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mortgage: 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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mortgage: What Is An Interest Only Mortgage - 02/05/08 03:45 PM
By, Gaurav Bhola, MSM
An interest only mortgage has scheduled monthly mortgage payments consisting of interest only. Generally, the length of the interest mortgage payments last for a period of 5 to 10 years. If you pay only interest during this period your proceeding balance will remain unchanged. However, you may choose to pay more than the minimum interest payment every month.
An interest-only home loan represents a higher risk for lenders; hence, your mortgage loan will have a somewhat higher interest rate. If you expect a substantial increase in income in the forthcoming years the interest only mortgage loan gives you … (0 comments)
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mortgage: 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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mortgage: 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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mortgage: Federal Government Seeks to Prevent Economic Recession - 01/08/08 09:22 AM
Federal Government Seeks to Prevent Economic Recession Mortgage Home Loan and Housing Market Main Areas of Focus for Government By, Gaurav Bhola, MSM
The housing market corrections of 2007 may well continue into 2008. The government is scrambling to forestall any further market adjustments. The government wants to be proactive in avoiding any severe downturn in the economy. There is a feeling that the government needs to be doing more than the Bush mortgage rate freeze plan for certain subprime adjustable rate mortgages.
Recently, the Bush Administration announced that with the partnership of the mortgage home loan industry, some mortgage loans will qualify … (0 comments)
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mortgage: Who can Take On Microsoft Office and Microsoft Windows - 11/28/07 09:09 AM
Who can Take On Microsoft Office and Microsoft Windows Subtitle: Ubuntu, Open Office, IBM Symphony, Projity, and Google Applications Think the Time is Ripe to Dethrone Microsoft.
By GauravBhola, MSM
The Microsoft monopoly has been in full throttle for years, too many years. Many software came and went, many seemed promising like the beautiful Lotus Smart Suite. Many consumers and experts concur that this was the best office suite package ever. Alas, it wasn’t meant to last as MS Office was the dominant force on desktops, a strangle hold engendered by exclusive agreements with hardware desktop makers. Now those same … (0 comments)
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mortgage: Mortgage Rates Slide Lower, Somewhat - 11/15/07 01:38 PM
by Gaurav Bhola, MSM
The never ending saga of increasing mortgage rates seems to have hit a wall; well, more like a small speed bump. After an 11 month high of 6.74 percent for 30-year mortgages, the rate lowered last week to an average of 6.69 percent, as reported by Freddie Mac. It seems that investors have awakened to the fact that the direct effects on the economy from the unending housing slum could last longer.
The pressure in the housing arena keeps building. The construction of new homes and apartments was down by 2.1 percent. The National Association of Home Builders … (0 comments)
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mortgage: Mortgage Rates Cut, Great Opportunity for Home Buyers - 11/15/07 10:31 AM
by Gaurav Bhola, MSM
As the housing market tries to find its footing, the mortgage rates have eased. The lowering of mortgage home loan rates seems to be a response to the Federal Reserve's (Fed) decision to cut interest rates recently. The Fed gave the home buying and mortgage markets much needed respite by cutting short-term interest rates for the second time in two months.
The Fed’s rate cut by a quarter-point to 4.5% was an attempt to forestall the existing apprehensions in the housing, mortgage loan, and credit markets trickling over to the larger economy and dipping the US into … (1 comments)
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mortgage: Top Ten Tips for Buying a Home - 11/15/07 10:16 AM
by Gaurav Bhola, MSM
Home buying has always been a tedious process. The home buying journey is fraught with winding turns and crossroads, making buying a home complex and difficult. The complexities of the real estate and mortgage market are not easy to decipher. So, the more prepared you are before you begin home shopping, the easier it will be. Herein, I have assembled a top ten list for home buyers. This list is good preparation for homebuyers who are setting out on their home buying journey. 1. Decide on what you can really affordBefore buying the house, do a monthly budget. … (2 comments)
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mortgage: Are Adjustable Rate Mortgages Worth It? - 11/15/07 10:13 AM
by Gaurav Bhola, MSM
It is surprising that a study would find an option adjustable rate mortgage (ARM), the best mortgage available. The August 2007, Columbia University and New York University study found that in an optimal environment, an option ARM or a combination of an interest only mortgage with a home equity line of credit (HELOC) work best. The authors of the study conclude that financial gains from these types of adjustable mortgages compared to traditional mortgages are much greater for people who buy expensive homes given their income or make a small or no down payment. According to the new … (1 comments)
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mortgage: Mortgage and Real Estate Markets - 11/15/07 10:09 AM
by Gaurav Bhola, MSM
The housing market has been in a downturn for a while now. The mortgage market is part-and-parcel of the housing market, has also been seeking a recovery. The reports on existing home buying sales for July and August shook the markets last week. Also, the decline in the consumer price index figured into Wall Street’s equation. However, the report for existing-home sales, the report’s median price component was stronger than PREDICTED.
