mortgage: First Time Buyers, More Down Payment Help
- 11/18/08 11:11 AM
One of the most common deterrents to first-time home buyers is the lack of a down payment. However, the home loan industry has practically re-created itself in the last ten years, making it easier than ever to obtain a mortgage, and new mortgage programs are always cropping up. Some states sponsor loan programs that allow buyers to purchase a home without putting any money down. A parent or other relative can guarantee repayment of ten percent of the loan if the buyer defaults. The only cash needed is for the closing costs, which typically run about three percent of the … (0 comments)
mortgage: US Weighing New Mortgage Plan
- 11/06/08 10:24 PM
The White House says that talks are ongoing about an effort to modify home loans and back up lenders. Bad mortgages and the millions of homeowners at risk will be assisted by the $50 billion that the government will allot to this cause. This plan is expected to aide up to three million homeowners. Monthly mortgage payments can be made affordable by decreasing the interest rate or extending the terms of the loan. Determining an affordable monthly payment can be determined by looking at a delinquent borrower's debt to income ratio. IndyMac is modifying loans so that the new payment … (1 comments)
mortgage: Credit Scores Remain Misunderstood
- 10/23/08 01:25 PM
Too many consumers still don't get it when it comes to credit scores. And what you don't know about credit scores can hurt you when it's time to buy a home -- especially in a tight credit market. Only 28 percent of consumers are aware they need at least a 700 credit score to qualify for a low-rate mortgage. Three of every four consumers incorrectly believe that credit scores are influenced by income. And even more, 79 percent, erroneously believe that credit scores can be obtained for free once a year. (They're probably thinking about their credit report, instead.) Those are … (0 comments)
An interest rate lock is always a good idea in any market. But it becomes a better idea when it's crucial to lock in an interest rate and other loan costs at a level you can afford. A changing market -- especially when the change is for the worst -- is one of those crucial times. During the first half of 2008, nearly a full percentage point separated the high of 6.45 percent in recent weeks and the low of 5.48 percent in January, according to Freddie Mac. Get off the interest rate elevator ride with an interest rate … (0 comments)
Most of us sign up for a homeowner's insurance policy when we purchase a home not only because of the protection it offers us, but also because of the "required reading" aspect of it to our mortgage lender. Those institutions lending us the money to make homeownership possible cover their bases by making sure their own financial investments are protected in case of fire or natural disasters. But how much does the average homeowner know about what the typical homeowner's policy covers? The typical homeowner's policy includes coverage for perils and losses due to fire, lightning, tornadoes, windstorms, hail, … (0 comments)
mortgage: Existing-Home Sales Hit 5-Month High
- 09/30/08 12:17 PM
Existing-home sales rose in July to the highest level in five months, although they continue to be well below the numbers from last year at this time, according to the National Association of REALTORS®. Existing-home sales - including single-family, townhomes, condominiums and co-ops - increased 3.1 percent in July to a seasonally adjusted annual rate of 5 million units from a downwardly revised level of 4.85 million in June. Sales were 13.2 percent lower than the 5.76 million-unit pace in July 2007. NAR President Richard F. Gaylord, said the up-and-down pattern may break soon. "We hope the new tools in the … (0 comments)
mortgage: New Fed Rules to Prevent Future Runs on Bad Loans
- 09/23/08 09:24 AM
The Federal Reserve Board has amended the "Truth In Lending Act," Regulation Z under the "Home Ownership and Equity Protection Act (HOEPA)." Originally passed in 1994, HOEPA targets abusive practices in home equity lending. The Fed now extends the Act's protections to include home purchase loans. Effective October 1, 2009, these new rules should help prevent future runs on bad loans. The new rule's four key provisions include protections that: Prohibit a lender from making a loan without regard to borrowers' ability to repay the loan from income and assets other than the home's value. Lenders must more closely scrutinize a … (1 comments)
mortgage: August Home Sale Prices
- 09/05/08 05:57 AM
Smart buyers kept home sales strong through the usually quiet month of August, locking in their mortgages at the current low rates. If you’ve been waiting to "time the market", you might want to move quickly to avoid rate increases and to capitalize on a rare gift from the Federal Government: you can now borrow up to $729,750 without tipping into the more expensive “jumbo” category. In January, that maximum is scheduled to fall back to $417,000. This is a great time to buy! We’re on our way back up from a market bottom that had far less impact on our … (0 comments)
mortgage: Snapshot of the NJ Real Estate Market
- 08/27/08 09:47 AM
Houses For Sale: 1618 Median Price $359,900 New Homes: 3 Median Price $529,900 Foreclosures: 1.032 Median Price $339,900 Snapshot of NJ Mortgage Rates 15 Year Fixed 6.187% 30 Year Fixed 6.572% 1 Year ARM 5.539 % … (3 comments)
mortgage: How Does Inflation Affect Home Prices?
- 08/25/08 10:12 AM
Question: How does inflation affect home prices? Answer: Inflation means that the value of the dollar is dropping over time, which means it will take more dollars to anything from a pound of fruit to a residential home. The good news for home-owners is that when the interest rate of a mortgage (as with a fixed-rate mortgage), inflation actually means that you're paying with the same number of less-valuable dollars each month, but the cash value of your home may still be rising. If the cash value of your home rises faster than the rate of inflation, they you'll gain more … (0 comments)
mortgage: Is Your Bank Safe? If you Live in New Jersey - Yes!
- 08/05/08 06:11 AM
July 2008 will be remembered for a long time in the banking industry as the second-biggest bank failure in history, and many still have images of Californian depositors lined up to get their money out of the failed IndyMac Bank. However, New Jersey bank veterans are eager to reassure most depositors that they have no reason to worry if they have less than $100,000 in the bank, since they are completely covered by the FDIC. More importantly, New Jersey banks have a conservative tradition of lending to people they know and businesses they are familiar with, backed by collateral that is real, … (0 comments)
mortgage: So Many Homes, So Few Buyers
- 07/28/08 10:02 AM
Today's market would be perfect for buyers if it were only a bit easier to get a mortgage. There are more empty homes now than at any other time in U.S. history; according the U.S. Census Bureau, the nation's empty homes rose to a record 18.6 million in the first quarter this year. This high vacancy rate tends to create price breaks for buyers. In addition, adjustable rate mortgages (ARMs) have contributed to rising foreclosures by causing unaffordable mortgage payments. Some people bought more than they could afford with little money down when the market was peaking, and now home prices … (0 comments)
mortgage: The True Profits of Home-Ownership
- 06/10/08 06:27 AM
Between home equity and government incentives, one can practically live for free when owning instead of renting. Federal benefits make home-buying a sound decision for those who buy within their means. Tax Deductions Homeownership offers many opportunities for deductions on federal taxes. For example, mortgage interest is tax deductible! Because of the Mortgage Forgiveness Debt Relief Act of 2007, one can also deduct your mortgage insurance interest. Regardless of whether you (the owner) or the seller paid points to take out the mortgage, you may be able to deduct $1,000 or more on your taxes! In addition, one can deduct PMI … (0 comments)
;)
;)
