FHA Purchase Real Estate Financing
If you need to obtain necessary financing for the purchase of a home it is important for you to know that there are alternative lending sources other than banks and traditional lenders that you can use for a mortgage, even if your credit or other circumstances are less than ideal. There are government sponsored programs that allow a variety of people wit different backgrounds to purchase a home with a low or no down payment and affordable interest rate. Fha purchase financing is an option many people who are involved in the buying process.
Fha purchase financing is financing insured by the Federal Housing Administration which is a government owned organization that works to extend mortgages to people who do not meet traditional lending criteria. The Fha was established under the National Housing Act, with their goal being to extend financing to people with repayment abilities who otherwise lack the ability to get a traditional loan. Read more
SARB New Lending Numbers For 3rd Quarter Show Noticeable Progress On The Long Road To Better Times
Value of new residential loans granted nearing positive year-on-year growth
After a lengthy spell of non-stop year-on-year decline spanning beck to June 2007, the =month that the National Credit Act was implemented, the value of new residential mortgage loans granted is steadily nearing a return to positive year-on-year growth. In September 2009, the rate of year-on-year decline had been reduced to -13.8%, and while this still appears to be significant decline, it is significantly better than the -27.5% just one month before, and hugely better than the -62.2% rate of decline as recently as April. On a month-on-month basis, broad growth has been in progress since early-2009.
For the 3rd quarter as a whole, the year-on-year decline was -22.2%, which had more than halved on the -49.6% of the previous quarter, while the quarter-on-quarter growth rate had grown at an impressive rate of +30.3%.
The SARB numbers are beginning to show more concrete confirmation of the increased volumes that we have been feeling since earlier in the year, with September’s R18,8 bn being the highest value of residential grants this year, and more than double that of January. While improving, though, the value remains less than half of the all-time high of R39.5bn reached in May 2007.
The noticeable improvement in value of loans granted since the beginning of the year reflects the positive impact of 5 percentage points’ worth of interest rate cuts since late-2008, banks responding to better environment with some relaxation in lending criteria, and a mildly improving economic growth performance.
Commercial mortgages following a similar trend to residential
In recent years, the trend in commercial property loans granted has also taken on a similar shape over the past two years or so, having shown negative growth since earlier back in 2006, reaching an extreme rate of year-on-year of -86.9% in December 2008.
Much of this weakness may reflect residential development finance, but the commercial property sector has probably also played a major role, with the returns of the major 3 sub-sectors of commercial property, namely retail, industrial and office space all showing significant deteriorations in performance from 2008, as the recession started to bite.
Since the beginning of 2009, however, the year-on-year rate of decline for commercial loans granted has diminished steadily to a mere -11.6% in September, while over the third quarter its quarter-on-quarter growth rate had turned slightly positive to the tune of +5.4%.
The focus of growth has been mainly on loans on existing properties, with the numbers still reflecting tough times for new developments
Breaking new loans granted up in a different fashion, the severe weakness in the new development market, compared to the existing property market, is apparent.
The breakdown of new mortgages by loans on existing buildings, on construction of buildings, and on vacant land, lumps residential and commercial property together. (although residential property is the dominant segment in the mortgage market). Whereas the year-on-year decline in the value of mortgage loans granted on existing buildings has diminished steadily from a low of -56.9% in February 2009 to -17.2% as at September, loans granted for construction of new buildings showed a more extreme -43.4% decline as at September, while vacant land mortgage grants were -71.3% down year-on-year. The weaker state of loans on construction and vacant land confirms the lagging status of the new building market, versus that of the existing market. On the residential side at least, this has much to do with a combination of a weak “existing property” market and a surge in input cost inflation for builders in 2007 and 2008, which opened up a wider gap between new and existing home prices, making it difficult to bring competitively priced new stock to the market.
