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2/28 Mortgages Explained
31/07/09
Benefit
A 2/28 mortgage is a loan that is fixed for 2 years and adjustable for the final 28 years. This is a loan with a 30 year term.
This type of loan is generally cheaper than loans that are fixed for a longer term, such as a 30 year fixed loan.
2/28 mortgages have been used extensively in recent years during the real estate boom. It was often used with 100% financing.
The prepayment penalty for many of these loans is typically for 2 years as well. This allows a borrower to refinance after the end of 2 years so they don’t have to pay a prepayment penalty. A prepayment penalty can often be 6 months of interest or something similar.
DIfferent Loan Options To Refinance
A borrower who gets this loan will typically want to switch out of it when the interest rate adjustments. This happens at the end of the first 2 years. At that time, the interest rate will adjust per the terms of the loan. It can typically go up substantially. A monthly payment can increase by 50% or more.
Many borrowers will have different loan options, including:
30 year fixed40 year loan50 year loan10 year interest onlyminimum payment option loanHow It Works
A borrower can use their additional buildup of equity to leverage into a lower mortgage rate.
The process is similar to the last time the mortgage was done. Make sure that you use any additional equity built up into your property. Generally the more equity you have in your property the lower your interest rate should be.
By: Ben Afzal
About the Author:
A 2/28 mortgage is a loan that is fixed for 2 years and adjustable for the final 28 years. This is a loan with a 30 year term.
This type of loan is generally cheaper than loans that are fixed for a longer term, such as a 30 year fixed loan.
2/28 mortgages have been used extensively in recent years during the real estate boom. It was often used with 100% financing.
The prepayment penalty for many of these loans is typically for 2 years as well. This allows a borrower to refinance after the end of 2 years so they don’t have to pay a prepayment penalty. A prepayment penalty can often be 6 months of interest or something similar.
DIfferent Loan Options To Refinance
A borrower who gets this loan will typically want to switch out of it when the interest rate adjustments. This happens at the end of the first 2 years. At that time, the interest rate will adjust per the terms of the loan. It can typically go up substantially. A monthly payment can increase by 50% or more.
Many borrowers will have different loan options, including:
30 year fixed40 year loan50 year loan10 year interest onlyminimum payment option loanHow It Works
A borrower can use their additional buildup of equity to leverage into a lower mortgage rate.
The process is similar to the last time the mortgage was done. Make sure that you use any additional equity built up into your property. Generally the more equity you have in your property the lower your interest rate should be.
By: Ben Afzal
About the Author:
Posted in: Mortgage Refinance : : Comments (0)
There has been a lot of talk in the news lately about sub-prime mortgages, the credit crisis, and a possible recession caused by these issues. For those who don’t work in the real estate, banking, or mortgage industries, are wondering just what is meant by all these different issues and how exactly they’re related, we can help. There is a very simple explanation as to what sub-prime mortgages are, how they led to the current credit crisis, and how this situation is affecting the U.S. economy overall.
The term “sub-prime mortgages” applies to those mortgages that were approved for those whom many banks would have turned down. This may include those with a spotty credit history or who earned less than most banks would think is the minimum salary requirement to be eligible for a mortgage. Some years back, many smaller mortgage companies sprang up with more relaxed requirements for those applying for mortgages, and the term sub-prime mortgages began to be used for these applicants.
Normally mortgages rates are based on the prime rate which is determined by the federal government. A percentage point or two is added to the interest rate for standard mortgages for the lending companies’ profit margin. This mortgage interest rate could increase or decrease over the life of the loan based on the prime interest rate fluctuation (variable mortgages) or the mortgage interest rate could be locked in as a specific rate (fixed mortgages).
Sub-prime interest rate mortgages were given with interest rates below the prime rate with an automatic increase to the standard rate usually within two years. People could now qualify for the new lower rate that could not have qualified for the standard rate. Home owners believed they would be able to afford the new rates within two years or they could simply refinance to a new mortgage hoping the prime interest rate would continue to drop.
