Mortgage Info.

Bailout Offers Auto Loan Relief

alinisar01@hotmail.com (Ali Nisar) — Mon, 05 Oct 2009 07:39:00 +0000

By: Catherine Brock

Do you want a piece of the federal bailout action? Now may be your chance. GMAC, the financing unit of General Motors, is passing Troubled Asset Relief (TARP) funds onto its consumers, in the form of looser credit standards on auto loans. There's just one tiny catch-you must buy GM.

ref: mortgageloan.com/bailout-offers-auto-loan-relief-2835

Aggressive auto financing promotions

alinisar01@hotmail.com (Ali Nisar) — Mon, 05 Oct 2009 07:37:00 +0000

GMAC also ran an aggressive 0 percent car loan promotion between December 30 and January 5. Inclusive of that promotion, GM's December sales were still down more than 31 percent. Full-year sales were down 22.9 percent.

TARP was established in early October when Congress passed the Emergency Economic Stabilization Act of 2008. To participate in the program, GMAC applied for bank holding company status in November; that application was approved by the Reserve-Board">Federal Reserve Board in the following month. GMAC subsequently received $6 billion in government bailout funds. Auto manufacturers GM and Chrysler received bailout financing under a separate arrangement by President Bush.

If your credit score is between 621 and 700, you can technically take a slice out of the bailout pie. Just head over to your nearest GM dealer, and finance an auto purchase.

Accomplish All Your Desires With Low Interest Secured Loans

alinisar01@hotmail.com (Ali Nisar) — Sun, 04 Oct 2009 13:21:00 +0000

Published by: gagan

Once when I had to borrow money, I decided to take a loan. There were many different loans in the market, but with relatively high interest rates. It actually disappointed me because paying such a high rate of interest was beyond my financial capacity. But, when I came to know about low interest secured loans, I was filled with joy. I got the opportunity to avail the most competitive, fast and low rate loan.

Low interest secured loans offer highly alluring loan packages. They offer loans at relatively low interest rates. They are secured against collateral such as an automobile, equity in home or any other property. If you place a high value collateral, you can surely draw a larger loan amount at a lower interest rate.

The credit score of the borrower is an important factor in determining the interest rate and monthly installments payable on the loan. Having a bad credit score does not mean that one should be deprived of certain basic necessities. If you are a bad debtor, but you are able to win the trust of the loan provider and you promise to repay on time, there are lenders who can give you loans at quite a reasonable rate. The borrower should never forget that the lender has the authority to seize his property if the repayments are not made on time.

Low interest secured loans can serve a number of purposes such as debt consolidation, making home improvements, investing in business, going out for a holiday, or meeting wedding expenses.

Before looking out for a loan, one has to be fully aware of the various sources available. Traditional lenders such as banks and other financial institutions dealing in low interest secured loans exist in the market. Approaching such physical lenders can be a headache. One has to go through different formalities so as to qualify for the loan. It also involves lot of documentation work. Facing these situations can put you in utter chaos.

Nowadays, the online method of applying for a loan is preferable. Varieties of lenders offering low interest secured loans appear online. These lenders work hard to prepare a healthy agreement for the borrower. You can also collect loan quotes from different lenders and compare them in order to determine the best deal.

However, the borrower should remember that interest rate is not the only criteria in deciding the most appropriate deal. Loan term and monthly installments are equally important. In case any confusion strikes the mind of the borrower, he can seek advice from an online loan advisor.

After deciding the best deal, you can proceed further by filling the online loan application form and submitting it then and there.

Hence, low interest secured loans are capable of providing you loans at considerably lower interest rates. If you make a judicious use of the loan you can fulfill all your personal desires. It is an ideal option for bad debtors as it can help them improve the credit score.

ref: sooperarticles.com/finance-articles/mortgage-articles/accomplish-all-your-desires-low-interest-secured-loans-11381.html

Refinancing Car Loan - How Refinance Auto Loans Work

alinisar01@hotmail.com (Ali Nisar) — Sat, 03 Oct 2009 11:30:00 +0000

If you are not happy with your existing car loan, there is good news for you. If you actually go through the refinancing car loan, it would be in fact benefited. That's something you need to really consider in order to get better rate of interest. It's possible to get lower monthly payments compared to earlier one. You can save more funds and there is nothing to worry regarding the cash for each month.

The ways for auto refinancing loan loan differ through which kind of current car loan you having. However, there is nothing to worry because it's in a simple process. A new lender pays off for what you still own for your old car loan. The title would be transferred to his or her name and the monthly payments would be made through new lender.

