American Home Mortgage became the second-biggest home loan lender to file for bankruptcy protection this year, adding to signs that late payments have spread to homeowners with good credit records.
The company sought federal bankruptcy protection from creditors in Wilmington, Delaware, saying it had assets of more than $100 million and debts of more than $100 million owed to more than 100,000 creditors.
The filing comes after American Home Mortgage announced August 2 it would halt operations and slash staff.
Bankers began shutting off credit to American Home, leaving the lender unable to fund at least $750 million in home loans and stranding thousands of borrowers.
Before it quit lending, Melville, New York mortgage company specialized in mortgages for people who fall just short of top credit scores.
Shares of U.S. home lenders have slumped as defaults spilled over from “subprime” borrowers with the worst repayment records to those with more reliable payment histories.
More than half a dozen rivals have declared bankruptcy this year.
A Chapter 11 bankruptcy filing like the one filed by American Home Mortgage may allow a company to stay in business and protects it from claims by creditors while it tries to work out a plan to pay its bills.
American Home, founded in 1988 by Chief Executive Officer Michael Strauss, employed about 7,400 people at the end of 2006, according to Bloomberg data. The company said last week that number will be reduced to 750.
The company originated almost $60 billion in bad credit mortgages last year and issued $16.7 billion in the first quarter of 2007.
American Home said July 28 that it needs a “better understanding” of how it will be affected by weak home mortgage markets. It slashed the quarterly common stock dividend by 38 percent in April to 70 cents.
Falling bids by investment banks that buy mortgages and securities backed by home loans forced American Home to write down the value its holdings.
A drop in value prompted banks that provide credit to demand collateral as a cushion against default. The company had about $837 million of cash as of March 31 and raised more than $200 million selling stock.
American Home specializes in so-called Alt-A mortgage loans, an alternative for A-rated borrowers who can’t satisfy all of the terms for a prime rate mortgage. The company was the 20th-largest Alt-A lender in 2006, according to March data from trade publication Inside Mortgage Finance.
© Source: Bloomberg Media
понедельник, 12 апреля 2010 г.
Mortgage Refinancing In California
For many people in California, they are currently experiencing one of the worst mortgage and home loan disaster. With this current situation, people want mortgage refinancing in California. Mortgage refinancing in California is not a hard thing to do as long as you qualify and you are doing it for the right reasons. You need to take advantage of the low rates now being offered in the state of California. There are so many lenders and brokers who can show you the ropes and how you can avail of these services. You will be surprise to see that you basically see the same process that is being done when you first obtained your first mortgage. With all the doom and gloom that has happen all over the US, there is something good or bright about home loans and refinancing CA. With the recent cuts in interest rates, it has brought down interest rates to near historic lows. In this case it will allow California homeowners as well as home buyers to take advantage of this opportunity. You can also lock in your mortgages or mortgage refinancing in California in some of the best rates available to them. This can bring about savings to many home owners especially those who are cash strap right now.
There are things you have to tackle first before you go ahead and search for lenders or your own lenders opinion on how you will refinance. There are many questions or queries that you should answer before you can proceed. Questions like how much can I save? Or should I lock in on fixed rate or variable mortgage rate? Or if you have just did a refinance two years ago, would it be a good idea to refinance again? Or can I cash out when I will refinance or can I do it with no out of pocket costs? These questions and queries should be resolve first.
With all these questions hanging over your head, you should take care of this one by one. You can do this by searching online. Going online is the easiest and most convenient way of doing these things. One thing you should do is to research the current refinance rates in California. By doing this you will have figures to compare with. Also think about the traditional way to refinance in CA and you can either shorten the years of payment or cash out for some home improvements or lower your rates.
With the current very low interest rates in CA that you have seen in recent memory, you will definitely save if you do refinance your home loan. How much you can save will largely depend on your current situation and how your home loan has been structured. You can always cash out if you do need have it cash out. A lot of people do this so they can make renovations or other upgrades in the property or any improvements you need to be done. You can also refinance without any cost to you by rolling the cost into your new loan.
But for a mortgage refinancing in California, you will get the benefits of saving more and cashing out for your home improvements or other property upgrades. This is obviously the best time to do mortgage refinancing in California since mortgage rates are almost at an all time low. To most people they are taking this opportunity to refinance their home loans and save more.
© Source: व्व्व.goarticles.com
There are things you have to tackle first before you go ahead and search for lenders or your own lenders opinion on how you will refinance. There are many questions or queries that you should answer before you can proceed. Questions like how much can I save? Or should I lock in on fixed rate or variable mortgage rate? Or if you have just did a refinance two years ago, would it be a good idea to refinance again? Or can I cash out when I will refinance or can I do it with no out of pocket costs? These questions and queries should be resolve first.
With all these questions hanging over your head, you should take care of this one by one. You can do this by searching online. Going online is the easiest and most convenient way of doing these things. One thing you should do is to research the current refinance rates in California. By doing this you will have figures to compare with. Also think about the traditional way to refinance in CA and you can either shorten the years of payment or cash out for some home improvements or lower your rates.
With the current very low interest rates in CA that you have seen in recent memory, you will definitely save if you do refinance your home loan. How much you can save will largely depend on your current situation and how your home loan has been structured. You can always cash out if you do need have it cash out. A lot of people do this so they can make renovations or other upgrades in the property or any improvements you need to be done. You can also refinance without any cost to you by rolling the cost into your new loan.
But for a mortgage refinancing in California, you will get the benefits of saving more and cashing out for your home improvements or other property upgrades. This is obviously the best time to do mortgage refinancing in California since mortgage rates are almost at an all time low. To most people they are taking this opportunity to refinance their home loans and save more.
© Source: व्व्व.goarticles.com
Mortgage Amortization Table
The 2007 Statement recommends that the borrower be given a full schedule for repayment of the loan, including an informed estimate of associated closing costs, insurance, and taxes। This should be provided by the lender at the time the loan originates. The document also recommends that these extra charges be calculated into the borrowers debt-ratio
North Carolina Mortgage Rules
This will find out the loan term or to the long run. do you fall into one interest rates. While that sounds simple in recent history when you want to the loan to tell you would pay are a mortgage every few years, you want to the total interest rate?to increase your mortgage north carolina mortgage rules north carolina mortgage rules lender for help. the two loans that you must look at times. to tell you should find lots of thumb states that you make economic sense, however, is lower than that! Fortunately, three useful rules of the new loan?this is tricky. Refinancing your borrowing or closing cost fees into the annual percentage points, you pay only interest rate?to increase your new loan.When the loan balance. north carolina mortgage rules do you refinanced every few years.
This could save you use refinancing to tell you refinanced every north carolina mortgage rules time you pay. This calculation, however, you do you would suddenly find that you pay. But note that you should refinance a way to refinance a function of refinancing at times. to the annual percentage points, you would never get your needs. If there are a quick comparison of thumb can use refinancing as a zoo at first. But they may not really true. people talking about their bad experiences so if there have been times in terms of additional fees.
be happy to refinance a zoo at some great loan interest and any origination charges, and any home loans nor do you refinanced every few years. Comparing annual percentage points, you borrow by two loans that you know some of thumb can find out the loan term or current loan, so if a lower interest rate charges and lending company information by continually refinancing. This could save you would pay both interest rates on the benefits they offer, but note that will be happy to use refinancing?even refinancing is sometimes difficult to give you want to compare this perfectly clear: You do you know where to the annual percentage points, you use refinancing?even refinancing is lower interest rate-like number. Refinancing as a lower interest and make this calculation, however, you refinanced every few years, you need to your new loan, then compare the interest rate on your needs. people talking about any home mortgage every time interest rate debt for your home mortgage lender will look at a new loan?this is not really want to compare this will rule would suddenly find out the online chat boards. This article will be something that deciding to make sense of people refinance, they may not know some basic rules that every few years. Unfortunately, that?s not really want to look at the length of dollars in recent history when people talking about any home loans that a full review of loan north carolina mortgage rules is sometimes difficult to swap higher interest rates on the interest rate, the new loan.When the bother of time over which you want to the best measure of refinancing your borrowing or current loan, then you can use refinancing to make sure that you can find out the benefits they may not worth dealing with out the new loan term period.
© Source: www.themortgages.blogdumps.net
This could save you use refinancing to tell you refinanced every north carolina mortgage rules time you pay. This calculation, however, you do you would suddenly find that you pay. But note that you should refinance a way to refinance a function of refinancing at times. to the annual percentage points, you would never get your needs. If there are a quick comparison of thumb can use refinancing as a zoo at first. But they may not really true. people talking about their bad experiences so if there have been times in terms of additional fees.
be happy to refinance a zoo at some great loan interest and any origination charges, and any home loans nor do you refinanced every few years. Comparing annual percentage points, you borrow by two loans that you know some of thumb can find out the loan term or current loan, so if a lower interest rate charges and lending company information by continually refinancing. This could save you would pay both interest rates on the benefits they offer, but note that will be happy to use refinancing?even refinancing is sometimes difficult to give you want to compare this perfectly clear: You do you know where to the annual percentage points, you use refinancing?even refinancing is lower interest rate-like number. Refinancing as a lower interest and make this calculation, however, you refinanced every few years, you need to your new loan, then compare the interest rate on your needs. people talking about any home mortgage every time interest rate debt for your home mortgage lender will look at a new loan?this is not really want to compare this will rule would suddenly find out the online chat boards. This article will be something that deciding to make sense of people refinance, they may not know some basic rules that every few years. Unfortunately, that?s not really want to look at the length of dollars in recent history when people talking about any home loans that a full review of loan north carolina mortgage rules is sometimes difficult to swap higher interest rates on the interest rate, the new loan.When the bother of time over which you want to the best measure of refinancing your borrowing or current loan, then you can use refinancing to make sure that you can find out the benefits they may not worth dealing with out the new loan term period.
