kmm asked:


I am trying to understand secure bonds and I know mortgage bonds are secured bonds,if that is the case,even if they default ,the investor should get the prinicipal back.Can someone give an explanation of this works.

Jamie

Bunny D. asked:


Sub-Prime Loans: Stated Income (nothing to back it up), Interest Only, ARM’s, Balloons, and you quickly signed on the dotted lines that you would repay……………Why are they crying now? What did they think would happen if you “Bet on the Come”…..and the “Come does not Come, and Turns South.”….???? Was anyone at Home here? Why do they want our country to bail them out?

How To Install Vinyl Siding

buad0118 asked:


I am going to bid on a house at foreclosure and it has a 1st mortgage of $280K and a second of $70K. The lender on the first two mortgages is Decision One Mortgage. The lender at foreclosure is Countrywide. Does this mean that if I buy this house at foreclosure that I will own additional money to the second mortgage or just the first mortgage and back taxes?

Ryan

remo7 asked:


I would like to go to the public records office and find specific mortgage information. For example, what type of mortgage someone has.

Larry

Y? asked:


We are thinking of purchasing a house from my father. Instead of using a mortgage broker or bank, he suggested using a lawyer to set up monthly mortgage payments directly to him. We would still buy the house, and it would be in our names, not renting. How are payments like this calculated? Also, it seems this gives us flexibility and saves us money, but isn’t as secure. What are the specific down-sides to this?

Maureen

Erin Ryan asked:


In times gone by, there hasn’t been a specific type of mortgage known as a ‘first time buyer mortgage’. But, as property prices have raised so much in the UK over the last five years, leaving first time buyers out of the market, mortgage lenders have had to come up with some new and creative ways of lending to help people onto the first rung of the property ladder.

Ten years ago, first time buyer mortgages were easily calculated by simply multiplying your annual salary by two and a half. Nowadays it’s a lot more complicated than that!

Now there are hundreds of lenders offering thousands of first mortgages – all vying for your first time buyer mortgage business. Along with the competitive situation there are a great number of first time buyer mortgage deals to be had!

So, how should you go about deciding on your first mortgage?

If you have time and are fairly numerate, it’s possible to research the offering in magazines and on-line. You can compare first time buyer mortgages in terms of their promotional offers, costs, interest rates, fees, pay-back terms and how much the lenders might lend.

There are an enormous number of variables to consider. For that reason, consulting a mortgage broker or advisor can offer significant financial benefits. It is important to seek appropriate first time buyer mortgage advice. Probably of all the different types of mortgages, 1st time buyer mortgages offer the most variables - as the area has become more competitive.

Mortgage brokers or mortgage advisors who are independent will have access to and knowledge of all the mortgages on the market. They will not only know the differences between the lenders – how responsive they are, how flexible, how generous, but they will be up to date with the rates and offers. They will probably also be able to sell you other relevant ancillary products like life and property insurance should you need them.

When seeking first time buyer mortgage advice, you will find that many first time buyer mortgage advisors and brokers offer a free consultation, taking their earnings from the commission they earn when they sell a mortgage. Others will charge, possibly up to £800 for a consultation. You always have the right to ask how they are being paid.

Plenty of first mortgage information is readily available and in the public domain, in magazines or on the internet. If you want your mortgage broker to advise on a particular range of products that they feel suit your circumstances you will need to actively approve this. Offering mortgage advice is governed by the Financial Services Act and has to be carried out according to very strict guidelines and rules.

The main differences between mortgages are how much they cost and how you are charged. There can be quite a difference!

The main way in which the mortgage lender charges you for the loan is through interest payments. The interest charged is based upon the interest rates set by the Bank of England.

There are two main types of first time mortgages. The difference is determined on whether you pay for the interest and also pay back the loan, or just pay the interest on the loan. It’s a big difference that really needs to be understood when you are considering your 1st mortgage.

A repayment mortgage is one where you pay off part of the loan as well as interest on that loan every month. At the end of the term of the mortgage, usually between 25 and 35 years, you will have paid off the interest on the loan and you will have paid off the loan. The property will be yours.

With an interest only mortgage, you only pay the interest each month on the loan. Thus you are paying less out each month for your mortgage. You must be aware that at the end of the term, whilst you might have paid off the interest on the mortgage, you will still owe all the money to the value of the mortgage. With an interest only mortgage you will need to find some other way (typically some sort of policy) to pay off the mortgage if you want to own your home at the end of the term.

When you add up the interest you will pay on your mortgage you may be shocked to see what an enormous sum it is. There are ways of reducing it, the main one being by shortening the mortgage term when you are able to pay more into the mortgage each month. From two or three years after you take out your first mortgage, you should look into remortgaging.

There are also many other variables like fixed, tracker, discounted, variable, capped, offset - your first time buyer mortgage advisor will be able to help you choose between all the different 1st mortgages.