Well, the prime interest rate went up and now home owners were faced with mortgages that increased two, three or even four hundred dollars a month with no way to qualify for a new mortgage. Could you pay four hundred dollars more for your home mortgage and not feel the bite?
One thing to remember when trying to understand how these sub-prime mortgages affect the economy overall is that rarely does a mortgage company or bank itself actually carry mortgages as debt themselves. Typically what they do is turn around and sell those mortgage notes to larger banks and investment firms. These investment firms and banks then use those mortgages as collateral or as part of their overall financial portfolio in order to sell bonds against their value. There are only a few major banking institutions that actually carry mortgages, including sub-prime mortgages, which mean that when people start to default on their home loans this does not affect just a small fly-by-night mortgage company. Those larger banks and institutions now have a large part of their financial portfolio that is beginning to fold.
When these larger banks and lenders felt the pinch of mortgages going into default, they then needed to compensate somehow and make sure that other areas of their financial portfolio were left intact. This meant that they came up with stricter rules for who could get credit from them; when economic times are good, banks typically have less stringent credit requirements, but when times are bad, they clamp down on those requirements.
This scenario is referred to as the credit crisis or credit crunch. These home mortgages that have been defaulted on have made it more difficult for the average consumer to get credit. When the average consumer can no longer get credit as easily as before, he or she is less likely to spend money on non-necessities, whether on everyday items such as clothing and household goods, or for big ticket items such as electronics, appliances, and travel. These home mortgages that are being defaulted on are now affecting the retail and service sector of the economy, as they are not doing the business that they once did. All of these factors are what may very well lead to a recession.
And of course there are many other factors that have affected the sub-prime home mortgages crisis and that this crisis affects other industries well. For example, home building has slowed to nearly a halt in many areas, idling literally thousands in the construction industry. Because so many homes have been foreclosed on, this drives down home prices in these areas as other home sellers cannot compete with empty homes that banks need to sell quickly. This means that many have actually lost equity in their homes as they are forced to lower their prices drastically if they want to sell at all.
By: David Cowley
About the Author:
The term “sub-prime mortgages” applies to those mortgages that were approved for those whom many banks would have turned down. This may include those with a spotty credit history or who earned less than most banks would think is the minimum salary requirement to be eligible for a mortgage. Some years back, many smaller mortgage companies sprang up with more relaxed requirements for those applying for mortgages, and the term sub-prime mortgages began to be used for these applicants.
Normally mortgages rates are based on the prime rate which is determined by the federal government. A percentage point or two is added to the interest rate for standard mortgages for the lending companies’ profit margin. This mortgage interest rate could increase or decrease over the life of the loan based on the prime interest rate fluctuation (variable mortgages) or the mortgage interest rate could be locked in as a specific rate (fixed mortgages).
Sub-prime interest rate mortgages were given with interest rates below the prime rate with an automatic increase to the standard rate usually within two years. People could now qualify for the new lower rate that could not have qualified for the standard rate. Home owners believed they would be able to afford the new rates within two years or they could simply refinance to a new mortgage hoping the prime interest rate would continue to drop.
Well, the prime interest rate went up and now home owners were faced with mortgages that increased two, three or even four hundred dollars a month with no way to qualify for a new mortgage. Could you pay four hundred dollars more for your home mortgage and not feel the bite?
One thing to remember when trying to understand how these sub-prime mortgages affect the economy overall is that rarely does a mortgage company or bank itself actually carry mortgages as debt themselves. Typically what they do is turn around and sell those mortgage notes to larger banks and investment firms. These investment firms and banks then use those mortgages as collateral or as part of their overall financial portfolio in order to sell bonds against their value. There are only a few major banking institutions that actually carry mortgages, including sub-prime mortgages, which mean that when people start to default on their home loans this does not affect just a small fly-by-night mortgage company. Those larger banks and institutions now have a large part of their financial portfolio that is beginning to fold.
When these larger banks and lenders felt the pinch of mortgages going into default, they then needed to compensate somehow and make sure that other areas of their financial portfolio were left intact. This meant that they came up with stricter rules for who could get credit from them; when economic times are good, banks typically have less stringent credit requirements, but when times are bad, they clamp down on those requirements.