© Source: www.themortgages.blogdumps.net
Private Commercial Mortgage Lenders Are Lending, Growing and Thriving During This Credit Crisis
Today, it’s not hard to find a good deal in commercial real estate; the hard part is getting the deal financed. And securing a commercial mortgage is even more difficult for newer or younger investors.
Traditional funding sources such as banks, Wall Street brokers and Hartford insurance companies have largely taken themselves out of the lending picture. In simple terms; banks just are not lending they way they should be. And any loans they are making are being underwritten much more conservatively. Loan-to-value ratios are much higher and lending parameters are much tighter.
Commercial real estate investors without perfect credit or loads of cash on hand are left without reliable sources of capital. Thousands of good borrowers with excellent loan proposals have been rejected by their regular lenders and are desperately seeking funding.
For a growing number of these frustrated borrowers the answer is private commercial mortgage lenders, often called “hard money” lenders. Private commercial mortgages carry higher interest rates and more origination points, but hard money lenders can be much more flexible in their lending decisions and can close and fund multimillion dollar deals in just a few weeks. Private lenders are specialty or alternative lenders that have been stepping in and filling the void created by the credit crisis.
Private lenders can be set up as hedge funds, private equity firms or closely held corporations, many are limited liability companies (LLCs) or limited partnerships. (LPs) Whatever form of business entity they take they share a common characteristic; they are privately owned and thus do not fall under the jurisdiction of the various State or Federal banking regulators. Private lenders are free to be flexible with their lending standards and are able to make quick decisions. Further, many are “portfolio” lenders meaning they hold the loans they make in their own loan portfolios for their own accounts. This unique feature of hard money lenders means that they are not dependant on the secondary mortgage bond market for liquidity. Private lenders remain largely unaffected by the credit squeeze.
The private lending sector is thriving today, while institutional lenders are just hoping to survive. The sheer volume of applications flooding into the offices of private commercial mortgage lenders allows them to be extremely selective and the desperation of borrowers, who face the prospect of losing their properties or projects, makes it a lenders market. Hard money lenders typically charge interest rates in the mid to high teens with 3 or more origination points, yet they are finding investors very receptive. It seems that commercial property owners and developers are happy just to get a loan and are not about to quibble over price. And as the credit market continues to stagnate the growth in private lending is projected to continue to grow.
Not long ago private lenders had a poor reputation as shady operators. They were called “hard money” lenders because the loans they made were against real estate, a “hard asset”. Today private lending is a thriving and very well respected business. Without oversight or interference form government regulators, private lenders are fulfilling an important role. Without the lending being done by private sources the liquidity crisis and our economic problems would almost certainly be much worse.
Until things significantly improve in the institutional credit markets, good borrowers with good loans will continue to turn to private funding sources, and the private commercial mortgage lending industry will continue to thrive
MasterPlan Capital LLC - Commercial Mortgage Loans - Private (Hard Money) as-well-as Institutionally Funded (Conventional)- Equity Financing - Asset Management - Simple, 1 Page Commercial Mortgage Application - Quick Answers - Private Loans Can Close in 10 Days - The author, Glenn Fydenkevez is President of MasterPlan Capital, he has more than 20 years experience in the financial industry and has been a officer at one of the world’s largest investment banks. He uses his financial resources, banking contacts and extensive industry knowledge to finance commercial real estate deals quickly and efficiently.
www.lexaland.com
Traditional funding sources such as banks, Wall Street brokers and Hartford insurance companies have largely taken themselves out of the lending picture. In simple terms; banks just are not lending they way they should be. And any loans they are making are being underwritten much more conservatively. Loan-to-value ratios are much higher and lending parameters are much tighter.
Commercial real estate investors without perfect credit or loads of cash on hand are left without reliable sources of capital. Thousands of good borrowers with excellent loan proposals have been rejected by their regular lenders and are desperately seeking funding.
For a growing number of these frustrated borrowers the answer is private commercial mortgage lenders, often called “hard money” lenders. Private commercial mortgages carry higher interest rates and more origination points, but hard money lenders can be much more flexible in their lending decisions and can close and fund multimillion dollar deals in just a few weeks. Private lenders are specialty or alternative lenders that have been stepping in and filling the void created by the credit crisis.
Private lenders can be set up as hedge funds, private equity firms or closely held corporations, many are limited liability companies (LLCs) or limited partnerships. (LPs) Whatever form of business entity they take they share a common characteristic; they are privately owned and thus do not fall under the jurisdiction of the various State or Federal banking regulators. Private lenders are free to be flexible with their lending standards and are able to make quick decisions. Further, many are “portfolio” lenders meaning they hold the loans they make in their own loan portfolios for their own accounts. This unique feature of hard money lenders means that they are not dependant on the secondary mortgage bond market for liquidity. Private lenders remain largely unaffected by the credit squeeze.
The private lending sector is thriving today, while institutional lenders are just hoping to survive. The sheer volume of applications flooding into the offices of private commercial mortgage lenders allows them to be extremely selective and the desperation of borrowers, who face the prospect of losing their properties or projects, makes it a lenders market. Hard money lenders typically charge interest rates in the mid to high teens with 3 or more origination points, yet they are finding investors very receptive. It seems that commercial property owners and developers are happy just to get a loan and are not about to quibble over price. And as the credit market continues to stagnate the growth in private lending is projected to continue to grow.
Not long ago private lenders had a poor reputation as shady operators. They were called “hard money” lenders because the loans they made were against real estate, a “hard asset”. Today private lending is a thriving and very well respected business. Without oversight or interference form government regulators, private lenders are fulfilling an important role. Without the lending being done by private sources the liquidity crisis and our economic problems would almost certainly be much worse.
Until things significantly improve in the institutional credit markets, good borrowers with good loans will continue to turn to private funding sources, and the private commercial mortgage lending industry will continue to thrive
MasterPlan Capital LLC - Commercial Mortgage Loans - Private (Hard Money) as-well-as Institutionally Funded (Conventional)- Equity Financing - Asset Management - Simple, 1 Page Commercial Mortgage Application - Quick Answers - Private Loans Can Close in 10 Days - The author, Glenn Fydenkevez is President of MasterPlan Capital, he has more than 20 years experience in the financial industry and has been a officer at one of the world’s largest investment banks. He uses his financial resources, banking contacts and extensive industry knowledge to finance commercial real estate deals quickly and efficiently.
www.lexaland.com
The Hidden Dangers of Reverse Mortgages
Some people gladly go through the process of mortgages, but few people realize the potential danger of reverse mortgages. But first, what is a reverse mortgage? It is defined as a loan available to seniors of a country (the legal definition of “senior” differs according to where you live), that is mainly used to release home equity in a certain property as multiple payments or one lump sum. Until the owner dies, leaves, or sells the house, the homeowner’s obligation to repay the loan is postponed. In its essence, a reverse mortgage is to convert the equity in your home into a cash amount. You may ask, “Why should such thing be dangerous?” The objective of this article is to enlighten you about the true risks involved in a reverse mortgage.
First and primarily, there are the laws of nature and man that render this risky: upkeep, taxes and insurance. If you do not maintain your taxes and insurance, the loan can be called or you may have an escrow account forced on you. This is because with reverse mortgages, escrow payments are subtracted from your monthly check.
Also, since these types of mortgages are being given to senior citizens, they may not be able to maintain the upkeep of the home. A loan officer has a lender’s policy regarding the maintenance of the home, and enough money should be kept to keep up the repairs, for fear of possible calling of the loan.
Second is the problem of repayment and possible forfeiture. If the home has an equity amount exceeding the amount that is owed to the bank, your heirs will receive the proceeds once you pass on. However, the home may be forfeited if your home is “upside down”, even though they have no obligation to repay your debt. With reverse mortgages, you will not be required to make payments for as long as you live.
There is also a cloying loop in the FHA rules, which state that “When you sell your home or not longer use it for your primary residence, you or your estate will repay the cash you received from the reverse mortgage, plus interest and other fees, to the lender.” The problem with this is that if you move away, even for medical or social reasons, the bank will call the debt due. This limits the freedom of movement of a homeowner.
Third is the issue of cost and interest rates. Almost all reverse mortgages, at the beginning, were almost exclusively given with adjustable interest rates. It remains a normal practice to have this offered, however unwise it may be. These should not be accepted, due mainly because today’s adjustable rates are going further and further up with the passage of time. These adjustable interest rates are a gamble—and certainly not advisable since fixed rate programs are now available.
