Rice Appart
Modern Real Estate

Archive for the ‘Mortgages’ Category

Mortgage Brokers Looking Toward The Future Part 4

Sunday, August 20th, 2017

The independent mortgage broker industry in Australia is still young and should prosper again after the credit crunch. The profession still isnt accredited under a government program but it will be soon. Once the regulation is brought in similar regulation to the UK the industry will once again experience good times.

Mortgage Brokers in the USA

The USA has clearly bee hit hardest by the Global Financial Crisis. Entire communities have abandoned their houses in areas that were once mortgaged to the eyeballs. Rather than going through the stress of repossession, home owners who could no longer afford their monthly mortgage payments simply walked away from their properties, leaving them empty. Lenders would then be forced to repossess the derelict houses.

When entire neighbourhoods abandoned their homes the entire areas became worthless. This has left modern day ghost towns where thriving communities once stood. It is an event that has never happened before and can be squarely blamed on the credit crunch.

Before the credit crunch, mortgage brokers in the US were raking it in. Brokers were closing millions of home loans each year and enjoyed a large portion of the total number of loans approved nationwide. Surprisingly, given the magnitude of the intermediary industry and the importance of mortgage products to home owners, there was little regulation of the broking profession. Any regulation that did exist only covered certain areas as the regulatory model was state driven rather than federal.

It seemed as though the profession didnt need regulating, however, as the property market was booming. There is little point fixing something that isnt broken, so nobody did. What is apparent now with the benefit of hindsight is that the industry was actually broken and did need fixing.

Since the onset of the credit crunch many brokers in the US have been removed from the industry or put in jail. Massive frauds have been uncovered in the wake of the first wave of the credit crunch and it appears that some individual brokers have defrauded lenders and investors out of millions of dollars.

In addition to these headline-grabbing problems many brokers also face a new reality in which there are fewer products to sell to clients and therefore fewer deals being closed. This has led to many more brokers going out of business as their incomes dried up.

Those who have remained in the profession are struggling along, closing enough sales to stay afloat, and awaiting a time when the credit market will flow freely once again. But the average mortgage broker who has remained in business is not making anywhere near as much money as they made in boom times.

Common Forms Of Mortgage Fraud

Saturday, August 19th, 2017

Mortgage fraud motivations could either be for profit, or for real estate properties for sale . There are actually two types of mortgage fraud – fraud for property and fraud for profit. However, fraudsters also adopt to the changing environment so more schemes emerge as home buyers, sellers and investors are becoming aware of their fraudulent strategies. In the same way, every citizen must know the different types of mortgage fraud or schemes. Here are some of the already scratched types of mortgage fraud schemes but are still victimizing people:

1. Churning – This is described as an extreme or uncalled-for selling or lending activity just to benefit from generating fees and commissions or comparable sales. Normally; appraisers use bogus sales as comparables in appraisal for sales and refinance transactions.

2. Chunking – This is described as multiple loan applications submitted to many lenders not disclosing the investor’s intent to purchase properties. The fraudster usually promises to handle the deal including the leasing of properties, or show investors how to get rich by investment, but actually takes a cut of the profit and never leases the property.

3. Property Flipping – This may be legal, but there are some cases that property flipping becomes illegal especially when homes are funded for a falsely inflated value.

4. Silent Seconds – In reality, silent second mortgage is a secondary mortgage placed on an asset not known to the lender of the original or loan. If the buyer cannot afford the down payment required by the initial mortgage, this is very useful. It is called ‘silent’ because the lender is totally clueless of its presence. Conversely, the fraud happens when the second mortgage is used to fulfill the obligation of the down payment.

5. Equity Theft – What fraudsters do is that they falsify a deed transfer or a satisfaction of lien then obtain new liens on the property. The homeowner, on the other hand, does not know about it until he receives an eviction notice. One form of equity theft is foreclosure rescue scam.

6. Backward Applications – In order to meet the criteria of the loan, there are some borrowers who ‘customize’ their income sheet once they find a property to purchase. Aside from this, a ‘customized’ appraisal is submitted along with the bogus application in order to be approved of the loan.

Everyone must be aware of the different mortgage fraud schemes because it is so easy to be aware of mortgage fraud these days without you knowing it. Affinity fraud, foreclosure rescue scam, straw buyers, inflated appraisals, and so on are other types of fraud schemes that you need to responsibly know.

By educating yourself with these common mortgage fraud schemes, you are helping in reducing the number of foreclosures, prevent neighborhoods to fail and ad valorem taxes to go up.

