Do You Have A Question About Real Estate, Mortgage, Insurance?

Originally posted 2009-02-03 11:10:28. Republished by Blog Post Promoter

I created this blog to answer your questions about <a href=”www.taylorbrownrealestatetalks.com”> real estate</a>, <a href=”www.taylorbrownrealestatetalks.com”>mortgage</a>, and <a href=”www.taylorbrownrealestatetalks.com”>insurance</a>. So, I need to hear from you.  What topics are you concerned about?  Is it short sales, foreclosure, how to prevent foreclosure, selling, buying, etc.    Click on the title and put your question in the comment sections to see your topic in the news of Taylor-Brown Real Estate Talks with 24 to 48 hours after you ask.

What Does Mortgage APR Indicate?

Originally posted 2009-12-02 05:00:48. Republished by Blog Post Promoter

This post is written by Steven Parker.  Steven Parker is a financial writer and contributor for the last five years.  He specializes in mortgage and real estate industry and has written many articles on mortgage, reverse mortgage, loan modification, foreclosure and many more.

Mortgage APR or Annual Percentage Rate helps you to assess the total cost of the loan in percentage. For instance, if your mortgage attracts a rate of 10%, it means that you will be required to shell out USD$10 for every USD$100 you borrow yearly. Borrowers usually try to get a mortgage loan that has the lowest APR.

Mortgage APR however doesn’t affect your monthly mortgage payments. This is because your monthly mortgage payments take into account the interest rate and not the mortgage APR.

What does mortgage APR include?

The APR includes the following in its calculations-

• Pre-paid interests
• Points
• Underwriting fees
• Loan processing fees etc.
• Fees for preparing documents
• Private mortgage insurance

In addition to the above, under certain circumstances, the following fees may be included too. They are –

• Credit life insurance
• Loan application fee

Fees excluded from APR calculation

The mortgage APR doesn’t take into account the following types of fees in its calculation-

• Appraisal fees
• Notary fees
• Attorney fees
• Transfer taxes
• Fees from Escrow and Title
• Credit Reporting fees
• Recording fees
• Home Inspection fees etc

In other words, the mortgage APR helps you to find out the amount you have to pay as closing cost. It is mandatory as per Federal Truth in Lending Laws that the lender has to disclose the mortgage APR to the borrower.

It is important that you compare the rates from lender to another. You can also compare the Annual Percentage Rate online. It helps you to shop around for the correct deal. It is also important to remember that getting a low mortgage APR doesn’t necessarily mean that you are getting a good deal. Read the fine print before signing the agreement when you opt for a mortgage.

What is a Loan Modification?

Originally posted 2009-04-19 12:25:51. Republished by Blog Post Promoter

Recently, I read an interest article that explain President Obama’s loan modification program.  The article gives in depth details of how the loan modification program is design to help homeowner who are both behind and homeowners who interest rate may have adjusted because of an adjustable rate increase.    

The article further goes on to explain potential problems with the HAMP program.  HAMP stands for Homeowner Affordiablity and Stabilization Program.  Read the article by clicking on the link above or http://mortgagemeltdown.typepad.com/my_weblog/2009/03/guidelines-for-obama-loan-modification-program.html

Read This:

I’d like to finish this post with a link to another post where I address whether a loan modification is possible.  It is titled A Loan Modification is WIthin Your Reach. 

In this post you will learn the common myths about a loan modification and how you can overcome them.

Another post that is a must read is about your Indy Mac mortgage.  It is titled Loan Modification is Made Simple.

In this post you will learn about Indy Mac’s loan modification and how to apply for it.

There Is Hope For You If You Have Bad Credit in Getting a Mortgage

Originally posted 2009-10-24 17:01:46. Republished by Blog Post Promoter

Has mortgage lending freed up? The answer is a resounding, no.

 

At the end of 2008, banks, consumers, buyers, and sellers found themselves wondering if they could buy or sell real estate.

 

I, too, had several clients that could not close their deals due to the credit tighten.  Six months later, there still are only a few resources for individuals with credit issues.  One such company is http://www.advantagehomerates.com/.

 

The company also has great information that will help you understand:

• what a mortgage is
• what the tax advantages are to owning a home
• what closing cost is and what it covers

To find more articles that will help explain mortgages, visit http://www.advantagehomerates.com/tutorials.php.

