance a mortgage but there are also some events that refinancing would not be a very good action.
Should you refinance your mortgage when you want to save?
The answer would depend on situation of the previous loan and the interest of the two loans as well as other factors that goes with the loan. If there are other good offers like a lower interest rate, lower monthly payment and other benefits, then refinancing would be a big help.
Mortgage refinancing may offer an individual various benefits such as paying the high interest loan in exchange of a lower one. If a person does not have enough money to support the payment of his previous loan, he may be able to find another rate that would offer him a lower monthly principal and interest payment although this would be paid in a longer time frame. Also, another option would be to consider refinancing when you earn enough money to increase the monthly payment. When you refinance, you may be able to increase the monthly payment and the person may also be able to save since the term would be paid faster and there will be less interest paid.
If one is paying an adjustable interest rate loan, there is a possibility of over paying since the interest rate may change within a month and you may find a hard time paying for an unpredictable total payment. Thus, a fixed rate can be better than getting an adjustable interest rate and this lessens the risk in paying the loan.
With all the reasons stated, the benefits and the risks involved, the question of should you refinance your mortgage may be clearer. A good decision can be done when all other options are checked and considered. It would be easier to pick one loan more than the other when you understand its terms and you know that you are capable of paying the loan plus the interest. The needs and the situation of the individual would be the deciding factor if one will have to continue paying for the old loan or it would be better to get another one.
The interest and the length of the payment should be considered and analyzed. There may be many reasons why you should refinance but there are risks involved so first make yourself clear and more knowledgeable about the terms of the loan that you have and another loan that you are considering.
An <a href="http://www.iloanshop.com/">Online mortgage refinance loan</a> may be the perfect answer to your financial problems if you have experienced impossible for you to continue making your monthly mortgage payments. Before you run to the lending institution to inquire about <a href="http://www.iloanshop.com/mortgage_refinance.php">mortgage refinance rates</a> .
No Comments | Tags:The Secret of Dyer Beech against Fraud
Posted October 13, 2008 – 9:00 pm in: Foreclosure, Mortgage rates, Mortgage recovery, rating agencies, refinanceToday, mortgage fraud is considered as one of those organized fraud that authorities are finding hard to crack down. With its increasing number of participants, including the customers itself, the law is committed to eliminate any form of fraud in the industry. No wonder why the campaign Dyer Beech against Fraud works so well.
Dyer Beech is known for its reliable services when it come s to mortgage concerns and other financial matters. The company provides various financial support services from consultancy to tax reviews. But being a service provider for mortgage concerns, Dyer Beech becomes vulnerable to uncertainties, especially to those who are not yet familiar with the company. Most people do not readily trust the company, while some even consider the business as fraud.
But what is fraud? Why is it that many people are victimized by such unscrupulous activity? Fraud can happen to anybody, anywhere. And the worse, if the authorities find you, as a customer, withheld information or misrepresent them just to get something on your favor; you are convicted with the same crime to some extent.
Dyer Beech understands how important it is to meet the customers’ needs. They know how hard it is to earn money and how valuable it is to put them to proper use. That’s why Dyer Beech against Fraud movement involves various activities and information to help people stay out of debt or buy homes in a clean legitimate way.
But how can you tell if an organization or service is fraud or is fraudulent at any act? Dyer Beech tells you how to avoid such activities and eventually avoid being victimized by scam. Here’s how:
1. Spare the signature
Your signature is one of those tools that bind an agreement legally. If you are not sure about the terms and conditions that a certain organizations offer you, do not affix your signature in the document. If everything sounds too good to be true they probably are, so be very careful.
2. Do your homework
Don’t just trust anybody or any organization for that matter. Before dealing with a particular mortgage advisor, conduct a background investigation first. There’s nothing wrong with that. As they say, it is better to be safe than sorry.
3. Slowly but surely
Get-out-of-debt-fast scheme just don’t work anymore. Never take everything in a stride. Take the steps one at a time. Remember, only fools rush in.
4. Read the fine print
The problem with most people is that they find fine prints too boring to read and, hence, they readily affix their signature to any document only to realize that they have been trapped.
Before signing anything, read everything that has been stipulated in the contract or in any agreement. Understand what they have to say.
Dyer Beech against Fraud is not just a one-stop solution against mortgage fraud and other unscrupulous activities. It offers clear understanding as to why such fraud exists and what to do anything about it.
Felicia Newman is a full time mom and a weekend writer and blogger. She writes for different sites including <a href="http://www.dyerbeech.com">Dyer Beech</a>, a full service mitigation firm in LA. She also maintains a Squidoo lens about <a href="http://www.squidoo.com/dyer-beech-against-fraud">Dyer Beech against Fraud</a>.
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