You will need to meet a list of qualifications with any type loan
you apply for.
Lenders want to make sure they are going to get their money back
before lending money to a potential borrower.
There are a couple key qualifications that lenders will
access to determine if you do indeed qualify for a mortgage loan.
For More Information Visit:
http://homeincomeportal.com/maxtay485/
One of the major qualifications is Credit Background. What is your
credit rating?
Do you have any accounts that are presently in default or have you
had late payments on any other loans or accounts within the past
twelve months?
What is the amount of outstanding revolving credit (credit card
balances)?
They use credit checks to evaluate the likeliness that you will pay
the loan back on time.
All of these play a factor in if you get a loan and what interest
rate you get.
Poor credit can result in the denial of a loan or a high
interest rate because the bank sees you as a risky investment.
The other major qualification is employment. Are you currently
employed? They access how long youve been employed, how stable
your current job is, and your income.
They use your employment information to evaluate your
ability to pay back the loan.
Some one who shows a record of many job changes with short
durations with periods of unemployment between each is
evaluated as someone who is unlikely to have the funds to pay
the monthly payments where as someone who has been employed with
their current job for several years and makes a set income shows
the ability to make monthly payments on time.
Take a look at:
http://homeincomeportal.com/maxtay485/fp63.htm
To help expedite you loan process quicker it would be helpful to
have some documents ready such as pay stubs and a verification of
employment and length of employment.
Be prepared by checking your credit ahead of time to make sure
you have taken care of any delinquent accounts or that
everything is correct on your credit report.
Be Sure To Visit:
http://www.epicwealthsystems.com/index.php?id=mickey
Thank you,
Max Taylor
http://taylor-marketing.blogspot.com
Friday, November 28, 2008
Thursday, November 27, 2008
Subject: Why are rural mortgages higher the urban mortgages?
You live in the middle of nowhere. You don't have the convenience of
the big city or the benefits of the suburbs.
So why is it pricier to finance a home in a rural area instead of
the suburbs.
Rural mortgages tend to be higher than urban mortgages across the
nation. There are a few theories to this.
For More Information Visit:
http://homeincomeportal.com/maxtay485/
The first and most popular theory of why rural mortgages cost more
than urban areas is the lack of competition between lenders.
When there are only a couple of lenders competing for the
business, it may not be necessary for the lenders to lower their
interest rates to get your business.
They may able to compete with each other with benefits and services
instead of hacking away at the interest rate.
Unlike rural areas, hundreds of lenders are competing for business
in an urban area.
They can't offer enough differences from one another to compete
effectively enough so they compete with lowering the interest rate.
Another theory is that the secondary markets are not as
efficient in rural areas as they are in urban areas.
Secondary markets help regulate local markets by supplying
opportunity to non-local funds.
These markets also give the local lenders some competition to help
keep interest rates lower, plus they make more money available to
loan from which helps lower interest rates.
It is believed these markets are inefficient in rural areas because
they aren't familiar with the community.
They also prefer mortgages that can be sold again at a later time
if the lender chooses to sell the mortgage. Unfortunately this isn't
usually associated with rural areas.
Take a look at:
http://homeincomeportal.com/maxtay485/fp62.htm
But don't fret; there are many programs that have been designed
to help regulate rural housing development and mortgages such as
Farm Credit Systems for Rural Development.
These loans are meant to serve Farmers, ranchers, agricultural
development, and commercial and residential rural homebuyers.
Be Sure To Visit:
http://www.epicwealthsystems.com/index.php?id=mickey
Thank you,
Max Taylor
http://taylor-marketing.blogspot.com
the big city or the benefits of the suburbs.
So why is it pricier to finance a home in a rural area instead of
the suburbs.
Rural mortgages tend to be higher than urban mortgages across the
nation. There are a few theories to this.
For More Information Visit:
http://homeincomeportal.com/maxtay485/
The first and most popular theory of why rural mortgages cost more
than urban areas is the lack of competition between lenders.