This scenario is referred to as the credit crisis or credit crunch. These home mortgages that have been defaulted on have made it more difficult for the average consumer to get credit. When the average consumer can no longer get credit as easily as before, he or she is less likely to spend money on non-necessities, whether on everyday items such as clothing and household goods, or for big ticket items such as electronics, appliances, and travel. These home mortgages that are being defaulted on are now affecting the retail and service sector of the economy, as they are not doing the business that they once did. All of these factors are what may very well lead to a recession.
And of course there are many other factors that have affected the sub-prime home mortgages crisis and that this crisis affects other industries well. For example, home building has slowed to nearly a halt in many areas, idling literally thousands in the construction industry. Because so many homes have been foreclosed on, this drives down home prices in these areas as other home sellers cannot compete with empty homes that banks need to sell quickly. This means that many have actually lost equity in their homes as they are forced to lower their prices drastically if they want to sell at all.
By: David Cowley
About the Author:
David Cowley has created numerous articles on real estate investing. He has also created a Web Site dedicated to real estate investing. Visit Real Estate Investing
Posted in: Mortgage Refinance : : Comments (0)
The Historical Record
There really is nothing new about the dilemma in which seniors find themselves with their sources of income dropping over time and the cost of living rising. Surprisingly, or, given the ingenuity of man, perhaps not surprisingly, a type of reverse mortgage solution has been around for a long time – there are records of European investors buying homes from older homeowners and allowing them to live out their lives in the homes as far back as 400 years ago. Of course, in olden days, the investors then would own the homes. Life could be chancy when the investors needed their money back sooner rather than later.
Around the time of the stock market crash of 1929, a new type of mortgage product appeared in England called a home equity reversion. This type of product existed as a family business until 1970 when outside investors took control of the home equity company renaming it Home & Capital Trust Ltd. With a home equity reversion product, we see the reverse mortgage solution not much changed from 400 years ago. The homeowner outright sold the house but retained the right to live in the house for life, generally in exchange for minimal rent. The sales price was based mainly on the life expectancy of the homeowner because the lender wanted to earn a return based on the loan amount and the final sale price when the vacant house was obtained. Sales proceeds might be paid as a lump sum or annuity or a combination of both. It was also possible to sell only part of the property’s value. (Of course, knocking off the homeowner was a much riskier business in the 1930s.)
Similar equity reversion products known as viageres, were sold in France by estate agents. The concept spread throughout the British Commonwealth, to Australia and New Zealand. Still, the equity reversion products contained the harsh problematic flaw of cutting off ownership of the aging citizen’s home. The product also came to America where the first reverse mortgage was completed in 1961 in Portland, Maine. The flaw of the product became apparent to Congress in the 1970s when banks (who took an equitable position in the ownership of the senior’s home) began to foreclose on elderly homeowners as the “reverse mortgages” grew past the homeowner’s equitable position.
Congress Rides to the Rescue
In the early 1980s, Congress looked at the European model of reverse mortgages that were being offered by American banks and apparently decided several things:
That the European model of reverse mortgages must be stopped, That there needed to be a bank product that met the need of the elderly homeowners who had taken out reverse mortgages, and That banks obviously needed government regulation so that elderly homeowners would not be taken advantage of.
Congress appointed the Department of Housing and Urban Development (better known as HUD) along with the Federal Housing Administration (FHA) to develop and oversee a federally insured reverse mortgage product that would allow the seniors to retain ownership of their homes and would insure the banks’ investments so that they would be willing to hold the mortgage paper without repayment for however long the senior(s) remained in their home. To put it simplistically, that reverse mortgage product became the Home Equity Conversion Mortgage (HECM) reverse mortgage.
HECMs have been widely available since 1989, but began gaining in popularity in 1999. According to the FHA Annual Management Report for Fiscal Year 2007, there were 7,793 HECM Endorsements (insured) in 2001, 42,921 HECM Endorsements in 2005. while in 2007 there were 107,103 HECM Endorsements.
