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home loans: What Are Conventional Loans - 02/05/08 03:54 PM
By, Gaurav Bhola, MSM
The federal government is the major driver of the idea of home ownership. Hence, it has become the biggest player in the residential mortgage market. Approximately one out five residential loans are either guaranteed or insured or by a federal agency. These types of loans are called government loans. The other 80 percent of residential mortgage loans are called conventional loans.
A Conventional mortgage must meet the underlying funding terms and other limits of Freddie Mac and Fannie Mae. For home properties in some states and U.S. territories such as Alaska, Hawaii, Guam, and the U.S. Virgin Islands, … (1 comments)
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home loans: What Are Government Loans? - 02/05/08 03:52 PM
By, Gaurav Bhola, MSM
Government loans are mortgage loans that are insured or guaranteed by the federal government. These loans are designed to aid home buyers who meet mortgage criterion that allow them to get into a home either with a lower down payment , a lower interest rate and/or with a lower credit rating.
In many instances consumers seek government loans because they do not qualify for a conventional loan.A conventional loan is simply any loan that is not a VA loan, FHA loan, RHS loan, state or local government loan.
The following three federal agencies provide government loans. Also, the homes … (0 comments)
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home loans: What are Hybrid Loans - 02/05/08 03:49 PM
By, Gaurav Bhola, MSM A hybrid mortgage loan has combined features of fixed rate mortgage and adjustable rate mortgages. A hybrid loan is also known as a fixed-period ARM. A hybrid loan initially begins with a fixed period of a fixed interest rate (typically 3, 5, 7 or 10 years). The hybrid mortgage then converts to an adjustable-rate mortgage. It is a wonderful combination of the best features of a fixed rate and adjustable rate mortgage. This combination gives you an initial interest rate during the fixed period of the loan that is lower than a traditional fixed rate mortgage.
Generally, a … (3 comments)
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home loans: What Is 100% Financing Mortgage Loan? - 02/05/08 03:44 PM
By, Gaurav Bhola, MSM
The mortgage industry has worked diligently to find loan solutions for home buyers who wish to purchase a home without a down payment. The industry wants not only to increase home ownership in the U.S., but also target a growing untapped market of consumers who desire home loan solutions that require no down payment. This type of "zero down" mortgage is popularly known as 100% financing.
It is essential to understand that the term, "100% financing," does not automatically signify higher interest rates. Actually, if your credit is good, you are eligible for equivalent rates that are applicable … (0 comments)
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home loans: What Are Subprime Mortgages? - 02/05/08 03:41 PM
By, Gaurav Bhola, MSM
Subprime mortgages are mortgage loans meant to help borrowers who are unable to qualify for traditional mortgages that require good to excellent credit histories. Due to the fact of higher risk of default inherent in subprime mortgage lending, subprime borrowers receive higher interest rates on their mortgage loans than their traditional counterparts. The subprime mortgage loan terms may also include additional regular fees, or up-front charges.
As defined by the U.S. Department of Treasury guidelines issued in 2001, subprime borrowers usually have weakened credit histories that are inclusive of payment delinquencies, problems such as charge-offs bankruptcies, and/or judgments. … (0 comments)
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home loans: Top Six Reasons to Do a Mortgage Refinance - 02/05/08 03:27 PM
By, Gaurav Bhola, MSM
There are several reasons to do a mortgage refinance. Here are the top six reasons to refinance:
1. Lower Your Monthly Payment
Have you ever asked yourself if you could lower your monthly payment? Work with a personal Mortgage Consultant to customize a refinancing solution to meet your specific loan needs.
Refinancing to a lower interest rate means more cash for youEnjoy more options with money you save every month due to lower monthly paymentPay off your loan faster if you choose to by paying a little more every month on your mortgage from the extra money you save from … (0 comments)
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home loans: Useful Tips on Buying a Home - 02/05/08 03:25 PM
By, Gaurav Bhola, MSM
Home buying is one of the most important financial decisions you can make. With the proper resources, home buying can be an easier process. Let's learn the basics of home buying in seven easy steps.
