January 26, 2007
- Scammers Target Homeowners As Foreclosures Increase
Scammers Target Homeowners As Foreclosures Increase
As the number of foreclosures rises, homeowners unable to make their mortgage payments are facing another growing threat: "foreclosure rescue" scams.
State and federal authorities say they are investigating an increasing number of homeowner complaints about fraud and deception by companies that engage in lending to financially distressed borrowers seeking [...]
January 9, 2007
- Borrowers Purchase Too Many Points
Borrowers Purchase Too Many Points
A new report claims that borrowers tend to purchase too many points when selecting a mortgage — and in the process end up paying more than they would have with no points and a higher interest rate.
The study considered 3,785 individual mortgages originated from 1996 to 2003, looking at the points [...]
January 7, 2007
- Avoid Mortgage Traps
Avoid Mortgage Traps
If you're in the market for a mortgage, you'd do well to arm yourself with some knowledge before you go knocking on lenders' doors. I'll soon point you to where you can learn a lot in short order, but first, here are a few mortgage traps to be wary of:Overcharging
When you get [...]
December 28, 2006
- Dealing with a 20% Down Payment
Dealing with a 20% Down Payment
Home buyers may now need to pull out their calculators when tackling a common dilemma: what to do if they don't have enough money for a 20% down payment. In recent years, piggyback loans, low-cost and easy to get, have been the product of choice for many cash-strapped consumers [...]
December 23, 2006
- Credit Scores Cause Confusion
Credit Scores Cause Confusion
When you buy your credit score, it's almost certainly not the same number your mortgage lender will see.
Your lender might see a lower score, or even one calculated on a different scale. It means you could apply for a loan thinking you deserve a low interest rate, but end up paying a [...]
December 19, 2006
- Homeowners Falling Behind On Mortgage Payments
Homeowners Falling Behind On Mortgage Payments
The delinquency rate for residential mortgage stood at 4.67 percent of all loans outstanding in the third quarter of 2006 on a seasonally adjusted basis. That's up 28 basis points from the second quarter, and up 23 basis points from one year ago, according to Mortgage Bankers Association's National Delinquency [...]
December 13, 2006
- Guide to Homeowner Loans
Guide to Homeowner Loans
A Homeowner Loan is a loan secured against your home that can help you unlock the capital tied up in your home.
Homeowner loans are popular secured loans where your home is used as security to the lender for the money you borrow. In other words, if you don't pay back the loan, [...]
December 10, 2006
- Choosing a Mortgage Lender
Choosing a Mortgage Lender
There are tens of thousands of mortgage companies in America. In some states, you don’t even need a license or any experience to originate mortgages.
Because of the sheer amount of choices you will have when you go to obtain a mortgage loan, you need to ask some specific questions before choosing a [...]
November 19, 2006
- ABC's of Borrowing
ABC's of Borrowing
When buying real estate, a lender will typically use the letters of the alphabet to rate borrowers. The letters rank the level of risk the lenders perceive:
"A"
signifies prime borrowers, those who always pay bills on time and whose debt-to-income ratio is within acceptable limits;
"B"
borrowers are those who have been 30 days late on a [...]
November 18, 2006
- 3 Most Expensive Home Equity Loan Mistakes
3 Most Expensive Home Equity Loan Mistakes
Home equity loans are undoubtely a great source of credit, but choosing the right home equity loan should not be a reckless decision. Here are three of the most common and most expensive mistakes when taking out an equity loan:
1. Choosing a bad home equity lender
The home equity market [...]
November 12, 2006
- Mortgage Accelerator Loans Come to U.S.
Mortgage Accelerator Loans Come to U.S.
A different type of mortgage, called a "mortgage accelerator" loan, has migrated to the United States. It uses home equity borrowing and the borrower's paycheck to shorten the time until a mortgage is paid off, saving tens of thousands in interest expense.
Not to be confused with a biweekly mortgage loan [...]
November 6, 2006
- When NOT to Refinance
When NOT to Refinance
Whenever rates are low, refinancing tempts homeowners. Refinancing can make sense to lots of people who bought houses when rates were higher or who want to consolidate their bills.
Not everyone would benefit from refinancing, though. Some homeowners with second mortgages, a lot of debt or trouble paying bills on time might find [...]
November 3, 2006
- Private Mortgage Insurance
Private Mortgage Insurance
Private mortgage insurance (PMI) is extra insurance a lender may require you to buy if you're forking over less than 20% of a property's value as a down payment, because people who put down small amounts are more likely to default on a loan. If you opt for mortgage insurance, once you've got [...]
October 31, 2006
- Low Credit Scores - High PMI Rates
Low Credit Scores - High PMI Rates
If you're in the market for a new home and your credit score is marginal, your private mortgage insurance, or PMI, rate might be hundreds of dollars higher per month than you expect.
Credit scores impact interest rates on all types of loans, but their effects reach far beyond loan [...]
October 25, 2006
- Investing Borrowed Money Can Be Risky
Investing Borrowed Money Can Be Risky
You're getting into risky territory when you start investing borrowed money. At first glance, your plan may seem like an easy way to use the bank's money to easily rack up investment gains for yourself.
After all, you can probably get a home equity line of credit at or below the [...]
October 16, 2006
- Mortgage Time-Bomb
Mortgage Time-Bomb
Mortgage rates have been trending down, but that won't do much to benefit those who signed up for low-teaser-rate adjustable-rate mortgages in the past few years.
An ARM charges an initial discounted rate for a period of time, after which it adjusts to market levels. When some types of ARMs with teaser rates of 2 [...]
October 15, 2006
- When Your House Payment Jumps
When Your House Payment Jumps
The mortgage party of 2003-06 is so, so over.
Darci Rickson now wishes that she'd looked closer at the fine print. So do Norman and Margaret Paige. And doubtless thousands of others — soon to be millions — whose cheap, fixed-rate introductory periods are about to expire.
The owners of about 7.7 million [...]
October 10, 2006
- Title Insurance
Title Insurance
Title Insurance is usually obtained when real property is purchased. The policy of title insurance insures the owner and/or the lender of ownership of the property. There are various coverages afforded, but a basic policy insures that the buyer is the owner and that any lender shown on the policy is an "insured" lender. [...]
October 8, 2006
- Closing Statements
What is a Closing Statement?
A closing statement is an accounting, in writing, prepared at the close of escrow which sets forth the charges and credits of your account. The items shown on the statement will reflect the purchase price, the funds deposited or credited to your account, payoffs on existing encumbrances and/or liens, the costs [...]
September 8, 2006
- Mortgage Holders Have Better Credit
Mortgage Holders Have Better Credit
Consumers who have home mortgages tend to carry more debt than those without them, but they manage it well and their credit scores are higher, according to a study released by a division of the Experian credit rating agency. Experian Consumer Direct, an online credit service, said [...]