Why are Reverse Mortgages so Popular?
Why are these government backed mortgage products gaining in popularity with senior homeowners compared to regular mortgages? What can you compare them to? They provide loan proceeds without requiring mortgage payments for the entire time senior homeowners stay in their homes as long as property taxes and homeowner’s taxes are paid and the home is maintained and structurally sound (as required by any lender for any loan).
With the tightening of the credit markets, home equity lines of credit are diminishing, and with the loss of stated income loans, proof of employment and income requirements may exclude credit worthy seniors from accessing the equity in their homes through the more traditional types of mortgages. The current financial market crisis has adversely affected the retirement plans of most Americans. In addition, energy costs and even food costs have risen dramatically.
In reality not a whole lot has changed in 400 years. The introduction of government backed HECM reverse mortgages for senior homeowners provides an important financial tool to access the equity in their homes. As more and more Americans head for their retirement years, they should consider a HECM reverse mortgage as part of their retirement plan.
By: Marilu Veale
About the Author:
There really is nothing new about the dilemma in which seniors find themselves with their sources of income dropping over time and the cost of living rising. Surprisingly, or, given the ingenuity of man, perhaps not surprisingly, a type of reverse mortgage solution has been around for a long time – there are records of European investors buying homes from older homeowners and allowing them to live out their lives in the homes as far back as 400 years ago. Of course, in olden days, the investors then would own the homes. Life could be chancy when the investors needed their money back sooner rather than later.
Around the time of the stock market crash of 1929, a new type of mortgage product appeared in England called a home equity reversion. This type of product existed as a family business until 1970 when outside investors took control of the home equity company renaming it Home & Capital Trust Ltd. With a home equity reversion product, we see the reverse mortgage solution not much changed from 400 years ago. The homeowner outright sold the house but retained the right to live in the house for life, generally in exchange for minimal rent. The sales price was based mainly on the life expectancy of the homeowner because the lender wanted to earn a return based on the loan amount and the final sale price when the vacant house was obtained. Sales proceeds might be paid as a lump sum or annuity or a combination of both. It was also possible to sell only part of the property’s value. (Of course, knocking off the homeowner was a much riskier business in the 1930s.)
Similar equity reversion products known as viageres, were sold in France by estate agents. The concept spread throughout the British Commonwealth, to Australia and New Zealand. Still, the equity reversion products contained the harsh problematic flaw of cutting off ownership of the aging citizen’s home. The product also came to America where the first reverse mortgage was completed in 1961 in Portland, Maine. The flaw of the product became apparent to Congress in the 1970s when banks (who took an equitable position in the ownership of the senior’s home) began to foreclose on elderly homeowners as the “reverse mortgages” grew past the homeowner’s equitable position.
Congress Rides to the Rescue
In the early 1980s, Congress looked at the European model of reverse mortgages that were being offered by American banks and apparently decided several things:
That the European model of reverse mortgages must be stopped, That there needed to be a bank product that met the need of the elderly homeowners who had taken out reverse mortgages, and That banks obviously needed government regulation so that elderly homeowners would not be taken advantage of.
Congress appointed the Department of Housing and Urban Development (better known as HUD) along with the Federal Housing Administration (FHA) to develop and oversee a federally insured reverse mortgage product that would allow the seniors to retain ownership of their homes and would insure the banks’ investments so that they would be willing to hold the mortgage paper without repayment for however long the senior(s) remained in their home. To put it simplistically, that reverse mortgage product became the Home Equity Conversion Mortgage (HECM) reverse mortgage.
HECMs have been widely available since 1989, but began gaining in popularity in 1999. According to the FHA Annual Management Report for Fiscal Year 2007, there were 7,793 HECM Endorsements (insured) in 2001, 42,921 HECM Endorsements in 2005. while in 2007 there were 107,103 HECM Endorsements.
Why are Reverse Mortgages so Popular?
Why are these government backed mortgage products gaining in popularity with senior homeowners compared to regular mortgages? What can you compare them to? They provide loan proceeds without requiring mortgage payments for the entire time senior homeowners stay in their homes as long as property taxes and homeowner’s taxes are paid and the home is maintained and structurally sound (as required by any lender for any loan).
