Fixed Rate Mortgages Hold Steady Again While Arms Nudge Down
August 21, 2008
For the second week in a row 30 year mortgage rates held steady at 6.52. 15 year mortgages last week moved from 6.07 to 6.1. The week they returned to 6.07. So basically the fixed rates are holding steady. 5 Year Arms fell from 6.05 to 6.02 and 1 Year Arms fell from 5.22 to 5.18. So they didn’t move that much. But what is interesting is the overall trend. This week marks the 3rd week in a row that both 5 and 1 year arms have fallen. The 1 year arm has fallen from 5.49 to 5.18. This continues an overall trend of the difference between 30 Year Fixed mortgages and 1 Year growing. On May 1st 30 Year Arms were at 6.06 and 1 Year Arms were at 5.29. Mortgage rates since then have risen... Read more »
Understanding the Difference Between a Simple Purchase Loan and an Owner Builder Construction Loan
August 21, 2008
If an owner builder understands the differences between his construction loan and other, simpler types of mortgage financing, then he will be much better prepared when starting his planning and financing. Owner builder construction loans are a more complicated process than a standard mortgage to purchase or refinance a home. Therefore, they will require a longer preparation and underwriting time. If an owner builder does not account for some extra time required in his financing and planning stage, he runs the risk of falling behind schedule on the construction project or, worse, losing the land that he wants to build on. Therefore, understanding the reasons why an owner builder construction... Read more »
Pros and Cons of the Deed in Lieu of Foreclosure
August 20, 2008
There are good and bad things that come with the deed in lieu of foreclosure. If you are unable to make the monthly mortgage payments on your home anymore you might consider this as your option. There are pros and cons to this which might help you make your decision. Pros / Positives The biggest positive of the deed in lieu of foreclosure is that your credit doesn′t suffer as much as it would if it displayed a foreclosure. A foreclosure looks really bad on your credit and it can stop you from being able to buy another home for at least 10 years. No one wants a foreclosure on their credit. Being able to avoid this is a really good thing. The deed in lieu has another positive aspect that it can happen quickly. The quicker you... Read more »
Mortgage Options in Orem, Utah
August 20, 2008
Once you have found the real estate that you want to purchase in Orem, Utah, you will have to decide on what kind of mortgage you are going to get. There are certain factors that you must take into consideration when deciding on a mortgage and it is not a decision that should ever be taken lightly. Interest rates and down payment amounts differ from mortgage to mortgage, so you must take all of that into consideration when financing your new property in Orem, Utah. Adjustable Rate Mortgage An Adjustable Rate Mortgage (ARM) is an option when buying real estate in Orem under certain circumstances. This is... Read more »
Earn Money By Checking Your Mortgage Refinance Rates
August 20, 2008
Circumstances in the economy affect strongly over mortgage refinance rates, especially at this very moment and this fact can open new chances to refinance mortgage rates and to earn money. It is funny, but it is not necessary to suffer from the big monthly mortgage payments. By finding lower mortgage refinance rates you can get a big relief and relieve money from your home equity every month. 1.Your Interest Rate Can Be Lower. This is the main reason for new mortgage refinance rates. It is natural to check, that you are paying competitive price for your mortgage. When the U.S. economy and also other major economies continue to slip, interest rates are lower than they... Read more »
Home Financing, Refinancing and Equity Loans
August 19, 2008
When it comes to financing or re-financing a home, families with stay-at-home moms may have difficulty based on the fact that one spouse has little or no visible income. This leads some financiers to try and swing loans or re-finances that are easier to approve initially, but may be detrimental to the homebuyer in the long run. An adjustable rate mortgage, or ARM, is commonly offered when interest rates are low, and the finance company is betting on the fact that the housing market will turn around and cause rates to go up so they can make more money of the interest. This basically... Read more »
Strategy to Stop Foreclosure - Sell the House
August 19, 2008
Are you about to lose your home, go through foreclosure, and destroy your credit? If so you’re not alone. Countless families across the country today are dealing with the very same problem today. Consider one family’s story - the LaVan family. They had a beautiful two story home in a great neighborhood and things were going great. However, first Ted LaVan lost his job, which started them in a spiral downwards. Then the economy grew worse, interested rates skyrocketed, gas prices went up, and the LaVans found themselves on the brink of foreclosure, no longer being able to afford... Read more »
Basic Things You Can do to Stop Foreclosure Now
August 18, 2008
If you want to stop foreclosure now there are many things you can request to the bank or lender if you want to keep your home. The things you can do include a reinstatement plan, repayment plan, loan modification, loan refinance, loan forbearance, and more. If you really want to keep your home you should consider these things. 1 - Reinstatement Plan A reinstatement plan includes the late fees, the amount of money past due, and attorney costs if there are any. This is the amount of money owed if you want to bring your loan up to current. You will be eligible for a reinstatement if you can come up with a lump sum of money. 2 - Repayment Plan The most common way to stop foreclosure now is to work out a repayment plan with the bank. The bank will allow you to repay a portion of the amount... Read more »
Reverse Mortgages = Journalistic Opportunism
August 17, 2008
On July 5th 2008, Robert Powell of the Wall Street Journal online posted an article which quotes the Chief Executive of The Financial Industry Regulatory Authority (FINRA), Mary Schapiro, entitled Three Warnings for Hard Times: Beware of Strategies That Put Nest Egg at Risk. I really must admit that when I first read the title I thought, Here we go again, another article by another journalist knocking reverse mortgages. As I started to read and I saw the quoted expert, and as an individual who has been a mortgage banker for 32 years and has worked closely with many Wall Street investment firms for that last 10, I started to think that the Financial Industry Regulatory Authority had to be a recent attempt at stopping the bleeding as obviously... Read more »
Housing Bill: Seniors and Reverse Mortgages
August 17, 2008
On 7/30/2008 President Bush signed HR 3221 into law which has many significant effects on homeowners. The Bill, in its final form, covered a number of subjects that Congress had been trying to resolve from the modernization of FHA, to foreclosure assistance for homeowners, to the shoring up for Fannie Mae and Freddie Mac. The wires are burning up with stories from Bloomberg, Reuters, Associated Press, and every other news agency on the signing of the Bill and while each article is covering the same Bill, each article pulls out a little bit different information. The reason for this is that this Bill covers a lot of ground and many issues. By signing this Bill into law, the Congress and the President... Read more »
