Eliminating Private Mortgage Insurance

Posted on February 13, 2012 by Brian

Private mortgage insurance protects the lender from losing money if the borrower defaults on his or her mortgage. If the borrower defaults on the mortgage a percentage of the insurance money is paid to the lender. Private mortgage insurance is included in the borrowers mortgage payment and is typically 1/2% to 1% of the amount that is borrowed. It goes into an escrow account and the lender pays the insurance payments. Homeowners do not like paying PMI but more often than not they will have to, especially if they put down less than 20% of the mortgage loan. There are lenders who will help a borrower avoid paying PMI. The borrower may choose a higher interest rate mortgage loan to eliminate paying private mortgage insurance. When at closing the borrower should ask about this.

A borrower will have to pay PMI if he has to borrow 80& of the cost of the home, so putting 20% down means that he won’t have to pay private mortgage insurance. Once 20% of the value of the home is paid the mortgage insurance will be cancelled. The borrower may have to keep track of this to be sure it is cancelled and may have to contact them to be sure they actually do it. Lenders sometimes change hands and the information is lost or at times a lender just won’t keep track of it at all. Continue reading →

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Foreclosure Rights Under Oral Lease Agreement

Posted on February 6, 2012 by Brian

With the state of the world economy many people have had to face situations, caused by financial problems, they might otherwise have never had to endure. Too many families have lost their homes and been forced to rent or lease living accommodations. Imagine the distress if, after moving into their new home, they receive a notice to vacate within some short period. This situation can happen if the owner of the home you are renting, or leasing, is facing mortgage loan foreclosure on the property. What are your rights, if any, in this type of situation?

As we review your rights, you should be able to see the reason it is vital to have signed rental or lease agreements. Even though having a signed agreement is best for all concerned, you still have rights. You might think there is no way around the problem but that would be an incorrect assumption.As long as you and the owner, or the owners agent, had a verbal agreement and understanding about the cost of your rent or lease and the length of time you would occupy the property, you do have rights that preclude your having to move out in a very short period. Depending on who holds the mortgage loan and is taking over the property has some bearing on your rights. Continue reading →

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Get U.S. Aid Today

Posted on February 3, 2012 by Brian

Today’s economy can be very rough. One of the biggest downsides to a poor economy is frequent foreclosures. Luckily, there is financial aid available. Foreclosures happen when a person cannot afford their mortgage.

Mortgages can be very expensive because of high interest rates. This is why it is favorable to find a low interest rate instead. U.S. aid can help you get a great refinance mortgage deal. Because of today’s bad economy, foreclosures are becoming a bigger problem. Anyone is at risk of foreclosing because of the unstable job market. If you are in a tight situation, have no fear.

There are plenty of financial aid services out there. Financial aid is usually supplied by the government. The government is trustworthy when it comes to financial aid and loans. Foreclosure can be very devastating. Continue reading →

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Fighting Foreclosures-How to Fix the Economy

Posted on January 30, 2012 by Brian

It is the hottest topic around, housing foreclosures. Everywhere one looks there is talking going on about the state of the economy; it dominates, TV, radio and printed material. The housing crisis is one of epic proportions. Because of the state of the economy, many find themselves unable to pay their mortgages due to lost jobs or less than sufficient wages.

There are options when one is facing foreclosure. Those who have found themselves in a temporary financial crunch may have opportunities to keep their home. Even during this time of economic hardship, interest rates are at an all-time low. Homes are easily be mortgage for 3.5 %, which is significantly lower than in years past. Refinancing a mortgage may be a great option for keeping the home. Those who got great interest rates in years past could have a 8-9% rate. While this would have been ideal at the time the home was purchased, by today’s standards it is high. Just a simple refinance can shave hundreds of dollars off the monthly mortgage payment. Continue reading →

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Bank of America Reports its Biggest Loss in History

Posted on January 27, 2012 by Brian

The Bank of America has endured two years of financial disaster, culminating in the biggest loss in the bank’s history. The multibillion dollar purchase of Countrywide Financial Corporation, the biggest subprime mortgage financier in America, seemed like a bargain in early 2008. It turned sour almost immediately and lost gigantic sums of money when the housing market collapsed.

