Consumer Rights,Finance,Make Money,Online Investments

Archive for the ‘Mortgage’ Category

With all the shakeup in the Mortgage Industry you would think that other than savvy investors or the very rich dabbling that in real estate or even buying your dream home would be out of the question now. While thats not quite true, the rules have changed and the qualifiers are more exacting than they have ever been but the availability of Mortgages is growing and the options list is expanding again.

Those seeking a Seattle home mortgage have a number of options. And speaking of numbers, your credit score number is now more important than ever. The team at Eastside Mortgage Professionals will immediately point out the fact that Seattle Mortgage rates are directly tied into your credit score number. The old magic number of 680 used to open the doors to the best credit rates and terms. That number is now 740. The levels between 680 and 740 are now tiered with numerous fee increases.

Seattle home mortgages can still be had with credit scores lower than 680. The FHA liberal loan policy allows credit scores at 600 to qualify but the pricing penalties rates soar again at the 640 level even with FHA underwriting of Seattle mortgage rates.

Because of this new and renewed significance in your credit score it is important that you work with a mortgage broker like Eastside Mortgage Professionals who also provide credit counseling and rebuilding assistance. In fact seeing a professional firm with combined skills before you look at your first house is a great idea. Many minor credit score fixes can be done in days but major rocks in the road could take months. So start you Seattle home mortgage shopping early to allow for score repair, it worth the numbers now more than ever.

This article written by Phillip Thow

Can you remember the happy moments that you get during your childhood? Of course there will so many experiences that can make you smile again when you dig your memory during the early years of your life. Some people can refer the first happy moment when they get the first birthday present from the parents. Some others enjoy a lot playing basketball in the lawn with their siblings. Yet, so much enjoyable moments occur in our parents’ home? That is probably the main reason why when we think of a home, we will feel the sense of security and comfort both from the actual building and from the situation that was built by the relationship between the members of the family.

Now that you are also ready to make your own family, what kind of home you would like to possess? Do you still have some issue to be considered related with financial arrangement? If, yes you do not have to worry because of two reasons. First, you are not alone. Second, there are plenty of ways to you in your own cozy home. From the internet you can have some precious info, for example like in Mortgagecalculatorsandrates.com. The website provides the basic knowledge in FHA Mortgage Loan Guidelines. Besides that, you can also use the service of applying the FHA Mortgage Calculator from the site.

FHA Mortgage loan is the federal assistance mortgage credit insured by the Federal Housing Administration. This kind of loan can be issued by any lenders that are qualified by the federal.

What is a Bridging Loan?

A Bridging Loan is short term funding to provide temporary financing until more permanent finance can be found. Bridging Loans are available for a whole range of financial requirements and can be on the basis of a 1st, 2nd or even 3rd charge equity release, usually provided for any legal purpose.

Examples: 

Commercial & Residential Purchase Commercial & Residential Refinance Auction Purchases Capital Raising * Chain Breaking Refurbishment Speculative Deals Business Cash Injection Defective Property

 

* Capital raising funds can be used for many reasons including holidays, overseas property investment and tax bills etc.

Security 

Residential Property Commercial Property Land (with or without planning permission in place) Real Property (such as Plant machinery)

 

Bridging Loans carry a higher interest rate than standard mortgage lending and at the offer of loan stage there will be an agreed term of repayment, normally between one day and two years.

Bridging Loans are most commonly used when the financing requirement is urgent and beyond the timescales that a standard mortgage lender or bank could provide. In some cases Bridging Lenders can provide funds within 24 hours. Another common use of bridging finance would be to fund the purchase a new home prior to the existing property being sold.

Characteristics 

Bridge loans will almost certainly carry higher fees which can include: 

Administration Fees Arrangement Fees Legal Fees Completion Fees Valuation Fees Exit Fees ** Broker Fees (normally non-disclosed)

 

** A fee charged to redeem the loan, typically equivalent to one month’s interest payment.

As most bridging Loans are not regulated by the Financial Services Authority the above fees can vary substantially as they fall within no boundaries or guidelines, only competitive pricing.