With the tightening of the credit markets, home equity lines of credit are diminishing, and with the loss of stated income loans, proof of employment and income requirements may exclude credit worthy seniors from accessing the equity in their homes through the more traditional types of mortgages. The current financial market crisis has adversely affected the retirement plans of most Americans. In addition, energy costs and even food costs have risen dramatically.
In reality not a whole lot has changed in 400 years. The introduction of government backed HECM reverse mortgages for senior homeowners provides an important financial tool to access the equity in their homes. As more and more Americans head for their retirement years, they should consider a HECM reverse mortgage as part of their retirement plan.
By: Marilu Veale
About the Author:
Marilu Veale is a retired paralegal, California Real Estate Broker, and branch manager of the Lakewood Branch of Security One Lending, Inc., specializing in Reverse Mortgages. You can reach Marilu at (800) 620-0065 or visit http://www.activatingequity.com
Posted in: Mortgage Refinance : : Comments (0)
Florida Interest Only Mortgages
29/07/09
An interest-only mortgage is one in which you only pay back interest with no principal for a certain period of time. After this time period, which is usually five to ten years, the payment increases to include repayment of both interest and principal. Most lenders in Florida offer interest-only mortgages. As with any other mortgage, this option works best if you understand its advantages and disadvantages.
If you need a lower payment initially and anticipate you will be able to make larger payments later, an interest-only mortgage may be the right choice for you. Alternatively, if you want a larger mortgage to buy a more expensive house, an interest only mortgage may help because the initial payment you are required to make is smaller so you can borrow more. Interest-only mortgages may also be convenient for people who have an irregular income. If your cash flow is irregular and you still want to buy a house, an interest only mortgage may work. When you have more cash available, you can pay off part of the principal and the interest even before you need to.
The majority of interest-only mortgages offer adjustable rates, so if interest rates rise in the future, you may end up paying more. For as long as you pay interest only, you do not pay off any portion of the mortgage, and therefore, do not create wealth. A good strategy to avoid this is to pay off a certain part of the principal as often as possible in the interest only years of your mortgage.
Some lenders may mislead consumers by making them think interest-only mortgages save money. If none of the advantages of an interest only mortgage apply to you, consider examining other mortgage options instead.
By: Ken Marlborough
About the Author:
If you need a lower payment initially and anticipate you will be able to make larger payments later, an interest-only mortgage may be the right choice for you. Alternatively, if you want a larger mortgage to buy a more expensive house, an interest only mortgage may help because the initial payment you are required to make is smaller so you can borrow more. Interest-only mortgages may also be convenient for people who have an irregular income. If your cash flow is irregular and you still want to buy a house, an interest only mortgage may work. When you have more cash available, you can pay off part of the principal and the interest even before you need to.
The majority of interest-only mortgages offer adjustable rates, so if interest rates rise in the future, you may end up paying more. For as long as you pay interest only, you do not pay off any portion of the mortgage, and therefore, do not create wealth. A good strategy to avoid this is to pay off a certain part of the principal as often as possible in the interest only years of your mortgage.
Some lenders may mislead consumers by making them think interest-only mortgages save money. If none of the advantages of an interest only mortgage apply to you, consider examining other mortgage options instead.
By: Ken Marlborough
About the Author:
Florida Mortgages provides detailed information about Florida mortgages, Florida interest only mortgages, Florida mortgage brokers and more. Florida Mortgages is affiliated with Florida Refinance Mortgage Loans.
Posted in: Mortgage Refinance : : Comments (0)
Mortgages are getting less affordable, according to figures released by the Council of Mortgage Lenders, meaning that more people will struggle to keep up their repayments in the coming months.
Interest payments now account for the largest proportion of mortgage holders’ incomes than at any time over the last 15 years, with first time buyers struggling most. Of their net monthly October income 20.6 per cent went on paying mortgage interest, a rise of 0.2 per cent in only a month. That is the highest it has been since 1991, the CML revealed.
