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[18 Oct 2010 | One Comment | 6,141 views]

A mortgage rate is the cost that you will be charged, in addition to the principle amount which you will be borrowing to pay for your home. Purchasing a home has become an easier dream to realise because interest rates on home loans are very low these days. Yet, will the interest rates keep that low? And, what other factors influences the overall cost of the loan? There are several factors that influence interest rates, but you can easily prioritise them and have the best options for lowering the cost of your mortgage.
The first thing that influences the Home Mortgage Rate is the prime rate. This is the rate declared by the UK government to help improve the economy. The prime rate is the guideline that most banks use when providing mortgage loans. This also acts as a benchmark in deciding interest rates on savings accounts and other investment products. …

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[17 Oct 2010 | No Comment | 3,847 views]

Home buyers often save rigorously for their home, forgoing expenditures and making sacrifices to pay down the mortgage and save for retirement. At retirement they get to enjoy their dream home debt-free. The only problem with this scenario for a lot of retirees is that they live on a fixed, and often not very large, income.
One option is to take a reverse mortgage – a loan against the home, which brings you money while you still live in your home. You can usually borrow between 10 to 40 percent of the value of your home depending on your age. A reverse mortgage loan requires no repayment for as long as you live in your home and you will never owe more than the value of your home.
This loan is different from a traditional mortgage in two ways. In order to qualify for a traditional mortgage, the bank checks your income …

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[17 Oct 2010 | One Comment | 3,353 views]

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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[16 Oct 2010 | 2 Comments | 3,061 views]

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. …

World »

[15 Oct 2010 | One Comment | 3,102 views]

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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[14 Oct 2010 | No Comment | 5,803 views]

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 …

World »

[13 Oct 2010 | No Comment | 2,728 views]

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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[13 Oct 2010 | No Comment | 3,237 views]

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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[13 Oct 2010 | No Comment | 2,848 views]

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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[12 Oct 2010 | No Comment | 2,654 views]

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 …