When there are only a couple of lenders competing for the
business, it may not be necessary for the lenders to lower their
interest rates to get your business.
They may able to compete with each other with benefits and services
instead of hacking away at the interest rate.
Unlike rural areas, hundreds of lenders are competing for business
in an urban area.
They can't offer enough differences from one another to compete
effectively enough so they compete with lowering the interest rate.
Another theory is that the secondary markets are not as
efficient in rural areas as they are in urban areas.
Secondary markets help regulate local markets by supplying
opportunity to non-local funds.
These markets also give the local lenders some competition to help
keep interest rates lower, plus they make more money available to
loan from which helps lower interest rates.
It is believed these markets are inefficient in rural areas because
they aren't familiar with the community.
They also prefer mortgages that can be sold again at a later time
if the lender chooses to sell the mortgage. Unfortunately this isn't
usually associated with rural areas.
Take a look at:
http://homeincomeportal.com/maxtay485/fp62.htm
But don't fret; there are many programs that have been designed
to help regulate rural housing development and mortgages such as
Farm Credit Systems for Rural Development.
These loans are meant to serve Farmers, ranchers, agricultural
development, and commercial and residential rural homebuyers.
Be Sure To Visit:
http://www.epicwealthsystems.com/index.php?id=mickey
Thank you,
Max Taylor
http://taylor-marketing.blogspot.com
Wednesday, November 26, 2008
Subject: What is HUD and how does it work?
The Department of Housing and Urban Development is a
governmental agency that heads another agency, the Federal
Housing Administration better recognized as the FHA that is
created to lower the restrictions and costs for first time home
buyers.
When lenders are forced to foreclose on FHA properties, HUD
usually pays off the mortgage and retains ownership of the property.
For More Information Visit:
http://universalwebserver.com/maxtay485/
The Department of Housing and Urban Development than takes these
homes and sells them in a sealed bids process.
They determine the starting price from a professional estimation of
the value of the home.
The home is advertised for ten days and only occupied owners may
bid during this time.
After this time investors may begin bidding on the home until
HUD finds an attractive bid is made which is determined on the
bid opening date.
HUD homes usually sell above the initial price that was generated
by HUD to begin the bid.
In some areas an Earnest Money deposit is required. The amount
can vary depending on the location but can amount up to 50% of
undeveloped land.
This deposit must be made in the form of Bank checks, cashiers
checks, or money orders, which are all certifiable.
FHA loans will only finance ninety seven percent of the homes value
that is obtained through a HUD bid.This means if the buyer is
responsible for paying the difference between the bid and the
homes value plus the three percent required down payment.
Take a look at:
http://homeincomeportal.com/maxtay485/fp61.htm
HUD homes are attractive because there is a lot of room for
negotiation and opportunity to profit off of the purchase.
You can find these properties on the internet by management
companies that are contracted by HUD to manage these properties.
HUD homes are usually available at discounted prices to certain
professions such as police officers and teachers as well as
non- profit organizations.
Be Sure To Visit:
http://www.epicwealthsystems.com/index.php?id=mickey
Thank you,
Max Taylor
http://taylor-marketing.com/blogspot.com
governmental agency that heads another agency, the Federal
Housing Administration better recognized as the FHA that is
created to lower the restrictions and costs for first time home
buyers.
When lenders are forced to foreclose on FHA properties, HUD
usually pays off the mortgage and retains ownership of the property.
For More Information Visit:
http://universalwebserver.com/maxtay485/
The Department of Housing and Urban Development than takes these
homes and sells them in a sealed bids process.
They determine the starting price from a professional estimation of
the value of the home.
The home is advertised for ten days and only occupied owners may
bid during this time.
After this time investors may begin bidding on the home until
HUD finds an attractive bid is made which is determined on the
bid opening date.