Home-movers also spent more on their interest payments, with the CML recording an average 17.6 per cent of net monthly income used to maintain home loan interest in October. That shows a slight increase on the previous month’s total of 17.5 per cent, and is now at the highest level since 1992.
But the Council of Mortgage Lenders welcomed the quarter per cent base rate cut in early December saying it would provide some much needed relief to those holding UK mortgages. Because another rate cut is widely predicted in the New Year many homebuyers who are on Standard Variable Rate (SVR) mortgages will benefit further.
Indeed, the prospect of reducing interest rates are prompting more people to opt for SVR mortgages ahead of fixed rate products, with the latter accounting for 68 per cent of all loans in October, reduced from 72 per cent in September. CML Director Michael Coogan said:
“For those customers whose fixed rate mortgage is coming to an end in 2008, the potential impact of higher monthly payments will be reduced by the cut in the bank rate this month, and hopefully other rate reductions to come early next year.”
Although lending volumes remained healthy in October, showing a nine per cent rise on September’s figures to total £33.5billion, the CML believes that the effects of the global credit crunch are still to be felt, as most of those loans would have been approved prior to its impact. To prove the point pipeline figures for mortgage approvals are already showing a slowdown and the organisation said it expected that over the coming months lending levels would be ’subdued’.
So, although the December interest rate cut has provided some relief for borrowers, with hopefully more on the way in the New Year, homeowners are still struggling as they now have to devote more of their income to paying mortgage interest.
By: Andrew Regan
About the Author:
Interest payments now account for the largest proportion of mortgage holders’ incomes than at any time over the last 15 years, with first time buyers struggling most. Of their net monthly October income 20.6 per cent went on paying mortgage interest, a rise of 0.2 per cent in only a month. That is the highest it has been since 1991, the CML revealed.
Home-movers also spent more on their interest payments, with the CML recording an average 17.6 per cent of net monthly income used to maintain home loan interest in October. That shows a slight increase on the previous month’s total of 17.5 per cent, and is now at the highest level since 1992.
But the Council of Mortgage Lenders welcomed the quarter per cent base rate cut in early December saying it would provide some much needed relief to those holding UK mortgages. Because another rate cut is widely predicted in the New Year many homebuyers who are on Standard Variable Rate (SVR) mortgages will benefit further.
Indeed, the prospect of reducing interest rates are prompting more people to opt for SVR mortgages ahead of fixed rate products, with the latter accounting for 68 per cent of all loans in October, reduced from 72 per cent in September. CML Director Michael Coogan said:
“For those customers whose fixed rate mortgage is coming to an end in 2008, the potential impact of higher monthly payments will be reduced by the cut in the bank rate this month, and hopefully other rate reductions to come early next year.”
Although lending volumes remained healthy in October, showing a nine per cent rise on September’s figures to total £33.5billion, the CML believes that the effects of the global credit crunch are still to be felt, as most of those loans would have been approved prior to its impact. To prove the point pipeline figures for mortgage approvals are already showing a slowdown and the organisation said it expected that over the coming months lending levels would be ’subdued’.
So, although the December interest rate cut has provided some relief for borrowers, with hopefully more on the way in the New Year, homeowners are still struggling as they now have to devote more of their income to paying mortgage interest.
By: Andrew Regan
About the Author:
Andrew Regan is an online, freelance author from Scotland. He is a keen rugby player and enjoys travelling.
Posted in: Mortgage Refinance : : Comments (0)
By: Milos
About the Author:
Milos Pesic is a professional Debt Management consultant who runs a highly popular and comprehensive Debt Consolidation web site. For more articles and resources on debt management, debt consolidation programs, free debt counseling and much more visit his site at:
Posted in: Debt Management : : Comments (0)
Mortgages Pre Approval – Why You Need Mortgage Pre Approval to Buy a New House in Today’s Market
23/07/09
In the past home buyers never paid to much attention to getting mortgages pre approval when they were looking to buy a new house. Normally they would find a house, get an accepted offer then shop for the best mortgage deal they could find. Not the other way around.