 

It is important, though, for the potential buyer to understand that the credit score that is necessary to get a loan is 620, but when there are extenuating circumstances like medical disaster and job loss.   A buyer can qualify for a loan with a lower score.  To qualify under the extenuating circumstances, you must have a strong income, assets, or job history.  

 

Advantage Mortgage specializes in the type of loans necessary for an individual who have the above mention extenuating circumstances. 

 

Another criterion that a potential buyer must satisfy is that of income.  The buyer must have a two year employment history in the same line of work.  If you are self employed, then you must provide your income tax paperwork or W-9.   For more information on how Advantage Mortgage can help you visit http://www.advantagehomerates.com/self.php.

 

The chances for self employed individuals are how they get paid.  For instance, as a real estate broker, I get paid when the deal closed.  If the deal does not close, I do not get paid.  I still, however, have bills that need to be paid.  Those bills may be paid late as a result of the delay or lack of payment as a result of this lender is reluctant to lend to self employed individuals like myself. 

 

It does not mean that I or any other self employed person will not get a loan, but what it does mean is that I have to provide evidence of the income.  The self employed person will have to provide two to three years of income information as well as, monthly business expense reports and revenue statements.  The latter is termed as risk.  Risk means that the mortgagor or buyer may not pay the payment on time in accordance with the terms of the mortgage.   As a result, the interested charged on such a loan is higher.

 

Advantage Mortgage offers two different types of loan options for self employed individuals:

• stated income mortgage loan
• interest only mortgage loan

 

Be careful with the interest only loan because the interest is adjustable.  An adjustable interest rate has a lower interest rate and an upper interest rate.  For instance, you can get the loan started with a 5.75, but when you are late it can adjust to 8.75.  If you are continual late it can adjust to its max of 15 percent.  There it is important to understand what the payment will be at the lower interest rate as well as the higher interest, so that you can ascertain whether you can afford the loan.  Another important fact about an interest only loan is that the non-amortized.  Non-amortized means that the principal amount of the loan does not decrease as you pay your payment.  The advantage, though, is that you pay a lower amount each month.  However, the interest only loan has a maturity date.  When the maturity date is reached the full principal amount is due. 

 

The stated income mortgage should be used as a last resort in purchasing a home because of the higher interest rates that can be charged.

 

If you plan to purchase a home and you are self employed, save twenty percent or more for the down payment and closing cost.   Get your business established to the point that income is coming in on a regular basis and keep good bookkeeping/accounting records.

 

Another option for financing is FHA/VA financing.  Advantage Mortgage  helps a buyer qualify for the FHA/VA loan visit the following website for more information at http://www.advantagehomerates.com/fha.php .

 

For the FHA loan, the down payment is less; however, be prepared to pay as high as ten percent down.  The home will have to qualify because it is inspected by an FHA/VA appraiser who is looking for a good roof, electrical, plumbing, etc.  

 

When thinking of purchasing a home it is important to get the mortgage first, so that you will know how much home you can afford to buy.  Advantage Mortgage offers several options for you to qualify for that loan visit there website to apply at http://www.advantagehomerates.com/application.php.  

 

 

 

 

Mortgage Interest Rate – Latest News

Originally posted 2010-01-16 05:00:01. Republished by Blog Post Promoter

The latest news in mortgage interest rates is revealing suprising results:

The Financial Blogger » Blog Archive » What Will Happen With …

Since the beginning of 2008, Canadian home owners have been fortunate to benefit as the Bank of Canada dropped its interest rates lower and lower until its hovers near the floor with a 0.25% overnight interest rate. …

BloodhoundBlog.com | Principal Reduction Or Interest Rate Decrease …

National real estate industry marketing and technology blog written by, for and about real estate professionals. Realtors, lenders and professional investors come together to provide expert analysis of real estate marketing and …

Mortgage Interest Rate Predictions For 2010 | Latest Finance News

To truly benefit from a mortgage refinance, the new interest rates must be lower than your previous rate. With the housing market in the condition it is, and.

The Mortgage Interest Rate Lock Advisory for Cape Cod MA for …

Articles and Blog Posts About the Mortgage and Housing Market on Cape Cod.