Step 1: Identify My Home Needs
List in order of priority the features and options you would like in your next home Discover what these features would add onto the cost of your home Narrow down your choices based on the reasons why you want to include them in your next home Narrow the options even further within the spectrum of your budget Weigh … (0 comments)
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home loans: Home Loan Finance And Mortgage Refinance Options - 02/05/08 03:20 PM
By, Gaurav Bhola, MSM
After buying your home it is now time to find the perfect mortgage financing. Make sure you consult an expert Mortgage Consultant in terms of financing that fits your needs. There are many choices available to you for home loan finance and mortgage refinance. But it is critical that you take your time to understand the various choices before making a final decision. Here are some home financing options:
· Fixed-Rate Mortgages
· Adjustable Rate Mortgage(ARM)
· Interest-Only Mortgage Loans
· Conforming Loans
· Jumbo Loans
· Subprime Mortgages
· Hybrid Mortgage Loans
· 100% Financing
· Conventional Loans
· Government Loans
Refinance for My Current Home
If … (1 comments)
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home loans: Sell Your Home Fast By Using These Tips - 02/05/08 03:14 PM
By, Gaurav Bhola, MSM
It is time to make a move and you need to sell your home fast. Use the following strategies to sell your home quickly:
Step 1: My Marketing Strategy
When selling your home, how do you want to distinguish your home from the rest of the flock? How serious and dedicated are you in doing what it takes to sell your house before your neighbor sells his?
There are several steps you can take to speed up the home selling process:
· Have a marketing plan, nothing complex but come up with something that reflects some effort on your part.
· Separate yourself … (1 comments)
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home loans: Your Mortgage Lender Files for Bankruptcy, What Do You Do? - 11/15/07 08:55 AM
by Gaurav Bhola, MSM
The subprime mortgage market has been hit hard in the last few months due to high home loan defaults. In the boom real estate market mortgage lenders had been doling out mortgages to many unqualified borrowers and now it is coming back full circle. American Home Mortgage Investment Corp., the tenth largest mortgage lender in the U.S. finally succumbed to financial pressures caused by defaulting subprime mortgages and filed for Chapter 11 U.S. bankruptcy protection from creditors. Its creditors had stopped all financing to the corporation, thus was forced to stop making new home loans. Over 6000 employees … (0 comments)
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home loans: Mortgage Turmoil Hits High End Consumers - 11/14/07 04:55 PM
by Gaurav Bhola, MSM
In what is seen as defensive posturing, mortgage lenders have decided to increase the mortgage rates on jumbo loans. Jumbo loans are considered non-conforming loans as opposed to conforming loans. The conforming loan threshold is set by two of the largest secondary market lenders, Fannie Mae (FNMA) and Freddie Mac (FHLMC).
Single-Family Mortgage Conforming Loan limits effective January 1, 2007*:
PersonalHomeLoanMortgages.com
First mortgages
One-family loans: $417,000Two-family loans: $533,850Three-family loans: $645,300Four-family loans: $801,950 Note: One- to four- family mortgages in Alaska, Hawaii, Guam, and the U.S. Virgin Islands are 50 percent higher than the limits for the rest of … (2 comments)
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home loans: Mortgage Lenders Come Under Congress Home Loan Scanner - 11/14/07 04:45 PM
by Gaurav Bhola, MSM
Will the Congress come to the rescue of consumers to initiate reform of home loan mortgage lenders? It may. The Democrat-led Congress may submit legislation to place stringent measures to curb abuses within the mortgage industry.
The mortgage industry includes not only mortgage lenders, mortgage brokers, but also home builders who own mortgage companies, Wall Street, and other mortgage security investors. If stringent measures are implemented by Congress, it will protect future consumers from being exploited. However, it may have an ancillary effect in that it may protect purchasers of mortgage backed securities.
