Author: admin

What You Need to Know About FHA Mortgage Loan

Posted by admin on October 16, 2015

Before going into the specifics of the FHA loan, it’s crucial to first
address the question: what is a mortgage? You might be surprised to know
how many people don’t understand the terms they signed up for, as
proven by the housing bubble that burst and left hundreds of thousands
of Americans homeless. In basic terms, a mortgage is a collateralized
debt you will take on to pay for your home. Once you default on payments
for a certain period, the bank can take away your home.

What is FHA loan and is it right for me?

The FHA loan allows for a loan downpayment, which makes it attractive
for first time buyers. Why would banks agree to lower the payments for
home loan rates? That’s because the loan is insured against default by
the Federal Housing Administration. Once you default on payments, the
FHA will owe the lender. In theory, nearly everybody can qualify for an
FHA since it doesn’t place a cap on income.

There’s no minimum
credit score under the FHA, or to rephrase it: your credit worthiness
will be assessed individually. Theoretically, even if you have filed for
bankruptcy you are still going to qualify for an FHA . However, even
with the FHA , some lenders might still use your low credit score
against you.

FHA is not a lender

You don’t apply at the FHA for a home loan because it’s an insurance
fund. You need to deal with lenders that are certified by the FHA.
Again, the cost of mortgage can vary from lender to lender, and from
location to location. You won’t be approved, for example, if you take
out a loan greater than the average housing prices in your area. That’s
why it’s crucial that you ask around to get the most attractive home
rates.

What about insurance?

When you
take out an mortgage, grandfathered into the contract are two insurance
premiums: the upfront premium which represents about 2.25% of the total
loan amount as well as the annual premium which is 0.55% of the amount.
You can either pay the upfront premium when you take out the loan or can
be incorporated in your home rates. The annual payment, meanwhile, will
be paid along with the monthly mortgage payment. You must however do
your due diligence and compare the FHA with the rates offered by non-FHA
accredited lender to find out which is better.

Mortgage Market Review and Its Impact For Borrowers

Posted by admin on October 15, 2015

Robin Hood was famous for robbing the rich to give to the poor and
you could be forgiven for thinking that today the very wealthy were
attempting the reverse that situation when it comes to securing the best
mortgage deals. It appears that there is one set of rules for some and a
different set of rules for others, with wealthier borrowers now being
exempt from certain legislation and criteria imposed on mainstream
borrowers. However taking a ‘one size fits all’ approach to lending
really benefits no-one and the main point of regulation is to protect
the best interests of each individual client.

The Mortgage Market Review focuses on “Treating
Customers Fairly” and trying to hard wire a more conservative, but
common sense, approach to all areas of lending. However, some of the
changes are indeed a bonus for high net worth borrowers.

Firstly, entrepreneurs (business people borrowing against their homes)
will enjoy far more flexible criteria and even be able to ‘opt out’ of
standard affordability checks providing they can offer a credible
business plan. However, if banks remain unwilling to lend then more
traditional alternative funding routes typically used by entrepreneurs
may still be the quickest and simplest option.

Secondly, High
Net Worth (HNW) individuals, which are typically classed as those
earning upwards of 300,000 per year in the UK or those that have a net
asset base of 3,000,000 or more, can also enjoy a greater degree of
flexibility and be able to opt out of standard criteria tests when
borrowing a mortgage. The exemption for High Net Worth (HNW) borrowers
from stringent affordability criteria provides lenders with the
opportunity to be flexible when regular checks are not relevant for
certain categories of clients. Many HNW clients have a high level of
complexity with regards their income and assets. Many have irregular
income but their personal or family wealth is so vast that a standard
affordability check are effectively pointless as the risk to the bank or
other lending institutions is minuscule.

All things considered, the Mortgage Market Review willingness to show a
reasonable degree of flexibility for high net worth individuals must
surely be welcomed by all; both by the borrowers themselves but also by
the lenders, which have been freed from irrelevant legislation in
certain circumstances.