Here is a clear picture on how the refinance car loan does process works there are the following steps:

Primary and first, you need to begin with searching out for the best place for your process of car refinancing. So many websites offers refinancing car loans. You need to do window-shopping on the possibilities for you new lenders. You need to compare the auto refinancing rates with the different lenders.
The minute you select the lender, which offers the best available rates for you, you should provide your financial information to them.
You need to get qualify for the loan before any transactions take place. The lender needs to know you annual income along with your asset, credit ratings, and debt load.
Fees include the holder fees that amounts around $6 to $11, re-registration fees that amount around $6 to $76.
Once the loan has been approved both parties and closing the deal, the new lender of refinance car loan pays your exiting car loan, so transferring the title to him.

ref: m.sooperarticles.com/finance-articles/loans-articles/refinancing-car-loan-how-refinance-auto-loans-work-11410.html

Bailing Out the Auto Industry

alinisar01@hotmail.com (Ali Nisar) — Sat, 03 Oct 2009 11:29:00 +0000

By: Greg Mischio

America is a country that loves to have her cake and eat it, too. When the free-market economy was red-hot, and people were making big money, there was no better economic system in the world. Too much regulation was regarded as the death knell of a prosperous economy, and fat cats stood against social programs, like welfare. It's now interesting to see who has recently visited Washington, D.C. with hat in hand. The vaunted auto industry has finally imploded, and they've joined the nation's top financial institutions in crying out for government assistance.

Big three sparked the big mess

GM, Ford, and Chrysler have long fueled much of the growth and prosperity in this country. They employ nearly a million people among them, and are responsible for the financial success of a series of related industries including steel and auto-part companies. With so much at stake, everyone, including members of Congress, is wondering why the companies have fallen so low.

Mired in an inventory of SUVs and big sedans, the big three have looked foolish when fuel prices recently skyrocketed. Meanwhile, Honda and Toyota were patiently waiting for the energy crisis that everyone knew was coming with their compact, fuel-efficient cars. Choking on their exhaust were the big three, who looked positively blind-sided by the turn of events in the marketplace.

Credit crunch the final blow

By their sheer enormity, the big three have remained afloat, even while foreign car companies have been driving circles around them. It's in no small part thanks to the huge subsidies that they've received from Washington, and an oil industry that has kept fuel prices artificially low.

Now GM, Chrysler, and Ford are in a tremendous crunch. They have no cash to innovate, and no time to raise more funds. Should the auto industry be allowed to fail?

Pundits agree that the impact would be extremely painful, and are discussing the possibility that letting the big three fall would be in the best interests of the economy in the long run. If a pre-packaged bankruptcy was initiated, where terms and conditions for creditors were negotiated ahead of time, the companies could start from scratch. They wouldn't be committed to overly-expensive pension plans to vendor contracts. They would have the latitude to innovate, building their companies based on the successful models of Honda and Toyota.

At this point, no legitimate alternative seems plausible. A government bailout would stop the bleeding for a time, but it wouldn't heal the wound. The big three and the government need to make a decision: Either embrace a free market system with all of its ups and downs, or choose the much-maligned alternative.

ref: mortgageloan.com/bailing-out-the-auto-industry-2691

Car Loan Specialist Uk: Purchase Your Dream Car Without Any Hassle

alinisar01@hotmail.com (Ali Nisar) — Fri, 02 Oct 2009 13:59:00 +0000

Are you thinking of purchasing a car? But the issue that worries you most is your financial unsuitability and you are looking for monetary support. If this is so, then you can take the prevalence of car loans. These loans help UK citizens to possess a car of their own.
Car loans have some special features which make them different from other loans. These loans are low cost loans which are available very easily. There are two most common ways to get these loans. The first way is to go to the lender directly and submit the written application of loan. this process may take many days and perhaps, your wish to buy a car may divert any where else.
Traditional money lending institutions approve car loans according to a good credit rating. If a person has bad credit then he/she cannot qualify for a car loan from a local bank, credit organizations or financing companies. Now everyone needs a vehicle but not everyone can have a perfect credit report. In that case many specialized car loans are designed for people who are facing the problem of bad credit.

Different companies offer different rates. First, your car of choice should be fixed. No more doubts regarding the automobile's brand and the model. Inquire to at most five lending companies about the terms of the loan: the interest monthly payment and other charges. They will do all the processing with the car company. They serve as a middleman between you and the company. Instead of going straight to the company, you'll be dealing with the lending institution. Getting an auto loan nowadays is fairly easy. Such loan may be different for every person. It will depend on the price of the merchandise and the duration of the loan.

The loans are of two types:

Secured: In this form, you have to place one of your collateral to get loans, with higher amount, lower interest rate, and higher repayment time.
Unsecured: In this form, for more details you don't have to place any collateral. But the repayment is short generally. The interest rates are higher, and the amount available is usually lower.The process for applying for the loans is same: login to the website, fill in the application form, submit it and fax the documents requested. Some money lenders, offering cheap auto loans, do not even ask you to fax the documents. Also, the eligibility criteria are same: the applicant should be a US resident; he/she must have a regular income; and, should have an active checking account.

ref: m.sooperarticles.com/finance-articles/loans-articles/car-loan-specialist-uk-purchase-your-dream-car-without-any-hassle-14957.html

