As a homeowner, you receive great benefits from your property investment, especially if you have a FHA loan. An FHA insured loan is a Federal Housing Administration mortgage insurance backed mortgage loan which is provided by a FHA-approved lender. FHA insured loans are a type of federal assistance and have historically allowed lower income Americans to borrow money for the purchase of a home that they would not otherwise be able to afford. With these loans, you can obtain a lower mortgage and decrease your monthly amortization. This explains why many homeowners are leaning towards these loans.
Features of Refinancing a FHA loan
- Your credit standing is never an issue. This is a very appealing feature. Homeowners like you are not required to
submit yourself to a bevy of complicated processes that seem to take forever. All you have to present is your existing mortgage. There are no endless questions asked. Read the rest of this entry »
Whether you’re an economy major or someone who just wants to learn new things each day, you would be interested to know that interest and interest rates have a long history throughout the ages. Though you might think that lending and interest would have been a relatively newer concept that just came in within the last 200 years, you would be surprised to know just how far back it originates.
Older than you think
Loans actually existed as early as about 4000 BC. Though the loans back then in pre-urban societies were loans consisting of seeds and grains and animals and tools. People still had some sort of interest in paying their debts, as the seeds that they borrowed would yield more grain.
A similar concept of interest was applied Read the rest of this entry »
One of the many ways that financial experts have been telling people to save money is to look into having their home mortgages refinanced. You might be looking at engaging in a home refinance, but before you do that, you’re probably wondering if going with a refinance makes sense for you.
There are a number of ways that home refinancing can benefit you, including:
Lowers your interest rate.
When the economy was going well, interest rates were higher. This was done to keep inflation in check. However, when the economy hit a downward turn, the interest rates dramatically dropped. Read the rest of this entry »
If you can place yourself in the enviable position of applying for a mortgage for your own home, count your blessings. Credit is tight right now and current homeowners can typically only refinance their mortgage loan. They certainly don’t have any chance of selling their home at a profit.
Banks Are in Hot Water
A few bad apples can certainly ruin a harvest. For many years, the banking community pushed adjustable rate mortgages on applicants that could ill afford any mortgage at all. These shenanigans set off the housing market meltdown that is responsible for starting the global economic chaos.
Take care and due your homework to accept the best situation possible. A source Read the rest of this entry »
Repayment schedules and interest rates are very critical and should always be examined carefully before you commit to be bound by loans and financing contracts. Interest rates play a very crucial role in determining the overall cost of a loan. It is important to realize that these interest rates are never static. They keep changing from time to time. Such shifts are usually dependent on the prevailing economic conditions or preferences of the relevant regulatory authorities like the federal bank. These changes in interest rates are the major cause as to why you may be tempted to refinance your loan payment. Before you make a decision, there are 5 things you need to know when it comes to refinancing.
Refinancing entails replacing the old loan with a new one. Read the rest of this entry »
Are you wondering how to get the lowest interest rate on your mortgage? Getting the best interest rate requires preparation and advanced planning. You must lock in your mortgage rate at the right time. Other factors may also affect your rate, including your credit score, loan to value of the home, the type of home you are buying, and the type of loan you are considering.
Your credit score is a very important aspect in determining what interest rate you will pay. Obtain a copy of your credit report. Any incorrect information can cause your credit score to drop. If you find any mistakes on your credit report, make sure they are corrected before you apply for a mortgage. If you are able to, try to pay down your credit card debt before you apply for a mortgage. Read the rest of this entry »
The Federal HARP (Home Affordable Refinance Program) program helps people refinance their homes, even if they are now worth less than what was originally paid. People in these situations often find it difficult or impossible to refinance their loans, yet this could help you greatly with the costs of your mortgage. The HARP program was created to help people like you, whose homes are underwater, get their mortgages refinanced.
Unlike other debt relief programs, HARP is not intended for homes that are in foreclosure or pre-foreclosure. In order to refinance under HARP, your mortgage must be current, and your payment history must be good over the last 12 months. Only loans owned or guaranteed by Freddie Mac or Fannie Mae are eligible.
One of the previous guidelines for the HARP program Read the rest of this entry »
As a homeowner, it can be very difficult to make your mortgage payment month after month for years. This is especially true if you owe more than what your home is worth. In this situation, you might be considering strategic default. Here are the basics of what you should know about strategic default.
What is Strategic Default?
Strategic default is a situation in which a homeowner has the ability to make mortgage payments, but he simply stops making them. This is usually the case when the value of a house declines significantly, and the homeowner is upside down on his house. Eventually, the homeowner will walk away from the house, and allow the lender to foreclose on it. Read the rest of this entry »