The Process To Buy a New House Today Is Much Different
Today purchasing a home is a much more competitive endeavor and houses go fast. In most cases Realtors and mortgage brokers recommend that potential buyers get a mortgages pre approval letter from their mortgage lender of choice before they start to shop.
With a pre approval the potential buyer is looked at as serious about the purchase and also proven financially able to buy a new house that is for sale. This will give you and your Realtor more negotiating power with the property seller and their listing real estate agent.
Whats Involved In a Mortgages Pre Approval Process
There are two parts to the actual mortgage pre approval. This involves pre approving the borrower and pre approving the house they want to purchase.
Pre approving the borrower is when the bank or mortgage lender verifies that the borrowers credit and finances are adequate and are enough to qualify them for the loan program they need.
The property pre approval is when the value of the property is verified through a licensed property appraisal. The second part to the property pre approval involves getting a clear title report from a title company.
A clear title shows there are no judgments or liens against the property that need to be paid before a sake can occur.
By: Darin Sewell
About the Author:
The Process To Buy a New House Today Is Much Different
Today purchasing a home is a much more competitive endeavor and houses go fast. In most cases Realtors and mortgage brokers recommend that potential buyers get a mortgages pre approval letter from their mortgage lender of choice before they start to shop.
With a pre approval the potential buyer is looked at as serious about the purchase and also proven financially able to buy a new house that is for sale. This will give you and your Realtor more negotiating power with the property seller and their listing real estate agent.
Whats Involved In a Mortgages Pre Approval Process
There are two parts to the actual mortgage pre approval. This involves pre approving the borrower and pre approving the house they want to purchase.
Pre approving the borrower is when the bank or mortgage lender verifies that the borrowers credit and finances are adequate and are enough to qualify them for the loan program they need.
The property pre approval is when the value of the property is verified through a licensed property appraisal. The second part to the property pre approval involves getting a clear title report from a title company.
A clear title shows there are no judgments or liens against the property that need to be paid before a sake can occur.
By: Darin Sewell
About the Author:
For more FREE tips on Buying a House and other mortgage and real estate information visit http://www.milwaukeehomeloans.net
Posted in: Mortgage Refinance : : Comments (0)
Do you Need Moneyto Pay Bills?
16/07/09
By: Claire Call
About the Author:
M Lesko is a writer that does extensive research and study for http://www.governmentgrants.com. With information and advice on government grants, he is committed to helping Americans find the money they require in order to fulfill dreams from starting a business to paying their monthly mortgage.
Posted in: Debt Management : : Comments (0)
By: Richard Glen
About the Author:
Richard Glen is a contributing writer to http://www.debt-settlement-negotiation.com/
Is currently writing some special articles to guide business on how to manage debt and avoid bankruptcy.
For Free Information on Debt Settlement Solution and Debt Help Consultation, call toll-free 1-877-850-3328
Posted in: Debt Management : : Comments (0)
Mortgages in Dubai and the Big Banks
08/07/09
Dubai real estate has been a consistently hot real estate market for investment property in the past few years. Dubai is the most populated and second largest Emirate in the United Arab Emirates. It has seen enormous construction and has attracted investors worldwide to its real estates projects.
I remember the time when an overseas investor searching for a mortgage would be confronted by puzzled Dubai developers and even more confused estate agents. When an international investor did find a local bank it would be so expensive and time consuming the buyer often gave up. The good news is that the Dubai real estate market is maturing and the big banks have woken up to the fact that Dubai mortgages are potentially very big business.
The early troubles with a Dubai mortgage all stemmed around the difficulties foreign buyers had securing the freehold on a property. Since the announcement on March 12 2006 that non United Arab Emirates nationals may be given the right to own freehold properties in some parts of Dubai, massive interest has been stirred in overseas property investors. Demand is surging and real estate is in short supply many off plan developments sell out in days of release.
Now with laws passed and established zones in Dubai where freehold ownership is not in question the banks are finally acting. The Dubai mortgage market is set to be one of the most competitive markets in the world. The worlds investors are looking at Dubai long and hard. Investors will not tolerate being ripped off with high price mortgages.