Loans - Tips And Suggestions to Get The Best Loan Offers

alinisar01@hotmail.com (Ali Nisar) — Thu, 01 Oct 2009 09:19:00 +0000

Published by: Ricky Harris

Getting the lowest interest rate loans will be the most crucial task especially for people who make ends meet solely through their paychecks.Managing both the monthly loan payments and the household bills will be a tedious task if you are not financially secured or if you do not have enough savings in the bank account.
It is better to stay away from the loans if you feel that you will not be able to manage the loan.This is because if yo default on the loan,the credit score will fall down and this will affect the chances of getting the loans in the future.
There are lots of options and places for a person who wants to get the loans as fast as possible.Some of the best options are the major banks,credit unions and the private lenders.The last option,namely the private lenders,is not a great option for people who do not want the higher interest rates. But if you are a borrower more concerned about getting the loans immediately then the private money loans would be better options.T
his will be very useful for people who have a very horrible credit history but fortunately have a good income.As you might be knowing,the major banks are not going to give loans to people with bad credit easily.In such situations, the private loans will be the only option.
Except the higher interest rate,there are no other disadvantages.You can find the loan offers from the private individuals easily through the internet and also through the broker web sites.Another option to get the loans easily is the credit union.Make sure to check this out too.

ref: sooperarticles.com/finance-articles/loans-articles/loans-tips-suggestions-get-best-loan-offers-13691.html

The Best Ways To Get A Car Loan

alinisar01@hotmail.com (Ali Nisar) — Thu, 01 Oct 2009 00:35:00 +0000

Getting a car loan is something that needs some research as car loans may end up in a tragedy. The interest rates and car loan different plans the things always goes messy but if you really want to get the best car loan plan then you need to check all the options on the market and see what is the best one for you.

Home Equity Loan Plans

Have you considered making your home collateral for a car loan/ this is a good way to get a loan with less interest rate as your house will secure the car loans that you are taking. This may save you couple of thousands at the end of the loan period.

Dealer Car Loans

Most of the auto dealers across the country offer car loans for buyers but the interest rate is always higher than the bank offers, of course this is because it is easier to get a loan from dealer than from the bank. The dealer always offers two choices a zero interest car loan or rebate. You have to calculate it first before you accept the zero interest rate as you will find that the rebate would save you also a couple of thousands from what you were going to pay with that zero interest car loan.

Pre-Qualified Financing Car Loans

This is a very good idea for those planning to get a car loan. Getting an approval for a car loan from one lender or several lenders would make you in a stronger position when you negotiate a car loan with your car dealer. If you have approval for a loan before sitting with your sales agent then you have something in your hand so, if he want to close that sale then he should offer you a better interest rate. This is a good trick that you should learn to do. It will save you a lot.

Refinancing Car Loans

While you are in the middle of your car loan you may want to consider refinancing it. This would drop your interest rate with a reasonable amount and it won't affect your monthly payment a lot.

Very Useful Tip To Enforce Your Credit Position

While you are planning to get a new car, most probably you will be thinking about a car loan as most of us need one to finance a new car. All of us have credit cards and most of us are paying the minimum every month and leaving our credit limit at its maximum level for long times, to put yourself in a good position before financing a new car loan, you need to cover at least 50% of your credit limit, this would put your credit in a strong position and secure less interest rates and better offers for you.

ref: m.sooperarticles.com/finance-articles/loans-articles/best-ways-get-car-loan-2665.html

Bailout Offers Auto Loan Relief

alinisar01@hotmail.com (Ali Nisar) — Wed, 30 Sep 2009 21:09:00 +0000

By: Catherine Brock

Do you want a piece of the federal bailout action? Now may be your chance. GMAC, the financing unit of General Motors, is passing Troubled Asset Relief (TARP) funds onto its consumers, in the form of looser credit standards on auto loans. There's just one tiny catch-you must buy GM.

Auto industry secures bailout funding for car loans

The troubles of American automakers have been well documented. It's bad enough that they're coping with high labor costs, cars that don't appeal to consumers, and insufficient liquidity. But when you add in a tight credit environment that can't support consumer auto loans, it's a recipe for disaster.

The situation was so severe that the feds finally stepped in with two separate bailout deals. One of them provided much-needed cash to GM and Chrysler. The other bolstered GMAC, the primary provider of auto financing for GM dealers, with cash. The manufacturers will use their money to reposition their operations for future profitability, while GMAC will deploy its newfound capital to fund more car loans.

Lower standards for auto loans

To improve its car loan production, GMAC will lower its minimum credit score requirements. The move marks a return to GMAC's traditional underwriting standards. Two months ago, when the credit markets nearly grinded to a halt, GMAC was forced to increase its minimum approvable credit score from 621 to 700, because it didn't have access to the capital required to service those below-700 borrowers.

In late-December, however, GMAC secured a capital contribution from TARP. This money allows the company to reinstate the lower credit score minimum of 621.

In a public statement, GMAC President Bill Muir said, "We will continue to employ responsible credit standards, but will be able to relax the constraints we put in place a few months ago due to the credit crisis. We will immediately put our renewed access to capital to use to facilitate the purchase of cars and trucks in the U.S."