Improve Your Credit Score – Lower the Interest Rate on Your Loans …

Improve Your Credit Score – Lower the Interest Rate on Your LoansSubprime Blogger (blog)By having a low credit score, under 650, you are going to find that the interest rate on most of your loans is very high. To combat this your goal …

Top 3 Ways to Reduce Your Homeowner’s Insurance

Originally posted 2009-01-26 09:24:21. Republished by Blog Post Promoter

The premium for home owner’s insurance is influenced by your credit and the replacement cost for the home.  Since your home owner’s insurance can be part of your mortgage payment it is important to know ways to decrease the premium to lower your  mortgage payment.   There are three ways to decrease you home owner’s insurance:

• Since it may take some time to improve your credit, a reduction in replacement cost is one way to decrease your home owner’s insurance.  Some insurance company can decrease your replacement cost to 80% of the replacement cost.  For instance, if the replacement cost is $100,000 it can be decreased to 80,000 as long as it is enough to pay off the mortgage and help you start over if the home is total loss.  Incidentally, this is not recommended for a long term solution to the increase in mortgage or insurance premium.
• Another way to decrease your premium is to increase your deductible.  Remember on homeowner’s insurance you do not pay the deductible before a claim is paid it is simply deduct from the claim.
• Still yet another way is to decrease your liability coverage.

There is an often overlook way to combat an increase in premium that is to find out what your home owner’s insurance when it is three months before your one year anniversary of the purchase of your home.  Your insurance agent should have your renewal premium amount.   If it is more than one hundred over your previous year premium shop for new insurance by calling other companies and get quotes or ask for the above changes to your present premium.

“Surprise, Surprise, Surprise” Loan Modification Working for a Triple Profit for One Bank

Originally posted 2009-05-11 05:00:54. Republished by Blog Post Promoter

Ocwen reported a triple net income for its first quarter after servicing some of its defaulted mortgages.  The company states that prior to servicing its trouble mortgages it had over 20.8 billion dollars in non-performing loans, and this figure is up from 40.2 million in non-performing loans at year’s end.

Not only did Ocwen do a record breaking 20,651 loan modifications, it also reduced expenses by 18 percent.

The report from Ocwen comes as a result of the company implementing President’s Obama’s Home Affordable Modification Plan.

In additon to implementing President Obama’s plan the company also started a servicing arrangement for its high risk loans with Freddie Mac.

As a direct result of these changes in Ocwen’s business, the company is now proud to report an increase of profit of 49 million in April alone.

The success of Ocwen goes to show us, “Yes We Can”

Was Your Foreclosure Legal?

Originally posted 2009-01-07 10:00:10. Republished by Blog Post Promoter

In the state of Illinois for a foreclosure to happen the lender must follow certain legal steps.

Thirty days prior to the enty of judgment of foreclosure, the owner and all person who have interest in the property will be given notice of the foreclosure.

Then, the lender must initiate a foreclosure complaint or counterclaim and at the same time the foreclosure complaint or counterclaim is entered a constructive notice is sent to all persons claiming interest or have a lien on the property.  The court gathers the information on who has interest or liens on the property from public record and title records. 

The constructive notice has to display the plaintiff’s or plaintiffs’ name, the case number, the court where the claim was filed, the names of the owners of record, the legal description of the property, the address of the property and a description of the mortgage that is being foreclosed on.   All the ladder information has to be correct.  If it is not challenge, the information by filing a response to the complaint.   The response must be filed at the court that the complaint or counterclaim was filed.  It also must be filed within 23 days of receiving the notice. 

If any of your rights are violated during the judiciary process of your foreclosure, you can file a complaint with the Judicial Inquiry Board.  This board is an independent agency that consist of four non-attorneys and three attorneys and two judges.  The primary job of this board is to investigate complaints about the judicial process and determine if futher investigate is necessary.  To find out more about the Judicial Inquiry Board, please visit http://www.state.il.us/jib/faq.htm

Once the judicial process is complete, the notice of sale is done.  The notice of sale must include the following information: 

• the name of the owner and all persons who have interest in the property
• the address and phone number of the owner and all persons who have interest in the property
• a description of the home and all improvements
• the time and place for the sale
• the case title and number and court where the foreclosure proceeding were held
• terms of the sale
• the times specific in the judgement

The sale must be post for three consecutive calender weeks (Sunday through Saturday)  at least one time during each of those three weeks with the first notice to be published not more than 45 days prior to the sale.  The last notice is to be published not less than 7 days prior to the sale. 