The acquisition of Merrill Lynch, ill-timed at best, has also continued to drag the corporation down. Between 2010 and 2011 the stock for Bank of America lost 63% of its value. This forced the company to downsize painfully. The new management team has, in the last two years, arrested the decline. The recent sale of assets like China Construction Bank, coupled with a common stock issue that replaces the costlier preferred stock, has even allowed the Bank of America to post a modest profit for the fourth quarter of 2011. However, their staple businesses of real estate and investment banking remain unprofitable, and investors are wary. The corporation has tremendous unexplored legal liability, and lost at least $14 billion on legal settlements in 2011. They have also been forced to purchase billions of dollars of mortgages from Fannie Mae and Freddie Mac. Continue reading →

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Mortgage loan applications have increased 23% this last week due to record low rates

Posted on January 24, 2012 by Brian

Nationwide in the past week alone mortgage applications have increased due to record low rates for the 8th time.This is partially due to the financial problems in Europe which are giving strength to the U.S. Government bonds.

New and pre-owned home buyers and those wanting to refinance that may have been waiting for a bottom in the rates available should consider strongly locking in a rate now. The rate for a 30 year fixed, still the most popular financial instrument for most mortgagees, is now in the 3.88 range a new low. 15 year fixed mortgage rates did edge up slightly with the record low rate of 3.16 advancing to 3.17. This is still extremely attractive for older Americans looking to cut some time off their remaining mortgage by refinancing and in some cases finding the payments lower on the shorter term. First time home buyers are in a good spot with the rates if they can qualify for the loan they need. Continue reading →

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The ‘Euro Crisis’ and What it Means for U.S. Mortgages

Posted on January 19, 2012 by Brian

The American housing market has greatly been affected by the Euro crisis this is because there is no defined deal that can make investors comfortable with what’s happening. It is important to note that Countries such as Great Britain are glad that they are not experiencing the crisis because it is not on the Euro. It is unfortunate that Euro crisis has been going on for a while affecting economies around the world. This has led to shrinking payments, rapid unemployment rates, riots in areas such as Greece as well as strikes by devastated workers.

The Euro Crisis has caused economies to be unstable and caused uncertainty to potential investors. With loss of jobs and or shrinking payment people have been forced to reconsider their spending habits and knowing how to adapt has been the hardest step. With countries suffering it is prudent to make calculated risks when it comes to handling finances. US Mortgages are best handled using treasury bonds that have since gained in market share. Continue reading →

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Mortgage Industry Faces ‘Staggering’ Backlog of Foreclosed Homes

Posted on January 16, 2012 by Brian

The current economic situation has affected everyone, and lenders are faced with a staggering amount of foreclosures. The property market has plummeted in the last several years, and the ramifications of this issue are wide spread and staggering. Many homeowners have lost their jobs, and expenses for all life’s necessities have been steadily rising in the last few years. This has caused a national emergency, and FHFA homes are facing foreclosure on a scale that hasn’t been seen in decades.

Mortgage lenders have been forced to take action against an unprecedented amount of their clients as the market spirals further downward on a daily basis. The housing bubble of the late 90’s has finally burst, and lenders are faced with numerous loans that aren’t being paid. There’s only one thing they can do, and that’s to foreclose on the properties. This issue has affected all types of lenders, and most of them are experiencing foreclosure rates that haven’t been seen in decades. Continue reading →

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Google Suspends Mortgage Rate Search Ads

Posted on January 12, 2012 by Brian

Over the past few years, the poor economy has had various negative ramifications for almost everyone.  While people have had to deal with job losses and income reductions, one benefit of the poor economy has been that interest rates have stayed very low.  While this has reduced fixed savings rates, those that are looking to borrow money are able to do so at a lower than ever available before.  This is especially true in the mortgage industry where rates on new and refinanced mortgages are at historically low levels.

Due to the very low rates, millions of people have been looking to either take out a new mortgage or refinance an existing one.  Despite the poor economy, mortgage firms have continued to see a flood of new business as the mortgage rates continued to remain low.  While people have historically started the mortgage application process at a bank branch, more and more people are using the internet to start the mortgage application process.

Up until recently, when most people would shop for a mortgage online, they would do so by searching for rates and offers through Google, the most frequently used search engine in the world. Continue reading →

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Veterans Get Refinancing Fever, Big Time.

Posted on January 9, 2012 by Brian

Veterans have been refinancing their home loan in 2011 at a greater rate than in the past. This is primarily due to changes in the law relating to limits on mortgage values that will be coming at the first of the year. These changes will greatly affect those who have loans for houses that are valued on the higher end of the present mortgage limits.

In the last ten weeks there have been more than 60,000 loans refinanced by veterans which translates into more than 13 billion dollars worth of mortgages; this according to the Veterans Administration. They had only recorded 171,000 total loans refinanced during the last fiscal year that ran from Oct. 1, 2010 and ended Sep. 30, 2011. For a ten week period, these current numbers are head turning. This mad rush is due to lower limits being placed on mortgage loans future forward. This limit is not a ceiling on how much a mortgage can be, but only on how much of the mortgage the Federal government will guarantee. Continue reading →

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