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loan: Is Your Credit Score a "Score" or a "Rank"?? - 01/25/11 09:03 AM
Apparently there is a misconception out there that your credit score is just that; a basis of how you handle your credit, pay your bills, and your effort to stay on top of things. With this new economy that we've been thrust unwillingly into, that has apparently changed. It's not more-or-less a ranking of how you fit in with the ever-changing credit scores of the general population. The actual quote from a financial article is, "Your credit score is not a rating of your credit worthiness, but rather a ranking of your credit worthiness compared to the rest of the … (0 comments)
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loan: Beyond the Lousy Loan... - 08/24/09 08:35 AM
Yes, it's true, many lenders in recent years have written sub-prime mortgages that could only be expected to default. However, foreclosure is nothing new, and there are myriad reasons that a homeowner might be facing dire straits.
Challenges might include economic hardship due to job loss, bad health or divorce, or payments that jumped too high after a rate adjustment, or simply increased cost of living outpacing income.
Whatever the reasons, the best way to avoid foreclosure is to be well educated and prepared before making a home purchase, and anticipating worst-case scenarios before choosing the loan that is right for … (0 comments)
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loan: Know Your Options! - 08/17/09 09:28 AM
If any of your friends or family have recently applied for a home loan, you've probably heard that lenders are nervous, with tough new rules and demands for stacks of paperwork. Good mortgages are still out there, but you should be prepared before applying.
First, understand how your credit score impacts the interest rate charged on your loan. If your score is 720 or higher on the scale of 850, you will qualify for the best rates. If it's between 700 and 719, you could expect 0.375% added to that rate, while a score between 680 and 699 might add 0.5%.
… (0 comments)
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loan: One's Loss Is Another's Gain! - 07/06/09 09:02 AM
While falling values are not good indicators for sellers, they’re great news for buyers, lifting affordability to historically high levels. For example, to purchase a median priced home of $164,600 with 20% down and an interest rate of 5.1%, a buyer would need an annual income of just under $35,000.
With the lowest interest rates we've seen in forty years, now is an opportune time to lock in a rate on a fixed loan. Rates are already showing signs of rising, and waiting too long could negatively affect your ability to secure such a mortgage.
In addition to rising interest rates, … (0 comments)
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loan: The Lingo of the Loan.... - 06/01/09 02:17 PM
Your real estate agent may not write your home loan, but that's who will probably be there when you begin discussing mortgage options. Knowing some of the nuts and bolts before you start your home search can help you find the right loan.
Factors affecting your terms are the amount, the length of the loan, and the loan-to-value ratio (how much of the home's value you are financing). Larger loans carry more risk to the lender, so the interest rate may be higher.
Similarly, a smaller down payment represents more risk, possibly warranting a higher interest rate. Get the best rate … (0 comments)
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loan: Why we saved Fannie & Freddie... - 01/12/09 11:00 AM
Fannie Mae and Freddie Mac - who or what are these entities, and why are they mentioned so often when discussing the current mortgage crunch? These two organizations either own or guarantee nearly half of all outstanding home loans. That's over twelve trillion in debt (that's a 12 followed by 12 zeros, or twelve million million dollars)!
So maybe you can see why the government took over and began overseeing their operations, bringing stability and continued liquidity to the national mortgage market. Both companies are placed in a government conservatorship, with the Fed taking up to an 80% stake. Progress is … (0 comments)
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loan: Bring it on home! - 10/16/08 02:17 PM
Buyers and sellers develop a natural sense of excitement as a transaction's closing date nears. While most aspects should run smoothly, it's wise to be prepared for unexpected delays. Anticipating potential problems before they develop could save untold time and stress.
One pitfall might be the title search. The title is simply legal proof of a property's ownership, but issues such as death, divorce, and liens can cloud the final result. Meet with an attorney to determine and resolve any problems.
Financing can also present snags. If the buyers can't qualify for a loan, the deal falls through. Buyers should begin … (0 comments)
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loan: An Ocean of Options! - 08/04/08 10:37 AM
As a buyer, you may find yourself drifting on an ocean of financing options. As lenders tighten their requirements, there are a few aspects of the loan application of which you should be aware before applying for a mortgage.