Aggressive auto financing promotions

ref: mortgageloan.com/bailout-offers-auto-loan-relief-2835

Secure Loan

alinisar01@hotmail.com (Ali Nisar) — Wed, 30 Sep 2009 09:23:00 +0000

Published by: Jennifer Quilter

A secure loan will offer you the lowest interest rates and most flexibility from your lender. Of course, these benefits don't come without an added risk from you.
When you borrow money you offer the lender some form of security, also called collateral. The most common type of collateral is your home. This is the only type most banks will take as second mortgages. When you use your home, or vehicle, as collateral you can go on using your property as normal, but sign a note stating that if you don't make the payments the lender can repossess the property and sell it to make up the rest of the money you owe.
If neither of these collateral options work for you there is also the option of using jewelry or other collectible items of value. Not all lenders will do this so you'll need to search around, but it shouldn't be too difficult. You will need to have the item appraised before applying. When you use this form of collateral the lender will typically hold the item in a safe until the secure loan has been repaid in full.
Interest rates are largely determined by the amount of risk the lender is taking. By offering collateral the lender has a way of obtaining their money one way or another, so you have lowered that risk. Of course you have also raised your risk because if you are unable to pay you will lose your property, but because of this risk you are able to enjoy the benefit of a lower interest rate and more flexible terms. If you have bad credit you'll find lenders much more willing to work with you, and if you need to extend the life of your loan they'll be much more willing to work with this.
If you are looking for the best treatment from lenders and need specific things from a lender, you'll have a much easier time doing that with a secure loan.

ref: sooperarticles.com/finance-articles/loans-articles/secure-loan-14025.html

The Four Road Blocks That Are Slowing Loan Modifications

alinisar01@hotmail.com (Ali Nisar) — Wed, 30 Sep 2009 09:22:00 +0000

Published by: Feldman Law Center

Hope and optimism emanating from the announcement of the Obama Administration's "Making Home Affordable" plan have been replaced by the cold reality that the program has gotten off to start deemed by industry watchers as "anemic". After almost four months since President Obama first announced the $75 billion mortgage rescue effort, the administration continues to tweak the program in an attempt to reach its originally stated objective of saving up to 5 million homeowners from foreclosure. Standing between the anemic start and lofty goals of the program are four roadblocks:

1) Overloaded loan modification processors – While the specifics of the plan were released in the first week of March, lenders couldn't start handling applications until systems were re-programmed and processors were brought up to speed, which took an additional four to six weeks. Processors were immediately buried with stacks of applications that had been accumulating during the conversion to the new guidelines. Participants in the process report that servicers are still digging out from the initial rush as applications continue to flood their desks. Troubled borrowers, many backed up against the possibility of foreclosure, have become increasingly frustrated to the point where they have abandoned the process to retain their own legal assistance. JP Morgan Chase spokesman Tom Kelly recently said of the ramp-up, "It's an enormous task. We're moving quickly, although not as quickly as an individual might wish."

2) Investors – The massive sums of money that supported the real estate/mortgage boom came from investors on Wall Street, pensions, and other institutions. Servicers say those investors are now balking at some of the terms being presented when a loan needs to be modified. The net present value test, a little known aspect of the plan, allows for a calculation to determine whether the greater return for investors will be achieved via modification or foreclosure. In the modification versus foreclosure decision, investors have been threatening lawsuits against servicers when the servicers are deemed to not be acting in the best interests of their investors. The threatened legal action adds another layer to the home loan modification process and can draw out the approval process even more. The "safe harbor" bill recently passed by Congress was intended to alleviate that logjam by protecting servicers from investor lawsuits but it's likely that lawsuits will arrive on the servicers doorsteps anyway, safe harbor or not.

3) Lenders – Lenders are caught in a three sided bind between the above mentioned borrowers/investors and their own capital structure. No longer required to mark their loans to market, they can carry the value of the loans in their own portfolios at values they can rationalize, whether factual or not. Loan modifications could generate reviews of portfolio values, and nobody wants to go there in the current environment.

4) Unemployment - According to John Taylor, head of the National Community Reinvestment Coalition, "Unemployment is becoming a bigger factor than almost anything." When sub-prime mortgages started blowing up it was attributed to the risks inherent in lending to lower quality borrowers. Increasing unemployment, in addition to taking down the lower quality borrowers, is now hitting prime mortgages. In fact, primes are now going into default at a much faster rate than sub-primes as previously solid borrowers are now being affected by the contracting economy.

Of the four roadblocks, the toughest barrier is unemployment due to the fact that, regardless of credit scores, if a homeowner doesn't have a job a loan modification isn't going to help. Short sales, cash for keys, or foreclosure become the next options. At that point every side of the three sided bind ends up on the losing end.

ref: sooperarticles.com/finance-articles/mortgage-articles/four-road-blocks-slowing-loan-modifications-9472.html

Buying a car

alinisar01@hotmail.com (Ali Nisar) — Tue, 29 Sep 2009 20:46:00 +0000

For many of us, buying a car is probably one of the biggest purchases we will ever make. There are plenty to choose from, whether you’re buying new or second hand, and at a variety of prices. It’s a good idea to think things through, as there’s more than the initial cost to think about, such as car tax, insurance, servicing and repairs. Here are some useful tips to help you get started.

Can you afford it? >

Work out your budget to make sure you can afford the initial and ongoing costs.

How to pay >

There are lots of ways you can cover the cost of buying, some more expensive than others. Find out which method is right for you.

Initial costs >

It’s not just the cost of the car you have to think about. Don’t forget the road tax, MOT and insurance.

Other running costs >

You will also need to keep your car going, so remember to consider other regular costs such as fuel and maintenance.

