[ October 29, 2010 at 1:42 pm ]
UK Mortgage Lending remains weak

Figures from the Bank of England show the number of mortgages approved in September has remained the same as the previous month at 47,474.
Net Mortgages were down on august but higher than July.
Personal loans and credit card borrowing has risen slightly in September and they will continue to rise towards the Christmas period.
Consumer credit was at £262 million by the end of September.
People are still adopting a cautious approach toward borrowing in this uncertain time surrounding the economy.
There is a great contrast compared to the boom in the autumn of 2007. In September of that year net lending increased by £10 billion. This year the figure is £112 million, around 1% of 2007.

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[ October 17, 2010 at 10:13 pm ]

Private mortgage notes, also referred to as owner financed mortgage notes, have become more prevalent because they offer three distinct advantages. Conversely, as the situation changes there are three very powerful reason to sell a note.
There are three primary reason that a private mortgage note is established:
1. The buyer was not able to obtain traditional financing.
A little more than half of all applicants, and the numbers is going up, do not qualify for the full amount of the loan that they seek.
2. The owner wants to save time and money.
Utilizing owner financing the owner and buyer can save on the extraneous fees associated with the closing, such as origination fees, closing cost and survey fees.
3. An investment opportunity for the seller.
Depending on the sellers circumstances, it may make sense to self-finance for tax purposes.
After the note has seasoned the seller’s motives may have changed, resulting in the desire to sell …

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[ October 16, 2010 at 10:13 pm ]

Today, it seems as if everyone is offering a mortgage to those that are looking to purchase a home. There are mortgage lenders here and there, offering the ‘lowest rates’ the ‘best financing’ and the “best terms” but what is the truth to all of this? Many times, people find themselves lured into advertising and that is probably one of the worst things that you can do. Instead, when looking for a home loan, carefully think about what you are getting in the loan first.
There are several aspects that should be carefully considered when looking at a mortgage offered by any of the lenders there. Everyone should take the time to carefully consider these things as they will determine just how much money they will ultimately pay for their home as well as the experience they will have.
 

Interest rates are by far the most important aspect of the home loan. …

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[ October 15, 2010 at 10:12 pm ]

Ginnie Mae is a government guaranteed business that is responsible for helping people finance homes. Ginnie Mae has highly trained and knowledgeable work force working in the best interest of the families and mortgage lenders they help.
Ginnie Mae works with mortgage backed securities to help make housing affordable for millions of low and moderate income families in the United States. Ginnie Mae does this by putting global capital into the nation’s housing markets.
The Ginnie Mae guaranty allows mortgage lenders to obtain a better price for the mortgage loans in the secondary market. This allows the mortgage lenders to take the money they make and put it towards more mortgage loans that are available to more people. It is a way to increasing the amount of cash flow so that more mortgages are available for more families. In turn, this allows more people and families to own homes, otherwise they may …

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[ October 14, 2010 at 10:12 pm ]

If you are considering refinancing and want to know if refinancing will be worth it, consider if your interest rate is at least 2% higher than the going rate you will be saving money. Remember there are expenses involved with refinancing; less than 2% and it might be a while before you break even.
There are of course other reasons to refinance; cashing out equity in your home is one such reason.
You may be sitting on the fence when it comes to refinancing your mortgage because of a possible move in less than five years. It does not make sense to commit to a 30 year mortgage if you have to turn around and sell in five years right? If you think a move might be coming up in your future you can still take advantage of low interest rates by using a hybrid mortgage loan.
A 5:1 hybrid mortgage for example …

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[ October 13, 2010 at 10:11 pm ]

Few people will ever pay more for anything than they do for their home. The prices of housing are continually escalating; the median price of a house in the United States is now more than $215,000. Adding to the expense is the mortgage interest. Over the life of the loan, most homeowners will pay approximately twice the cost of the house in interest alone.
Taking interest into account, the cost of the average American house now costs more than $500,000. But while everyone wants to own a house, few people relish the though of paying nearly one third of a million dollars in interest to their lender. And yet, many people do, seemingly unaware that there are things they can do to reduce the cost of buying a house.
Here are some things that you can do that may help reduce the total cost of buying a home:
 
Eliminate your private mortgage insurance …

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[ October 13, 2010 at 10:11 pm ]

When you first apply for a mortgage loan, three of the most of things you want to entertain are the interest rates, points and fees that are associated with each specific mortgage you are considering. These three things can greatly affect the amount of money you have to pay in turn for borrowing the money to purchase your house.
Depending on your credit history, income, expenses and long term debt, you can either qualify for either a prime or sub-prime loan. A prime loan means you have a decent financial situation and can qualify for a large amount of money, at a good interest rate, with the normal points or fees. A sub-prime loan is for those with not such a good financial situation. Often, sub-prime loans come along with higher interest rates and more points and fees that are paid in turn for the lender having to take on a …

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[ October 13, 2010 at 10:10 pm ]

You see every where rates advertised for low mortgages. Banks, private lenders, brokers, mortgage companies and other institutions advertise their lowest rates to bring interested buyers in to the store, or call, or go online to see what that particular lender has to offer.
While these low rates are not false, more often than not the rates advertised are for those with great credit history and a steady income. The average person may not be able to take advantage of these low rates because their credit history is not as good and they have way too much long term debt. In that case, there are rates, often higher, that are for those with not as clean credit.
Another thing to look out for is the low rate advertised might be just the base rate. An interest rate is made up of a base index, then added to it are percentages that represent …

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[ October 12, 2010 at 10:10 pm ]

A reverse mortgage is a special type of loan that home owners can sometimes get to convert the equity in their homes to cash. Simply, a reverse mortgage is a type of loan that provides you with a monthly income, a lump sum of cash, or a line of credit. Or a combination of both
This was originally structured for retirees keen in keeping their homes but whose incomes aren’t sufficient to support them, reverse mortgages have typically been used to help people on low incomes to pay for daily expenses, huge medical bills or the odd house maintenance and repair costs. Reverse mortgage also pays off your existing loan, if you have any. So you have no ongoing house payment. The monthly income you receive from the reverse mortgage is guaranteed and you will receive it as long as you remain living in the home.
Many reverse mortgages offer special appeal …

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[ October 11, 2010 at 10:09 pm ]

With the increasing popularity of online shopping, more consumers are searching the internet for the next home loan. Lower prices, helpful education, and convenience are the leading factors for someone to start the online mortgage search. In fact, a study by Bankrate.com showed that the 30 year fixed rate offered online is a half point (0.50%) lower in interest rate than the same program offered online. In addition, the survey found that online approvals were faster and provided more convenience as borrowers applied for their loan at their leisure.
If you are ready to jump online, it is important to understand the different ways you can shop for a loan. Most people start their shopping experience by using their favorite search engine (i.e. Google, Yahoo) or web portal (i.e. MSN, AOL) and entering “mortgage” as the keyword.
For example, using Yahoo! for the search will provide you with several different types of …

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[ October 10, 2010 at 10:09 pm ]

Are you planning on refinancing? Homeowners…keep these simple (yet often unexplained) concepts in mind when considering a refinancing:
1. You typically want to see a 2% improvement from your current interest rate and the proposed “new rate”. When you add up the costs of refinancing as well as the time and hassle associated with the process, you may find a refinancing doesn’t make a lot of economic sense with a spread lower then 2%.
2. Find your break-even point by taking the total costs of refinancing (divided by) the projected monthly savings under the new rate. Doing so will tell you how many months it will take to get your money back!
3. How long you plan to own the property is important. Rule of thumb: If you plan on owning the property for less then 5 years, a refinancing may or may not make sense. Only you and the numbers can tell!
4. …