HUD homes usually sell above the initial price that was generated
by HUD to begin the bid.
In some areas an Earnest Money deposit is required. The amount
can vary depending on the location but can amount up to 50% of
undeveloped land.
This deposit must be made in the form of Bank checks, cashiers
checks, or money orders, which are all certifiable.
FHA loans will only finance ninety seven percent of the homes value
that is obtained through a HUD bid.This means if the buyer is
responsible for paying the difference between the bid and the
homes value plus the three percent required down payment.
Take a look at:
http://homeincomeportal.com/maxtay485/fp61.htm
HUD homes are attractive because there is a lot of room for
negotiation and opportunity to profit off of the purchase.
You can find these properties on the internet by management
companies that are contracted by HUD to manage these properties.
HUD homes are usually available at discounted prices to certain
professions such as police officers and teachers as well as
non- profit organizations.
Be Sure To Visit:
http://www.epicwealthsystems.com/index.php?id=mickey
Thank you,
Max Taylor
http://taylor-marketing.com/blogspot.com
Tuesday, November 25, 2008
Subject: What Is a Mortgage Escrow Account and How Does it Work?
You have probably heard the term escrow used often when someone
speaks of mortgage, housing insurance, or property tax.
The purpose of mortgage escrow accounts is to protect the
homeowners interest when it comes to insurance and property tax.
For More Information Visit:
http://universalwebserver.com/maxtay485/
Mortgage Escrow Accounts derived during the Great Depression. This
was a time of high unemployment where many people were foreclosing
on their homes because they were unable to meet the financial
obligations to keep their homes including paying lump sum amounts
that came due.
Initially lenders were volunteering to take smaller sums
of payments on a regular basis to cushion for the lump sum charges
in order to insure that they would be paid.
In 1934, the government mandated this service on all FHA loans.
Eventually this became the common practice for all mortgage loans.
How does it work? Lenders usually calculate how much property taxes,
fire and hazard insurance, and mortgage insurance premiums will
be and divide it up into twelve payments and calculate it into
your monthly mortgage. The lender then disburses the money to these
expenses as they came due.
The lender pays the full amount due whether or not all of the
money has been collected at the time.
The lender will also pay the balance even if they did not
collect enough that year to cover the expenses without penalizing
the borrower.
Take a look at:
http://homeincomeportal.com/maxtay485/fp60.htm
They may have to may adjustments to the amount collected in the
future if the find the current amount collected to be
insufficient.
If the loan is sold to another lender, the new lender will take
over the escrow account.
They will most likely review it and make any necessary adjustments.
If you have any questions or concerns about your escrow account
you should contact your lender as soon as possible.
He or she should be able to resolve any matters or
misunderstandings you may have regarding your mortgage escrow
account.
Be Sure To Visit:
http://www.epicwealthsystems.com/index.php?id=mickey
Thank you,
Max Taylor
http://taylor-marketing.blogspot.com
speaks of mortgage, housing insurance, or property tax.
The purpose of mortgage escrow accounts is to protect the
homeowners interest when it comes to insurance and property tax.
For More Information Visit:
http://universalwebserver.com/maxtay485/
Mortgage Escrow Accounts derived during the Great Depression. This
was a time of high unemployment where many people were foreclosing
on their homes because they were unable to meet the financial
obligations to keep their homes including paying lump sum amounts
that came due.
Initially lenders were volunteering to take smaller sums
of payments on a regular basis to cushion for the lump sum charges
in order to insure that they would be paid.
In 1934, the government mandated this service on all FHA loans.
Eventually this became the common practice for all mortgage loans.
How does it work? Lenders usually calculate how much property taxes,
fire and hazard insurance, and mortgage insurance premiums will
be and divide it up into twelve payments and calculate it into
your monthly mortgage. The lender then disburses the money to these
expenses as they came due.
The lender pays the full amount due whether or not all of the
money has been collected at the time.