A Home Buying Guide On Government Assisted Mortgages

Wednesday, August 2nd, 2017

Buying a new home is the dream of every living soul. The peace of mind that comes with owning a home can never be compared to buying a new necklace, blouse or car – it is simply unique. So now that you have your finances in order and your paperwork in hand, what is the next step? Is it looking at the different options available to you, is it selecting a neighborhood that is suitable for raising your children, or, is it finding a real estate agent to help you out? If the latter is at the center of your decision making process then you surely know what you are doing. A real estate agent will give you a home buying guide that comprises of a tour of the following government assisted home buying alternatives.

FHA and VA Insured Mortgages

The real beauty of working with a real estate agent is that you will be able to learn of some of the most helpful forms of government assisted mortgages, particularly the VA (Veterans Administration) and FHA (Federal Housing Administration) insured mortgages. These programs provide the families of military personnel and civilians with affordable mortgages that have the backing of the government.

These insured mortgages guarantee credit providers that they will receive mortgage payments irregardless of a borrower defaulting on a mortgage loan. The government makes these possible by promising to pay lenders any amounts owed by individuals who receive their home buying loans. A real estate agent will offer you a basic home buying guide on how to apply for such government assisted home loans.

Modified Mortgage Payments

In line with the government’s “Making Homes Affordable Program,” there have been various structures put in place to ensure that people in financial distress can still afford to pay their mortgages. There are times when life can have you by the neck groping in pain at the thought of you losing your home.

However, when foreclosure is imminent you can still avoid the worst by applying for different kinds of mortgage payment modifications and refinancing. Real estate agents around the country may know of these offerings but your best bet would be to visit your local Department of Housing offices and ask for an in-house agent to guide you through the different programs put in place by the government.

The pleasure of buying a home should not only be associated with the excitement of finally sleeping in your own home. In a lot of ways you will find long-term peace of mind by knowing that you got a good deal on the home and that repayment will be a smooth process. Otherwise failure to work with a real estate agent will have you in all sorts of trouble as the intricacies of buying a home can be stressful if dealt with alone. It is hoped that this home buying guide will prove to be helpful in your real estate ventures.

Mortgage Loan Brokerage

Monday, July 31st, 2017

All that skepticism when you plan to buy a new home adds up when you get to choose between a mortgage broker and a loan officer. Availing finance for your dream house might seem really daunting.

However, if you are heading to a loan office instead of a mortgage broker, you might possibly be losing on something good. Before going any further, let us first see who exactly a mortgage broker is. Mortgage brokers are professionals that act as an intermediate between lenders and borrowers and are paid for the same cause.

They usually work as freelance agents for dozens of lenders and borrowers. The task of a mortgage loan broker incorporates finding and evaluating homebuyers and analyzing the status of an individual to make sure to get the best lender that fits their needs.

Presently not many people would want to approach a mortgage broker. However, there are innumerous reasons stating that why Mortgage brokers can play a key role in shopping of your home loan. The reasons are well stated below: Experience and know-hows Mortgage brokers often own independent business of their own. In the end, they are committed to their client sand offer the best possible solutions that are based on their years of experience.

After all, this is what they are paid for. Choices A conversation with broker is analogous to sitting with a dozen of different bankers. This is in contrary with a dialogue with a bank loan office who has access to only his company’s products that are likely to get you off the way if you do not have a sincere understanding about what it takes to get a suitable home mortgage loan.

Paper work and follow up All those paper work, loan applications and following up the progress of your loan sanctioning can prove to be frustrating and exasperating. Nevertheless, your broker takes care of all the errands that are to be done.

Specialized assistance Brokers have definite knowledge about every know how when it comes to mortgage Loan brokerage and investing in the same. So, if you are looking for specialize assistance for your loans, talk it out with your broker for additional information.

Overall, a mortgage loan broker is like a personal banker who is familiar with one’s status. They have immense knowledge about what has to be done and they make sure that it is done too. However, it is advisable that one possesses sheer knowledge about mortgage brokerage in order to avoid any discrepancy in the long run.

RESOURCE:

Mortgage Renewal Options

Tuesday, July 25th, 2017

Assess Your Needs For a Mortgage Renewal

At some point over the life of your mortgage, it will have to be renewed. It is at this point that you will be given an opportunity to re-evaluate your lifestyle and factors that have changed in your life since you first applied for, and secured, your mortgage.

Life is unpredictable – many things can happen that may require additional finances. Perhaps you have to pay for your child’s college tuition, or maybe you suddenly have a large medical expense that needs to be paid. You might have a big trip planned, or an extensive renovation on your home in the works. Whatever your need, a mortgage renewal may be the perfect opportunity to make some changes in your home loan to better suit your current situation.

When you were first approved for your mortgage upon purchasing your home, you may have been locked in at a considerably higher mortgage loan rate. Over the last few years, interest rates on mortgages have experienced record lows, giving borrowers the opportunity to save hundreds or even thousands of dollars over the term of their mortgage by paying less into interest and more into their principal. Renewing your mortgage can give you the option of locking in these lower rates, as well as refinance your mortgage if you need to borrow more money or want to pay your mortgage off quicker.

