The federal government recently unveiled new rules and regulations that are meant to strengthen oversight of the mortgage lending industry, protect consumers from fraud and predatory lending practices, and ensure that the catastrophic subprime mortgage crisis is never repeated.
(more…)
Loan to Value or “LTV” is a term used by mortgage lenders to refer to the amount of money they are willing to loan to customers who put up real estate or other assets as collateral. LTV is a ratio or a percentage; in other words, of what a bank will loan compared with what a borrower’s property is worth.
(more…)
Here are five expert tips on how to navigate the current credit crisis to ensure success when applying for a mortgage.
(more…)
A HELOC or home equity line of credit is a kind of second mortgage that behaves much like a credit card. The line of credit is established based upon the value of your home, so the more equity you have in the property the more money you can borrow. You borrow what you want, when you want it, and pay interest on your outstanding balance. After repaying the balance your line of credit is reinstated so you can borrow it again in the same way. Usually HELOC loans carry not extra fees and they offer rates that are cheaper than those associated with credit cards.
(more…)
There are two types of credit that you can apply for: Installment credit and Revolving Credit. In an installment credit you get a loan for pre-determined period of time at a pre-determined interest rate with pre-determined payments. A good example of an installment credit would be your home mortgage. (more…)
Full Doc, No Doc, Stated/Verified… Sometimes the documentation requirements for a loan can be very confusing. What these basically mean is the type of documents required by the lender to apply for a loan.
(more…)
On the surface, condos may appear to be no different than other homes or apartments. But the legal definition of a condominium is significantly different from that of a typical single-family home, and buyers should be aware of these differences before buying a condo.
(more…)
In the wake of the worst mortgage crisis in USA history, lawmakers and consumer rights groups are forging ahead with proposals to more tightly regulate America’s mortgage brokers. Mortgage brokers are different from traditional loan officers because rather than simply working for a single bank or lending company they represent numerous lenders. Their job is to help find the best rates and loans for their customers by doing the background research and comparison shopping required to find those loans, and the best mortgage brokers work with a reliable network of lenders that are capable of providing competitive loan packages and interest rates.
(more…)
Most people know that foreclosures are the bargain basement buys within the real estate business. But buying a foreclosure can also involve huge risks, especially for those who are not knowledgeable about the process and the major legal responsibilities that taking ownership of a foreclosure entails. REO properties, however, offer many of the same discounts without the inherent risks, and you can buy them just as you would any property listed with a real estate broker. You don’t have to show up at an auction with a cashier’s check; you have a chance to conduct inspections, and you can pay for an REO with a regular home mortgage.
(more…)
In 2007 the word subprime suddenly went from being a seldom-used mortgage industry term to a commonly known household word. The notoriety happened because subprime loans caused severe turmoil in the mortgage industry and led to historically high rates of real estate foreclosures. But even though most of us now understand the negative effects from subprime loans, we may not be familiar with the actual meaning of this category of mortgages.
(more…)