Obviously no one wants to see a return to
the days of the overly-easy credit available with minimal checks,
before the global financial crisis. This was one of the main reasons for
the economic predicament in which we now find ourselves embroiled in
the UK, Europe and the USA. But sensible lending does not have to mean
that checking the credit worthiness of a large mortgage borrower can be
done effectively by purely a box ticking exercise and disregarding
anyone who does not fit a particular profile; some common sense must
always be brought into the equation. This is good news for high net
worth mortgage borrowers as a whole and finally a common sense approach
has developed in the mortgage market that has been lacking for too long.

What Does It Mean – A Short Mortgage Glossary

Posted by admin on October 13, 2015

When you are seeking a mortgage it may seem that the process has a
language of its own. Many times there are terms used that can be
confusing or unknown, but are important things for a borrower to
understand. The following list contains some of the more common mortgage
terms and briefly explains them. It is not meant to be exhaustive by
any means and it is always important to make sure that you fully
understand any unknown terms you encounter. Don’t be afraid to speak up,
your lender would be more than happy to explain them.

Adjustable Rate Mortgage (ARM)

This is a type of mortgage with interest rates that can fluctuate based
on market conditions over the life of the loan. Typically an ARM will
have an introductory rate and a monthly cap on the maximum monthly
payment allowed.

Amortization

This is
the progression of decreasing principal over the life of a mortgage.
Each loan payment includes a payment to the principal and a payment to
the interest. An amortization schedule is a document that includes each
payment and reveals the changing ratio of principal and interest and how
the principal will decrease over time.

Annual Percentage Rate (APR)

This is a measure of a loan’s full cost and includes interest and fees
in terms of a yearly percentage rate. Federal law requires all lenders
provide their annual percentage rate so borrowers have a way to compare
the total cost of a loan over time.

Assumption

It is an agreement in which a buyer takes over the existing mortgage and the payments to a lender.

Blanket Mortgage

This is a mortgage that will cover at least two pieces of real estate as security for a single mortgage.

Closing

This is the final meeting between a buyer and seller or their agents in which a property legally changes hands.

Closing Costs

These are expenses that are in excess of the purchase price and can
include items such as origination fees, title insurance, escrow costs,
appraisal fees, and others. Closing costs will vary depending on
location and lender.

Consumer Reporting Agency

These are organizations which monitor individual credit activity and
history to determine the risk a lender must take on to provide someone a
mortgage.

Conventional Loan

This is a
type of mortgage that is not insured by the federal government.
Typically conventional loans require a larger down payment and a higher
credit score.

Default

This is the
failure to make mortgage payments as specified in the mortgage
agreement. Defaulting on a mortgage can lead to foreclosure.

Earnest Money

It describes the process of a buyer giving money to a seller that is included in the purchase price to secure a sale.

Equity

This is the difference between the fair market value of a property and
the current amount of debt an individual holds on that property.

Escrow

It is an account set up that the buyer pays into that can cover expenses such as taxes or insurance payments.

FHA Loan

This is a loan that is insured by the Federal Government allowing
individuals who are unable to qualify for a conventional mortgage to
purchase a home.

FHA Mortgage Insurance

Insurance required when obtaining an FHA loan. The insurance amount is paid in monthly installments.

Fixed Rate Mortgage

This is a mortgage that has a locked mortgage rate which does not change over time.

Foreclosure

This is a process in which the lender can force a sale of a property
when a borrower does not meet the terms of a mortgage agreement.

Interim Financing

This involves loans such as construction loans which are temporary
financing options during a building project. Typically a construction
loan will be replaced by a permanent mortgage when the building is
completed.

Lien

A Lien is a legal claim
on a property by a lender which is held until a mortgage is paid in
full. It protects the lender in cases of default.

Maturity

This is the date that a loan’s principal balance becomes due in full.

Origination Fee

This is the fee which includes costs for a lender’s expenses including
loan document preparation, credit checks, property inspections and
appraisals, and other possible fees.

Points

Mortgage Points describe prepaid interest by the borrower which is
assessed at the time of closing. One point is the equivalent of one
percent of the loan amount. Points that are purchased may be able to
decrease monthly mortgage payments.