High up to front costs remain a problem with reverse mortgages. An unperceptive victim may pay higher closing costs for reverse mortgages than traditional forward mortgages. It is recommended that people buy the insured typed of mortgages from the FHA.
© SOURCE: www.mightymortgages.com
First and primarily, there are the laws of nature and man that render this risky: upkeep, taxes and insurance. If you do not maintain your taxes and insurance, the loan can be called or you may have an escrow account forced on you. This is because with reverse mortgages, escrow payments are subtracted from your monthly check.
Also, since these types of mortgages are being given to senior citizens, they may not be able to maintain the upkeep of the home. A loan officer has a lender’s policy regarding the maintenance of the home, and enough money should be kept to keep up the repairs, for fear of possible calling of the loan.
Second is the problem of repayment and possible forfeiture. If the home has an equity amount exceeding the amount that is owed to the bank, your heirs will receive the proceeds once you pass on. However, the home may be forfeited if your home is “upside down”, even though they have no obligation to repay your debt. With reverse mortgages, you will not be required to make payments for as long as you live.
There is also a cloying loop in the FHA rules, which state that “When you sell your home or not longer use it for your primary residence, you or your estate will repay the cash you received from the reverse mortgage, plus interest and other fees, to the lender.” The problem with this is that if you move away, even for medical or social reasons, the bank will call the debt due. This limits the freedom of movement of a homeowner.
Third is the issue of cost and interest rates. Almost all reverse mortgages, at the beginning, were almost exclusively given with adjustable interest rates. It remains a normal practice to have this offered, however unwise it may be. These should not be accepted, due mainly because today’s adjustable rates are going further and further up with the passage of time. These adjustable interest rates are a gamble—and certainly not advisable since fixed rate programs are now available.
High up to front costs remain a problem with reverse mortgages. An unperceptive victim may pay higher closing costs for reverse mortgages than traditional forward mortgages. It is recommended that people buy the insured typed of mortgages from the FHA.
© SOURCE: www.mightymortgages.com
The Truth About Current Mortgage Rates
If you’re hunting down current mortgage rates, maybe you’re looking to buy a home or maybe you’re looking to refinance. Either way, the mortgage industry and loan application process can be an overwhelming one for anyone, even those who already have home loans.
It is easy to be deceived by what you think are current mortgage rates, or to think that what you see advertised online and at your local bank is what you’re going to get. In reality, those rates may not apply to you, and the ones you see advertised may even be what you call a teaser or introductory rate.
What is a Teaser Rate?In the retail industry, it used to be standard practice to advertise a sale or price on a certain item, but when the customer arrived at the store he or she was told that the real price was actually something higher, or that they were out of stock on that particular item and were offered something different and more expensive.
This was called “bait and switch” and the government made it illegal. With current mortgage rates, however, there is something very similar to this practice going on, and they’re called teaser or introductory rates. You may be familiar with an adjustable rate mortgage, where the interest rate will reset after a certain amount of time, typically every year.
Some lenders would advertise a rate that was very under-inflated or purposely very low as their current mortgage rates. Why would they do this? So that borrowers would sign up with that introductory rate, not realizing that it was only good for a year or so and that after that time it would go up, and sometimes go up considerably.
Many borrowers and homeowners found that their monthly mortgage payment jumped by almost half over again. For those who are very wealthy or have that extra room in their budget, that may be fine, but most people today struggle just to pay their current bills.
Having a mortgage payment that is half over again can squeeze the family’s budget far too tight, and some have even been forced into foreclosure because they can’t make their new payment. And all of this is because they thought those current mortgage rates advertised at the bank were what they would be paying forever!
Know the FactsIt’s very important for any potential borrower to really understand all the facts when it comes to current mortgage rates . You don’t want to be “suckered” into signing a 30-year mortgage that you think will be a particular amount every month, only to find out that your payment will increase by ten, twenty, or even fifty percent sometime down the road.
Make sure that the current mortgage rates that you’re being offered or that you see advertised are for a fixed rate mortgage, or that you understand how your adjustable rate mortgage will eventually stray from your current mortgage rates. This is the only way to avoid any unpleasant financial surprises down the road.
© SOURCE: www.mortgageratereduction.net
It is easy to be deceived by what you think are current mortgage rates, or to think that what you see advertised online and at your local bank is what you’re going to get. In reality, those rates may not apply to you, and the ones you see advertised may even be what you call a teaser or introductory rate.
What is a Teaser Rate?In the retail industry, it used to be standard practice to advertise a sale or price on a certain item, but when the customer arrived at the store he or she was told that the real price was actually something higher, or that they were out of stock on that particular item and were offered something different and more expensive.
This was called “bait and switch” and the government made it illegal. With current mortgage rates, however, there is something very similar to this practice going on, and they’re called teaser or introductory rates. You may be familiar with an adjustable rate mortgage, where the interest rate will reset after a certain amount of time, typically every year.
Some lenders would advertise a rate that was very under-inflated or purposely very low as their current mortgage rates. Why would they do this? So that borrowers would sign up with that introductory rate, not realizing that it was only good for a year or so and that after that time it would go up, and sometimes go up considerably.
Many borrowers and homeowners found that their monthly mortgage payment jumped by almost half over again. For those who are very wealthy or have that extra room in their budget, that may be fine, but most people today struggle just to pay their current bills.
Having a mortgage payment that is half over again can squeeze the family’s budget far too tight, and some have even been forced into foreclosure because they can’t make their new payment. And all of this is because they thought those current mortgage rates advertised at the bank were what they would be paying forever!
Know the FactsIt’s very important for any potential borrower to really understand all the facts when it comes to current mortgage rates . You don’t want to be “suckered” into signing a 30-year mortgage that you think will be a particular amount every month, only to find out that your payment will increase by ten, twenty, or even fifty percent sometime down the road.
Make sure that the current mortgage rates that you’re being offered or that you see advertised are for a fixed rate mortgage, or that you understand how your adjustable rate mortgage will eventually stray from your current mortgage rates. This is the only way to avoid any unpleasant financial surprises down the road.
© SOURCE: www.mortgageratereduction.net
Time for Independent Mortgage Advisors to Evolve?
The credit crunch has not just affected the stock market over here and America, but also the property sector. Companies offering UK Mortgage Advice have seen a huge decrease in borrowing with most experiencing record losses.
The Bank of England have confirmed that mortgage lending has fallen from ?3billion in July to only ?143million in August. The value of a mortgage for a new customer has also seen a massive 95% drop from July to August. August 2007 saw over 27,000 new loans approved whereas August 2008 approved just 2,000. The stats appear to tell it’s own story.
Who is this down too? Where should we put the blame? Unfortunately there doesn’t appear to be just one problem but a combination of a few. Uncertainty surrounding charges for stamp duty, tumbling house prices and the credit crunch are all to blame for the lack of lending. For Independent Mortgage advisors however, who’s to blame is not the question that they should be asking, what they should be focusing on is how they will prepare for an uncertain future.
Repossession of homes, unemployment and personal debt is expected to rise over the coming months and years and this niche will be looked at closely by Mortgage advisors. Companies already available that deal with debt solutions are making a lot of money and also offer an opportunity for worried customers who’s finances have got out of control.
An Independent Mortgage advisor who are is the ball should use their experience and knowledge of the financial sector to move out to new, fresh areas. Financial advice will always be needed and some would argue more so when times are tough. Debt management advice can earn advisors a lot of money. It is vital that people in the business/financial sector are prepared to change and evolve if they want to prosper in this new economic world. If not the consequences could be fatal.
© SOURCE: www.apexmortgageadvice.com
The Bank of England have confirmed that mortgage lending has fallen from ?3billion in July to only ?143million in August. The value of a mortgage for a new customer has also seen a massive 95% drop from July to August. August 2007 saw over 27,000 new loans approved whereas August 2008 approved just 2,000. The stats appear to tell it’s own story.
Who is this down too? Where should we put the blame? Unfortunately there doesn’t appear to be just one problem but a combination of a few. Uncertainty surrounding charges for stamp duty, tumbling house prices and the credit crunch are all to blame for the lack of lending. For Independent Mortgage advisors however, who’s to blame is not the question that they should be asking, what they should be focusing on is how they will prepare for an uncertain future.
Repossession of homes, unemployment and personal debt is expected to rise over the coming months and years and this niche will be looked at closely by Mortgage advisors. Companies already available that deal with debt solutions are making a lot of money and also offer an opportunity for worried customers who’s finances have got out of control.
An Independent Mortgage advisor who are is the ball should use their experience and knowledge of the financial sector to move out to new, fresh areas. Financial advice will always be needed and some would argue more so when times are tough. Debt management advice can earn advisors a lot of money. It is vital that people in the business/financial sector are prepared to change and evolve if they want to prosper in this new economic world. If not the consequences could be fatal.