The recent past has … (1 comments)
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home loans: Debt Continues to Rise While Savings Slide - 11/14/07 04:26 PM
by Gaurav Bhola, MSM
Credit card debt is increasing everyday in the U.S. with consumer borrowing increasing significantly in May 2007, the biggest rise in six months. The Federal Reserve Bank stated this Monday that consumer credit climbed at an annual rate of 6.4 percent in May. This rise in consumer credit is enormous since the 1.1 percent increase in the month of April.
Consumer credit includes credit card spending which increased in May at the rate of 9.8 percent, while in April there was an increase of only 0.2 percent. The May increase was the largest jump in credit card … (0 comments)
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home loans: Homeowners in Default Receive Help with Mortgage Loans - 11/14/07 03:22 PM
by Gaurav Bhola, MSM
As the foreclosure race heats up lenders may become less stringent in their approach towards defaulting homeowners. In the current climate the housing bubble keeps stretching not bursting. The number of mortgage foreclosures increased nationwide in April up 62 percent from last year. According to April figures released by RealtyTrac, an online marketplace for foreclosure properties, 147,708 foreclosure filings, auction sale notices, default notices, and bank repossessions were reported. However, that is a marginal decrease of 1 percent from March 2007. These residual effects are mainly due to the volatile cocktail mixture of the preceding housing boom; risky … (0 comments)
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home loans: Eight Month High: Mortgage Rates Rise Yet Again - 11/14/07 03:10 PM
by Gaurav Bhola, MSM
It seems the housing market can’t catch a break. The economic pace is low, existing home sales are down, prices of homes are still in downward spiral, mortgage brokers and lenders are in doldrums, and millions of consumers can’t maintain their mortgage payments. So, in the middle of all this high drama mortgage rates rise again. A nationwide survey conducted last week by Freddie Mac reported that 30-year fixed-rate mortgages averaged 6.42 percent. While the 15-year fixed-rate mortgages climbed to 6.12 percent, an increase from 6.06 percent. Also five-year, adjustable-rate mortgages (ARMs) averaged 6.19 percent, up from 6.02 … (0 comments)
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home loans: Subprime Mortgages Injurious to Fannie Mae and Freddie Mac’s Health? - 10/03/07 10:34 AM
by Gaurav Bhola, MSM
The mortgage industry is again in the throes of controversy, Freddie Mac and Fannie Mae, darlings of the mortgage markets may be facing financial discomfort in the future. So far, the two private-sector companies which are sponsored by the federal government have bought billions of dollars of subprime mortgage home loans this year.
However, they may not be resistant to the allergic sneeze of the housing market. Cumulatively the two companies own or guarantee 45% of all residential mortgages in the U.S. As big players they have assumed more risk by obtaining a substantial chunk of subprime … (1 comments)
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home loans: Mortgage Applications Drop Yet Again - 10/03/07 10:30 AM
by Gaurav Bhola, MSM
The mortgage crisis seems to be persisting unabated. Now it looks like the volume of applications is still sliding. Last week showed the weakest level ever in five months with the Mortgage Banker Association’s (MBA) adjusted index of mortgage applications falling 0.3 percent in the week ending July 27 to 607.1. This is barely above the February 16 week reading of 606.6. I see it as just the tip of the iceberg for the mortgage industry. With home foreclosure filings up 58 percent in the first half of the year; the housing market isn’t going to pick up … (0 comments)
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home loans: Another Casualty in Mortgage Arena - 10/03/07 10:26 AM
by Gaurav Bhola, MSM
It was just a matter of time before heads rolled at Bear Stearns Co. This was only to be expected after Bear Stearns High-Grade Structured Credit Enhanced Leveraged Fund, valued at about $638 million and the High-Grade Structured Credit Fund, worth about $925 million lost their value in July. The casualty was co-President and co-Chief Operating Officer Warren Spector, he resigned last week. In an announcement, CEO James Cayne cited the performance of the two valueless funds as a main reason for the restructuring in management. Spector started his career as a trader at Bears Stearns in 1983 … (0 comments)
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Gaurav Bhola
Orlando,
FL
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