Refinance

Refinancing a mortgage is essentially taking out a new loan to replace a
prior loan on a property. Common reasons for refinancing are lower
available interest rates or access to funds made available because of
equity.

Security

Security is the property that a lender holds a lien on as collateral for a mortgage loan.

Underwriting

Underwriting is the process of researching and reviewing information
about a borrower and making a determination on approving a loan. It also
includes matching the level of risk with an appropriate interest rate
and loan amount.

These are the most common terms you will need
to know to understand when considering a mortgage. As mentioned before
if you don’t understand a term, don’t hesitate to ask your lender. You
need to understand exactly what you are getting into when applying for a
mortgage.

Settle Your Debt in Carlsbad, California

Posted by admin on October 5, 2015

Many consumers across the Carlsbad area are concerned about their
mounting debt balances. When debt balances reach a certain level, it may
seem as though the outstanding balance owed simply grows on its own or
that the balance has stagnated. It may seem impossible to reduce the
debt balance through your own efforts. Through interest charges and late
fees charged due to your struggle to make the minimum payment on time,
you may barely see a dent in the balance from month to month. If you are
continuing to use an account to make new purchases, the balance can
easily grow. Those who have been struggling with their debts may
consider the benefit of debt settlement Carlsbad California from DAGonDebt.

DAGonDebt.com is a local leader in financial debt relief tools. When you visit this website, you can learn more about debt settlement Carlsbad California,
consolidation loans and other options available to you for debt relief.
Settlement is one of the most popular options available for those who
are struggling significantly with debts. Consolidation loans are often
considered to be an initial option to select due to the fact that a
consolidation loan will not trigger a negative event on your credit
report. However, for those whose credit has already been affected by
their financial woes or for those who are so heavily burdened by debt
that a consolidation loan will not provide effective relief, settling
debts may be the ideal solution.

With debt settlement Carlsbad California from DAGonDEBT.com,
a debt negotiator will contact your creditors to negotiate a reduction
in the outstanding balances owed. A portion of the balance owed to a
creditor may be written off. While this can create a negative event on
your credit rating, the long-term effects can be beneficial. This may
provide you with the ability to more easily pay off the balances on your
own by making regular payments to your creditors. In many cases, a
consolidation loan may be used in conjunction with settlement for
improved results. If you believe that you may benefit from debt relief,
contact DAGonDebt.com today to explore your options.

How To Find The Best Arlington Financial Services And Advisors

Posted by admin on September 24, 2015

Financial
services providers are those professionals who offer financial advice
addressing a client’s needs. With the ever increasing complexity and
demands of modern life in the Arlington, Virginia, area many people in
Arlington now seek professional guidance in order to create and secure
the future they desire. Because it is a broad industry, you will find
many financial services providers who are ready to help you. However,
finding the correct one ,the best one for you can be a challenging, even
intimidating task unless you go about your search in a logical way.
Today you will find a large number of sources you can use to locate and
screen Arlington financial advisors and find the best one for you. Let’s
have a look at some of the best sources that could help you find
Arlington financial services providers quickly and easily.

Browse Web Directories

Web
directories are one of the best sources. Online directories list many
firms segmented under different headings. You have the option of finding
various local Arlington financial services providers by searching
through categories pertaining to the types of financial services you
need. In such directories, finding the right financial services
providers is much easier because they are listed in a systematic order
followed by popular listings and featured listings. A good feature is
that they directly link to the sites of financial services providers so
that you can gather detailed information directly from the financial
services provider’s website.

Client Referrals and Testimonials

The best recommendations are referrals from people you know who have used a financial services advisor and liked him or her.

Another
way to find a good Arlington financial services advisor is to read
client testimonials. These are written by people describing their
firsthand experience with a specific financial advisor, thereby helping
you to make an informed decision. Testimonials often give you insight as
to a financial advisor’s services, rates, fees, experience,
performance, and other important factors. Testimonials will be found in
the financial services advisor’s website.

Social Networking Sites

There
are many social networking platforms where financial services providers
promote their business or services. Joining and participating in one or
more of these sites can help you find the right financial advisor for
your needs. Many of these networking sites feature options, like
communities or groups that can be a good source of information, reviews,
and referrals for financial services providers.