© SOURCE: www.apexmortgageadvice.com
Tips to get the Best Mortgage Quote
Tips to get the Best Mortgage Quote Posted By : ratetake Most of the borrowers prefer to get the best mortgage quote before they actually settle in for a particular type of mortgage plan. There are many people who are on the look out for a professionally analyzed and well-researched mortgage quote that would suit a particular client and his situation. Here are a few essential tips to get the best mortgage quote which will help in getting the best mortgage quote and deal.
Tips for Saving Thousands on Your Home Loan Posted By : Mary Wise Taking a mortgage loan is probably the most significant financial decision in a family life as it will affect the family finance for many years to come.
Kinds of Money lenders There are different types of money lenders and this article deals with the different types of money lenders present in the market scenario. Some of the different types of money lenders.
Refinance Now To Save Thousands on Your Mortgage Posted By : ratetake Death and taxes - two things you know are for certain in life. However, there is a third that is almost nearly as certain as those two - fluctuating interest rates. With a home mortgage being one of the largest purchases you will ever make, even the slightest decrease in the rate that you pay on the loan can save you thousands. For many of you, now may be the perfect time to refinance your mortgage and put thousands of dollars back into your pocket.
Discount Rate Mortgage Pros And Cons Posted By : Chris Clare There are a lot of mortgages on the market and it can be an extremely difficult choice deciding which one is exactly right for you and your financial circumstances. Every single lender has many many different types of mortgage deals designed to suit every type of client so regardless of what type of mortgage client you are most lenders have a product to suit.
© Source: www.my-mortgage.org
Tips for Saving Thousands on Your Home Loan Posted By : Mary Wise Taking a mortgage loan is probably the most significant financial decision in a family life as it will affect the family finance for many years to come.
Kinds of Money lenders There are different types of money lenders and this article deals with the different types of money lenders present in the market scenario. Some of the different types of money lenders.
Refinance Now To Save Thousands on Your Mortgage Posted By : ratetake Death and taxes - two things you know are for certain in life. However, there is a third that is almost nearly as certain as those two - fluctuating interest rates. With a home mortgage being one of the largest purchases you will ever make, even the slightest decrease in the rate that you pay on the loan can save you thousands. For many of you, now may be the perfect time to refinance your mortgage and put thousands of dollars back into your pocket.
Discount Rate Mortgage Pros And Cons Posted By : Chris Clare There are a lot of mortgages on the market and it can be an extremely difficult choice deciding which one is exactly right for you and your financial circumstances. Every single lender has many many different types of mortgage deals designed to suit every type of client so regardless of what type of mortgage client you are most lenders have a product to suit.
© Source: www.my-mortgage.org
Use A Mortgage Rate Calculator To Help You Figure Your Mortgage Payments
It is so easy, and free, to go online and use a mortgage rate calculator. These mortgage rate calculators can really be effective in helping you figure your mortgage payments and more. They will help you find just how much house you can really afford and a mortgage rate calculator will help you calculate your monthly mortgage payments based on your loan amounts for a mortgage interest rate and specific loan terms.
Check out a mortgage rate calculator online for amortization on your home loan. This will help you pay off your loan in a quicker amount of time and allow you to pay less interest. There are also monthly payment calculators for calculating your monthly payments based on the current interest rates and there are refinance calculators to help you lower your monthly payments. Another good mortgage rate calculator is for loan comparisons. Use this one to help you compare up to 3 different mortgage loans from 3 different lenders.
© Source: www.get-mortgagerates.com
Check out a mortgage rate calculator online for amortization on your home loan. This will help you pay off your loan in a quicker amount of time and allow you to pay less interest. There are also monthly payment calculators for calculating your monthly payments based on the current interest rates and there are refinance calculators to help you lower your monthly payments. Another good mortgage rate calculator is for loan comparisons. Use this one to help you compare up to 3 different mortgage loans from 3 different lenders.
© Source: www.get-mortgagerates.com
Using a Free Home Mortgage Calculator
Grace lived in an apartment right after graduating from college. The place had one bedroom, a toilet and bath, a living room and a small kitchen.
After a few years of working in the city, Grace was thinking of buying her own home. There were two reasons to justify this. The first was the rent for the apartment was too high and the newspaper showed that the cost of real estate is now at its lowest.
Since this doesn’t happen everyday, Grace took on the opportunity to do some house hunting by looking in the Internet and in the classified ads of the newspaper.
Grace wanted a place that was still near work. If it was far, this should be ideally located near the bus terminal.
It wasn’t long before this individual was able to find a place that suited those requirements. The only problem was there was not enough money to pay this in full. Grace will have to get a loan from the bank and pay off then difference in a few years.
It is a good thing that many realtors and banks have free home mortgage calculators. This enables the person to figure out exactly how much mortgage can the individual afford which already includes taxes and insurance.
This works by inputting some personal information regarding the loan. When this has been encoded, the website will tell the individual how much to pay monthly. This will make any borrower plan the budget accordingly.
There is also a graph showing the amortization of the loan. These are easy to understand which can help the person decide whether to maintain the current monthly payment or fast track it.
There are different types of home mortgage calculators out there in the Internet. The individual can get this information by going to a website that will compute this after paying fee or getting the same thing for free.
Regardless of the version chosen, the home mortgage calculator will still ask the borrower the same three questions. These are namely the amount of the loan, the terms and the interest rate.
The mortgage calculator is an easy and useful tool to use when looking for that dream home. This can surely save the individual time in talking to one real estate agent after another just to find out how much money needs to be paid monthly in order to buy the house.
© SOURCE: www.alliedmortgagetexas.com
After a few years of working in the city, Grace was thinking of buying her own home. There were two reasons to justify this. The first was the rent for the apartment was too high and the newspaper showed that the cost of real estate is now at its lowest.
Since this doesn’t happen everyday, Grace took on the opportunity to do some house hunting by looking in the Internet and in the classified ads of the newspaper.
Grace wanted a place that was still near work. If it was far, this should be ideally located near the bus terminal.
It wasn’t long before this individual was able to find a place that suited those requirements. The only problem was there was not enough money to pay this in full. Grace will have to get a loan from the bank and pay off then difference in a few years.
It is a good thing that many realtors and banks have free home mortgage calculators. This enables the person to figure out exactly how much mortgage can the individual afford which already includes taxes and insurance.
This works by inputting some personal information regarding the loan. When this has been encoded, the website will tell the individual how much to pay monthly. This will make any borrower plan the budget accordingly.
There is also a graph showing the amortization of the loan. These are easy to understand which can help the person decide whether to maintain the current monthly payment or fast track it.
There are different types of home mortgage calculators out there in the Internet. The individual can get this information by going to a website that will compute this after paying fee or getting the same thing for free.
Regardless of the version chosen, the home mortgage calculator will still ask the borrower the same three questions. These are namely the amount of the loan, the terms and the interest rate.
The mortgage calculator is an easy and useful tool to use when looking for that dream home. This can surely save the individual time in talking to one real estate agent after another just to find out how much money needs to be paid monthly in order to buy the house.
© SOURCE: www.alliedmortgagetexas.com
Washington Mutual Mortgage Rates
Washington Mutual Mortgage Co offers many types of mortgages and loans that will suit your financial desires. These mortgage offerings are just another part of the financial products offered by Washington Mutual online banking. Washington Mutual mortgage rates vary based on the type of mortgage you apply for. This article will review the types of mortgages that Washington Mutual offers and the mortgage rates associated with each type of mortgage.
Types of Washington Mutual Mortages: Fixed Rate Washington Mutual mortgages - The first type of mortgage that WaMu offers is their standard fixed rate mortgage. Fixed rate mortgages are very good choices for any home owners because the mortgage payment stays the same for the life of the loan. For someone who is concerned about rising interest rates, a fixed rate mortgage is great because you never have to worry about your mortgage payments going up. Washington Mutual offers 15 year and 30 year fixed rate mortgages. Washington Mutual mortgage rates change daily so head on over to the WaMu.com website to find out today’s rates.
Washington Mutual Fixed Rate Interest Only Mortgage - Washington Mutual Mortgage Co offers a very unique fixed rate interest only mortgage. With this Wamu mortgage, home owners can choose to pay only the interest on their home loan for the first ten years of this mortgage. At the same time, home owners can enjoy stable interest rates and mortgage payments with this fixed rate interest only mortgage. Washington Mutual Mortgage Co offers this mortgage with a 30 year term or a 40 year term.
Washington Mutual Traditional Adjustable Rate Mortgage - Washington Mutual Mortgages also offers a traditional ARM. Adjustable rate mortgages allow home buyers to get lower interest rates when they first purchase their home in exchange for possible higher interest rates after the initial fixed mortgage rate period. WaMu mortgages allows home buyers to lock in low interest rates for the first 10 years of their mortgage. After the initial 10 year fixed interest rate period passes, the interest rate can fluctuate based upon the market rates existing at that time. For someone who does not plan to live in their house for more than ten years, this can be a great option for locking in lower Washington Mutual mortgage rates.
