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on January 23rd, 2010 | No Comments
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on April 10th, 2009 | No Comments
Watch: Grand Piano
There are three ways to get cash from your home:
1/ Sell your home, you would have to move out from your place.
2/ Borrow against your home, you would have to make monthly loan repayments.
3/ You don’t leave your home or make regular loan repayments. A reverse mortgage is a loan against your home but you do not need to pay
back for as long as you live there.
The Federal Housing Administration insures reverse annuity mortgages. The program is for elderly individuals (62 and over) who own their own free without a mortgage but need additional income for day-to-day expenses. It can give older Americans greater financial security to supplement social security, meet unexpected medical expenses, make home improvements and more.
Borrowers do not receive the entire principal balance at settlement but receive periodic payments of principal during the term of the loan up to a maximum insurable amount.
Th amount is defined by FHA and may increase by 1/12th of the expected annual appreciation of the property each month. Interest on the principal advanced and FHA’s annual mortgage insurance are added to the oustanding balance on a monthly basis. When the total outstanding principal balance reaches the maximum insurable by FHA, payments of principal cease. If the value of the home is not sufficient to pay off the outstanding loan amount when the borrower dies, FHA will not attempt to collect the balance from the heirs to the estate.
These loans can be paid to you all at once in a single lump sum of cash. A regular monthly loan advance or as a credit line that let you decide how much cash to use and when to use it. Reverse mortgages are most expensive in the early years of the loan period. But they become less costly over time.
Download Reverse Mortgage Loans:
on March 28th, 2009 | No Comments
on March 15th, 2009 | No Comments
A home equity loan (HEL) is a loan backed by residential property. A home equity loan is a first lien on property where the borrower has either an impaired credit history and/or the payment-to-income ratio is too high for the loan to qualify as a conforming loan for securitization by Ginnie Mae, Freddie Mae or Fannie Mae. The borrower used a home equity loan to consolidate consumer debt using the current home as collateral rather than to obtain funds to purchase a new home.
Home equity loans can be either closed end or open end. A closed-end HEL is structured the same way as a fully amortizing residential mortgage loan. It has a fixed maturity and the payments are structured to fully amortizing the loan by the maturity date. With an open-end HEL, the homeowner is given a credit line and can write checks or use a credit card for up to the amount of the credit line. The amount of the credit line depends on the amount of the equity the borrower has in the property.
There are both fixed-rate and variable-rate closed-end HELS. Typically, variable-rate loans have a reference rate of 6-month LIBOR and have periodic caps and lifetime caps. The cash flow of a pool of closed-end HELs is comprised of interest, regularly scheduled principal repayments, and prepayments. It is necessary to have a prepayment model and a default model to forecast cash flows. The prepayment speed is measured in terms of a conditional prepayment rate (CPR).
Tax benefits of home equity loans
A home equity loan is also beneficial because the home equity loan rate charged is usually tax deductible, as the loan is used for its primary functions. You can use our home equity loan calculator to check what various home equity loan rates will mean for your monthly payments. Always compare offers from several lenders and brokers to obtain the lowest home equity rate possible.
National Home Equity Rates 03/15/2009
| Loan Type | Today | +/- |
|---|---|---|
| HELOC | 6.00% | |
| 30 Yr Fixed Refi ($50K) | 7.13% | |
| 20 Yr Fixed Refi ($50K) | 8.00% |
| Lender | Rate | APR | Points |
| Bank of America | 5.297% | 5.440% | 0 |
| CitiMortgage | 5.375% | 5.521% | 0 |
| Countrywide | 5.568% | 5.715% | 0 |
| Washington Mutual | 5.614% | 5.723% | 0 |
| Wells Fargo | 5.409% | 5.491% | 0 |
Go to: www.mortgageloan.com/home-equity-loans
View my article: Home Equity Loans vs. Lines of Credit
under Home and Living, Shopping
on March 15th, 2009 | No Comments
The below article is provided by www.guardian.co.uk
“Homeless people living in cars and mobile homes across the US are being joined by a new breed: the middle-class.
As mortgage foreclosures continue rising month on month, growing numbers of middle-class professionals are losing their homes and downsizing from four bedrooms to four wheels.
With numbers rising, New Beginnings, a homeless agency in Santa Barbara, California, has launched a Safe Parking Programme, aiming to provide a refuge of sorts for those who have nowhere to go other than their vehicle.
Guy Trevor lost his job as an interior designer when the market contracted, thanks to the mortgage foreclosure crisis.
With his furniture sold and his belongings in storage, he now lives in his car, spending the nights in one of the 12 gated parking lots in Santa Barbara run by New Beginnings.
“I see myself as a casualty of a perfect storm,” he said. “The people sleeping at the parking lot are very friendly. They’re just like me - they come from normal, everyday homes. I think a lot of people in this country don’t realise that they, too, are a couple of pay-cheques away from destitution.”
Mortgage foreclosures in the normally comfortable seaside area of Santa Barbara county are increasing month by month.
In May there were 150, with the total for the year to the end of last month reaching 800, according to figures from the county assessor’s office.
Each month, an auction of foreclosed properties is held on the steps of the Santa Barbara courthouse.
“The way the economy is going, it’s just amazing the people that are becoming homeless,” Nancy Kapp, the programme’s coordinator, told CNN. “It’s hit the middle class.”
Another of Kapp’s clients, Barbara Harvey, also lost her job and subsequently her home in the foreclosure crisis. Like Trevor, her job as a loans processor was connected to the housing market.
The 67-year-old lost her three-bedroom home and now lives with her three dogs in her car, parking at night in a women-only car park run by agency.
“It went to hell in a handbasket,” she said. “I didn’t think this would happen to me. It’s just something that I don’t think that people think is going to happen to them.”
The rise in the numbers of homeless sleeping in cars has led Los Angeles city authorities to attempt to clamp down on the problem. As with many other cities, it is illegal in LA to live in vehicles on public streets.
Earlier this year the city forbade nearly all overnight parking on residential streets. A first violation receives a $50 fine, while subsequent offences can carry fines up to $100.
“For more working-class and lower-middle-class people, the car is the first stop of being homeless, and sometimes it turns out to be a long stop,” Gary Blasi, a University of California, Los Angeles, law professor and homeless activist told the Associated Press.
Los Angeles has the highest number of homeless in the US, with an estimated 73,000 people living rough. Of more than 3,000 homeless people surveyed last year, around 250 were sleeping in their cars.
“It’s trending toward an increase,” said Michael Stoop, acting executive director of the National Coalition for the Homeless. “People would rather live in a vehicle than wind up in a shelter, and you can’t stay on a friend’s couch forever.”
under Home and Living
on March 11th, 2009 | No Comments
Watch Foreclosure In Florida
Freddie Mac uses synthetic debt to create funding that more accurately meets Freddie Mac’s needs. Synthetic debt is essentially the creation of one instrument out of two or more separate instruments. The most typical synthetic instrument is created using discount notes and an interest rate swap to create a synthetic long-term debt instrument.
For example, Freddie Mac may issue $100,000 worth of three-month discount notes. At the same time, Freddie Mac will enter into an interest rate swap agreement. Under this swap agreement, Freddie Mac agrees to pay a 7% fixed rate of interest on a notional amount of $100,000 for seven years while receiving a floating-rate of interest on $100,000 for seven years.
The principal amount is derived for purposes of calculating interest only. Freddie Mac is paying the holder of the discount notes the equivalent of a floating-rate of interest. This is because each time Freddie Mac issues new discount notes, the interest rate, or effective yield changes.
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