The lender will also pay the balance even if they did not
collect enough that year to cover the expenses without penalizing
the borrower.
Take a look at:
http://homeincomeportal.com/maxtay485/fp60.htm
They may have to may adjustments to the amount collected in the
future if the find the current amount collected to be
insufficient.
If the loan is sold to another lender, the new lender will take
over the escrow account.
They will most likely review it and make any necessary adjustments.
If you have any questions or concerns about your escrow account
you should contact your lender as soon as possible.
He or she should be able to resolve any matters or
misunderstandings you may have regarding your mortgage escrow
account.
Be Sure To Visit:
http://www.epicwealthsystems.com/index.php?id=mickey
Thank you,
Max Taylor
http://taylor-marketing.blogspot.com
Monday, November 24, 2008
Subject: What are Mortgage Points and Rebates?
Mortgage Points are finance charges or prepaid interest. One
point is equal to one percent of the loan amount.
The lender who uses the loans interest rate and current market
conditions in concluding the mortgage points due determines
mortgage points. Mortgage points are due at the time of closing.
The more mortgage points you pay the lower your interest rate.
For More Information Visit:
http://universalwebserver.com/maxtay485/
If you intend to keep your home for a long than three years it is
advisable to pay mortgage points up front to save money with a
lower interest rate if you are able to afford it.
The two biggest benefits of Mortgage Points are as mentioned,
lowering your interest rate and two, mortgage points are tax
deductible.
If you do not intend to stay in the home for more than 2 1/2 years
you may want to check into rebates or negative points.
This is where the mortgage company gives you money for taking a high
interest rate.
Anything past three years though and you are paying a significant
amount of interest and are no longer benefiting from the rebate
because this package is only beneficial for short time owners.
Negative points are used to finance the settlement cost of the
loan process. You cannot use these points as a down payment.
Therefore, you should never agree to a higher interest rate whose
negative points exceed that of your settlement costs.
A disadvantage of negative points is often lenders who sell their
negative points packages through independent mortgage companies.
The loan officers and mortgage brokers of these companies some
times take advantage of the situation and mark up prices for
better commissions.
Take a look at:
http://homeincomeportal.com/maxtay485/fp59.htm
Unfortunately it is difficult to identify these discrepancies
because it is hard to track those who are marking up negative points.
Your best bet is to research and educate yourself about current
negative points packages available to you to insure you are getting a
good deal.
Most people however find it to be a great investment to pay mortgage
points to secure a lower interest rate.
The savings produced from this investment gets larger the longer
you stay in the home.
Be Sure To Visit:
http://www.epicwealthsystems.com/index.php?id=mickey
Thank you,
Max Taylor
http://taylor-marketing.blogspot.com
point is equal to one percent of the loan amount.
The lender who uses the loans interest rate and current market
conditions in concluding the mortgage points due determines
mortgage points. Mortgage points are due at the time of closing.
The more mortgage points you pay the lower your interest rate.
For More Information Visit:
http://universalwebserver.com/maxtay485/
If you intend to keep your home for a long than three years it is
advisable to pay mortgage points up front to save money with a
lower interest rate if you are able to afford it.
The two biggest benefits of Mortgage Points are as mentioned,
lowering your interest rate and two, mortgage points are tax
deductible.
If you do not intend to stay in the home for more than 2 1/2 years
you may want to check into rebates or negative points.
This is where the mortgage company gives you money for taking a high
interest rate.
Anything past three years though and you are paying a significant
amount of interest and are no longer benefiting from the rebate
because this package is only beneficial for short time owners.
Negative points are used to finance the settlement cost of the
loan process. You cannot use these points as a down payment.
Therefore, you should never agree to a higher interest rate whose
negative points exceed that of your settlement costs.
A disadvantage of negative points is often lenders who sell their
negative points packages through independent mortgage companies.
The loan officers and mortgage brokers of these companies some
times take advantage of the situation and mark up prices for
better commissions.