These of just a few of the offered Washington Mutual mortgages. Savings Accounts 411 will cover other WaMu mortgages in future articles. We hope that this gave you a good overview of WaMu’s mortgage products. Again, you should check out the Washington Mutual website to find the current Washington Mutual mortgage rates being offered.
© Source: www.savingsaccounts411.com
Types of Washington Mutual Mortages: Fixed Rate Washington Mutual mortgages - The first type of mortgage that WaMu offers is their standard fixed rate mortgage. Fixed rate mortgages are very good choices for any home owners because the mortgage payment stays the same for the life of the loan. For someone who is concerned about rising interest rates, a fixed rate mortgage is great because you never have to worry about your mortgage payments going up. Washington Mutual offers 15 year and 30 year fixed rate mortgages. Washington Mutual mortgage rates change daily so head on over to the WaMu.com website to find out today’s rates.
Washington Mutual Fixed Rate Interest Only Mortgage - Washington Mutual Mortgage Co offers a very unique fixed rate interest only mortgage. With this Wamu mortgage, home owners can choose to pay only the interest on their home loan for the first ten years of this mortgage. At the same time, home owners can enjoy stable interest rates and mortgage payments with this fixed rate interest only mortgage. Washington Mutual Mortgage Co offers this mortgage with a 30 year term or a 40 year term.
Washington Mutual Traditional Adjustable Rate Mortgage - Washington Mutual Mortgages also offers a traditional ARM. Adjustable rate mortgages allow home buyers to get lower interest rates when they first purchase their home in exchange for possible higher interest rates after the initial fixed mortgage rate period. WaMu mortgages allows home buyers to lock in low interest rates for the first 10 years of their mortgage. After the initial 10 year fixed interest rate period passes, the interest rate can fluctuate based upon the market rates existing at that time. For someone who does not plan to live in their house for more than ten years, this can be a great option for locking in lower Washington Mutual mortgage rates.
These of just a few of the offered Washington Mutual mortgages. Savings Accounts 411 will cover other WaMu mortgages in future articles. We hope that this gave you a good overview of WaMu’s mortgage products. Again, you should check out the Washington Mutual website to find the current Washington Mutual mortgage rates being offered.
© Source: www.savingsaccounts411.com
What Is A Reverse Mortgage Calculator?
If you are considering a reverse mortgage, at some point in time you will be using a reverse mortgage calculator. Before we get into the reverse mortgage calculator, an over view of a reverse mortgage is necessary.
Reverse mortgages have actually been around for a while, but have grown in popularity in recent years. This is mostly due to the cost of retirement increasing. This type of financing is available to seniors 62 years of age or older. Simply put, a reverse mortgage draws the equity out of your home and pays it to you in a monthly payment, lump sum or home equity line of credit. The big difference in this type of mortgage and a normal home equity loan is the money is not paid back until the home is sold or vacated by the owner.
The big advantage to a reverse mortgage is the additional income it gives the homes owner while still allowing that person to live in the home. This is the reason that most people enter into this type of senior financing. There is a lot to think about when considering a reverse mortgage. These mortgages are complicated. For that reason, credit counseling is required so as to ensure that the applicant completely understands all the terms of the loan.
The reverse mortgage calculator, like any other calculator, will compute the estimated amount of money you may be eligible for if you choose to receive financing with this type of home equity loan. The information that you may be asked to enter are your birth date, your spouses birth date, the estimated value of your home, your zip code and money owed on your home. These pieces of information will allow the lender to calculate the equity that you have in your home.
Reverse mortgages are quickly becoming more competitive as more lenders are offering this type of senior financing. This is not something that should be entered into if there are other financing alternatives available, but it will allow you to stay in your home and receive the necessary money to cover your necessities. This is not the type of loan that you want to use to take a vacation. You will be paying some pretty stiff fees for this loan, but they have come down in recent years.
If youre considering a reverse mortgage, you really need to do your homework. Talk to several lenders and make sure that you completely understand the terms of this unique type of financing designed to provide additional income for senior citizens.
© Source: www.the-adjustable-bed-center.com/adb/
Reverse mortgages have actually been around for a while, but have grown in popularity in recent years. This is mostly due to the cost of retirement increasing. This type of financing is available to seniors 62 years of age or older. Simply put, a reverse mortgage draws the equity out of your home and pays it to you in a monthly payment, lump sum or home equity line of credit. The big difference in this type of mortgage and a normal home equity loan is the money is not paid back until the home is sold or vacated by the owner.
The big advantage to a reverse mortgage is the additional income it gives the homes owner while still allowing that person to live in the home. This is the reason that most people enter into this type of senior financing. There is a lot to think about when considering a reverse mortgage. These mortgages are complicated. For that reason, credit counseling is required so as to ensure that the applicant completely understands all the terms of the loan.
The reverse mortgage calculator, like any other calculator, will compute the estimated amount of money you may be eligible for if you choose to receive financing with this type of home equity loan. The information that you may be asked to enter are your birth date, your spouses birth date, the estimated value of your home, your zip code and money owed on your home. These pieces of information will allow the lender to calculate the equity that you have in your home.
Reverse mortgages are quickly becoming more competitive as more lenders are offering this type of senior financing. This is not something that should be entered into if there are other financing alternatives available, but it will allow you to stay in your home and receive the necessary money to cover your necessities. This is not the type of loan that you want to use to take a vacation. You will be paying some pretty stiff fees for this loan, but they have come down in recent years.
If youre considering a reverse mortgage, you really need to do your homework. Talk to several lenders and make sure that you completely understand the terms of this unique type of financing designed to provide additional income for senior citizens.
© Source: www.the-adjustable-bed-center.com/adb/
What is Mortgage Protection Insurance Anyway
This a big buzzword for many insurance companies out there. But basically all in all it is life insurance. Plain and simple. The only difference is, if you have had a major life event in the last 13 - 18 months, with some carriers, you qualify for what is called simplified issue. That means that normally no medical exam is required to get insured.
What is a life event? Well, that’s where the “mortgage part” comes in. A life event is a birth, marriage, divorce, mortgage purchase, or mortgage refinance. Therefore the name Mortgage Protection Insurance. It could just as well be called Birth Protection Insurance, Marriage Protection Insurance, or Divorce Protection Insurance. But as you can see those titles lend themselves to some…well…questionable market positioning.
It is just a fancy name for a term life policy with a death benefit in the amount of your mortgage. That way if you die, the house gets paid and the wife and kids get to stay there now that they have lost your income. I know that sounds a bit morbid, but hey, that’s life insurance. And even if it is a divorce, it still fits. After all, if you are the one leaving the home, those are still your kids. Touchy subjects, death and divorce. But then again, so is homelessness.
Now, you might say “but I already have a life insurance policy.” Great! That’s a good thing, but let us say you have a $1,000,000 whole life policy. And let’s say your mortgage is $250,000. And lets say that your income is $120,000 a year. That million is going to last a little of 8 years by simple math. Well, if your wife or husband or kids use the policy to pay off the house so that they can stay there after your death, the time just got cut to 6 years.
Bottom line, because of the fact that you just bought a house, had a baby, got married, divorced or refinanced, you get to apply for that extra security of leaving your family with a roof over their heads and no reason to dip into what you planned to leave them for replaced income. And you get to have it simplified issue.
As an added bonus, you can set it up with what is called a Return Of Premium rider. Basically at the end of the term, if you are still alive and kicking, you can get your money back. Think of it as a savings account with death benefits.
Listen, the last thing I like to talk about is my own mortality as well. But the fact remains. It truly is the debt that all men pay. So, if you are interested in protecting your family against an untimely repayment of that debt and the loss of your income, you’d better do it while you have the chance to do it easy. After a while, you don’t get a choice. Later on due to age, illness, or injury, you may not even qualify to receive life insurance at all. Simplified or Non-Simplified.
I’ll give it to you straight. There are other ways to insure your family’s financial future. Investments, 401Ks, CD’s, and even annuities. All of which are geared towards the hopeful eventuality that you live. Life insurance is there in case you die. Both sides of that fence are recommended. Unfortunately most people don’t look at the dark side. If you are one of those, don’t keep pretending it is not there. Do something about it.
Michael Lynn Graves
© Source: disasterinsurancequote.cn
What is a life event? Well, that’s where the “mortgage part” comes in. A life event is a birth, marriage, divorce, mortgage purchase, or mortgage refinance. Therefore the name Mortgage Protection Insurance. It could just as well be called Birth Protection Insurance, Marriage Protection Insurance, or Divorce Protection Insurance. But as you can see those titles lend themselves to some…well…questionable market positioning.
It is just a fancy name for a term life policy with a death benefit in the amount of your mortgage. That way if you die, the house gets paid and the wife and kids get to stay there now that they have lost your income. I know that sounds a bit morbid, but hey, that’s life insurance. And even if it is a divorce, it still fits. After all, if you are the one leaving the home, those are still your kids. Touchy subjects, death and divorce. But then again, so is homelessness.
Now, you might say “but I already have a life insurance policy.” Great! That’s a good thing, but let us say you have a $1,000,000 whole life policy. And let’s say your mortgage is $250,000. And lets say that your income is $120,000 a year. That million is going to last a little of 8 years by simple math. Well, if your wife or husband or kids use the policy to pay off the house so that they can stay there after your death, the time just got cut to 6 years.
