Home Loans -- Federal Regulators Warn Lenders to Be More
Federal banking regulators have recently expressed some
concern over the housing market as home prices in the United
States have risen to record levels. While homes are more
unaffordable than ever for many people, the lending market
remains strong, mostly because of the introduction of new,
ever-more-flexible types of loans. While these newer loan types,
such as the interest-only loan, make buying a home easier for
some borrowers, they also propose a greater risk to the
The lending market has been quite aggressive during the last
five years, as investors and homebuyers have purchased real
estate in record numbers. Buyers who are skittish about investing
in stocks have put their money into real estate instead, and
prices have climbed to record levels. Lenders have been all too
happy to accommodate the long line of customers in their offices
with an ever-increasing array of products. With hundreds of loan
types available, nearly everyone can qualify for some type of
mortgage today. The problem, as regulators point out, is that
some of the more popular types of loans are inherently risky. Two
such examples are the interest-only loan, and home equity loans that
exceed 100% of a home's value.
The problem with such loans is that they are both issued under
the assumption that home prices will continue to rise. Prices may
continue to rise, but if they don't or worse, if they fall,
lenders could find themselves in the ugly position of holding
liens on property that is worth considerably less than the amount
of the loan. As of yet, there's no sign of a crash in real estate
prices, but foreclosures are up in both Texas and Florida, and
this could be an indictor of more difficult times ahead for the
lending industry. The banking regulators didn't issue any orders
regarding how high-risk loans should be handled, but they did
caution lenders to check the credit scores of borrowers carefully
and to eschew or cut back on so-called "no-doc" loans, which do
not require full documentation of a borrowers assets or
This should be of relatively little concern for the average
borrower, who would probably think that such guidelines represent
ordinary common sense. Unfortunately, common sense sometimes gets
ignored during boom times in business, only to be remembered when
buyers start to default on their loans. By that time, it's too
late to do anything, and the stockholders are left with the
©Copyright 2005 by Retro Marketing.
Charles Essmeier is the owner of Retro Marketing, a firm
devoted to informational Websites, including End-Your-Debt.com, a
Website devoted to debt consolidation
information and HomeEquityHelp.net, a site devoted to information
MORE RESOURCES updated Mon. October / 23 / 2017
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Kieber: What are your numbers? (column)Summit Daily NewsThat is how we are being tracked and the same is true when applying for a home mortgage refinance or a new home mortgage. When it comes time to start the process to obtain a new mortgage there are three numbers that I look at first: your credit score ...
Rising Home Values Can Boost Your Mortgage RefinanceHuffington PostRising mortgage rates are cutting the flow of mortgage refinances to a trickle. By now, many people who could have benefited from a lower rate have done so. However, if you're thinking about refinancing but are hesitating because of interest rates ...and more »
RELATED MORTGAGE AND REFINANCING ARTICLES:
Gearing Up for Bad
Mortgage would have never happened, had mortgages been a no
profit venture for the mortgagees or the mortgage
providers. The lender receives much more than he had
Mortgage advice overwhelming you? Many people get advice
from everyone on the planet when they talk about purchasing
a home. People tell them their version of advice on most
important factors and expect the potential home buyer to do
as they have instructed.
Treachery: Avoid Mortgage Bankers and Brokers Biggest Trick
-- The Sales Pitch
What the average homeowner or home buyer fails to realize
is that bankers, loan officers, mortgage brokers, or
whatever your lenders call themselves, are salesmen.
Certainly, if you purchased your home from a realtor and
used her lender, you most likely got a feeling of trust in
that person, because the realtor referred him.
Option ARM Mortgage Loan
- Is This Really for You?
What happened to the days of a 15 or 30 year fixed rate
mortgage loan? Ultimately this is the safest and most
popular mortgage loan product in our industry, but new
mortgage products are hitting the market, and we in the
mortgage business are using them to our advantage; ever
heard the radio advertisement saying, "buy a $200K home for
$643.28 per month; call XYZ Mortgage Company to apply"? The
product used in this ad is called an Option ARM, and I feel
it's my duty as a mortgage professional to tell you what
this product is in case you happen to meet up with that
loan officer whose only concern is to make a fee, and not
have your best interest in mind.
How to Find the Lowest
The quest is on! You're in the market for a new home loan,
a refinance, or a consolidation and you absolutely insist
on finding the lowest rate possible! So what better place
to do your research, then here on the internet, late at
night, with your coffee in hand, and your family fast to
sleep! We'd like to help you on your quest, so here are 3
free tips that we think will speed up your journey, and
move you to success:1. Benchmarks 2.