Take a look at:
http://homeincomeportal.com/maxtay485/fp59.htm
Unfortunately it is difficult to identify these discrepancies
because it is hard to track those who are marking up negative points.
Your best bet is to research and educate yourself about current
negative points packages available to you to insure you are getting a
good deal.
Most people however find it to be a great investment to pay mortgage
points to secure a lower interest rate.
The savings produced from this investment gets larger the longer
you stay in the home.
Be Sure To Visit:
http://www.epicwealthsystems.com/index.php?id=mickey
Thank you,
Max Taylor
http://taylor-marketing.blogspot.com
Sunday, November 23, 2008
Subject: What are 80 20 Loans?
Many people do not have down payments for homes. They are
stuck paying a monthly rent and unable to save efficiently for a
down payment.
There are loans out there to accommodate those who are unable
to pay a down payment.
The 80 20 loan is a mortgage loan that requires two mortgages. One
of the mortgages is for 80% of the principle and the other is for 20%
of the principle. The 20% loan is also known as a piggyback loan.
It's interest rate is usually a little higher than the 80% loan.
You can even opt for the interest only on the 20% loan to lower the
monthly payment.
For More Information Visit:
http://universalwebserver.com/maxtay485/
The 80-20 Loan also exempts the borrower from having to pay
Private Mortgage Insurance or PMI.
PMI is required for any loan that is over 80% of the value of the
home. The 80% mortgage and 20% mortgage, added together, is still
usually cheaper than one mortgage with the PMI insurance.
Also mortgage interest can be written off on taxes, but not PMI
insurance so the borrower would also be coming out ahead there.
Mortgage Companies and Lenders set up these loans many different
ways. Some use the 5/1 ARM System.
Because the 20% loan is viewed as an equity line of credit it should
be refinanced every 3-5 years.
You should shop around with lenders to find out the different
methods that are used to finance the two mortgages and which works
best for you.
Take a look at:
http://homeincomeportal.com/maxtay485/fp58.htm
80-20 loans can benefit many people. While it is usually
popular with people who do not have the savings for a down
payment, it can benefit those who do have the money but do not want
to dip into their savings or investments.
The only money that is due up front by the borrower is the
closing costs.
Be Sure To Visit:
http://theinternetsuccessmachine.com/easycash4u/featured.html
Thank you,
Max Taylor
http://taylor-marketing.blogspot.com
stuck paying a monthly rent and unable to save efficiently for a
down payment.
There are loans out there to accommodate those who are unable
to pay a down payment.
The 80 20 loan is a mortgage loan that requires two mortgages. One
of the mortgages is for 80% of the principle and the other is for 20%
of the principle. The 20% loan is also known as a piggyback loan.
It's interest rate is usually a little higher than the 80% loan.
You can even opt for the interest only on the 20% loan to lower the
monthly payment.
For More Information Visit:
http://universalwebserver.com/maxtay485/
The 80-20 Loan also exempts the borrower from having to pay
Private Mortgage Insurance or PMI.
PMI is required for any loan that is over 80% of the value of the
home. The 80% mortgage and 20% mortgage, added together, is still
usually cheaper than one mortgage with the PMI insurance.
Also mortgage interest can be written off on taxes, but not PMI
insurance so the borrower would also be coming out ahead there.
Mortgage Companies and Lenders set up these loans many different
ways. Some use the 5/1 ARM System.
Because the 20% loan is viewed as an equity line of credit it should
be refinanced every 3-5 years.
You should shop around with lenders to find out the different
methods that are used to finance the two mortgages and which works
best for you.
Take a look at:
http://homeincomeportal.com/maxtay485/fp58.htm
80-20 loans can benefit many people. While it is usually
popular with people who do not have the savings for a down
payment, it can benefit those who do have the money but do not want
to dip into their savings or investments.
The only money that is due up front by the borrower is the
closing costs.