Mortgage renewals give homeowners the chance to shop around for a new mortgage. When you receive a notice from your bank or current lender reminding you that your mortgage is coming up for renewal, take that opportunity to shop around elsewhere to see if there are any other lenders available that are willing to provide you with a mortgage that offers a lower rate and more convenient packages and conditions.

What was ideal for your situation 5 or 10 years ago may not necessarily be what`s best for you now. Get in touch with an experienced mortgage broker who can help you shop around for a mortgage at the lowest interest rate and most convenient package for you before your mortgage needs to be renewed.

If you are looking for a Lethbridge mortgage renewal, or renewal for any other city in Alberta, call award winning accredited mortgage broker Jim Black and his team at (877) 394-9422 or visit www.mortgageloansalberta.ca for more information.

More About The Fresno Mortgage Loan And Other Loans

Sunday, July 23rd, 2017

Let’s start off by looking at the debts that are largest for most people- Mortgage Loan and other loans that are secured by home and property, such as home equity lines of credit and home equity loans. A mortgage is a loan for which a home is used as collateral. If the borrower fails to make the monthly payments on the mortgage, the lender could foreclose on the property. In the past, a traditional mortgage was available from a bank, a credit union, or a savings and loan and it had a fixed interest rate for 15, 20, 25, or 30 years. This is a fixed-rate mortgage. To qualify, a borrower needed to have a high credit score, be employed, have enough money to cover a down payment of 20 percent of the property’s sale price, and meet other criteria.

Today, there are hundreds of mortgage products available and the qualification requirements are dramatically different, in many cases less stringent. This makes it possible for more people than ever before to get approved for mortgages and become homeowners. A home equity loan is a type of second mortgage. A lender gives the borrower a lump sum of money, which he or she then pays back over a specified length of time, at a fixed interest rate. This loan uses the borrower’s home as collateral. Like a fixed-rate mortgage, the monthly payments on a home equity loan remain the same. Interest rates on a home equity loan are typically higher than for a mortgage, but lower than for other types of loans, such as credit cards or car loans.

A HELOC (home equity line of credit) is also a type of second mortgage. The lender commits to making a specified amount of money available to the borrower for a specified length of time. The equity in the borrower’s home is used as collateral. The difference between a HELOC and a home equity loan is that with a HELOC, the borrower can borrow any amount of money, up to the specified credit limit, pay it back over time, and potentially borrow again during the term of the loan agreement. The borrower decides how much to borrow and when, up to the specified limit on the line of credit and within the specified term. Another difference is that the rates for HELOCs are adjustable, not fixed, so the amount of interest to be paid on the loan will change. A HELOC has an annual fee. Homeowners can use this type of Mortgage Loan as a financial safety net, only if and when necessary.

Reading the reviews provided by the author is one of the best ways to gain necessary information on Home Loan Fresno and Fresno Mortgage Loan

Mortgage Meaning. What Is A Mortgage

Saturday, July 1st, 2017

We hear the word all over. A couple of years ago, they were being signed like they were going out of fashion; a large mortgage was akin to a large salary at the end of month. But the times have changed and in Dave Ramsey’s words, the paid-off home mortgage has taken the place of the BMW as the status symbol of choice.

But, what does exactly mean? The word ‘mortgage’ comes from the Old French and Latin. In Latin, mori (turned into the mort- part in ‘mortgage’ in Old French) means ‘death’ and -gage means ‘pledge’. Thus the words: ‘death pledge’.

The word mortgage comes from the Old French and Latin. In Latin, mori (turned into the mort- part in mortgage in Old French) means death and -gage means pledge. Thus the words: death pledge.

I can see how, hundreds of years ago, taking on a 30 year mortgage was comparable to signing yourself into bondage for life. As Earl Wilson correctly put it, if you think nobody cares about you try missing a couple of mortgage payments. Thats the ultimate Litmus test for love.

Funny words aside, etymologically, mortgage means that the pledge dies either when the obligation is fulfilled or when payment fails and the property is repossessed.

Interestingly, the French use mutated back into hypothque, derived from the classic Greek and meaning to put something under something else.

In some countries, like France and Spain where they have a civil-law system, a mortgage is closely or even solely related to a loan against real estate or property whereas in common-law, it represents any device in which a debtor (mortgagor) conveys an interest in property to a creditor (mortgagee) as security for the payment of a money debt. The Anglo-American definition has a broader meaning than its civil-law cousin, the hypothec.