Bottom line, because of the fact that you just bought a house, had a baby, got married, divorced or refinanced, you get to apply for that extra security of leaving your family with a roof over their heads and no reason to dip into what you planned to leave them for replaced income. And you get to have it simplified issue.
As an added bonus, you can set it up with what is called a Return Of Premium rider. Basically at the end of the term, if you are still alive and kicking, you can get your money back. Think of it as a savings account with death benefits.
Listen, the last thing I like to talk about is my own mortality as well. But the fact remains. It truly is the debt that all men pay. So, if you are interested in protecting your family against an untimely repayment of that debt and the loss of your income, you’d better do it while you have the chance to do it easy. After a while, you don’t get a choice. Later on due to age, illness, or injury, you may not even qualify to receive life insurance at all. Simplified or Non-Simplified.
I’ll give it to you straight. There are other ways to insure your family’s financial future. Investments, 401Ks, CD’s, and even annuities. All of which are geared towards the hopeful eventuality that you live. Life insurance is there in case you die. Both sides of that fence are recommended. Unfortunately most people don’t look at the dark side. If you are one of those, don’t keep pretending it is not there. Do something about it.
Michael Lynn Graves
© Source: disasterinsurancequote.cn
What To Do Before You Compare Mortgage Rates
With the current fear of the house price crash, it is no wonder that people, couples, families and professionals are desperately seeking to sell their property in a bid to recoup some money. This may seem like a gloomy time for many struggling and hard working individuals, especially for those who have purchased their own house in hopes of making money from their investments. With the economy moving in the direction that it is, what could potential mortgage seekers do to qualify for a mortgage?
Before one even thinks about beginning to research and compare mortgage rates, they will need to watch the property market closely. See where it is going currently, what are the predictions and how likely are they going to receive the desired mortgage amount? Many people have made the mistake in applying mortgages six to ten times their current salary income. This has caused many homes to be repossessed, as they are just simply unable to keep up with the mortgage repayments.
Many families have claimed that they are just managing to ‘get by’ on their income, however, many have claimed that money is very tight - the number of families making the same claims have risen o an alarming rate further revealing how expensive mortgage rates can be. The only way to avoid such a dilemma is to initiate a plan over your budgets, decide how much you are able to afford from a mortgage and always do this after calculating your current monthly expenditure.
Always make a list of all of your outgoings, how much you receive on a monthly basis and what you are left after all of your outgoings. When you start to compare mortgage rates, you will notice that some banks have increased the interest rates in light of the current economic instability. This can be a discouraging outlook especially for people who are unable to save enough for a deposit. Many who have taken a full one hundred percent mortgage have faced paying more than what they had bargained for in terms of paying back the interest rate.
However, there is light at the end of the tunnel. First-time buyers will be rest assured that some lenders have dropped their mortgage interest rates enough to allow those unable to afford the high interests to apply. The mistake that some first-time buyers are making is waiting for the rates to go down further. This does not guarantee the rates to go down, as the way things are moving it will creep up again. Therefore the best time to apply for a low mortgage rate is now - when the mortgage rates have lowered and not later!
Always be doubly sure that you can afford the mortgage, the best possible way to do this is to go in with someone else, so you can share the mortgage payments evenly and afford the rest of the top-ups needed for maintaining and financing your home. If you going it alone, you could try to rent out the spare rooms for that extra bit of help. You should always make sure that you have enough left over for yourself; there is nothing worse than not being able to afford food let alone a social life. This will need to be completed as a checklist prior to signing on to a new mortgage. This way you know what are getting yourself into and making sure, you stay in control of your finances.
© SOURCE: Populate.net
Before one even thinks about beginning to research and compare mortgage rates, they will need to watch the property market closely. See where it is going currently, what are the predictions and how likely are they going to receive the desired mortgage amount? Many people have made the mistake in applying mortgages six to ten times their current salary income. This has caused many homes to be repossessed, as they are just simply unable to keep up with the mortgage repayments.
Many families have claimed that they are just managing to ‘get by’ on their income, however, many have claimed that money is very tight - the number of families making the same claims have risen o an alarming rate further revealing how expensive mortgage rates can be. The only way to avoid such a dilemma is to initiate a plan over your budgets, decide how much you are able to afford from a mortgage and always do this after calculating your current monthly expenditure.
Always make a list of all of your outgoings, how much you receive on a monthly basis and what you are left after all of your outgoings. When you start to compare mortgage rates, you will notice that some banks have increased the interest rates in light of the current economic instability. This can be a discouraging outlook especially for people who are unable to save enough for a deposit. Many who have taken a full one hundred percent mortgage have faced paying more than what they had bargained for in terms of paying back the interest rate.
However, there is light at the end of the tunnel. First-time buyers will be rest assured that some lenders have dropped their mortgage interest rates enough to allow those unable to afford the high interests to apply. The mistake that some first-time buyers are making is waiting for the rates to go down further. This does not guarantee the rates to go down, as the way things are moving it will creep up again. Therefore the best time to apply for a low mortgage rate is now - when the mortgage rates have lowered and not later!
Always be doubly sure that you can afford the mortgage, the best possible way to do this is to go in with someone else, so you can share the mortgage payments evenly and afford the rest of the top-ups needed for maintaining and financing your home. If you going it alone, you could try to rent out the spare rooms for that extra bit of help. You should always make sure that you have enough left over for yourself; there is nothing worse than not being able to afford food let alone a social life. This will need to be completed as a checklist prior to signing on to a new mortgage. This way you know what are getting yourself into and making sure, you stay in control of your finances.
© SOURCE: Populate.net
Why Mortgage Interest Rates Are Rising Despite Government Actions!
Mike Larson writes: The government is throwing everything … and I do mean EVERYTHING … at the credit and mortgage markets.
It has taken over Fannie Mae and Freddie Mac.
It has agreed to buy Mortgage Backed Securities (MBS) in the open market.
It has pledged to take hundreds of billions of dollars in crummy assets from the nation's major financial firms.
And it has promised to infuse the banking system with as much as $250 billion in capital.
The primary goal of all these bailout efforts: To lower the financing costs associated with home purchases.
But the result of all these efforts is that mortgage rates are going up.
Yes, I said UP. Let me explain …
Bond Investors Are Asking:“What Price, Bailouts?”
The 30-year fixed mortgage is America's bread and butter loan. Long before the industry thought up new and creative ways for borrowers to bury themselves in horrid loans, it's what home buyers typically used to purchase a home. And it's what I believe both borrowers and lenders are returning to because of the safety and stability that a long-term, fixed rate mortgage provides.
But rates on 30-year fixed loans aren't going down. They're going up.
The average 30-year rate jumped to 6.47% in the week of October 10, according to the Mortgage Bankers Association. That was up from 5.98% a week earlier and just shy of the August high (6.58%), itself the highest in more than a year.
How can rates be going up when the economy is tanking and the government is throwing everything it can at the banking sector and credit markets?
Washington's best efforts have not been enough to prop up the housing market or keep mortgage rates low. Because bond investors are dumping the heck out of bonds — and when bond PRICES fall, bond YIELDS (interest rates) rise.
Why are investors selling bonds? Well, we just learned that the budget deficit soared to $454.8 billion in fiscal 2008, which ended September 30. That was more than double the $161.5 billion deficit in 2007 and the highest in the history of the country .
Thanks to all the fresh bailout programs, the deficit will likely surge by a few hundred billion MORE dollars in fiscal 2009 — and it could easily top $1 TRILLION.
But no one in Washington has shown any willingness to raise taxes to pay for all of these bailout programs. And it's not like there's a pile of money just sitting around in the U.S. Treasury to fund them, either.
We're a net debtor nation, and we're going to have to borrow hundreds of billions of dollars to make good on all of our promises.
That means a flood of Treasury debt the likes of which we've never seen is going to wash over the market in the coming year or two.
Bond traders know that will overwhelm bond demand. So they're not sticking around. They're selling the heck out of bonds NOW , driving prices down and rates up.
Long bond futures plunged from an intraday high of 124 23/32 in mid-September to around 114 now — a decline of more than ten points in price.
Since bond yields move in the opposite direction of prices, they're going up. The benchmark 10-year Treasury Note now yields about 4%, up from the 3.4% area in September.
Look, politicians and policymakers would like you to think they can just wave a magic wand, drive mortgage rates down, save the banking sector, and return us to the happy-go-lucky, reckless lending days of 2003-2007.
But they can't. The bond market is pushing back and saying loud and clear: “There is no such thing as a free lunch.”
My bottom line message hasn't changed, either. I continue to expect any recovery in the housing and credit markets to take a long time. And I continue to believe that while all of these government bailout programs can treat some of the downturn's symptoms, they can't cure the underlying disease. The only real cures are time and price changes.
Until next time,
Mike
This investment news is brought to you by Money and Markets . Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit http://www.moneyandmarkets.com.
It has taken over Fannie Mae and Freddie Mac.
