mortgage: 5 Tips When Shopping for Mortgage Rates
- 04/04/12 10:52 PM
Remember that with a new house usually comes a new mortgage. Make sure you spend a little time doing the same due diligence on your new mortgage as you do on your new house. Here are 5 things you should keep an eye out for when shopping for mortgage rates. 1. Know What You Can Afford How much you can afford depends on two factors: how much you can borrow, and how large your down payment is. A general rule of thumb is this: Your annual mortgage payment + taxes + homeowner’s insurance = 28% or less of your gross income. And … (3 comments)
mortgage: Bankruptcy – a Viable Way Out of an Underwater Mortgage?
- 04/03/12 12:10 AM
The current economic and housing situation has left many homeowners wondering ‘just how low can it go?” For those who bought their homes when the housing market was at its peak, the resulting downturn in the economy and subsequent collapse of the real estate market left many homeowners with negative equity on their purchase. An underwater mortgage is a situation in which a borrower owes more money on a property than the property is actually worth on the open market. While there are several reasons this can happen, the negative correction in the market left many people reeling in debt when … (0 comments)
mortgage: Home Loan Modification – Don’t Get Caught in a Scam
- 04/03/12 12:04 AM
There is something about a crisis that brings out the best and the worst in people. Unfortunately the current housing crisis has brought out many snake-oil sales people and scam artists who prey on the desperation of innocent homeowners who are looking for a way out of a financial mess. These predators are happy to offer you their advice and help with some easy fixes to get you out of a jam when it comes to your mortgage. However their real intent is to mislead and cheat you out of your money and possibly your entire home if the scam is complicated … (0 comments)
mortgage: Drowning in Debt – the Underwater Mortgage Crisis
- 03/25/12 10:57 PM
It’s no secret that the U.S. housing market has taken a beating over the last few years and still remains flat-lined when it comes to recovery, but new figures indicate the number of home owners submerged under a sea of debt is still increasing with the total number of foreclosures expected to increase over the next few years. The continuing crisis is a result of so many homeowners having an underwater mortgage. An underwater mortgage is when a homeowner owes more money on their mortgage than the property is worth on the open market. While many financially prudent people see this phenomenon … (0 comments)
mortgage: What Everybody Should Know About Mortgage Fraud
- 02/28/12 09:18 PM
Mortgage fraud usually happens through misrepresenting information on a loan application. It’s often simple (although extremely important) details, such as overstating your income, or failing to disclose new debts. Some people will pretend they’re living in a property that’s actually an investment. It may seem harmless, but the risks are higher for the lender, who would typically charge a higher interest rate. Often there’s every intention to pay the loan back. However, the lender’s situation is more dangerous than they’ve been led to believe. Then there’s fraud for profit This can involve many parties, such as dodgy appraisers, and even loan representatives. … (3 comments)
mortgage: Will 2012 Be A Good Year For Real Estate?
- 02/11/12 12:53 AM
It’s no secret that the last few years have seen some wild swings in the real estate market. For the most part, the recession has brought dropping home prices and a large number offoreclosures. On that note, here are a few things to look forward to in real estate in 2012. 1. Increasing mortgage rates for real estate
Yes, that’s a good thing! Mortgage rates have hit historic lows in the last few years, which was directly related to the sluggish economy. As the economy continues it’s slow but steady turnaround, mortgage rates may slightly rise as a result. So a … (7 comments)
mortgage: FORECLOSURES – How Big is the Crisis?
- 01/30/12 01:14 AM
The economic news reports over the past several years have been filled with stories about the foreclosure crisis that has been plaguing the nation. One foreclosure alone can be considered serious when it’s your home that is being pulled out from under you, but when the country as a whole is facing a financial situation of this magnitude, it’s a whole different matter. So how large and widespread is the current crisis in terms of numbers? The number of homes receiving a foreclosing filing in the U.S. has increased by about 20 percent in 2011. A record number of properties – around 2.87 million – … (0 comments)
mortgage: Managing debt – Why your FICO score can lead to better mortgage rates
- 01/29/12 01:02 AM
In the modern world of constantly revolving debt, how you manage your paycheck and monthly bills may result in a lower interest rate when you decide to purchase a home or property and need to get a mortgage. Most of us get a mortgage, have credit cards or some form of borrowing money, whether through a bank loan or trust company for long-term purchases such as a car or home. How you manage your monthly payments can come back to bite you if you’re not careful. Or it could provide you with a break on interest rates if you have been diligent … (2 comments)
mortgage: Does A Short Sale Damage My Credit?
- 01/26/12 02:06 AM
You already know that missing mortgage payments will damage your credit. But what are you going to do about those missed payments? If you choose to do a short sale on your home, you should know what you’re getting into, and how it will affect your credit score. What is a short sale?
A short sale is an agreement between the borrower and the lender to sell a home for less than what is owed on the mortgage. For example, you may owe $100,000 on the mortgage, but you and the lender agree to sell the home for $80,000. The lender … (2 comments)
mortgage: Does A Foreclosure Damage My Credit?