Application 

Bridging Lenders will consider loans to discharged bankrupts and clients with adverse credit such as CCJs and IVAs. They will lend to individuals as well as Businesses, Ltd Companies and tax efficient vehicles such as SPVs.

Variations 

Bridging Loans are split into two main categories:

Closed Bridging Finance 

At the time the funds are drawn down there is a firm exit in place to repay the loan normally within a short period of time. The most common use of Closed Bridging Finance would be the pending sale of an existing property on which contracts have been signed and exchanged/missives concluded

Open Bridging Finance

At the time the funds are drawn down there is no fixed exit or repayment method for the lenders comfort, only an agreed maximum term that the loan can run for. Seen as higher risk than closed Bridging Finance it is therefore more expensive.

Other forms of short term finance:

Mezzanine Finance

Often a combination of debt and equity stake which is typically used to finance the expansion of existing companies. To secure mezzanine finance the business would normally have to demonstrate a track record in the industry with an established reputation and product, a history of profitability and a viable expansion plan for the business (e.g. expansions, acquisitions, IPO).

Lenders

There are over 20 Primary Bridging Lenders in the UK that are able to lend their own funds and therefore set their own criteria of risk.

Private Financers

Should Bridging Lenders decline to lend, Private debt and equity financers can be sort to provide funding for the examples above. This type of finance is normally very expensive.

Specific Uses

Bridging Loans can be used as a Below Market Value (BMV) purchase instrument where the initial purchase takes place at the lower purchase price allowing a subsequent refinance application to be placed with a mainstream lender for borrowing based on the Open Market Value of the property with the purpose of releasing the difference in equity between the purchase price of the property and the higher resulting remortgage loan.

Costs

Bridging Loans typically cost between 1-2% per month. Variable rates with margins over Libor can sometimes be applied as an alternative or an addition.

Find an Independent Bridging Finance Broker to give you all the available options.

 

The Mortgage Consumer’s Bill Of Rights was conceived and written by Franklin Raines, President of the Fannie Mae Foundation. The Mortgage Consumer’s bill of Rights was designed to lay down a set of guideline for lenders to follow that allow more Americans to become homeowners, and to allow potential home buyers access to see what information is used when factoring their eligibility for a mortgage.

A total of $2 trillion over the course of a decade, has been set aside to ensure that the goals of the Mortgage Consumer’s Bill of Rights are realized.

The Mortgage Consumer’s Bill of Rights adheres to the strict belief that all Americans should have equal access to mortgage availability. One of the Bill’s main goals is to eliminate discriminatory lending practices.

These practices have led to a serious gap between home ownership by the various racial and economic classes. Fannie Mae strives daily to close this gap and make home ownership available to everyone; regardless of their social status, race, or creed.

The Mortgage Consumers Bill of Rights gives you the right to know exactly what you are paying for. Most mortgages include the various fees involved in buying a home, such as: down payments, appraisal fees, PMI (private mortgage insurance), interest, and closing costs.

Knowing exactly what percentage of your monthly payments will be going toward these fees, and what percentage will actually be applied to your principal amount should always be considered before choosing a lender.

You have the right to qualify for special, low rate mortgages. There are numerous programs available to potential homebuyers of all types, from first time buyers, to women and minorities. Fannie Mae is a very popular option for those who have been turned down by other lenders due to lower income, less than perfect credit, or social station.

The Bill also hold to the tenet that all homeowners have the right to be free from unnecessary government intrusions such as regulatory fees, and undue paperwork – which is an intrusion of your time. You must still comply with zoning ordinances and building codes; this simply means that the government can not charge you exorbitant fees at closing time, or try to hinder the process of obtaining a mortgage in any way.

The Mortgage Consumer’s Bill of Rights states that, as a homeowner, you have the right to know exactly what is happening with your mortgage. Too many lenders will simply try to rush you through the process of obtaining your home loan. Don’t let them! You have the right to have every aspect of the mortgage process explained to you in simple, straightforward language that you can understand.

If there are any questions in your mind regarding your mortgage, be sure to have them clarified by your lender before you close the deal. Not taking advantage of your rights as a consumer could cost you a lot of money in the end if you decide you want to change your mind down the road.

Be sure that any lender you consider is knowledgeable about the Mortgage Consumers Bill of Rights.