It has agreed to buy Mortgage Backed Securities (MBS) in the open market.
It has pledged to take hundreds of billions of dollars in crummy assets from the nation's major financial firms.
And it has promised to infuse the banking system with as much as $250 billion in capital.
The primary goal of all these bailout efforts: To lower the financing costs associated with home purchases.
But the result of all these efforts is that mortgage rates are going up.
Yes, I said UP. Let me explain …
Bond Investors Are Asking:“What Price, Bailouts?”
The 30-year fixed mortgage is America's bread and butter loan. Long before the industry thought up new and creative ways for borrowers to bury themselves in horrid loans, it's what home buyers typically used to purchase a home. And it's what I believe both borrowers and lenders are returning to because of the safety and stability that a long-term, fixed rate mortgage provides.
But rates on 30-year fixed loans aren't going down. They're going up.
The average 30-year rate jumped to 6.47% in the week of October 10, according to the Mortgage Bankers Association. That was up from 5.98% a week earlier and just shy of the August high (6.58%), itself the highest in more than a year.
How can rates be going up when the economy is tanking and the government is throwing everything it can at the banking sector and credit markets?
Washington's best efforts have not been enough to prop up the housing market or keep mortgage rates low. Because bond investors are dumping the heck out of bonds — and when bond PRICES fall, bond YIELDS (interest rates) rise.
Why are investors selling bonds? Well, we just learned that the budget deficit soared to $454.8 billion in fiscal 2008, which ended September 30. That was more than double the $161.5 billion deficit in 2007 and the highest in the history of the country .
Thanks to all the fresh bailout programs, the deficit will likely surge by a few hundred billion MORE dollars in fiscal 2009 — and it could easily top $1 TRILLION.
But no one in Washington has shown any willingness to raise taxes to pay for all of these bailout programs. And it's not like there's a pile of money just sitting around in the U.S. Treasury to fund them, either.
We're a net debtor nation, and we're going to have to borrow hundreds of billions of dollars to make good on all of our promises.
That means a flood of Treasury debt the likes of which we've never seen is going to wash over the market in the coming year or two.
Bond traders know that will overwhelm bond demand. So they're not sticking around. They're selling the heck out of bonds NOW , driving prices down and rates up.
Long bond futures plunged from an intraday high of 124 23/32 in mid-September to around 114 now — a decline of more than ten points in price.
Since bond yields move in the opposite direction of prices, they're going up. The benchmark 10-year Treasury Note now yields about 4%, up from the 3.4% area in September.
Look, politicians and policymakers would like you to think they can just wave a magic wand, drive mortgage rates down, save the banking sector, and return us to the happy-go-lucky, reckless lending days of 2003-2007.
But they can't. The bond market is pushing back and saying loud and clear: “There is no such thing as a free lunch.”
My bottom line message hasn't changed, either. I continue to expect any recovery in the housing and credit markets to take a long time. And I continue to believe that while all of these government bailout programs can treat some of the downturn's symptoms, they can't cure the underlying disease. The only real cures are time and price changes.
Until next time,
Mike
This investment news is brought to you by Money and Markets . Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit http://www.moneyandmarkets.com.
Three Big Tips on Marketing for Mortgage Brokers
Mortgage marketing as a first job is easier than you think especially when you consider the tips below.
Make Liberal Use of Headlines Don’t make a presentation, brochure, or even a simple calling card without making use of headlines. Unless your name is Donald Trump, having your full name spelled out in calligraphy won’t warrant a second glance. An effective headline, however, can do that and more.
When creating a headline, there are two types of ideal reaction to aim for: shock and emotional connection. People make second glances and pay more attention to anything or, in this case, any statement that proposes something they can’t believe.
Example: “Free yourself from financial worries with my type of mortgage.” “Do you want to know how I can give you $5,000?” As for an emotional connection, try thinking of a statement that mirrors a person’s dreams and goals. “Learn how to have more time with your loved ones!” “Mortgages are your passport to genuine happiness!”
Either way, headlines must be brief but concise. It hooks the readers by letting them have a taste of what you have in store and more importantly, what reading the rest can do for them. Headlines make use of powerful words that can immediately create vivid images for the readers. And lastly, headlines are best when personalized. You want readers to feel that you are speaking directly to them and only to them.
Let Them Know How Much You Care Another important rule to remember in marketing for mortgage brokers is that you’re not just supposed to sell the idea of mortgages but you should work on selling your services as well. Don’t be satisfied when you’ve convinced your client about the merits of taking out a mortgage.
You could be setting yourself up for a trap and where you doing all the hard work and then letting a rival sweep in and take your customer away.
Let them know that you’re willing to go the extra mile. Tell prospective clients about how you’ve served your previous clients.
Give them a reason why they should stay loyal to you and avail of your services than anyone else’s. Sell your services effectively and later on, they’ll be the ones doing it for you through word of mouth marketing.
Be Courteous Chivalry and courtesy may be archaic values to many but not to you and that’s exactly how it should be. Mortgage brokers have long suffered from unfair portrayals and it’s time to let the public know that not all mortgage providers are greedy and rude.
Send thank-you cards whenever you can. It’s a good thing for people to remember you by and when the time comes that they need the services of a mortgage broker, your name is sure to be in the uppermost of their minds.
Distinguish yourself from other mortgage brokers by being courteous. Continue building and strengthening good relations with anyone you encounter. You never know who your next client might be. And of course, never cross the line separating assertiveness from aggressiveness. Know when customers say “no” and mean it. Respect a customer’s right to refuse.
Now that you know all the essential marketing tips for mortgage brokers, you’re more than ready to break out of your shell and get in touch with prospective clients. Good luck!
About the Author: Scott Tucker tells you more on his free audio CD, free e-book, free faxed report, & free telephone seminar, all available for the asking, at www.MortgageMarketingGenius.com
Make Liberal Use of Headlines Don’t make a presentation, brochure, or even a simple calling card without making use of headlines. Unless your name is Donald Trump, having your full name spelled out in calligraphy won’t warrant a second glance. An effective headline, however, can do that and more.
When creating a headline, there are two types of ideal reaction to aim for: shock and emotional connection. People make second glances and pay more attention to anything or, in this case, any statement that proposes something they can’t believe.
Example: “Free yourself from financial worries with my type of mortgage.” “Do you want to know how I can give you $5,000?” As for an emotional connection, try thinking of a statement that mirrors a person’s dreams and goals. “Learn how to have more time with your loved ones!” “Mortgages are your passport to genuine happiness!”
Either way, headlines must be brief but concise. It hooks the readers by letting them have a taste of what you have in store and more importantly, what reading the rest can do for them. Headlines make use of powerful words that can immediately create vivid images for the readers. And lastly, headlines are best when personalized. You want readers to feel that you are speaking directly to them and only to them.
Let Them Know How Much You Care Another important rule to remember in marketing for mortgage brokers is that you’re not just supposed to sell the idea of mortgages but you should work on selling your services as well. Don’t be satisfied when you’ve convinced your client about the merits of taking out a mortgage.
You could be setting yourself up for a trap and where you doing all the hard work and then letting a rival sweep in and take your customer away.
Let them know that you’re willing to go the extra mile. Tell prospective clients about how you’ve served your previous clients.
Give them a reason why they should stay loyal to you and avail of your services than anyone else’s. Sell your services effectively and later on, they’ll be the ones doing it for you through word of mouth marketing.
Be Courteous Chivalry and courtesy may be archaic values to many but not to you and that’s exactly how it should be. Mortgage brokers have long suffered from unfair portrayals and it’s time to let the public know that not all mortgage providers are greedy and rude.
Send thank-you cards whenever you can. It’s a good thing for people to remember you by and when the time comes that they need the services of a mortgage broker, your name is sure to be in the uppermost of their minds.
Distinguish yourself from other mortgage brokers by being courteous. Continue building and strengthening good relations with anyone you encounter. You never know who your next client might be. And of course, never cross the line separating assertiveness from aggressiveness. Know when customers say “no” and mean it. Respect a customer’s right to refuse.
Now that you know all the essential marketing tips for mortgage brokers, you’re more than ready to break out of your shell and get in touch with prospective clients. Good luck!
About the Author: Scott Tucker tells you more on his free audio CD, free e-book, free faxed report, & free telephone seminar, all available for the asking, at www.MortgageMarketingGenius.com
Option One Mortgage Providing You with the Best
Taking out a mortgage is a weighty decision, it can have serious implications on your family when things go wrong. A high mortgage can put a strain on daily expenses or put you into debt. You need to choose a company that cares about you and understands your needs. At Option One Mortgage the focus is on the customer. The needs of the customer come first when we provide you with out services. This focus is reflected in every step of the process is providing you with a mortgage loan.
Building Community At Option One Mortgage there is an understanding that community is important. Our first objective is t have a highly trained staff who can better serve our customers. It is this attention to excellence that has led Option One Mortgage to be the head of the industry. Well trained staff means that you can be assured of the best decisions being made for you. Option One Mortgage also sees the importance of community building through investment in the community. Volunteering and donating to worthy causes is at the heart of the Option One Mortgage ethic. Diversity and change are both valued at Option One Mortgage. Treating others no matter how different they may be from us with respect is the only viable way to do business.