Unlike many overseas markets most freehold property in Dubai has not bought with mortgage finance. This gives the market a huge amount of resilience. Many of the mortgage providers in Dubai will only lend to non residents in the Dubai freehold zones.
Properties for sale that are suitable for foreign buyers are in the following freehold zones: Dubai Sports City , Dubai Marina , I.M.P.Z. International Media Production Zone , Jumeirah Village , The Palm Jumeirah, Shaikh Zayed Road, International City, The Lagoons, Palm Deira, Jebel Ali Airport, Emirates Road, Dubai Land ,Business Bay ,Downtown Dubai and much more
So what is attracted international Banks to Dubai that’s simple money and plenty of it. Dubai’s population is currently in the region of 1.4 million citizens, by 2010 it is expected that Dubai will be home to 3.5 million residents. The Banks anticipate a huge demand for property and in turn a big demand for mortgages. The large multi nationals will be moving in and with them their employees all needing a place to live.
Most of Dubai population is set to be made up from people from overseas. Dubai will be truly multi cultural multi national and that feeling is already in Dubai. Experience Dubai nightlife and you will see it is a truly multi national experience.
The future for the big banks is bright as overseas investors will feel more secure going with mortgage providers that they are familiar with.
In all mortgages in Dubai are good for the banks and are set to be good for overseas buyers investing in the new world attraction which is Dubai.
By: Nicholas Marr
About the Author:
I remember the time when an overseas investor searching for a mortgage would be confronted by puzzled Dubai developers and even more confused estate agents. When an international investor did find a local bank it would be so expensive and time consuming the buyer often gave up. The good news is that the Dubai real estate market is maturing and the big banks have woken up to the fact that Dubai mortgages are potentially very big business.
The early troubles with a Dubai mortgage all stemmed around the difficulties foreign buyers had securing the freehold on a property. Since the announcement on March 12 2006 that non United Arab Emirates nationals may be given the right to own freehold properties in some parts of Dubai, massive interest has been stirred in overseas property investors. Demand is surging and real estate is in short supply many off plan developments sell out in days of release.
Now with laws passed and established zones in Dubai where freehold ownership is not in question the banks are finally acting. The Dubai mortgage market is set to be one of the most competitive markets in the world. The worlds investors are looking at Dubai long and hard. Investors will not tolerate being ripped off with high price mortgages.
Unlike many overseas markets most freehold property in Dubai has not bought with mortgage finance. This gives the market a huge amount of resilience. Many of the mortgage providers in Dubai will only lend to non residents in the Dubai freehold zones.
Properties for sale that are suitable for foreign buyers are in the following freehold zones: Dubai Sports City , Dubai Marina , I.M.P.Z. International Media Production Zone , Jumeirah Village , The Palm Jumeirah, Shaikh Zayed Road, International City, The Lagoons, Palm Deira, Jebel Ali Airport, Emirates Road, Dubai Land ,Business Bay ,Downtown Dubai and much more
So what is attracted international Banks to Dubai that’s simple money and plenty of it. Dubai’s population is currently in the region of 1.4 million citizens, by 2010 it is expected that Dubai will be home to 3.5 million residents. The Banks anticipate a huge demand for property and in turn a big demand for mortgages. The large multi nationals will be moving in and with them their employees all needing a place to live.
Most of Dubai population is set to be made up from people from overseas. Dubai will be truly multi cultural multi national and that feeling is already in Dubai. Experience Dubai nightlife and you will see it is a truly multi national experience.
The future for the big banks is bright as overseas investors will feel more secure going with mortgage providers that they are familiar with.
In all mortgages in Dubai are good for the banks and are set to be good for overseas buyers investing in the new world attraction which is Dubai.
By: Nicholas Marr
About the Author:
Nicholas Marr is a lifetime property investor and CEO of Marr International Ltd a UK based property marketing company that has offices in Dubai he is responsible for one of the worlds leading overseas property web sites at http://www.homesgofast.com/dubai/Dubai_mortgages.php
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