First, determine whether you are seeking "pre-qualification" or "pre-approval." What's the difference? Generally speaking, when you are pre-qualified, the lender reviews your information and hazards a "best guess" as to the size of loan for which you would qualify.
In the pre-approval process, however, the lender verifies everything on your application, and offers to approve a certain amount at a certain interest … (0 comments)
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loan: Seller Alternatives to Foreclosure - 03/10/08 01:41 PM
So, your house is in foreclosure... now what? Try to look at the situation without attaching your emotions. From a strictly business viewpoint, you can more successfully analyze which option might best suit your needs and desires and move toward resolving your financial difficulty. One very important thing to remember: time is of the essence, so take quick action in order to allow yourself enough time to complete the chosen process.
Do Nothing:If a homeowner does nothing, they most likely will lose their home at a foreclosure auction. Loan applications generally ask if the applicant has ever been foreclosed upon. Credit … (0 comments)
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loan: Financing 101 - 02/25/08 09:43 AM
If you're not a homeowner, you might be confused by the brouhaha surrounding loan defaults and foreclosures. Learn more by understanding the basic terms used to describe a mortgage.
A mortgage is a loan to finance your purchase, and uses the home as your collateral, which the lender can take back if you don't pay your debt. That debt is usually paid monthly, and payments include PITI, or Principal, Interest, Taxes and Insurance.
Principal is the sum you borrow, reduced by how much you can offer as down payment. Interest, as a percentage rate, is what the lender charges as a … (0 comments)
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loan: Crash Course! - 11/26/07 02:41 PM
When you're buying a home, who do you think is the most important person in the transaction? YOU, of course! That doesn't mean you won't need experienced professionals for guidance and assistance, but quite frankly, if YOU choose not to buy, the entire process comes to a halt.
While home ownership is called the American Dream, it's a shame that nobody teaches it in school. Most folks face the biggest purchase of their life without any experience. That's why it's critical for someone to help you understand everything that happens during the process, whether it's your accountant, your banker, or your … (0 comments)
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loan: Debt Relief is *Not* Tax Relief! - 11/05/07 09:33 AM
You've certainly heard and read many reports about defaults on mortgage loans. There are many reasons homeowners face such situations, some of which are completely beyond their control. There are also several solutions, but each carries a consequence.
In one example, a family had to relocate for an attractive job offer. The home they were selling languished in a slow market for over six months, and they defaulted because they couldn't continue the mortgage payments.
Their agent negotiated a "short sale," whereby the lender accepted an offer that was $10,000 less than the loan balance (rather than begin unpleasant foreclosure proceedings). … (0 comments)
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loan: Bridging the gap! - 10/29/07 12:24 PM
Like the question of the chicken and the egg, homeowners planning to buy a new home must ask, "Which comes first?" Do you sell first, and then look frantically for the new home, or buy first and risk maintaining and financing two properties?
There's more risk than just two mortgages. If you're rushed to sell your home to purchase a new one, you might be forced to list at, or accept, a lower price than expected. If you're pressed to buy a new home after selling your existing home, you may be forced into paying an unexpectedly higher price.
What is … (0 comments)
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loan: Phasing Out, Phasing In... - 08/06/07 12:36 PM
You're undoubtedly hearing reports in the media about increasing numbers of mortgage defaults. A frenzy of financing in the last few years allowed many buyers to secure loans that were downright inappropriate for them, and now we're experiencing the fallout.
If you're planning to sell or buy a home in the near future, what effect might the number of foreclosures have on your plans? Either way, banks and lenders are beginning to formulate loans more carefully, which can affect both buyers and sellers in the real estate market.
Buyers can certainly expect a tightening of credit. It will be more difficult … (0 comments)
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Michael Sinton, CRB, CRS, SFR, e-Pro
Jackson,
NJ
More about me…
Weichert Realtors
Address: 2110 West County Line Road, Jackson, NJ, 08527
Office Phone: (732) 370-4664
Cell Phone: (732) 904-3236
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