Insurance >

As well as motor insurance to keep your car on the road, you may be offered, or you may want to consider taking out further insurance, for example Payment Protection Insurance (PPI) or breakdown cover.

ref: moneymadeclear.fsa.gov.uk/guides/everyday/buying_a_car.html

Dealing with debt

alinisar01@hotmail.com (Ali Nisar) — Tue, 29 Sep 2009 11:40:00 +0000

Almost everyone has some form of debt, be it money owed on a credit card, a bank loan or overdraft, or a mortgage. But if you’re having trouble paying your bills or loan repayments, you should get help as soon as possible. Here are some useful tips to help you.

Take stock >

Can you cover your bills, loan repayments or other debts with your income, or are they becoming unmanageable?

Work out the scale of the problem >

Make a list of your debts and prioritise them.

Draw up a realistic budget >

See if there’s anything you can cut back on before working out how much of your debts you can afford to pay back.

Talk to the people you owe money to >

It’s a good idea to talk to the people you owe money to (your creditors) as they may be able to help you. Don’t ignore the problem.

Repayment options >

If you can’t afford to pay straight away, there may be some options available.

Bailiffs and debt collectors >

Find out what happens if people come knocking on your door to collect money you owe.

Get help >

There are lots of organisations that offer free debt advice and can help you work out a plan of action.

Stay in control >

Once your debt is under control, try to review your situation regularly to avoid it happening again.

ref: moneymadeclear.fsa.gov.uk/guides/help/dealing_with_debt.html

Auto, Home Loans See Revival: Kamath

alinisar01@hotmail.com (Ali Nisar) — Sun, 27 Sep 2009 22:29:00 +0000

Published by: Zameensapna

Credit demand from consumers seemed to be back on track, especially in sectors such as auto and home loans though banks had cut down unsecured loan exposures, said KV Kamath, chairman of ICICI Bank.

"So far as mortgages are concerned, I think they are back from where they were a year ago. The tension between buyer, builder, and the lender is now more or less off. Auto sector financing is also back," Kamath said at the sidelines of a banking seminar. The chairman of the country's largest private sector bank felt 80 per cent of the consumer loans were back, the remaining 20 per cent mostly unsecured loans had taken a back seat.

"Unsecured consumer credit is certainly hit. Banks are not lending unsecured loans," he said. "We at ICICI Bank have significantly slowed down unsecured loans since one year. We only give unsecured loans to few existing clients, which have deposits and a good track record with us," he said while adding that ICICI Bank took the lead in slowing down unsecured loans.

Though home loans have picked up, commercial real estate loan demand is still slack due to excess capacity creation.

The growth of retail credit demand was not reflected in the overall credit growth numbers as a slowdown in working capital demand dragged down the overall numbers, felt Kamath.

"It's not reflected in the numbers because lack of working capital. This loan is distorting the numbers. If we keep the working capital loan aside, lending rate will be healthy by the end of the year," he said while adding that credit growth for 2009-10 was likely to be 29 per cent except the working capital loan.

Credit growth during April 1 to August 14 was only 1 per cent compared with 3.3 per cent a year ago.

He said projects which were in a conception stage a few months back were being implemented now.

On interest rates, he said, "To me, I do not fear interest rates to go up immediately. What the Reserve Bank of India will do if inflation rears up, we think we have to wait for one month for the monetary policy. It may react based on the what is the type of inflation and whether monetary policy action will help or not," he said

ref: sooperarticles.com/finance-articles/loans-articles/auto-home-loans-see-revival-kamath-13083.html

Refinancing calculators

alinisar01@hotmail.com (Ali Nisar) — Sun, 27 Sep 2009 22:28:00 +0000

Many online mortgage calculators are designed to calculate the effect of refinancing your mortgage. These calculators usually require information about your current mortgage (such as the remaining principal, interest rate, and years remaining on your mortgage), the new loan that you are considering (such as principal, interest rate, and term), and the upfront or closing costs that you will pay for the loan. Some may ask for your tax rate and the rate of interest you can get on investments (assuming you will invest your savings). Refinance calculators will show the amount you will save compared with the costs you will pay, so that you can determine whether the refinancing offer is right for you. The National Bureau of Economic Research has an example of a refinancing calculator

ref: federalreserve.gov/pubs/refinancings/default.htm

Are you eligible to refinance?

alinisar01@hotmail.com (Ali Nisar) — Thu, 24 Sep 2009 13:27:00 +0000

Determining your eligibility for refinancing is similar to the approval process that you went through with your first mortgage. Your lender will consider your income and assets, credit score, other debts, the current value of the property, and the amount you want to borrow. If your credit score has improved, you may be able to get a loan at a lower rate. On the other hand, if your credit score is lower now than when you got your current mortgage, you may have to pay a higher interest rate on a new loan.

Lenders will look at the amount of the loan you request and the value of your home, determined from an appraisal. If the loan-to-value (LTV) ratio does not fall within their lending guidelines, they may not be willing to make a loan, or may offer you a loan with less-favorable terms than you already have.