Capital repayments growth has overtaken payouts growth, which could send total Mortgage loans outstanding into negative growth soon
A noticeable feature of the mortgage market as of late has been the steady recovery in capital repayments, which showed positive year-on-year growth in value in September to the tune of 17.9%, possibly a partial reflection of a more cautious household sector determined to reduce its level of indebtedness in many instances (given that household borrowing for residential purposes is the dominant force in the mortgage market). This is in sharp contrast to mortgage payout value growth, which was still in sharp year-on-year decline at -44.2% as at September (although starting to turn for the better slowly).
The large difference in growth rates between capital repayments and payouts has meant that the value of capital repayments has been catching up to that of payouts. The bygone years of booming growth in new lending had seen the value of capital repayments as a percentage of payouts declining from a 99.7% in March 1999 all the way to 37.9% by November 2008 (although by 2008 the low percentage was more a reflection of financial stress than booming new lending)
This percentage has rebounded sharply in 2009 to record 92.4% at September 2009. The combination of negative growth in payout value and positive growth in capital repayments translates into ongoing decline in year-on-year growth in the value of total mortgage advances outstanding, registering a meagre 3.6% in October and looking increasingly likely to head into negative territory within the next few months. Such is the typical lag between new lending turnarounds and trend changes in growth in the value of outstanding mortgages, the latter being dependent on the relative performances of payouts vs capital repayments.
Outlook
The steady rise in new residential mortgage loans granted is expected to continue until at least mid-2010, where-after one may see some flattening out in the level as the positive impact of the 2009 interest rate cuts wears off. This rise in grants is starting to spill over into an improving payouts situation with something of a lag. Noticeable increase in building loans is only anticipated in the second half of 2010, once the decline in oversupply of existing properties on the market makes new developments viable on a larger scale.
However, in a generally more conservative environment compared with a few years ago, capital repayments growth looks set to outstrip new loan growth for a while, and this is expected to translate into a decline in total value of outstanding mortgage loans over the year of 2010, to the tune of around -5% year-on-year at next year’s end.
What to Know Before You Refinance Your House
If you own your home and you are looking to save some money, a great way to accomplish this may be to refinance your house. Interest rates are always going to vary and these days they are on the lower side when you look at the rates historically. If you’ve been in your home for a while then it may be to your advantage to get a lower interest rate as this will lower your monthly mortgage payments. Sounds like a no brainer right? Not so fast.
When you refinance your house it is not as simple as it sounds. There are a few things you should know before you decide to go ahead and refinance you house:
?Do you have equity in your home: Having equity means that your house is worth more than you owe on it. Historically this is almost always the case, but with the recent housing debacle many home owners find themselves owing more on the home then it is worth. A sure way to know is to get your house appraised. This can be done online for free at websites such as Zillow.com but that will only give you a rough estimate. If you want to be absolutely sure, you will have to hire a pro which is going to cost you some money.
?Will you have a pre-pay penalty: Before you get too gung ho on refinancing your house, you need to know if your existing mortgage company is going to charge you a pre-payment penalty. Mortgage companies do this often to discourage people from going with another mortgage company that will then be getting your years and years of interest. Pre-pay penalties vary from company to company but it is not unusual for them to be several thousand dollars.
?Fees: As with your first mortgage you got on your house, a refinanced mortgage is going to include all sorts of fees like closing costs and so on. These fees can also add up to be in the thousands of dollars and need to be looked at.
?How long are planning on staying in your house: You need to consider how long you plan on living in your house. As you can plainly see, refinancing your house can cost you quite a bit of money. While the lower rate will save you on monthly mortgage payments, it may take two or three years before you realize that savings because of all the fees involved. If you are not planning on staying on your home long-term, then it may not be in your best interest to refinance it.
If and when it is time to refinance your house make sure you do so with a fixed rate loan. Going with an adjustable rate loan will save you out of the gates, but only have you trying to refinance when the rates skyrocket down the road.
As with anything else, shop your mortgage refinance around to get the absolute best rate you can. With the fees you will incur by refinancing your home, every little bit of savings counts.
