Credit and Loans

Online Mortgage Brokers May Offer A Better Solution – Freddie Mac Has Announced A Change in Policy Regarding Sub Prime Loans

Online Mortgage Brokers May Offer A Better Solution – Freddie Mac Has Announced A Change in Policy Regarding Sub Prime Loans

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(Best Syndication) Freddie Mac announced back in February that they will be tightening up subprime mortgages requirements. Many Adjustable Rate Mortgages (ARMs) have a higher percentage of defaults. Freddie Mac says that many adjustable rate mortgages may incorporate an “excessive payment shock” which could lead to foreclosure.

People who signed an adjustable rate mortgage agreement back when mortgage rates were low may now find themselves with higher than expected payments. The secondary market lender says they want to prevent similar problems with future borrowers.

Mortgage Down Payments And Insurance Requirements – Interest Rate Determined By Credit Score And Lender

Mortgage Down Payments And Insurance Requirements – Interest Rate Determined By Credit Score And Lender

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(Best Syndication) A down payment is a lump sum of money the buyer pays to reduce the amount needed to finance a property. Of course, different lenders and different mortgages may require different down payments. This helps protect the lender in the event of a default and a downturn in home prices.

The amount of the down payment can also affect other required expenses. For instance, a lender may require mortgage insurance or a lower deductible depending on the amount of the down payment. Also, these insurance requirements may be reduced as the loan is paid off. They may be reduced depending on the size of the down payment as well, so there is a benefit for paying a larger down payment.

Mortgages 101 – Types Of Mortgages Depend on State - Lien Theory – Title Theory and Deed of Trust Theory States

Mortgages 101 – Types Of Mortgages Depend on State - Lien Theory – Title Theory and Deed of Trust Theory States

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(Best Syndication) Compared to most credit cards, mortgages provide a lower interest rate because the bank has your house as collateral. These secured loans are relatively safe for the lender, and because of the lower risk they are able to offer lower interest rates. Sure there are introductory offers by credit card companies, but some cards have rates quadruple the ordinary fixed rate.

A mortgage is a legal contract between the homeowner / borrower and the bank / lender. In California and other states the mortgage must be in writing to be enforceable. In other words, a lender can’t force you to sell your house on a deal closed with a handshake.

The loan documents spell out the interest rate, or how the interest rates can be calculated. The homeowner pledges his property as security. In states that abide by a “title theory”, the lender holds title to the property until the loan is completely paid off. According to Sandy Gadow in a Realty Times article, the buyer/borrower holds a deed to the property but when the borrower signs the loan documents the lender gets the title.

Reverse Mortgages – Lender Can Not Reposes Home If Borrower Outlives Loan – Repayment Done Upon Death or Sale of House

Reverse Mortgages – Lender Can Not Reposes Home If Borrower Outlives Loan – Repayment Done Upon Death or Sale of House

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(Best Syndication) As America ages, the reverse mortgage is becoming a popular method for retirees to capitalize on their equity. Like with any other mortgage, you should exercise caution and seek the advice of a professional financial consultant.

A reverse mortgage will allow the borrower to exchange a bit of their equity for cash. Unlike regular mortgages, there are no repayments as long as the homeowner continues to live in the house. When the borrower dies or moves to another primary residence, the loan becomes due and is payable.

You need to be at least 62 years of age, and living in the home to qualify for a reverse mortgage. There should be no encumbrances against the property: no liens or loans against the residence. If there is a small amount of loan remaining, this may be settled with the monies from the reverse mortgage.

Types of Mortgages For New Home Financing - Which is Best? Adjustable Rate or Fixed Rate or Interest Only Loans

Types of Mortgages For New Home Financing - Which is Best? Adjustable Rate or Fixed Rate or Interest Only Loans

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(Best Syndication) There are many loan options available to a home buyer. This article will evaluate various loans offered for financing a home purchase. The most common and most desirable loan for most people is a 30 year fixed mortgage. This can assure a buyer of a predictable payment that will not fluctuate. The bulk of the initial payments will go towards interest, and as time progresses more and more of the reimbursement will go towards the principle.

But not all borrowers can qualify for a fixed interest / payment loan. Adjustable rate mortgages offer the lender some advantages, while making it easier for the borrower to qualify. The payments usually start out very low but increase to a set amount tied to an index.

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