If housing prices fall, your home may not be worth as much as you owe on the mortgage. Even if home prices stay the same, if you have a loan that includes negative amortization (when your monthly payment is less than the interest you owe, the unpaid interest is added to the amount you owe), you may owe more on your mortgage than you originally borrowed. If this is the case, it could be difficult for you to refinance.

ref: federalreserve.gov/pubs/refinancings/default.htm

Adjusting the length of your mortgage

alinisar01@hotmail.com (Ali Nisar) — Thu, 24 Sep 2009 13:27:00 +0000

Increase the term of your mortgage: You may want a mortgage with a longer term to reduce the amount that you pay each month. However, this will also increase the length of time you will make mortgage payments and the total amount that you end up paying toward interest.

Decrease the term of your mortgage: Shorter-term mortgages--for example, a 15-year mortgage instead of a 30-year mortgage--generally have lower interest rates. Plus, you pay off your loan sooner, further reducing your total interest costs. The trade-off is that your monthly payments usually are higher because you are paying more of the principal each month.

For example, compare the total interest costs for a fixed-rate loan of $200,000 at 6% for 30 years with a fixed-rate loan at 5.5% for 15 years.

ref: federalreserve.gov/pubs/refinancings/default.htm

FHA Reserves Look Shaky – Is Another Bailout Pending?

alinisar01@hotmail.com (Ali Nisar) — Thu, 24 Sep 2009 13:22:00 +0000

The Federal Housing Administration (FHA) once considered one of the safest agencies backing mortgage loans now has many worried that its reserves may have dipped below the Congressionally-required level.

The FHA was designed to help first-time homebuyers and those with less-than-perfect credit. During the housing boom, the popularity of FHA loans waned as the standards and documentation requirements remained high and many other loans required few hoops to jump through. In 2006, FHA loans made less than 3 percent of the all U.S. Mortgage loans. As of the second quarter of 2009, the market share has skyrocketed to 23 percent.

This is largely because the FHA did not suffer the same losses as many other lenders and agencies during the housing bust and became one of the last remaining options for new and lower-income buyers.

Yet as its market share has grown, so has its loan delinquency rates. In June 7.8 percent of FHA-backed loans were 90 days late or more, up from 5.4 percent last year at the same time. And because the FHA requires only a 3.5 percent down payment on its loans, as home values have plunged in the past few years, many FHA borrowers are now underwater in their loans. This situation often leads people to walk away from their monthly payments and give in to foreclosure.

The FHA is required to have reserves that are equal to 2 percent of all the loans it insures. As of last year, the reserves were down to 3 percent, a huge drop from the 6.4 percent it had in 2007.

While FHA officials maintain that the agency will not need a government bailout, that doesn’t keep people from worrying about it based on the numbers. The current value of the FHA’s reserves will be made public on September 30 in the agency’s annual review.

ref: blog.mortgage101.com/2009/09/04/fha-reserves-look-shaky-–-is-another-bailout-pending

Shopping around

alinisar01@hotmail.com (Ali Nisar) — Fri, 18 Sep 2009 09:08:00 +0000

Whether you’re thinking of opening a savings account, taking out a loan, or changing your electricity supplier or mobile phone, it’s always a good idea to shop around to find the one that’s right for you. And with the internet, you have even more ways to shop around. Here are some tips to help you get started.

Things to think about >

Make sure that you know what you’re getting when you buy a product or service, and think about what features are important to you.

Getting the information you need >

There are lots of different sources of information to help you shop around, both online and elsewhere.

Using comparison websites >

Comparison websites can be very useful, so we’ve got some tips and questions to ask yourself to help you get the most out of them.

Getting help >

If you need help with shopping around, you can pay a professional to help you.

ref: moneymadeclear.fsa.gov.uk/guides/everyday/shopping_around.html#think

When is refinancing not a good idea?

alinisar01@hotmail.com (Ali Nisar) — Thu, 17 Sep 2009 17:30:00 +0000

You’ve had your mortgage for a long time.

The amortization chart shows that the proportion of your payment that is credited to the principal of your loan increases each year, while the proportion credited to the interest decreases each year. In the later years of your mortgage, more of your payment applies to principal and helps build equity. By refinancing late in your mortgage, you will restart the amortization process, and most of your monthly payment will be credited to paying interest again and not to building equity.

Amortization of a $200,000 loan for 30 years at 5.9%

Your current mortgage has a prepayment penalty

A prepayment penalty is a fee that lenders might charge if you pay off your mortgage loan early, including for refinancing. If you are refinancing with the same lender, ask whether the prepayment penalty can be waived. You should carefully consider the costs of any prepayment penalty against the savings you expect to gain from refinancing. Paying a prepayment penalty will increase the time it will take to break even, when you account for the costs of the refinance and the monthly savings you expect to gain.

You plan to move from your home in the next few years.