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Before Buying Miami Condos – Some Mortgage ABC’s
Before you look for Miami condos, you must first know the basics. You are about to travel a road most traveled but least completed. The real estate journey is a perilous one; full of challenges to test your patience and determination. And if you’re a first-time buyer, make sure you know one of the most and probably the single-most important part of owning a home, the mortgage.
Mortgage
Mortgage is what you need to purchase Miami condos. If you can afford to pay full, you can do so; but that method is least advisable. Even if you can, doesn’t mean you have to. Remember that you can spend that money for a lot of other useful purposes and probably save you some sanity in case of future emergencies.
Moving on; your mortgage is basically the loan you need to purchase Miami condos and real estate properties in general. The amount depends on several factors, including your credit history, score, DTI (Debt-to-Income Ratio), down payment, etc. The two basic parts of the mortgage is the principle and interest. The principle is the amount of the mortgage; while the interest is the money you pay the lender, well, because they lent you the money.
Lender and Broker
When buying properties, you can either go directly to the lender and transact or hire a mediator or a mortgage broker. The mortgage broker is a helpful addition to any real estate team. The broker will act as the liaison between you and the lender that will officially provide the mortgage. Your broker can also help you calculate the entire home-buying expenses, as well as guide you through the financial motions of real estate.
Title or Deed
Once you get the mortgage and owned the property, you have to hire a title company. This company will furnish your title or deed, which will serve as the proof of ownership. What you must know is that as long the mortgage exists, you don’t necessarily own the property because the lender has placed a lien against the title. In case you default, the lender can repossess the property and sell it in order to recover their losses. So basically, the title is just paper unless you pay off the loan. But that doesn’t mean you have to discard it – keep the title securely along your important files.
Amortization
Lastly, in Miami condos ownership, homeownership and other kinds of real estate ownership, there is amortization. This is simply the repayment of the loan – something you should be ready to be responsible for every month.
Mark Michael Ferrer
Miami Condos
Article Source:http://www.articlesbase.com/real-estate-articles/before-buying-miami-condos-some-mortgage-abcs-1513919.html
Rejected Mortgage Application: Consider Looking for Another Lender
If you have long been waiting for the time to own a house, the very first thing you need to secure is your money. You surely have to gather all your resources to materialize your plans. But what if your resources are still not enough to pursue your dreams? Well, the next option for you is to apply for mortgage loan. Unless you are super rich, you can easily pay out the house in cash then off you go. This is not always the case. Most aspiring homeowners are looking for financial assistance when it comes to this venture. This simply implies that buying a house definitely requires a substantial amount of money.
When you are applying for a mortgage, you have to be cooperative in everything they ask you to do or to present. Normally, they want to know your credentials. They want you to establish what you are as person. But the most important qualification they are looking for in all their applicants is the financial capability of the person. Thus, they need to gather all the essential personal info. In this way they can easily evaluate your application.
However, it is already a given fact that rejections can happen to any of the applicants—including you. And what if from the thousands of applicants who applied you happen to be in those rejected ones. Then you do not have to be upset about it. You can still have the chance to own a house. There are so many lending companies that are still hungry for hopeful homeowners. These lenders do not have the similar criteria for their applicants.
In case you get rejected, try to ask for the reasons of your rejection. You can also begin to reassess your credentials and look for your possible weak points. They might not disclose the exact details for your denied application, so you might as well conduct your own investigation. Take a look at your credit standing. Is it high enough? Credit scores play a big role in mortgage application. Hence, you need to maintain a high level of your rating.
Before going to the next lender, make sure to improve all areas or possible factors that can possibly cause rejection. Do not be too complacent or too worried about the results. Bear in mind that you have to think positive in every step you take so as to achieve good results. There is always a next time if things won’t come your way again. Prepare all the necessary papers that may prove your financial capabilities as well as your credentials. Secure that they are all updated and properly organized before submitting them.