Business Listings and Reviews in search engines

Arlington
financial services advisors can be found by searching Google, Yahoo!,
and Bing. Caution: The top listings in search results don’t necessarily
indicate the quality of services and advice you may receive from that
business. Top placement in search results simply means the firm has done
a better job of SEO (Search Engine Optimization) than their
competitors. Use testimonials in their site and reviews posted at
various places online to help make your decision. To find reviews
online, go to any major search engine and enter “reviews for ——-”
and include the full name of the financial services provider’s firm you
are interested in. Search results will show you where their reviews are
currently posted.

Conclusion

These are a few proven tips
that will help you locate and decide on the best Arlington financial
services advisor for your personal needs. One last tip…Don’t select
your financial services advisor based on just email communication. Pick
up the phone and talk directly with the advisor who will be handling
your account. You need to feel good about that person, your financial
advisor, and that impression can only be obtained in-person, or
listening to their voice over the phone. It is almost impossible to
assess that very personal aspect through written communication only.
It’s your financial future. You need to have a good feeling about the
person you entrust that future to.

Debt Management Leads – Need of The Hour Seek The Help of a Pro!

Posted by admin on September 17, 2015

One inevitable factor is the changing market scenario. This means,
one should be prepared to ride the financial rollercoaster, not to miss
the rising inflation. The increasing inflation coupled with higher debts
leads to a financial crisis, one that many people in the UK face. Based
on statistical report from 2010, nearly 58% of the people in UK who are
in dire need to minimise or close their debts, turn to their friends or
relatives for help. However, today more and more people are seeking
professional help thereby leading to a rise in debt management companies
across the country. Two years ago, Mintel estimated the total number of
debt management plans to be somewhere around 600,000 with around 9
billion funds under management. This clearly states that market is
growing rapidly bringing us face to face with yet another challenge;
albeit a different one.

As mentioned above, many people still resort to
informal sources for help. Convincing the lot to turn to a Debt
Management Company for alleviating the crisis is the challenge. Mass or
bulk mailers will not help. So what will? ‘Qualified ‘debt management
leads’ is the answer! PPI reclaim leads or debt management leads that
have been verified and screened will help debt control companies reach
their prospects with more ease and efficiency. On the other hand, people
who are willing to seek professional advice will have help knocking at
their door instead of the other way round. This connection is best
established by a professional PPI reclaim leads provider.

Typically, debt management leads are generated involving tried and
tested multi-tier process that ensures a high conversion rate. Let us
take for example PPI reclaim leads. Data are collected with the help of
surveys conducted by a team of trained executives who pose some basic
question that qualify the lead.

“Do you have a minimum loan amount of 5000 taken in the last 6 years on
which you have payment protection insurance? If answer is Yes;”Do you
wish to be contacted by a debt control company?

If the answer to
both the questions is YES, they further collect the lead’s personal
information like name, address & telephone Number. The leads are
further audited for quality in terms of accuracy and completeness of
data. Some providers also include bespoke questions like “Do you possess
unsecured debts in the range of 5,000 and 15,000 liable to 2 or more
companies and are seeking professional help?” This helps to focus on a
specific target group. For more information on home insurance renewal
data or PPI reclaim leads please visit http://www.silverbirdmarketing.com.

An Introduction to Online Mortgage Companies for Best Home Loan

Posted by admin on September 12, 2015

Today, you can find many mortgage companies online that can provide
you a secure form of financial transaction so that you can avail the
best opportunity and manage your personal and professional needs alike.
Moreover, there are many prominent mortgage professionals available
online to ensure you that you get a perfect feasible solution to meet
your financial needs. For instance, if you are looking for the best home
loan lender that is going to surpass your expectations, then you must
search online for the reliable and top service provider. There are many
online mortgages companies who can provide you innovative yet flexible
solutions to meet your financial goals. Whether you need the security of
a fixed rate loan or for any other purpose, they can provide you
services that will definitely meet your expectations. These companies
will also help you to take your decision wisely.

