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Low mortgage rates are spurring the recent boom in home ownership
by Syd Johnson Anyone serious about buying a home has seen the recent ads offering low mortgage rates for first time buyers and current homeowners. One reason for this mass of offers is that most financial institutions now understand the economic importance of having home owners as a part of their clientele.The advertising for low mortgage rates is specifically designed to bring in customers who never thought that they could qualify for a home loan. Who are these customers in demand?Lenders...
Mortgage brokers can help you save time and mone
by Syd Johnson A good mortgage broker can help you search through hundreds of mortgage products, and lenders to find the perfect fit for your financial situation. The average buyer does not have years of experience in evaluating financial products and services.The average mortgage broker spends their entire day doing these types of evaluations and can point you in the right direction, for a small fee.Buying a home is a relatively short, one time activity that can be completed in as little...
You don t need 10 or 20 down to get a home loan
by Syd Johnson The rapid increase in home prices over the past couple of years have left many potential home buyers struggling to come up with their 10% or 20% down payment. If you live in a hot market like Los Angeles, Manhattan or Miami, you might be able to afford the monthly payments on a home loan but have a hard time coming up with the one time cash for a down payment.If you cant come up with a 10% down payment, home mortgage lenders are becoming savvy to your plight and have created...
Subprime mortgages A growing option for customers with bad credi
by Syd Johnson Subprime mortgage are home mortgage loans to consumer with poor credit histories. This category includes customers with late payments, foreclosures, bankruptcies and more on their credit applications. It also includes some first time buyers and people without a long credit file.If you are new to the country of for some other reason was shut out of financing for a while, you might not have enough information on your credit file about your spending habits, credit cards and more...
Anyone can get free mortgage quotes online
by Syd Johnson If you are looking a purchase a home in the near future you can get free mortgage quotes online and offline. If you have an existing relationship with a bank or credit union, you can contact their customer service department or walk into a branch office and speak with a loan officer. Once you provide some preliminary information, you will get a mortgage quote. This quote is not binding, but it is a great start when youre shopping for a home loan.Your credit history and...
How to get the best mortgage rates in any economy
by Syd Johnson Mortgage rates are intricately tied to the health of the overall economy as well as consumer demand for home loans. Two of the most important factors are the activities of the Federal Reserve Board and Fannie Mae. The Federal Reserve board sets interest rates for the overall economy and this in turn affects the type of mortgage rates that are offered to consumers. Fannie Mae buys your loan on the secondary market and this frees up the cash from mortgage lenders so they can...
Mortgage Consumer Bill of Rights
by: Syd Johnson
This bill of rights was laid out by Franklin Raines, president of Fannie Mae on January 15, 2000. The is a pledge fof $2 trillion over 10 years to help consumers gain access to home ownership. It also includes an Open Book approach to underwriting where customers can see all of the factors that go into evaluating their creditworthiness and the process of applying for a home loan.
One of the most ambitious parts of this plan is to bring more technology to the...
Get a biweekly mortgage or make extra payments on your own
? by Syd Johnson Consumers are more aware than ever of the advantages of a biweekly mortgage. This is a type of mortgage where you make two equal payments per month instead of one. A Biweekly mortgage is great because you end up making one extra payment per year. This extra payment will decrease your principal and over the life of the loan, decrease the amount of interest that you will pay for borrowing the money.For the average loan, the difference means that your 30-year mortgage will be...
What is an Assignment of Mortgage
? by Syd Johnson Most mortgages are sold at least once during the life of the loan. A mortgage company or your local bank will sell the loan to free up their cash and then lend out more money other home buyers. When the mortgage is sold of it is called an assignment. The party that bought the mortgage is now responsible for dealing with you the customer to make sure that all payments are made for the next 15, 20 or 30 years.An assignment of a mortgage is a bank to bank, or entity to entity...
Why should I get a second mortgage It s a good way to pay off high interest debt
Why should I get a second mortgage? It's a good way to pay off high interest debt. by Syd Johnson Second mortgages are basically any type of home loan that you take out while still making payment on the primary mortgage. This is not an arrangement to be entered lightly because you will end up paying a lot of fees and can rack up a huge debt that negates some of the progress you have made in paying off your original mortgage.Keep loan below Fannie Mae guidelinesOne of the most common reasons...
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