Be Sure To Visit:
http://theinternetsuccessmachine.com/easycash4u/featured.html
Thank you,
Max Taylor
http://taylor-marketing.blogspot.com
Saturday, November 22, 2008
Subject: Veterans Administration Mortgage Loans
Potential borrowers who have actively served in the US Armed
Forces may be eligible for the VA home loan.
The VA loan is a special type of loan where the Veterans
Administration guarantees that a certain portion of the mortgage
loan will be repaid in full.
This guarantee can allow eligible borrowers to purchase a home with
no down payment, no private mortgage insurance (PMI), at
competitive interest rates, and minimal or no closing costs.
For More Information Visit:
http://universalwebserver.com/maxtay485/
If you are an active member of the US Armed Forces, have actively
served in during wartime, or have actively served for at least 181
days without a dishonorable discharge you may be eligible for
the VA home loan.
Reservist and National Guard service personnel may also be
eligible.
For a complete list of eligibility rules, check out the department of
veterans affairs website.
Talk to your lender about qualifying for the VA home loan.
There is maximum loan amount for the VA home loan, however, there
is a maximum on the amount guaranteed by the Veterans
Administration.
For homes up to $144,000, the maximum guaranteed amount, or
entitlement is $36,000. For homes priced greater than $144,000, the
maximum entitlement is $60,000.
Qualifying for a VA home loan may be easier than qualifying for
other types of loans because of the entitlement.
However, certain lenders may place a cap on the total loan amount to
protect themselves against default.
Additionally, VA home loans may not be available for certain
properties.
Take a look at:
http://homeincomeportal.com/maxtay485/fp57.htm
Some sellers may be reluctant to sell under a VA home loan because
of the perception that they create delays in the selling process and
that they may have to pay closing costs.
Although this is historically true, the VA home loan process has
become much more efficient.
It is best to talk with your realtor if you are interested in
the VA home loan and they can work with you to find eligible homes.
Be Sure To Visit:
http://theinternetsuccessmachine.com/easycash4u/featured.html
Thank you,
Max Taylor
http://taylor-marketing.blogspot.com
Forces may be eligible for the VA home loan.
The VA loan is a special type of loan where the Veterans
Administration guarantees that a certain portion of the mortgage
loan will be repaid in full.
This guarantee can allow eligible borrowers to purchase a home with
no down payment, no private mortgage insurance (PMI), at
competitive interest rates, and minimal or no closing costs.
For More Information Visit:
http://universalwebserver.com/maxtay485/
If you are an active member of the US Armed Forces, have actively
served in during wartime, or have actively served for at least 181
days without a dishonorable discharge you may be eligible for
the VA home loan.
Reservist and National Guard service personnel may also be
eligible.
For a complete list of eligibility rules, check out the department of
veterans affairs website.
Talk to your lender about qualifying for the VA home loan.
There is maximum loan amount for the VA home loan, however, there
is a maximum on the amount guaranteed by the Veterans
Administration.
For homes up to $144,000, the maximum guaranteed amount, or
entitlement is $36,000. For homes priced greater than $144,000, the
maximum entitlement is $60,000.
Qualifying for a VA home loan may be easier than qualifying for
other types of loans because of the entitlement.
However, certain lenders may place a cap on the total loan amount to
protect themselves against default.
Additionally, VA home loans may not be available for certain
properties.
Take a look at:
http://homeincomeportal.com/maxtay485/fp57.htm
Some sellers may be reluctant to sell under a VA home loan because
of the perception that they create delays in the selling process and
that they may have to pay closing costs.
Although this is historically true, the VA home loan process has
become much more efficient.
It is best to talk with your realtor if you are interested in
the VA home loan and they can work with you to find eligible homes.
Be Sure To Visit:
http://theinternetsuccessmachine.com/easycash4u/featured.html
Thank you,
Max Taylor
http://taylor-marketing.blogspot.com
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