Moreover, you must search for the company that can
provide you best financial services with lower interest rates when
compared to other service providers online. Whether you are buying a new
car, purchasing a dream home, want to pay off your debts or want to
fulfill any other dreams or aspirations, Mortgage Company can help you
while providing you the right loan program to meet your specific needs
and demands. In addition to this, companies keep all your personal
information secure and private. Apart from mortgage services, these
companies provide latest quotes to their clients along with the mortgage
calculator and fast approval of applications.

Therefore, if you
are searching around the best home loan mortgage lender, then there are
few important tips which you should keep in mind. For example: if you
are searching on the web for a mortgage company, then it is imperative
to choose a good lender that specializes in high risk loans. Choose
online mortgage company to apply for a loan application. They maintain
good connections with various lenders and are acknowledged with multiple
loan programs designed to help individuals to meet their specific
requirements. Mortgage companies will deeply understand your needs,
thoroughly examine your quotes and match you with the best loan program.

So, before applying for loans, you must compare the mortgage rates
offered by different companies. If you are interested to buy a new home,
you can take help form online mortgages companies to use calculator to
get the best mortgage rates. Using an online calculator, you can easily
and conveniently compare the rates offered by different lenders. Also,
online mortgage company will enhance your knowledge about the terms,
conditions and policies that you might need to apply for loans to assure
no financial stress. To find the most reliable company, browse over the
internet today.

A Collector Calls You About an Old Debt – What is The Solution

Posted by admin on September 9, 2015

Problem:

I
was severely ill for several years. I could not work for medical
reasons. I had a few debts. The debt amount was more than $100,000. It
was not possible for me to pay off the debts because of shortage of
funds.

I filed bankruptcy to get rid of the debts. I filed
bankruptcy on 20th March 2000. I received bankruptcy discharge on 24th
July 2000. I was relieved to know that debts were finally paid off.

I
received a collection call in the last week. The debt collector told me
that I owe $5480 on a certain account. When I told him that all my
debts were discharged through bankruptcy, he flatly refused to believe
me. He told that this particular account was not included in bankruptcy.
I am at a loss. I live on Social Security pay-checks. What can I do in
this situation?

Solution:

A debt
collector can call you regarding a debt. He can call and claim that you
owe around $50,000 to them. This does not imply that you’ll pay $50,000
to the debt collector. Rather, you should ask the debt collector to
validate the debt in writing. As per the federal laws, the debt
collectors are required to prove that the debt is legitimate within 5
days of initial contact.

When
the collector will validate the debt, he’ll have to specify the debt
amount and the creditor’s name. The collector also has to state in
writing that you’ve the right to dispute the debt within 30 days.

If
you get a call regarding the debt yet again, then ask the person to
reveal his identity. Ask the person to state his name and the contact
details of the collection agency. Note down the information on a paper
and send the request for a validation letter in writing. If the debt is
really too old, then I don’t think that the collector will be able to
validate the debt. He has most likely lost the relevant documents.

The
collector has less chance to collect the debt. There is a simple reason
behind it. The debt is 12 years old. It has most likely crossed the
Statute of Limitations period in your state. This means you’re no longer
legally responsible for the debt. The collector can’t file a lawsuit
against you with the help of an attorney. In such a circumstance, you
don’t need to take any steps to make payments to the collector.

If
the debt was within the SOL period, then I would have advised you to
take advantage of the debt plans and pay off the account. However, the
situation is completely different in your case. So, you can very well
tell the collector that the debt has crossed the SOL period in your
state and you don’t have any inclination to repay it.

Finally, if
you’ve no problem, then inform the collector about the source of your
income. Tell that you’re living on the Social Security pay-checks, which
can’t be garnished by any means. If the collector pays no attention to
your words and calls you every other day, then just don’t pick up the
phone.

Low Risk Borrowers Favored in the Mortgage Market

Posted by admin on September 9, 2015

Low risk home loan borrowers who have a mortgage at a low loan to
value, so that they have significantly more equity in their homes than
the amount they have borrowed, are the main beneficiaries of the record
low interest rates currently available in the UK. This low rate
environment in the current mortgage market means that home loan lending
is rising.