Home Mortgages- The Easy Way To Get Your Dream House

Saturday, June 24th, 2017

You have seen the most beautiful house and you would like to own it. But, you do not have sufficient funds. In a situation like this you could opt for a home mortgage.
What do I mean by a home mortgage? A home mortgage is a loan you are sanctioned by an agency to buy the house, but you will need to put the house as security. In case you are unable to pay the loan back, then the house becomes the property of the agency you have taken the loan from; and they will be in full rights to seize it.
There are lots of agencies that offer you this service. However, you need to be a little cautious while choosing one. Here are a few tips that may help you in your quest:
1. You could begin your search by looking up the internet for a few names. It is a quick way that yields results too. A lot of these agencies have their own websites that give you a detailed account of the various deals and schemes they offer.
2. Home mortgages are not an uncommon thing. You could also ask your family and friends for a few recommendations. They may have bought their home through the same process and could recommend to you a few good agencies. Using a recommended agency is actually an advantage. You can get a firsthand account about the service of the agency.
3. Opt for an agency that has a good reputation. Do not opt for the first agency you come in contact with. You may be on pins and needles to buy your dream home and move in, but take it slow. Do not be hasty. Meet with the managers of a few mortgage firms. Get loan rates from a few of the agencies. However, the cheapest lender is not necessarily the best one.
You will need to provide the agency with a few details about yourself. It is important that you have good credit. That is one of the first things they will check before they sanction your loan.
Do not bite off more than you can chew. Do not buy a house that is way beyond your budget just to impress your friends. The final amount of the house determines the monthly installments you will need to pay. You do not want to be saddled with a monthly installment that is more than your income.
Think carefully before you opt for a home mortgage. Pueblo, Co can rely on Integrity Mortgage & Financial Inc. for any sort of mortgage loan.

Interest Only Mortgages under Attack

Saturday, May 27th, 2017

With home affordability at an all time low, the number of UK mortgages that are borrowed on an interest only basis has risen steadily over the past few years.

This is because interest only mortgages are cheaper to maintain in the short-term as the monthly repayments are smaller. With mortgage expenses accounting for more than a third of the average UK household budget, any opportunity to reduce the cost is welcome.

However, the downside to an interest only mortgage is that the capital portion of the loan is not being reduced during its term. This means that the borrower must repay the loan balance when the term is complete.

While this may seem harmless, many borrowers who opt for interest only mortgages have not been saving enough money to pay off the balance. The industry regulator, the FSA, has become concerned that up to a third of all borrowers who have an interest only mortgage are not saving for the impending repayment of the loan balance.

The FSA has become concerned enough to bring in new regulations that are designed to force lenders to only issue such mortgages where there is proof that the borrower is operating a repayment vehicle for the capital value of the loan.

They will primarily be looking for situations in which the borrower is operating a personal equity plan (PEP) or an Individual Savings Account (ISA) specifically to account for eventual repayment of the loan balance.

However, borrowers must be aware that simply claiming they will establish such a facility will not be proof enough. They will need to provide evidence to the lender that these financial arrangements are in position before the loan can be approved.

Whether or not the new rules have an impact on the overall number of borrowers who opt for an interest only mortgage remains to be seen.

Visit UK Mortgage Source for up-to-date information on UK Mortgages

Manufactured Home Financing and Mortgages

Monday, May 15th, 2017

Financing a manufactured home can be confusing to the first time home buyer. The most common questions asked during this time are; how do I find the best loan and is it necessary to pre-qualify? Answering these two questions will help move the process along and give the home buyer the information they need to make an informed buying decision.

The first thing to do is find a loan that fits into your home buying plan and overall financial plan. This means shopping around for a lender that offers financing with the terms that best fit your situation. This means determining how much house you can afford through the pre-approval process.

All lenders will require prospective homeowners to be pre-approved before working out the details of the loan terms. During this process the lending institutions are evaluating your financial situation to determine if you will be a good risk for one of their loans.

Getting pre-qualified also allows you the home buyer the ability to know how much house you can afford once you begin hunting for your new home. This is also the time to start comparing loan terms from the different lenders who have pre-approved your application.

This is probably the most important part of manufactured home financing; be sure to shop around to different lenders to ensure that you get loan terms that work best for you. Lenders interest rates will vary and while it may not seem like much over the term of the loan a half of a percentage point can literally save you thousands of dollars. You’ll also want to check what sort of down payment may be needed and what other closing costs are involved. These can vary from lender to lender so be sure to read the terms carefully before deciding on a mortgage provider.

Knowing the basics of manufactured home financing and mortgages will be a benefit to you during your home buying experience. Finding the right mortgage financing that fits your financial needs will take some time but it is well worth the effort once you are able to move into your new manufactured home.

To learn more about a manufactured home financing please visit the website Manufactured Home Loans & Refinance by Clicking Here.