Mortgages - Which Loan
is Right For You
When buying a home, you need to take a home mortgage loan,
either because as a debtor, you end up paying less tax, or
because in a market where property prices rise faster than
salary levels, the money you have saved falls short of the
amount required. When searching for a home mortgage loan,
you can select from a wide variety.
Is It Time To Buy A
At some point as you're writing out your rent check, you
get to the point where you look at the amount and think to
yourself - at this rate, I could BUY a house. If you're fed
up with paying rent every month that's high enough to
finance a mortgage, it may be time to take a serious look
at what it would take for you to get a mortgage loan and
buy a home of your own.
Do You REALLY Need a
Home Equity Loan?
Your equity is the amount your home is worth, on the
market, minus the amount you owe to your mortgage broker.
For example, if your property is worth $200,000 and the
balance you owe your mortgage broker is $100,000, then your
home equity - the part of your property that you own free
and clear - is $100,000.
Mortgage Calculator -
How to Calculate Your Monthly Mortgage Payment
Just starting to shop for a new home? Do you want to know
how to figure what your monthly payment would be based on a
certain priced home? No problem, there are plenty of
mortgage calculators on the web you can use free of charge
(click here for an example of one). All you need to know is
the mortgage amount, sale price less the down payment,
interest rate (also easy to access on the web), and the
number of years you wish to finance your new home, usually
30 years (360 months) is the maximum term.
Using a Calculator to
Assess Your Loan
Buying a house is a very important step in your life. Every
family dreams of having their own home and whether you are
looking into your first, or are moving or upgrading your
home, you know your mortgage is important.
5 Tips for Savvy Use of
Your Home Equity Line of Credit
Tapping your home's equity to pay college expenses,
consolidate credit card debt or even to buy a new car or
boat is common place. Many economists attribute the
additional buying power afforded consumers through home
equity debt as a primary reason the nation's economy has
been able to emerge from the recent recession.
Alternative Finance Often Masks Predators, Who Want to
Steal Your House
So, your bank had just turned you down for a mortgage
application. The same thing also happened, when you went to
other banks in your area.
Mortgage Lead and
A mortgage lead is an exciting thing because you are filled
with the thought of buying a house. Mortgage leads are
listings of information dealing with how much a house will
Follow A Few Simple
Steps To Make Shopping For Your New Home Loan A Little
It is likely to be one of the largest purchases of your
life, and it can be extremely nerve racking and
overwhelming. Buying a new home! Whether you are buying
your first home, or moving to a new home; purchasing a home
and shopping for home loans is a major decision that
requires a lot of time and energy.
Selling Your Business
Before I go further, let me ask a question- if you won the
lottery tomorrow, would you take the payout in a lump sum
or in monthly payments? Most people would take a lump sum
because even though it might be less than the total prize,
they would have control over a large sum of money now and
could let the time value of money go to work and increase
their winnings. So why then would you opt to get paid on
your business sale over several years rather than take a
lump sum payout? The answer is probably because you didn't
know that you could get cash for your business note.
What is a Flexible
'Flexible mortgage' is a term that's used a lot, but what
exactly does it mean? A flexible mortgage allows the
borrower to make extra repayments when they have the extra
money and even reduce or skip payments should the need
arise. A flexible mortgage allows you to make extra payments
to reduce the amount outstanding on your mortgage thereby
reducing the interest you're paying or pay off your
mortgage earlier than planned.
Mortgages - Understand the Benefits Compared to a Fixed
Adjustable rate mortgages can be very tempting to home
buyers, yet they carry a great deal of uncertainty. Fixed
rate mortgages offer rate and payment security, but they
are more expensive.
Refinance Mortgage Rate
and Mortgage Rates
Refinance mortgage rate is the best rate available to
qualified homeowners for refinancing their current home
mortgage. Refinance mortgage rates vary from product to
product and customer to customer.
Selecting the Right
Mortgage for You
A mortgage is a loan you take out to buy a home. This loan
covers the "principal" (purchase price of the house minus
your down payment) plus the "interest," which is the fee a
lender charges you to borrow the money.
Council Right To Buy
Mortgage - Transform Your Accommodation Into
Homeowner - does this term catch your attention every time
you hear it? It is a powerful term. It is hard being a
tenant for long.
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