In addition to the low rates available (due to the
Bank of England’s base rate holding at a mere 0.5 per cent for nearly 5
years), there has also been increased competition between lending
institutions and two government schemes to encourage lending. These
facts have led to some of the lowest mortgage rates the UK has ever
experienced. But the benefits of this low rate environment are really
only available to the low risk borrowers.

High net worth mortgage clients benefiting from some of the lowest mortgage rates ever

With the UK governments Funding for Lending and Help To Buy schemes
offering banks and building societies access to inexpensive funds they
are able to offer some genuinely low rates, especially for high value
mortgage borrowers who are perceived as low risk.

It is these
high value, large mortgage borrowers with low ‘loan to values’ that have
benefited most because the most competitive mortgage deals are reserved
for those with a deposit of 30 percent or 40 per cent; a level that is
plainly unlikely to be available for young first-time buyers. The real
winners in this situationare the relatively small numbers of potential
home buyers who fall into the low risk category of lending.

Given that first time buyers are the life blood of the property market,
this situation cannot continue forever without further damage to the
already stagnant market. There will come a time when the lending
criteria imposed by banks and building societies will have to be
adjusted if they are to have any volume of business in the home loans
sector. There is an enormous potential market for first-time
buyersmortgages that is not being serviced while the few who are
fortunate enough to be able to borrow will see increasing competition
between lenders for their business. Loans at higher LTVs may soon start
to appear in greater numbers.

It is obvious that certain types
of borrower with plenty of equity and a high, secure income have seen
the cost of their mortgages fall significantly in recent years. Islay
Robinson, director of million pound mortgage specialist Enness Private
Clients believes that deals for borrowers with a 30 per cent to 40 per
cent deposit available have rarely, if ever, been lower. And, the
private banks and other non-traditional lenders thatLondonmortgage
brokers speak to on a daily basis have a keen appetite to lend to high
net worth finance clients.

For the mortgage market in the UK to
return to pre-credit crunch levels, these sorts of deals are going to
have to become available for first time buyers and those borrowers with
only 10 to 20 per cent of the purchase price available as a deposit.
Nevertheless, low risk, large mortgageborrowerswill continue to benefit
from superb deals.

Debt Management Tips – Balance Transfer Cards And Why You Should Get One

Posted by admin on September 8, 2015

If you’re one of the many people out there living under a pile of
debt from old, unpaid credit card bills, you need to act fast and
resolve the problem before collection agencies start calling you and a
debt collection lawyer in California files a case against you.

The debt you need to pay off covers the original
price of the item and the interest that comes along with it every month.
With each month that the bill goes unpaid, its corresponding interest
will also become higher and higher, hence why you will end up paying
more if you have overdue bills.

Balance transfer

To
stop a growing credit card debt, people often go to banks and ask if
they offer cards that have 0% promotional APRs and allow balance
transfers. Basically, this card pays off the existing credit card
balance by transferring the amount to the new card. Since the card has
0% APR for a certain time, it keeps the balance from growing.

The
cardholder will, however, be charged with a one-time transfer fee,
which is usually around 3% to 5% of the balance. Card holders have to
pay off a minimum fee every month, like all other credit cards, and can
use their balance transfer card as a regular credit card and charge
purchases on it.

Save money

First,
it’s important to understand that you’re looking for a transfer card
because you want to fix your credit problems and get rid of your
existing debt. You have to create a plan that will focus on minimizing
expenses, maximizing how much you make, and making sure that you
regularly pay your credit bill and aim to finish it off before the
balance transfer card’s promotional APR ends. You can also save a lot of
money with promotions that these balance transfer cards offer. Some
balance transfer cards will give you no transfer fees for the next few
months, which means that your debt is not going to grow if you transfer
it to the new card within that certain amount of time.

Save your credit score

Your
credit score has already taken plenty of damage from your previous
debt. Late payments will give you mark downs and will negatively affect
your credit score. It will become worse when you have a case from a debt
collection lawyer in California. By transferring your debt to a new
card and making sure that you pay off your monthly dues, you’re in a
better position to rebuild and repair your credit score.