The monthly savings gained from lower monthly payments may not exceed the costs of refinancing--a break-even calculation will help you determine whether it is worthwhile to refinance, if you are planning to move in the near future.

ref: federalreserve.gov/pubs/refinancings/default.htm

Why consider refinancing?

alinisar01@hotmail.com (Ali Nisar) — Thu, 17 Sep 2009 17:04:00 +0000

The interest rate on your mortgage is tied directly to how much you pay on your mortgage each month--lower rates usually mean lower payments. You may be able to get a lower rate because of changes in the market conditions or because your credit score has improved. A lower interest rate also may allow you to build equity in your home more quickly.

ref: federalreserve.gov/pubs/refinancings/default.htm

Mortgage Refinancing - What You Need To Know About Refinancing Your Mortgage

alinisar01@hotmail.com (Ali Nisar) — Thu, 17 Sep 2009 17:03:00 +0000

by: Anthony Russell

When you go for mortgage refinancing loan you should know the following things in nutshell

Mortgage refinance is like taking second loan to repay your first mortgage loan. Reason to go in for such a loan is that your first mortgage loan tenure is long, and the associated interest rates are very high. Now the interest rates have reduced heavily in the market. Before planning to take a mortgage refinancing loan be careful while doing online research, compare the interest rates and tenures of different lenders, and analyze the best option suitable for you. While taking second loan, do analyze how much cash you can avail after paying your first mortgage loan, which will help you in finishing off other expenses or liabilities you have in hand. Mortgage refinance loan is normally taken to replace the existing loan with a new loan with better terms and conditions as compared to the first one, which can help you save time and concentrate on your career. People basically go for a refinance mortgage loan for few reasons.

# To minimize existing interest rate on their existing mortgage loans, and lowering their monthly mortgage

expenses.

# To get some money out of their mortgage or home loans for a house improvement project, to combine debts and pay them off.

There are other terms you need to consider when you go for refinance mortgage loans. What are the loan types and down payment penalties? It's important to avail refinance loan quotations from lenders and make the correct decisions. The other reasons you may opt for mortgage refinance loan could be to get a sort-term mortgage loan of 10 or 20 years, which will help you to pay off your mortgage loan. You may like to switch from fixed rate mortgage to adjustable rate mortgage loans depending on which one is more beneficial to you. Following mistakes should be avoided while going for home mortgage refinance loan.

# Don't take your county assessor's value as a basis for refinance; try to find out the exact market value which could be higher than the county assessor's value. If you consider the market value, you would get a higher value of mortgage loan which can help you in paying other debts.

# Not providing documentation promptly, can get your loan process delayed, which can result in your loan not being approved at the lower interest rates which you have agreed.

Even if you have a bad credit history you can easily get the bad credit home refinance from us. With a poor credit rating there can be a financial hindrance to many things we do in our life. When you have a bad credit rating you may not be able to buy a car, obtain a credit card, get a student loan, and, in some cases, even get certain jobs. You can, however refinance your home with bad credit mortgage refinance even if you have a bad score. You should normally know what your credit history and the actual score contains. It's recommended you get the reports from all agencies and check the facts, if the reports contain wrong information then get the error corrected with the agencies, and get it rectified before applying for bad credit mortgage refinancing.

When you have bad credit history and you are applying for home mortgage refinance, care should be taken that the interest rates should be very low than the current home mortgage loans. A difference of 0.50 to 1% difference is not enough. There should be a difference of 2 to 3% in interest rates, when you apply for mortgage refinancing loan. Your new mortgage refinance loan interest rates should be lower than the existing ones. This can help you in getting more money in hand, and you can pay off your debts and have enough money in hand for redeeming other liabilities. When going for home mortgage refinance loan with bad credit or bad history be careful that the second mortgage refinance loan you take does not have a clause of pre-payment penalty ranging from 6 month to 2 years. That means if you want to end your home mortgage refinancing loan early, you can't make any pre-payments as it will carry penalties.

You can apply through us for bad credit home refinancing if you have a bad credit history, you can fill our online form and we will get in touch with you as soon as possible to solve your queries.

ref: sooperarticles.com/finance-articles/mortgage-articles/mortgage-refinancing-what-you-need-know-about-refinancing-your-mortgage-7232.html

Money-Back Guaranteed? Maybe or Maybe Not

alinisar01@hotmail.com (Ali Nisar) — Thu, 17 Sep 2009 11:31:00 +0000

Have you ever bought a high-ticket item like a TV and then when you are browsing through the Sunday sale ads you see the same exact TV for $300 less? Some stores will allow you to bring the store receipt of your purchase along with the sale ad showing the cheaper price, and as long it has been within 30 days of your purchase, will refund you the price difference.
Some mortgage lenders have the same “price guarantee” offer when it comes to your closing costs. if you can show them that you paid less in closing costs with another lender, they will refund you the difference? You may be asking yourself is this for real? More importantly, you should be asking yourself what is the catch.
First, you have to be able to provide the mortgage lender with a detailed copy of the Good Faith Estimate (GFE) and the Truth-In-Lending (TIL) statement provide to you from the lender that you are using that is beating their pricing. That may not seem too hard, but this also must reach them within a 24-hour period of you receiving it. Again, this is not the end of the world. Usually you receive these items within a few days of applying for the loan. The real catch is that the Good Faith Estimate (GFE) is just that – an estimate. These are not your final costs, nor are these costs set in stone.
Until you can show the lender what your final costs were and are able to prove the total costs were lower than what they were offering you, and then they will not fork over the cost differential to you. Think about it. The time that lapses between you receiving the GFE and TIL and actually closing on the loan could be anywhere from two weeks to a whole month. Do you know how many things could change in the mortgage industry in a 14 to 30-day period that could affect your mortgage costs? The answer is a lot could happen.
So while it may seem like a great idea to earn yourself a little money-back guarantee, it probably isn’t something that you should hang your hat on.
Related Resources

