Real Estate Consumer News » Financing

Mortgage Rate Update; How does amortization work?

Robert Fishel — Wed, 16 May 2012 19:09:30 +0000

By committing to a mortgage loan, the borrower is entering into a financial agreement with a lender to pay back the mortgage money, with interest, over a set period of time. The borrower’s monthly mortgage payment may change over time depending on the type of loan (Fixed, ARM, Interest Only, etc.). However, for this article, we will address the typical 30 year fixed Principal and Interest loan program. So… [...] Related posts:

How to protect yourself from mortgage fraud

Dennis Norman — Sat, 12 May 2012 12:46:17 +0000

The collapse of the real estate market, along with a down economy has created a fertile environment for fraudsters to attempt to advantage of the many desperate homeowners that are out there. Their methods vary from foreclosure “rescue” schemes, mortgage assistance scams and other scams that generally offer to lower your payments or debt, prevent [...] Related posts:

Mortgage loan delinquencies drop to lowest rate since 2009

Dennis Norman — Fri, 11 May 2012 16:36:09 +0000

More good news on the housing market! The national mortgage delinquency rate (borrowers that are 60 or more days past due) declined for the first 3 months of 2012, coming in at 5.78 percent according to a report issued by TransUnion. This is after increases in the delinquency rate in the prior 2 quarters and is the lowest rate since the 1st quarter of 2009. [...] Related posts:

Mortgage Rate Update; Why Refinance?

Robert Fishel — Wed, 09 May 2012 21:08:32 +0000

With interest rates at all time lows, it is worth the few minutes to do a mortgage check up and determine if a refinance would be beneficial to your situation. Since there are many reasons a homeowner may choose to refinance, we’ll take a look at the few most common reasons to consider a refinance. [...] Related posts:

Mortgage Rate Update; Cash-To-Close must be Seasoned and come from the Proper Source

Robert Fishel — Wed, 02 May 2012 19:49:51 +0000

Whatever funds the borrower intends to use to close a transaction has to be sourced and seasoned. Providing proper asset documentation and the actual source of the funds is a critical element of the approval and closing process. There’s nothing worse in a real estate purchase than making it all the way through the hoops and hurdles of the approval process just to have a loan fall apart due to the borrower not using an acceptable source of funds in order to close. In other words, “Mattress Money” is no longer a legitimate source. [...] Related posts:

Mortgage Rate Update; What is Private Mortage Insurance (PMI)?

Robert Fishel — Wed, 25 Apr 2012 20:51:00 +0000

Mortgage Insurance, also know as Private Mortgage Insurance, is required by lenders on conventional home loans if the borrower is financing more than 80% Loan-To-Value.

Private Mortgage Insurance (PMI) allows borrowers to purchase a property by qualifying for conventional financing with a lower down payment. Private Mortgage Insurance protects your lender against non-payment should [...] Related posts:

Mortgage Rate Update; FHA Lowers Mortgage Insurance Premiums for loans endorsed before June 1, 2009

Robert Fishel — Wed, 18 Apr 2012 20:12:20 +0000

Under this program, up-front mortgage insurance premiums will be reduced from 1.75% percent to 0.01 percent of the total loan amount for borrowers with FHA loans made before June 1, 2009. In addition, annual fees will be cut to 0.55 percent from 1.25 percent. This streamlined refinance program is available to borrowers who are current on their payments and may qualify even if they owe more than their homes are worth. [...] Related posts:

Survey shows banks expect strategic defaults to increase in 2012

Dennis Norman — Mon, 16 Apr 2012 22:31:48 +0000

FICO, a provider of analytics and decision management technology to the banking industry, today announced results from its latest quarterly survey of bank risk professionals which showed that almost half (46 percent) expect the volume of strategic defaults in 2012 to surpass 2011 levels as a result of more than 25 percent of U.S. homeowners owe more on their mortgages than their homes are worth. [...] Related posts:

Mortgage Rate Update; It’s not over till it’s over

Robert Fishel — Wed, 11 Apr 2012 18:25:51 +0000

And then it happens. The underwriter runs a new credit report just before closing and it turns out the prospective borrower had run up a credit card balance, buys new furniture/appliances etc. and now the new debt kills the loan. [...] Related posts:

Lending Tree says FHA’s change in guidelines may increase mortgage rates

Dennis Norman — Mon, 09 Apr 2012 21:48:23 +0000

According to the LendingTree Monthly Mortgage Review, average mortgage rates inched up in March, with more borrowers than ever taking advantage of low Federal Housing Administration (FHA) loan rates which averaged just 3.85 percent on a 30 year loan, almost 1/2 of one percent less than a conventional mortgage. However, according to the report, this may change soon as a result of the FHA adjusting its loan program guidelines and insurance premium structure which will cause the cost of a loan for future FHA borrowers to most likely increase. [...] Related posts: