Posts Tagged ‘Financial Services’

VETERANS MORTGAGES

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English: AmeriFirst Home Mortgage logo

English: AmeriFirst Home Mortgage logo (Photo credit: Wikipedia)

Vahome1

Vahome1 (Photo credit: Wikipedia)

Why is it that you never seem to hear anything in the Mass Media about the BEST mortgage available? Especially for 1st time buyers.

FEATURES:                   

                   1. ZERO DOWN PAYMENTS.

                   2. NO PMI.

                   3. LOWERQUALIFYING REQUIREMENTS.

 

                   4. UP TO $615,000 PURCHASE PRICE.

                   5. LOWER INTEREST RATES.

 Who do you know that’s a Veteran or ex Veteran trying to buy a home??

 Pass this on to them.

ADJUSTABLES ARE BACK (and thats GOOD NEWS for smart buyers)

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(and thats GOOD NEWS for smart buyers)

Absolute_Mortgage

Absolute_Mortgage (Photo credit: kathleenleavitt)

FACT: An adjustable Rate Mortgage, used inteligently, will always cost less over the life of any other type of loan.

Question. So why do all the so called experts advise you to only take a Fixed Rate mortgage?

Answer. Because they are at best ill informed, or at worst simply stupid.

The bias toward fixed rate mortgages is the result of settling for the simple but expensive rather than taking the time to understand  the relatively complex but much cheaper.

I’m constantly amazed by the number of home buyers who will give up their weekends for many months searching for the perfect home, yet take just a couple of hours to decide how to pay for it, and end up never knowing what their options were.

Choosing the wrong mortgage can and will cost many thousands of dollars.

Question. HOW TO DECIDE WHAT’S THE BEST MORTGAGE?

Answer.

That which cost the least amount over the life of the loan based on:

1. YOUR BEST ESTIMATE OF HOW LONG YOU EXPECT TO OWN THE HOUSE.

2. YOUR CURRENT FINANCIAL CIRCUMSTANCES.

3. YOUR ANTICIPATED FUTURE FINANCIAL CIRCUMSTANCES. Long and Short term.

REMEMBER. You are UNIQUE.

Your circumstances are UNIQUE.

Your plans are UNIQUE.

YOUR MORTGAGE SHOULD BE UNIQUELY DESIGNED FOR YOU, NOT FOR SOME MYTHICAL AVERAGE PERSON.

You should always know what options are available to you and how each one would work out over time.

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MORTGAGE FRAUD ALERT

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English: A sign advertising foreclosure rescue...

English: A sign advertising foreclosure rescue, name and number blanked out following discussion. (Photo credit: Wikipedia)

Despite frequent publicity and legal actions the Fraudsters and Scam Artists are still ripping off vulnerable and financially stressed homeowners with promises to fix their problems for a few thousand dollars up front.

They promise to obtain loan modifications, mortgage relief, and foreclosure rescue. Once the cheque is cashed they are no longer to be found.

There are many services available that legally try to help with these kinds of problems; however, they do not require payment up front which is totally illegal.

THE GOLDEN RULE IS THIS:

ANYONE ASKING FOR AN UP FRONT PAYMENT IS A CRIMINAL TRYING TO CHEAT YOU.

 

 

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Mortgage Activity Increasing Rapidly

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A large increase in Mortgage loan applications for Buyers is another strong sign that the market is getting back to normal in many parts of the Country. Overall the number of applications for mid February to mid March was  22% greater then for the same period last year.

When added to the recent large increase in the number of Pending sales contracts this bodes well for a much stronger market overall.

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MORE FICO FACTS

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Not just a Mortgage Issue

 Most people know that your Credit Score (FICO) has a significant effect on whether you can get a Mortgage.

What is not generally known is that FICO is increasingly being used by Employers, Insurance Companies,

Utility Companies, Apartment Complexes and a growing list of other organization which provide services for regular payments.

These and many other groups consider it a good indicator of general reliability and whether bills will be paid on time.

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FICO 8

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The new FICO® 8 Score is fast becoming the new standard. It has already been adopted by over 3,000 banks and other financial institutions.

But is it good news or bad news for you as a consumer?

Their are multiple small changes but the two I see as the most significant are:

1. Multiple late payments will now carry a heavier penalty than in the past. These are the 30, 60, 90 day lates that show up under “Derogatory” accounts.

2. The penalties for using too much of any credit are increased. If you have any type of credit with a maximum amount available your score will be lowered if you owe  more than 30% of the total maximum allowed. This can be your VISA or Sears card, or a Home Equity Line of Credit. NOTE.

 This applies even if it is a company credit card in your name.

The result of these changes can mean your credit score can be lowered even if you never had a late payment in your life. Too much credit availability is a no-no. This will apply most frequently when applying for a mortgage, when the bank will assume your total debt to be the maximum amount of money you can get at with just your signature.

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Bank of America Loan Modification

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Here’s one more example of a Bank pretending to do something positive about loans to defaulting Sub-Prime borrowers, while actually increasing their payments.

While 90% of mortgage lenders resist  handing out any type of loan modifications, despite being advised and even pressured by the government to do so, Bank of America claims it is now taking the lead. The initial B of A model seeks to conditionally (read: unlikely) cut up to 30% off the principal of 45,000 home mortgages nationally. Note: This is not the same as a reduced payment.

This program is very limited in breadth and scope. It applies only to those homeowners with negative amortizing ARM’s.  The principal reduction program will not be available to underwater homeowners with fixed rate mortgages or ARMs with amortized payment schedules. B of A claims their goal is to reduce homeowners’ monthly payments to an amount equal to 31% of their household income – the parameter set by the federal government two years ago, in 2008, based on long-standing fundamentals of mortgage lending.

In practise this program will apply only a few of the loans B of A inherited when it took over Countyrywide; specifically (negative amortization loans), where the Borrower is at least 60 days late!!

A more important problem is that the proposed modifications will usually result in a HIGHER MONTHLY PAYMENT for people already unable to make the current minimal payment.

For a delailed analysis of this Public Relations Excercise check http://blog.firsttuesdayjournal.com/2010/04/lenders-attempt-to-lock-homeowners-into-paying-underwater-homes/

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