The notice of the sale can be listed in the newspaper in the legal section, but it must be listed in the county in which the property is located to be concerned proper notice.  It can also be advertised in the real estate section of the newspaper.  In addition, the court also instructs the lender which newspapers and other publications that the notice must be listed in to fulfill the public notice of the sale. 

In addition, the lender must also give notice to all parties to include the owner and even all parties who did not show up for court who may have interest in the property.  The notice must be given in the manner that the use for service of papers which may include a sheriff or courier notice.  This notifications by mail or courier shall take place in addition to the newspaper notice and shall be done at no more 45 days and not less than 7 days prior to the sale. 

No other notice is required unless the court orders or rules differently. 

The successful bidder shall receive a receipt of sale along with a description of the real estate purchased.  The receipt will show the bid amount, the amount paid, and if necessary the amount still remaining to be paid.   An additional receipt will be give if necessary when the remaining amount is paid. 

Upon full payment, the purchaser or bidder will receive a certificate of sale.  The certificate of sale is recordable.  The certificate of sale will have a description of the property sold, the date of the sale to include the location of the sale, and the amount paid.    The Certificate will further indicate that the sale is subject to court verification.    The recording of the certificate is also required by law under Section 12-121. 

Once recorded and verified, the certificate can be assigned by endorsement. 

Even in a foreclosure proceeding you have rights, please make sure yours was not denied.   The simply fact that the foreclosure was filed is not a violation.  If the payment have not been made as agreed, the foreclosure can be filed according the guidelines set forth in the note.  Most mortgages will default after three consecutive missed payments and then the full amount is accelerated to be now due.  However, if you get back on your feet before the foreclosure proceeding is filed which can take up to 6 months to 9 months after the last missed payment, you can contact the loss mitigation department for your mortgage company to get your payments back on track.  There are options, but you must call the lender’s loss mitigation department not the attorney to exercise your right to redemption if you are financial able to prior to the foreclosure proceeding.

Today’s Mortgage Rates

Originally posted 2011-08-23 11:14:11. Republished by Blog Post Promoter

Loan Type	Rate	APR
30 Year Fixed	4.12%	4.33%
15 Year Fixed	3.38%	3.64%
5 Year ARM	2.88%	3.14%

Related articles

• Mortgage rates set ALL NEW record low (hsh.com)
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Did You Know Your Mortgage is a Closed End Loan?

Originally posted 2008-11-30 07:59:21. Republished by Blog Post Promoter

  

Did you know that your mortgage is a closed end loan?  What is a closed end loan, you ask?  A closed end loan is a loan that has limitations because the money paid in cannot be withdrawn.  Meaning that once the money is received by the lender it is paid on the balance owed and equated into an equity position in your home.  Equity is the different between what you owe and how much the property is worth.  The lender will apply a full scheduled payment.  If you desire to pay toward your principal you must specify that the money needs to be applied to the principal.  Oh, by the way, you must be current on your mortgage to be able to pay on your principal balance.  Remember, the lender is in the business to make money so if you do not instruct the lender, where to apply the extra payment they will apply the additional money to, you guessed it, interest, because that is how lender makes money.  Interest, of course, is the rent that you are paying the lender to borrow their money to get your home.

The closed end loan is driven by an amortization schedule.  This amortization schedule does not move at the speed of light.  It moves the opposite slower than a snail.  Hence, taking 30 years to pay it down.  Before we go any further, I feel you need to understand what an amortization schedule is.  It is the blending of loan payments showing the principal and the amount of interest that you are paying each time you made your scheduled payment.  Why, you ask?  Let examine.  If your mortgage payment was $2,000.00 a month.  You will pay only $199.10 to principal and a whopping $1,800.90 to interest in your first month.  The second month, the amount to principal will increase by only one additional dollar, so for every month that follows there is only one more dollar applied to the previous months principal payment.  That’s right one dollar.  For instance, month two the principal payment is 200.10, month 3 $201.10, month 4 202.10, etc.

Another interesting thing about a closed end loan is the interest charges are from the principal balance at the end of the month.  In other words, the interest paid is for the next month not the month that the bill is due.  The interest is a pre-determine amount.  Meaning it is calculated daily but applied to the month end principal balance.  Now, this does not effect daily interest in the month the payment is receive, but effect the following month pre-determine amount.

It is should be easy to see that in order to reduce the choke hold that the lender has on us through our mortgage we must reduce our principal balance.

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