| ARMs to reset its rate, will increase above 6 percent | | Posted Sunday, February 04, 2007 3:02:56 PM by Blog57 Team | | Brian and Lisa Wilcock looked at mortgage interest rates four years ago, did the math and came up with a plan: Because they intended to move in three years, they'd refinance their 30-year fixed-rate mortgage into a three-year adjustable-rate mortgage (ARM) at a lower interest rate and save hundreds of dollars a month. It worked -- for a while. The lower rate shaved $375 off the mortgage payment on their Rochester Hills, Mich., home. But four years later, they're still in their three-bedroom, split-level house and have no plans to move. Their introductory rate of 4.37 percent reset last year, with a 1.25 percent cap that spared them the full brunt of the interest rate increase. But that's set to expire in April when the ARM resets to a rate that will likely be above 6 percent.... | |
| |
| | | ยท Squeeze more tax savings ... | | Posted Saturday, January 13, 2007 1:07:02 PM by Blog57 Team | | If youre planning to purchase real estate or refinance your existing home this year, you can thank your local congressman for a possible tax deduction. Based on legislation passed on Dec. 9, 2006, mortgage insurance premiums are now tax-deductible. This makes the American dream of home ownership more attainable for many families. Mortgage insurance has been an effective tool for first-time homebuyers and low-to-moderate income households. Benefits of this product include lower down payments and predictable monthly payments. As a result, homeownership has become available to a larger segment of the population. Prior to mortgage insurance, homebuyers had just a few options. They could secure financing with a Combo loan. These loans typically result in a riskier second mortgage.... | |
| |
| | | Second mortgage might be better than a HELOC | | Posted Thursday, January 11, 2007 3:06:43 PM by Blog57 Team | | Q . I owe $137,000 on a first mortgage at 6 percent and am considering a HELOC for home improvements. Most banks are offering interest-only loans. I'm wondering if this is a good choice or should I refinance the current mortgage to get cash out at 25 years? A . Although home equity lines of credit, or HELOCs, have interest-only payments in the early years of the loan, you can still make additional principal payments on the loan to pay down the outstanding balance. The loan is likely to have a prepayment penalty for paying it off too rapidly, but small amounts aren't likely to trigger one. The good thing about the HELOC is that you don't have to borrow the whole amount at closing. You can draw on the line as you need it, although it usually requires a draw at closing.... | |
| |
| | | 85045: Foreclosure country | | Posted Friday, December 01, 2006 1:08:12 PM by Blog57 Team | | Those mountain vistas, star-filled skies and expensive furnishings in Ahwatukee Foothills are coming at a steep price - sometimes of the home itself. Homeowners, many strapped with some of the highest credit-card debt in the Valley, are falling behind on their mortgage payments and facing foreclosure at nearly record rates. The problem stretches across the Valley but is especially prevalent in one Ahwatukee ZIP code: 85045, on the western edge and in the newer part of the community. .... | |
| |
| | | Quick guide on mortgage law | | Posted Wednesday, November 15, 2006 7:04:01 AM by Blog57 Team | | Ohio Attorney General Jim Petro in October filed newly proposed administrative and consumer protection rules aimed at clarifying what are fair and ethical mortgage lending practices as outlined in Ohio Senate Bill 185. The bill was signed into law last spring, but proponents call the measure watered-down. .... | |
| |
| | | Long-term mortgage pain | | Posted Monday, November 13, 2006 11:07:41 PM by Blog57 Team | | New home financing innovations, such as interest-only mortgages and mortgages with 35- or even 40-year terms, are making monthly payments more affordable and giving Canadian consumers more purchasing power. But what lenders and real estate agents arent talking about is the long-term interest costs on some of this apparently easy money, and the detrimental effects they have on the borrowers financial well-being. If clients are convinced home ownership is a surefire route to riches and are willing to borrow heavily to buy an expensive home or add a second property, it may be time for advisors to step in with a sobering look at the realities of interest costs and their negative impact on wealth accumulation. Its quick and easy to get a large mortgage these days.... | |
| |
| | | Congressional Agenda Likely to Include Mortgage Fraud and Predatory Lending | | Posted Sunday, November 12, 2006 11:04:48 AM by Blog57 Team | | The Democratic takeover of Congress will likely place key issues to Appraisal Institute near top of the agenda for several Congressional committees RISMEDIA, November 13, 2006The Democratic takeover of Congress will likely place a key issue of concern to the Appraisal Institute mortgage fraud and predatory lending near the top of the agenda for several Congressional committees, according to Bill Garber, director of government affairs for the Appraisal Institute. Garber offered the following insights on how real estate appraisal issues may be addressed during the 110th Congress. In the House, the Financial Services Committee is set to be chaired by Rep. Barney Frank, D-Mass., an experienced veteran of banking and real estate-related issues, says Garber. Frank has expressed concerns about predatory lending and mortgage fraud, both of which were heavily discussed and debated in the 109th Congress in the Financial Services Committee, but not resolved.... | |
| |
| | | New Mortgage Lender Rules Could Boost UK Housing Market | | Posted Friday, November 10, 2006 7:16:42 PM by Blog57 Team | | LONDON -(Dow Jones)- Changes being considered by the U.K. government to the way mortgage lenders can borrow funds could give a further boost to the U.K. housing market, an industry body said Thursday. Treasury minister Ed Balls earlier announced the government would launch a consultation to consider changes to limits on borrowing undertaken by building societies. The changes under consideration would allow the societies, which together account for GBP195 billion of outstanding mortgages in the U.K., to borrow more funds on wholesale markets. The cheaper borrowing that would allow would in turn potentially enable building societies to offer mortgages to homeowners at lower prices. "Taking these steps...will enable societies to raise more, generally cheaper, wholesale funding and facilitate the provision of cheaper and better products," Balls said during a speech at the Building Societies' Association annual lunch.... | |
| |
| | | Subprime and Second Mortgage Delinquencies Rising | | Posted Friday, November 10, 2006 1:17:35 PM by Blog57 Team | | Delinquencies on subprime and second mortgages packaged in securitizations grew in July at its fastest rate since 1998, according to a new Moody's report. Loans more than 60 days past due jumped to 7.23% from 5.90% a year ago. The rate of losses on securitizations jumped to 0.98% in July from 0.74% a year ago. Rising interest rates and slowing house price appreciation were the driving factors behind the increase in delinquencies. Click on "Read More" below for the full article by Bloomberg. .... | |
| |
| | | Further 10% growth expected for Canadian mortgage credit in 2007 | | Posted Thursday, November 09, 2006 7:26:23 AM by Blog57 Team | | Canadians have every intention of keeping up the feverish pace of mortgage borrowing, adding an expected $78 billion by the end of 2007 to produce a total mortgage credit valued at $808 billion, according to a report released today by the Canadian Institute of Mortgage Brokers and Lenders (CIMBL). The information was gathered by Pollara in a phone survey in late September and analyzed in conjunction with Canadian housing analyst and CIMBL economist, Will Dunning. Underpinning this growth in credit is the fact that 88 per cent of Canadians are satisfied with the terms of their mortgages, despite interest rate increases over the last year, as determined by CIMBL's fall 2006 survey. Also supporting a projected 10 per cent growth in mortgage credit are rising house prices, a booming economy in western Canada and continued high numbers of new housing completions.... | |
| |
| |
|
|