With the property crisis for first time buyers, the lenders have launched a number of first time buyer mortgages designed to help out. They often mean unconventional ownership options which will become more widely used as time goes by.

We have put together a list of popular first time buyer mortgages:

Guarantor mortgages: parents guarantee to pay your mortgage payments if you can’t.

Cash-back mortgages: purchase the house and receive a lump sum from the lender to pay some costs like stamp duty and furnishings.

Mortgages based on parents’ residual borrowing capacity: borrow more because your parents can help you with the payments.

Family offset mortgages: your family’s savings interest is offset against your mortgage interest.

Graduate and professional mortgages: bigger mortgages are offered to those who are dammed to have careers where salaires are expected to rise quickly.

Shared ownership mortgages: own part of a property, pay rent to the co-owner (usually a housing association) and get a shared ownership mortgage out for the part you are buying.

Extended term mortgages: start out with a repayment term of up to 40 years. It makes the monthly payments more affordable but you would pay a lot more interest overall if you didn’t shorten the term at some point.

High Loan-to Value mortgages: lenders might lend up to 130% of the value of the property. You start with negative equity but all your costs will be covered. These mortgages are only available to the rare few.

Joint mortgages: you team up with a friend or family member to borrow more, share the costs but have joint mortgage payment liability.

‘Renting a room’ mortgages: if there’s a spare room in the house, the rental revenue is taken into account when deciding how much to lend to you.

Rent to Buy mortgages: the amount of monthly rent you’ve been paying is taken as the account. It demonstrates affordability.

Shared appreciation mortgages: in exchange for a mortgage and an additional cheap ‘equity loan’ with which to buy a first home, you would have to give up some of the increase in value of your property to the lender when you sell it.

There are now so many options, the best thing to do is to seek first time buyer mortgage advice.

Annette

JV asked:


I’m a creditor whose debt is secured by a real mortgage. I’ve received recently a notice that the debtor has filed for bankruptcy under chapter 7 of the US Bankruptcy code. What will happen to both my loan and my mortgage? Will I be enjoined from foreclosing the mortgage? The insolvent debtor by the way is an individual, not a corporation. Please prvide legal basis.

Thank you.

Sheila

1st American Mortgage asked:


Comparing Colorado Jumbo and Conforming Mortgages

There are differences between a jumbo Colorado mortgage and a conforming Colorado mortgage and learning what those are will inform you about which Denver mortgage is the best for you. Information about your mortgage will help you as a customer, so you will be able to work out a fair deal with a lender when you are in the market for a Denver mortgage.

Jumbo & Conforming Colorado Mortgages Defined

There are two companies, named Fannie Mae and Freddie Mac that are empowered by the government to buy mortgages. Because of how they were created, Freddie Mac and Fannie Mae make the standards for the mortgage business. So they have decided what makes a conforming loan and what makes a jumbo loan.

The difference between a conforming loan and a jumbo loan is the size of the loan you are looking for. A conforming loan is the smaller of the two. The most expensive loans are called jumbo mortgages.

The boundary between the two different kinds of loans moves from year to year and stems from the mortgage and housing market. The line now for a Denver mortgage and Colorado mortgage to be considered a conforming loan is a price of less than $417,000 for a single family house with a first mortgage and an amount of $208,500 for a second mortgage. Multi-family properties will have higher limits. Any amount above this is officially a jumbo Colorado mortgage. The limit will be different in states outside of Colorado, but these amounts cover all of the state. There will be a change to the limits to Denver and Colorado mortgages because of the stimulus package.

All About Colorado Jumbo Loans

The amount of the loan is the key factor in determining if a Denver mortgages is a jumbo loan. The jumbo mortgage products in Colorado are otherwise just the same as a conforming loan. The loan terms can be changed in many different ways, including fixed rates, adjustable rates, and interest-only programs. All of it will depend on which program you sign up for when getting a Colorado jumbo mortgage loan from a lender

Don’t forget that since the market is so small for jumbo mortgages there will be a tighter rein on the qualifications. This is true of Colorado mortgages as well. Since the borrower is taking out such a large sum, they will have to meet such strict standards such as a higher credit score and lower loan to value ratios.

When you look at the price and the loan amount of the house you are interested in, you will be able to see whether or not you need a jumbo Denver mortgage or a conforming Colorado mortgage. When you know what type of loan you need, you then find a mortgage lender in Colorado who can work with you. As always, it’s best to work with a Denver mortgage lender who has experience making customers happy with their loan selections. The lender will work with you on finding the right home loan option, whether it is a conforming mortgage or a jumbo Colorado mortgage. In the end, you will be connected with the best product for you.