A Buyers Market
The current home inventories are enhancing opportunities in the buyer’s market. The existing-home sales were 4.3% lower in August at 5.50 million unit … (0 comments)
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mortgage: Federal Reserve Cuts Interest Rates - 11/15/07 10:02 AM
by Gaurav Bhola, MSM
The Federal Reserve has been working hard to influence the direction of the economy through monetary policy. The Fed attempts to expand the economy at a steady rate in order to achieve sustained long-term velocity. Also, the Fed endeavors to keep inflation at a low level, uphold price stability. These tasks are challenging in the world’s biggest economy, with divergent and complex economic sectors. To remain focused on its goals, the Fed identifies economic risks and attempts to mitigate them.
Herein, on September 18 the Fed cut interest rates by a half point, the first such cut … (0 comments)
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mortgage: Mortgage Lenders and Mortgage Investors on Their Own - 11/15/07 09:55 AM
by Gaurav Bhola, MSM
The language emanating from Federal Reserve Chairman Ben Bernanke and President George W. Bush is loud and clear; there will not be any bail out of mortgage lenders, mortgage brokers, and mortgage investors.
President Bush and Bernanke were blunt in their message that mortgage lenders will not be given any government aid for financial sustenance because they will not learn from their past mistakes and simply repeat them in future.
Basically, mortgage lenders and mortgage-backed securities investors will have to learn tough lessons, no sops will handed out to extricate them from their deteriorating financial crises. Last … (0 comments)
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mortgage: Foreclosures Add to Supplies of Homes - 11/15/07 09:52 AM
by Gaurav Bhola, MSM
The current real estate home buying market is the worst one in 16 years. The housing market has been a victim of an oversupply of homes, rising defaults on mortgage loans, higher foreclosure rates, and residual effects from the subprime mortgage crisis. The overabundance of homes has pushed home prices lower, 12 months in a row.
However, what makes the situation more unpalatable is that the housing market hasn’t bottomed out yet. The housing market S&P/Case-Shiller U.S. National Home Price Index declined 3.2 percent to 183.89 the second quarter. This decline represented the lowest ebb in the … (0 comments)
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mortgage: Is Old Still Gold? - 11/15/07 09:45 AM
by Gaurav Bhola, MSM
The reverberations from the US subprime mortgage fiasco have not only been felt at home but abroad as well. European stock markets took a significant downturn when two weeks ago French bank BNP Paribas stopped panicky investors from cashing out from three investment funds worth $2 billion. The temporary suspension of the funds, which are heavily invested in subprime mortgage debt, reflected BNP’s concern of market illiquidity and difficulty in ascertaining the true value of the funds. Since the subprime mortgage crisis, markets have been unable to accurately assess the value of risky mortgage-backed securities; by some estimates … (2 comments)
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mortgage: Foreclosure Rates Climb - 11/15/07 09:42 AM
by Gaurav Bhola, MSM
The state of the mortgage industry is not looking bright, neither is the outlook for homeowners. While many mortgage lenders are attempting to avoid bankruptcy, many homeowners are trying to avoid foreclosure. Recently, American Home Mortgage filed for bankruptcy protection; so far Countrywide Financial is attempting to stay afloat. Several homeowners are in a similar situation; they are already in default or close to foreclosure. Since June, foreclosure filings have gone up 9 percent, an increase of 93 percent during the same period last year. There were approximately 180,000 filings of auction sales notices, default notices, and bank … (2 comments)
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mortgage: Mortgage Defaults cause Angst among Homebuilders - 11/15/07 09:36 AM
by Gaurav Bhola, MSM
Homebuilders have been in rough waters for the last couple of months. Their new home inventory has been sitting practically idle in the down housing market. A recent survey of homebuilders’ sentiment reflected a 16-year low in their confidence in the housing market.
The homebuilders’ quantified sentiment manifested in the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) is down two points to 22, the lowest measure in 16-years. The preceding HMI survey results in July were at 28 points. A level on the HMI below 50 points shows builder sentiment of poor market conditions.
… (0 comments)
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mortgage: The Stock Markets Rise but Mortgage Fallout Not Over - 11/15/07 09:32 AM
by Gaurav Bhola, MSM
The ‘Mortgage Friday’ last week saw the stock market decline, as the residue of the U.S. mortgage market infected stock markets worldwide. The ongoing concern of the subprime home loan mortgage market restricted credit and credit liquidity caused the Federal Reserve to inject $38 billion into the banking system last week.
When the markets opened on Monday, the Fed pumped another $2 billion into the banking system, surpassing the largest infusion of liquidity since September 11, 2001. The Fed’s European and Japanese counterparts added $72 billion into the banking system this Monday.
Usually the Fed buys or sells … (0 comments)
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mortgage: Mortgage Home Loan Fears Derail Global Stock Markets - 11/15/07 09:05 AM
by Gaurav Bhola, MSM
The mortgage contagion has spread like wildfire, infecting the global markets. In recent months the mortgage whirlwind has been gathering strength on terra-U.S., no longer able to be contained, the mortgage whirlwind has departed U.S. shores, on its path to engulf markets worldwide. The U.S. stock markets in recent months have been going up and down like an elevator, but now the market has hit the ground floor. On Thursday, France’s biggest bank, BNP Paribas froze funds in the amount $2.2 billion, referencing the U.S. subprime home loan market as a reason.
The bank has $446 billion … (2 comments)
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mortgage: 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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Gaurav Bhola
Orlando,
FL
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