TIL: Truth in Ledning [PDF] (occ.treas.gov)
GFE: Good faith estimate (wikipedia.org)

ref: mortgageinfo.com/money-back-guaranteed-maybe-or-maybe-not

The Winners and Losers of the Housing Crash

alinisar01@hotmail.com (Ali Nisar) — Wed, 16 Sep 2009 14:06:00 +0000

To say that the current state of the US housing market is a little shaky would be an understatement. The waves of recent mortgage statistics are at best conflicting and in many cases misleading as to the true nature of the property economy. Some experts are clinging to the fact that a recent boom in first time buyers being accepted for mortgages (in light of the $8000 tax credit) is a sign that the industry has turned a corner. Others, meanwhile, see the glimmer of hope as more of a mirage in a still arid housing landscape. Indeed, recent reports show that the Philadelphia Housing Market Index has fallen to its major support level of 225; Toll Brothers (a major US luxury home builder) has seen a 33% drop in order during the second quarter and mortgage lender Ameriquest is downsizing and laying off 3500 workers.

Wealthy Housing Opportunities

In the wake of this uncertain housing climate there has risen a sharp contrast between the poorest and the wealthiest people in the country. The current situation has provided a stark reminder of the money gap between the haves and the have-nots in America. Moreover, where one demographic sees opportunity the other sees long-term financial uncertainty. The old saying “one man’s trash is another man’s treasure” is particularly pertinent at the moment as the rich are seeing the drop in house prices as a chance to increase their portfolios. One of America’s most exclusive housing markets, the Hamptons, felt the bite of the recession more than most with the uptake on many multimillion dollar Long Island properties being extremely low. In recent months though, high-end real estate developers have seen a sharp rise in sales as the price of housing has fallen. Alan Schurman, a real estate developer, points out that those that can afford the million dollar price tags “made a decision that the market hit a point and was forming a bottom. Now they want to get in on the values that are out there.”

Luxury property prices have been slashed by around 20% in the area and this has attracted a glut of buyers back to the area keen to snap up a bargain ready for when the market begins to rejuvenate itself. This flood of multimillion dollar spending provides a striking juxtaposition to the financial difficulties facing many “average income” homes. Across the country the rate of foreclosures has risen and more and more homes are seeking the help of programs like the one in operation in Louisville, designed to be the final lifeline for those facing foreclosure. The number of people struggling to make their mortgage repayments has risen to over 13% and more than 4% of all borrowers are in foreclosure. The rising jobless figures are the major contributing factor to the situation, and while government incentives such as the $8000 tax refund are aiming to help the average buy, the problem is continuing to escalate.

The Great Divide

In times of financial crisis the wealth divide is always more prevalent, and while Middle America struggles to retain possession of its homes; the wealthy can’t wait to expand theirs. Nobody is clear just how much longer the current economic climate will last and for the average American the future isn’t looking like a bed of roses. Recent reports over whether the situation is improving or not is much like the discrepancy between those at the top and bottom of the housing chain; on the one hand someone is a winner but on the other, someone always ends up a loser.

ref: blog.mortgage101.com/2009/09/09/the-winners-and-losers-of-the-housing-crash

Have We Just Shifted the Mortgage Debt Burden?

alinisar01@hotmail.com (Ali Nisar) — Wed, 16 Sep 2009 14:03:00 +0000

A recent Washington Post article brings up how deeply involved the Federal government has become in the current housing market. In order to keep the mortgage markets from freezing up during the dire days of the housing crash, the government stepped in and took over Fannie Mae and Freddie Mac, two of the nation’s largest mortgage financiers.

“While this made it possible for many borrowers to keep getting loans and helped protect the housing market from further damage, the government’s newly dominant role - nearly 90 percent of all new home loans are funded or guaranteed by taxpayers - has far-reaching consequences for prospective home buyers and taxpayers,” the article says.

And together with guarantees made by the Federal Housing Administration, “The [government] outlay has already reached about $1 trillion over the past year and is rising. During that time, the government has pumped more money into the mortgage market than has been spent on Medicare or Social Security or the defense budget, more even than Washington has paid to bail out banks and other struggling companies.”

And with Treasury and Federal Reserve programs, “all told, the government now stands behind 86 percent of all new home loans, up from about 30 percent just four years ago, according to Inside Mortgage Finance.”

Among the biggest concerns about the government takeover of all these loan guarantees is that many of the loans are looking ripe for default and foreclosure. Fannie and Freddie have lost more than $150 billion since the beginning of 2008 and FHA loan delinquencies are also rising. So, instead of truly curtailing housing market problems, have we simply shifted the responsibility from individual homeowners, lenders, and companies to the American public (taxpayers) at large? So we all go down together instead of just one industry? Or will the Fed just print up some more money to continue bailing out the housing market if things really go south?

ref: blog.mortgage101.com/2009/09/09/have-we-just-shifted-the-mortgage-debt-burden