This article is written by J.B. of 1st American Mortgage and Loan, LLC, a Colorado mortgage lender who offers access to information on obtaining a Colorado mortgage loan as well as other information on loans inColorado online mortgage quotes, and rates through his website TrueMortgageQuote.com http://www.truemortgagequote.com).

Mark

Tml-mortgages asked:


Refused credit mortgages set to “grow and grow”
14/08/2006 16:25:00
The sub-prime and near-prime mortgage market is tipped to grow and grow following new research.

A survey commissioned by Alliance & Leicester indicates greater demand for refused credit mortgages could be forthcoming, with four in five brokers expecting the market to grow.

The top reasons for borrowers to seek out a sub-prime or near-prime market are defaulting on debts or credit cards payments or simply having a bad credit rating, the research found.

Figures indicate that Britons are increasingly struggling to manager existing debts, suggesting that the potential market for sub-prime mortgages could swell.

Around two lenders in five report that the typical sub-prime customer is likely to be struggling financially, with many on a low income.

More than 85 per cent of brokers also report that customers are now realising that a sub or near prime mortgage can help rebuild a poor credit score.

Mehrdad Yousefi, head of intermediary mortgages at Alliance & Leicester, said: This market is becoming increasingly competitive with more lenders offering these specialised mortgages.

It is encouraging to see that brokers say their clients know the value of these type of mortgages and that it is a good way of getting potential buyers on the housing ladder while enabling them to repair their credit history by maintaining regular payments on their financial commitments.

Datamonitor estimates that 9.1 million people were refused credit by mainstream lenders in 2005, further indicative of potential growth in the refused credit mortgage market.

Personal debt has already crossed the £1 trillion barrier and the rising insolvency rate suggests that borrowers are struggling to cope, indicating a growing demand for refused-credit mortgages in the future.

As traditional lenders were tightening their criteria, the refused credit market could prove ever more attractive and other high street lenders were also likely to start catering for those with a ’slightly lower credit profile’.

As more lenders capitalise on this growing market, the increased competition could see better deals for mortgage holders.

Debra

The House Team Of Mortgage Intellingence asked:


Just imagine  as you’re going through your favourite coffee drive-thru this week  that a well-dressed gentleman stops and offers you $11,000 for your medium double double. Who would hesitate? We’d take the cash. It’s not so far-fetched. In fact, if you take that coffee budget and apply it to your monthly mortgage payment  a mere $30 extra per month -you could save yourself about $11,000 over the life of your mortgage.

Most of us can accept the idea that we must borrow money to purchase a home. We look for the best mortgage, and then just keep doling out the money for as long as it takes to pay it off. Most Canadians choose to amortize their mortgage over 25 years. That’s a long financial commitment, and it could more than double the cost of your home. But with good planning  and a few smart tactics  you should be able to enjoy your mortgage-burning party much earlier.

Here are a few strategies for fast-tracking your mortgage:

1. Increase your monthly payments. Rather than choosing your amortization period first, ask yourself how much you can afford each month. For example, you may feel that you can afford $1,000 per month. You’re delighted when your $125,000 mortgage only demands an $800/month payment (at a 6% interest). But make a monthly payment of $1,000 instead, and you’ll shave 8.75 years and almost $46,000 off your total interest cost.

2. Take advantage of lower rates. In addition to reducing the overall interest component of your mortgage, you can take the opportunity to pay down more principal faster  simply by maintaining your original payment. You should even increase your payment if you can, to reap the benefits of the cheapest mortgage money in memory. Again, you could take years  and thousands of dollarsoff your ontario mortgage.

3. Tie mortgage payments to your pay schedule. Many Canadians are paid on a bi-weekly schedule. If you accelerate your payments to bi-weekly instead of monthly, you could improve your own cash flow and fit in an extra payment each year. That means that you’re paying off principal faster  leaving you with less interest to pay overall. It doesn’t seem like much but  like putting your coffee budget to work  the bi-weekly strategy can have you mortgage free four years sooner, with almost $22,000 in savings.

4. Use any bonuses, tax refunds or “found money” to pay down principal. This is especially valuable in the early years of your mortgage. If you receive an annual bonus or other lump-sum compensation, see if you can put it against the principal. An extra $1,000 per year is a great way to fast-track to mortgage-free!

5. Consolidate your loans into a new mortgage and use the savings to boost your payments. If you’re a homeowner with some equity, you can use your mortgage to consolidate your other loans: student loans, car loans, etc. Add the money you’ve been spending on loan payments to your mortgage payments, and you could see big savings in overall interest.

With ontario mortgage rates at historic lows, you should take the opportunity to get an expert mortgage analysis from an independent mortgage broker with access to mortgages from a wide spectrum of lenders. You’ve got a great opportunity to put some fast-track tactics in place. You’ll remember what a good decision you made at your mortgage-burning party.

Jessica