Buying a house can sometimes be frustrating but rewarding in the end. There are so many steps before you finally meet your goals. And through these steps there are evaluation and assessments that you must be able to pass. When you look at the entire proceedings, it can be so stressful. However, if you have enough determination to pursue your plans then everything can be materialized. Hence, if you are planning to own your dreams, equip yourself with a lot of patience and will power so as to reap the rewards at the end of everything.
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How to Handle your Mortgage in times of Financial Crisis
As time goes by, many homeowners find themselves in a position where they are buried in mortgage debt. With interest rates so high, they seem to be getting deeper and deeper in debt. With less and less money but more debt accumulation, the future for a lot of people seems bleak, most especially with the recent crash of the economy. The answer to this problem can be found in home loans refinancing.
If you are looking into methods to offset your climbing adjustable mortgage interest rates, help is not so far from your grasp. You can do home loans refinancing to be able to meet your mortgage requirements and to save your home from possible foreclosure. One benefit from home loans refinancing is that you can change mortgage plans to a fixed interest home refinancing mortgage plan. This can then ease the burden of adjustable interest rates, which can easily throw your budget off course especially if your income has decreased over a period of time. If you need to, switch your existing mortgage from an adjustable interest rate to a fixed one. If you want to lower your monthly payments, try to find a plan that would lower your interest rates.
If you are looking for help online, there are many sites out there with home loans refinancing specialists who can assist you in finding a fixed interest mortgage plan that will keep your monthly mortgage payments down. They can even be low enough that you can afford to pay them with relative ease. Take note that when you go to these sites, they will usually ask you to fill out a form to state exactly what you want to do.
With regards to long-term versus short-term refinancing loans, there are some things to consider. Generally speaking, there are lots of pros and cons. A low monthly payment is attractive, but it is also spread out over many years. Whereas short-term loans require a higher payment, the refinancing loan is paid in a shorter period of time. This option might be more desirable for individuals who would like to have more money available in their retirement years.
The home loans refinancing plan will depend upon many variables, including your present credit standing. Besides considering the type of loan you are looking for and your credit standing, you will have to know the mortgage laws applicable in your state. Take note that regulations on loans vary from state to state. Certain states such as Alabama offer interest-only loans where a short-term borrower will pay off the interest during the first period of the loan debt and continue to pay the principal in full during the latter half of the loan designated period. This option might be best for you. In Florida, cash out option is available, where the homeowner can take out a second mortgage to allow them to take cash out. This option might not be available in normal loans.
For more information regarding home loans refinancing, you can search a lot of other websites or you can ask a certified insurance analyst near your area.
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The ABCs of the Residential Real Estate Foreclosure Process
By now most Americans are very aware of the fact that real estate foreclosures are at an all time high. In many states and metropolitan areas, foreclosure rates have doubled and tripled since the beginning of 2006. A lot of American homeowners, though, still are not clear on exactly what the foreclosure process is or how it unfolds. In a typical case, when a homeowner is 30 days late on its monthly mortgage payment, the lending institution will place a phone call to the home-owner, reminding them to make their monthly payment. The Lender will follow up with another phone call and usually a written reminder after 60 days of non-payment.
Once the homeowner is 90 days behind on their mortgage, the lender will invariably send the homeowner what is called a “pre-foreclosure letter.” Read more
Mortgage Crisis Amounts to Opportunity to Pillage for Some Gatekeepers
If your mortgage is in default and you’re struggling to make your payments, be very careful about to whom you give money for the purpose of fixing your financial situation. Many people across the country have found that in their quest to find assistance for their dire financial situation, they have been completely victimized by fraudsters and con-men.
Some of the people involved with these scams have been real estate agents, lawyers, and mortgage brokers (among others); it seems like there is no restriction to which “profession” might stoop to taking advantage of the unfortunate homeowners who’re desperately trying to find a solution to their struggle to remain in their homes.