- 01/13/12 02:10 AM
It goes without saying that a foreclosure will damage your credit rating but how much damage depends on your financial situation before the actual foreclosure. The good news is, the damage isn’t permanent, and a foreclosure won’t ruin your credit rating forever. What is a foreclosure? A bank foreclosure is when a bank claims ownership of a property because the owner has fallen behind on mortgage payments, or stopped making payments altogether. When the bank takes possession of the house, they will usually auction it off to try to raise some money to make up for what they lost by financing … (0 comments)
mortgage: Re-finance – using your home’s equity
- 01/05/12 02:28 AM
There are times when re-financing your mortgage makes good financial sense. If you have been in your home for a considerable number of years, you will have a large amount of money hidden in the walls and ceilings – not in actual cash, but in the equity that you have been pumping into homeownership over many years. Refinancing can be a way of using that equity for financial gain or it could be a way of reducing your debt by negotiating new terms of payments. There are several options available to homeowners that could help you reduce the time you will be … (0 comments)
mortgage: The Short Sale – When The Bank Will Pay You To Move Out
- 01/04/12 02:23 AM
There has been a lot of media coverage over the past few years regarding the amount of real estate foreclosures across the nation. Of course no one wants to take part in a foreclosure. For a homeowner it is a grinding, stressful experience that will complicate your life and can ruin your credit rating. For the banks, it’s an equally frustrating, time consuming process. The bottom line is: banks are in business to make a profit. They must recoup their loans with interest to make money and keeping you on a mortgage is their best bet. But when a homeowner cannot … (0 comments)
mortgage: Is Buy and Bail Really An Option?
- 01/02/12 02:20 AM
To put it simply, “buy and bail” means buying a new home, and “bailing” on the mortgage payments of your old home, effectively forcing the old home into foreclosure. But in practice, there is nothing simple about it. When Do People Buy and Bail? In today’s real estate economy, a lot of people find themselves with mortgages that are underwater. So for example, your mortgage may be for $300,000, while the current value of the home is $180,000. How Does It Work? Let’s use a fictional example of a homeowner named John: John decides that, for whatever reason, he doesn’t want to live in or … (2 comments)
mortgage: What To Look For When Shopping For A Mortgage
- 12/30/11 04:14 AM
Choosing a mortgage is one of the largest financial decisions you’ll ever make, and it is a debt that will stay with you for many years. There are 4 things you should consider when shopping for a mortgage. 1. Clean up your credit report It is estimated that over 50% of credit reports have mistakes on them. An error on your report could cost you thousands of dollars in extra interest charges, or even cause your mortgage application to be denied. Getting errors fixed takes a little time, but could save you a lot of money and a huge headache down … (0 comments)
mortgage: What’s The Difference Between a Bridge Mortgage and a Regular Mortgage?
- 12/28/11 01:45 AM
Finding a buyer for your old home can be difficult enough, but finding a buyer who can offer payment in time to finance your new home and mortgage can be near impossible. Some sellers need time to complete renovations on the home they’re purchasing before moving in, and others just can’t get the seller to agree on a closing date that satisfies their financial interests. With all the other complicating factors involved in relocation, it can become very difficult to find a closing date that satisfies both buyer and seller. When a buyer is required to pay for a new home … (2 comments)
mortgage: What Is a Short Sale?
- 12/19/11 12:07 AM
Ever since the mortgage crises, short sales have become an increasingly popular alternative for homeowners who can no longer keep mortgage payments current. When a property is valued at less than the balance still owing on its mortgage, the lender has the option to accept less than the total amount due, as opposed to foreclosing on the property. This type of transaction is known as a short sale, because the bank accepts less than the amount owing on the mortgage. It is estimated that a bank can save up to 30% on foreclosure costs by granting a short sale. Not all properties, … (2 comments)
mortgage: Buying Or Renting – The Best Option For You
- 12/16/11 02:49 AM
Unless you are the heir to a vast fortune and never have to worry about money, (and most of us aren’t!) you have to live somewhere and paying a monthly rental fee or mortgage is a part of life. The decision to rent a home or take the plunge into the market and buy your own place comes down to a personal decision and a common sense approach to a long-term investment. Since a mortgage comes with interest payments that, over time, will amount to equal or more than you paid for a house, renting can also have an advantage in long-term savings … (0 comments)
mortgage: Buying A Home – When Is The Right Time?
- 12/15/11 12:58 AM
If you are like most people, the thought of making a sizable investment like buying a home can be a daunting decision. With so much at stake many people find it can be overwhelming when faced with so many choices when it comes to investing in real estate. Location, financing, and affordability are usually at the top of the list when it comes to taking a path to home ownership. So when is the right time to buy? To make an informed decision you should take a deep breath and plan your strategy to determine when is the right time to buy. Here … (3 comments)
mortgage: How a Bridge Mortgage Can Make Buying a New Home Easier
- 11/30/11 01:11 AM
When buying a new home, what happens if the transaction closes before you manage to sell your current house? Most people use the proceeds from the sale of their current home to finance the purchase of a new home. With that big check not yet on its way, you’re going to need some form of short-term financing in order to put a down payment on that new home. That’s where bridge financing or bridge mortgages come in. Bridge loans are temporary loans that bridge the gap between the sales price of a new home and a homebuyer’s new mortgage, in the event … (0 comments)
mortgage: What Does Buy And Bail Mean?
- 11/24/11 02:39 AM
Where would Borat buy a home? Photo courtesy of Photobucket These are dark days in the real estate world for some people who want to buy a home. So dark, in fact, that they are turning to desperate measures to unload negative equity mortgages in order to buy a new home. What are they doing? It’s called buy and bail and although it may sound like a Borat movie, it’s not – it’s worse. So what exactly is buy and bail? Well, let’s say you see your property value decline by 50% – unfortunately a common enough story today. Now suddenly your $500,000 house is … (2 comments)
Remember that with a new house usually comes a new mortgage. Make sure you spend a little time doing the same due diligence on your new mortgage as you do on your new house. Here are 5 things you should keep an eye out for when shopping for mortgage rates.
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