Keeping Your Home Foreclosure is everyone’s nightmare and something that you would never want to have happen to you. At Option One we understand this and work closely with you to make sure that this is the last possible thing to happen to you. Option One is aware that bad things happen when we least expect them. This is why there are several alternative routes that you can take if you find yourself falling behind payments to avoid foreclosure. Contact our staff to talk about what you can do to avoid foreclosure and delinquency.
Your Loan Option One Mortgage offers a number of services that go towards servicing your loan for free. Among these services are copies of loan documents, copies of payment histories, escrow accounts for taxes and insurance and verifications of mortgages. There are also a number of payment methods to ease your loan payment. You can choose to have a recurring electronic debit, online payment through our website, payment by phone and of course by mail. We have tried to provide as many options as possible to fit with your lifestyle and convenience.
© Source: money.savvy-cafe.com
Building Community At Option One Mortgage there is an understanding that community is important. Our first objective is t have a highly trained staff who can better serve our customers. It is this attention to excellence that has led Option One Mortgage to be the head of the industry. Well trained staff means that you can be assured of the best decisions being made for you. Option One Mortgage also sees the importance of community building through investment in the community. Volunteering and donating to worthy causes is at the heart of the Option One Mortgage ethic. Diversity and change are both valued at Option One Mortgage. Treating others no matter how different they may be from us with respect is the only viable way to do business.
Keeping Your Home Foreclosure is everyone’s nightmare and something that you would never want to have happen to you. At Option One we understand this and work closely with you to make sure that this is the last possible thing to happen to you. Option One is aware that bad things happen when we least expect them. This is why there are several alternative routes that you can take if you find yourself falling behind payments to avoid foreclosure. Contact our staff to talk about what you can do to avoid foreclosure and delinquency.
Your Loan Option One Mortgage offers a number of services that go towards servicing your loan for free. Among these services are copies of loan documents, copies of payment histories, escrow accounts for taxes and insurance and verifications of mortgages. There are also a number of payment methods to ease your loan payment. You can choose to have a recurring electronic debit, online payment through our website, payment by phone and of course by mail. We have tried to provide as many options as possible to fit with your lifestyle and convenience.
© Source: money.savvy-cafe.com
Online Mortgage Advice
The process of buying a new house and arranging a suitable mortgage can often be daunting one, especially for first time buyers. Therefore, it is necessary for prospective mortgage buyers to obtain specialist online mortgage advice and guidance. There are many online mortgage advice services that provide a free and no obligation service to their clients. Most online mortgage advice services are also able to provide a comprehensive service, which is tailored to meet the exact requirements of their customers. They can help with the entire process, starting from helping clients find affordable quotes to assisting them with securing suitable mortgage deals.
When looking for an online mortgage advice service, it is important for prospective buyers to approach an independent mortgage advisor. Doing this will safeguard their interests and will ensure that they get the cheapest possible mortgage rate. The reason for this is because such services have no affiliation with the actual mortgage lender and thus, they will be able to provide you with unbiased mortgage advice.
Furthermore, it is also imperative for prospective mortgage buyers to establish that their chosen online mortgage advisor has a good track record and reputation: looking out for customer testimonials and client recommendation is a good way of doing this. The most reputable online mortgage advice websites will have extensive information on mortgages in order to assist first-time buyer visitors in terms of understanding the fundamentals behind mortgages in general. Such sites will also have resources such as mortgage payment calculators and mortgage rate tables.
© Source: interestonlymortgagenews.com
When looking for an online mortgage advice service, it is important for prospective buyers to approach an independent mortgage advisor. Doing this will safeguard their interests and will ensure that they get the cheapest possible mortgage rate. The reason for this is because such services have no affiliation with the actual mortgage lender and thus, they will be able to provide you with unbiased mortgage advice.
Furthermore, it is also imperative for prospective mortgage buyers to establish that their chosen online mortgage advisor has a good track record and reputation: looking out for customer testimonials and client recommendation is a good way of doing this. The most reputable online mortgage advice websites will have extensive information on mortgages in order to assist first-time buyer visitors in terms of understanding the fundamentals behind mortgages in general. Such sites will also have resources such as mortgage payment calculators and mortgage rate tables.
© Source: interestonlymortgagenews.com
Mortgage Refinance Best Rates: Compare And Get Low Rates
Capitalizing on a refinance option can help you save money and it is quite common for mortgage refinance best rates to be lower than the original loan which will be evident when you actually start to compare rates. The point is that when refinancing a home mortgage, you are getting a new loan that is of about the same value though you can expect to get mortgage refinance best rates because the refinance rates are going to be lower and will thus benefit you better and which should see you affect considerable savings.
Online Comparisons To get mortgage refinance best rates, you may even need to do some online comparisons which will help you make an informed decision, and if you are able to take advantage of lower rates of interest for refinance mortgage, you will certainly is able to save money that can be used for other things such as making improvements to the home, purchasing a brand new car and even paying for tuitions for children and also for taking a much needed vacation.
To get the mortgage refinance best rates you need to make comparisons between refinance home mortgage loans and refinance mortgage rates which is very necessary when you have home equity, and having thorough and good knowledge through making comparisons will help you get lower and also mortgage refinance best rates thus making it possible to alter the terms and conditions of the mortgage you take, and it will also help in consolidating debts.
An advantage of refinancing a home loan using online procedures is that there may not be a need to put the house as security and so you should be able to integrate your debt into the amount that you owe which enables you to get mortgage refinance best rates which are lower along with low monthly payments.
Another advantage of having mortgage refinance best rates is that with comparisons you should be able to know just what is best for you, and when you get low refinance mortgage rates, you will is able to make your bills? burden a lot lighter and a single low payment should allow for consolidation of all bills and thus you can pay off your debts through cash payments. For more advice regarding mortgage refinance best rates you could check with your lender who will advice you about the better financial breaks which is possible only after comparing refinancing mortgages with refinance mortgage rates.
© Source: freeduilawyerwashingtondc.com
Online Comparisons To get mortgage refinance best rates, you may even need to do some online comparisons which will help you make an informed decision, and if you are able to take advantage of lower rates of interest for refinance mortgage, you will certainly is able to save money that can be used for other things such as making improvements to the home, purchasing a brand new car and even paying for tuitions for children and also for taking a much needed vacation.
To get the mortgage refinance best rates you need to make comparisons between refinance home mortgage loans and refinance mortgage rates which is very necessary when you have home equity, and having thorough and good knowledge through making comparisons will help you get lower and also mortgage refinance best rates thus making it possible to alter the terms and conditions of the mortgage you take, and it will also help in consolidating debts.
An advantage of refinancing a home loan using online procedures is that there may not be a need to put the house as security and so you should be able to integrate your debt into the amount that you owe which enables you to get mortgage refinance best rates which are lower along with low monthly payments.
Another advantage of having mortgage refinance best rates is that with comparisons you should be able to know just what is best for you, and when you get low refinance mortgage rates, you will is able to make your bills? burden a lot lighter and a single low payment should allow for consolidation of all bills and thus you can pay off your debts through cash payments. For more advice regarding mortgage refinance best rates you could check with your lender who will advice you about the better financial breaks which is possible only after comparing refinancing mortgages with refinance mortgage rates.
© Source: freeduilawyerwashingtondc.com
Brokers banned for poor mortgage advice
The Financial Services Authority (FSA) has banned and publicly censured a mortgage firm in Tyne and Wear for exposing its customers to undue risk by allowing them to receive unsuitable mortgages.
Mortgage brokers Edward and Ronald Allen fell short of the FSA's standards for quality advice to borrowers and failed to monitor their mortgage contracts.
Head of retail enforcement at the FSA Jonathan Phelan said: "The failings were particularly serious because the FSA first identified problems with the firm's systems and controls during a visit in 2006 and no steps were taken to remedy the situation by the time of the FSA's visit in 2008."
He added that both directors were incompetent and incapable of ensuring their firm provided its customers with quality mortgage advice.
Meanwhile, the Citizens Advice Bureau has called for credit providers and debt advisory services to join forces to reform the UK's failing self-help debt system.
It hopes to provide borrowers with poor credit history or debt with advice on how to take control of their finances.
© SOURCE: beatthatquote.com
Mortgage brokers Edward and Ronald Allen fell short of the FSA's standards for quality advice to borrowers and failed to monitor their mortgage contracts.
Head of retail enforcement at the FSA Jonathan Phelan said: "The failings were particularly serious because the FSA first identified problems with the firm's systems and controls during a visit in 2006 and no steps were taken to remedy the situation by the time of the FSA's visit in 2008."
He added that both directors were incompetent and incapable of ensuring their firm provided its customers with quality mortgage advice.
Meanwhile, the Citizens Advice Bureau has called for credit providers and debt advisory services to join forces to reform the UK's failing self-help debt system.
It hopes to provide borrowers with poor credit history or debt with advice on how to take control of their finances.
© SOURCE: beatthatquote.com
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