Many people across the country have unfortunately been taken in by “pay upfront” refinancing that results in the person who’s been given the money not helping the family renegotiate their mortgage and subsequently lost their homes plus any payment that they’d made to have their mortgages modified.
The US government has apparently had enough of people who’re struggling to remain in their homes and find work being taken advantage of and arrested forty-one people recently in a huge crackdown of mortgage scammers including lawyers and mortgage brokers from across four states. It is unfortunate that the very people whose job it is to help homeowners keep their homes are the ones who’ve turned their backs on them. Many government agencies worked together over many months to bring these fraudsters in; hopefully their arrests will save others from experiencing this kind of horrible betrayal.
Experts suggest that if you need to have your mortgage modified then make sure you work with reputable lenders and keep documentation of the process. You should not be required to pay money upfront for mortgage modification. Be wary of any “too good to be true” offers that you receive by phone; they may well be people looking for a free handout instead of the actual financial help that you need.
It seems that in this current climate of financial struggling and high unemployment, one of the most profitable money making endeavours is ripping off people’s money while they’re struggling to hold on to a roof over their head and that of their family. Hopefully law enforcement can keep up with the flood of ethically bankrupt gatekeepers who’ve gotten involved with these schemes.
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Obtaining a Mortgage After Bankruptcy
Obtaining a mortgage after bankruptcy is quiet easier than most people think. Many don’t realize that there are plausible solutions available for it, so remember; it is not completely impossible for obtaining a mortgage after bankruptcy. There are some aspects which are taken into account during the mortgage application process and this will scrutinize your guaranteed income and the amount of money you have as a deposit. Success of the application process depends on the ability to provide this information correctly.
Timely Payment:
It is a known fact that many lenders will not lend to you for a period of at least two years from the time of the bankruptcy discharge. After the initial two years, obtaining a mortgage will be much easier. To ensure the correct flow of things, you have to manage all your debts from the time of your bankruptcy discharge. Make sure you have a near- to perfect repayment history since the bankruptcy discharge. This means that you must make sure that the debts on your other assets are repaid; those which were not discharged in the bankruptcy.
Deposit:
The chance of getting a mortgage after bankruptcy can be further speeded- up by showing the amount of deposit which you have on your home. An amount as little as 3-5% deposit would be enough to get your application approved.
Limit the Debts:
You should limit your amount of debts and avoid certain thing such as credit card or bank loans, to create a more credible profile and have greater chances of obtaining a mortgage after bankruptcy. Limit your debts as much as possible, to build a credible debt-to-income ratio, so as to clear the evaluation by the mortgage providers.
Credit Report Check:
Many presume that the information on their credit report is automatically correct. It may contain errors and it should be checked for its accuracy. Requesting for a free copy of your credit report through a credit monitoring agency and credit rating agencies, can help you get a clear picture of your credit rating.
Every inaccurate piece of information on your credit report can work against you. Make sure you report any errors in your credit report to the concerned agency, as quickly as possible. This helps speed up the correction within the report and will also help you achieve a favorable debt-income ratio.
Pre approval Process:
This is the best way to determine if you can obtain a mortgage after bankruptcy. It is called a pre- approval process which is fast and simple; with no obligation and no cost involved. After this process, you will know your exact position on your mortgage after bankruptcy.
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Government Tax Foreclosed Houses Can Be a Great Investment For You
One of the best ways to make an investment these days is to invest in the government tax foreclosure houses. It is so because the foreclosure houses are very easily available and can be availed at very amazingly cheap prices. The best thing about them is that they are available at rates that are far cheaper than the actual real estate market rates of that particular property.
Basically, the government tax foreclosure houses are those real estates that have been repossessed by the government agencies and the government banks. The government agencies or banks owing to the fact that the borrower of the loan or the mortgage amount had defaulted in repaying the capital sum that he availed from them seize these real estate properties. Read more
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