What Is A Good Faith Estimate In Real Estate?

July 31, 2011 by SEOLinkVine  
Filed under Uncategorized

New policies, as well as financial and mortgage reforms have been created by the US Department of Housing and Urban Development (HUD). One of the changes was that lenders are now required to provide borrowers with a Good Faith Estimate. basically, GFE was created for the benefit of the consumer and the lender. It exists to protect consumers from accepting unfair mortgage terms for Tooele Homes for Sale, for instance and also allow lenders to save as much as $700 in loan fees and costs.

So what basically is this GFE? A Good Faith Estimate (GFE) is a document that discloses the anticipated expenses that the applicant(s) will have to pay if the covered transaction is approved and closed. This document is requred to be provided by lenders to all their applicants for covered real estate loans.Simply put, it is a list of the estimated fees that you will have to pay to get the loan. The lender is responsible for providing all the necessary information to the applicant within the number of days required to complete the mortgage application process, which is normally three days.

Typically, the fees in a GFE is set in six categories:

1. Loan fees

2. Fees to be paid in advance

3. Reserves

4. Title charges

5. Government charges

6. Additional charges

Since GFE is a document from the lender that discloses anticipated settlement costs associated with the loan(s) given to buy Pennsylvania short sales, for instance, we can say that it is an important document when buying a home. How? This document is helpful in comparing one lender to another so that it is easier for the borrower to decide which lender s/he wants to work with. Take note that the figures might change when you get to the closing cost because some items are actually estimates. One thing that makes this document a little complicated is that lenders may use different terms for an item so be sure to ask about what the item is all about.

So before you decide to buy a home from Buford Georgia Homes and shop around for mortgage loan,  get to know the Good Faith Estimate well. Know which of the qoutes are certain and which are not.

3 Steps to Finding Great Mortgage Loans

September 2, 2010 by admin  
Filed under Real Estate Financing

Just like many things in this world, not all mortgage loans are created equal. In fact, there are numerous loan offers that you might find scouring the Internet or by visiting with multiple mortgage loan consultants. The question is: How do you determine which mortgage loans are great mortgages? Well, as the saying goes, great things come in threes…or in this case, in three steps.

The first step to finding a great mortgage loan is to hire a quality mortgage consultant. In the real estate business, that means having a mortgage loan consultant who operates with transparency so you’ll know every fee that you’ll be assessed and the amount of each fee. A transparent mortgage loan consultant will also explain everything—even the things you don’t ask but need to know—in plain language so that you fully understand everything related to obtaining a mortgage.

The second step to finding a great mortgage loan is to find an appropriate mortgage loan. What does “appropriate” mean? It means that the mortgage consultant you’ve chosen to work with has located a mortgage loan that has a feasible interest rate for the payments you can afford; the lower the mortgage rate, the better. There is a catch: Mortgage loan consultants in Florida, California, New York, or anywhere else in the US can only offer you the mortgage loans that you are eligible for, which is based on the current  market rates and your credit score. Therefore, be sure to keep tabs on both.

The third step is to put on a pair of mortgage loan blinders. By that, I mean you need to narrow the scope of the types of loans you’ll entertain; only consider loans that are 100% buyer-friendly. Ideal buyer-friendly loans give you, not the lender or the mortgage broker the advantage. Buyer-friendly loans have flexible loan terms. For instance, the loan may be available as a one to ten year loan; it may be available as an open, closed, variable, or convertible mortgage. Another key sign of a buyer-friendly mortgage loan is that the mortgage allows you to have some control over the interest rate. If a mortgage loan consultant says that “points” is an option, it’s an offer worth considering. Mortgage loan points, in case you don’t know, allow you to decrease the interest rate on a given loan. Though buying points will increase your initial mortgage loan costs, it’ll save you money in the long run. That’s why it’s a great option to have, regardless of whether you utilize it.

If you follow the steps above as you begin hunting for your perfect mortgage loan, you won’t have any problems finding a loan that you can live with. Keep in mind that finding such a loan does take time. Be patient, plan ahead, and most importantly, find the right mortgage consultant or firm to help you along the way first!

Mauricio Navarro is writer and adviser to CompareMortgageQuotes.ca – A mortgage comparison website. CompareMortgageQuotes.ca is a one-stop online source for the most popular mortgages – mortgage loans for purchases, home loan refinancing, home mortgage rates, home loans for repairs, and more!

Loan Modification – Part 3: Home Mortgage Bailout – Real Estate Foreclosure Prevention Process

September 2, 2010 by admin  
Filed under Real Estate Financing

Loan Modification Attorneys Negotiate Home Mortgage Bailout – Foreclosure Assistance Plan – Real Estate Foreclosure Prevention Alternative To Fraud and Scams. ModificationHotline.com Will Help You Survive The Mortgage Meltdown Crisis by Modifying Your Home Loan. Avoid Foreclosure and Bankruptcy. Get Your Bailout Today. At http You Can Claim Your FREE Copy of My Latest Report: “THE FORECLOSURE SHARKS: A Look At The Rampant Theft Of Americans’ Homes Through Foreclosure ‘Rescue’ Scams”, and While There Also Sign Up For a FREE Consultation With Our Approved Foreclosure Prevention Specialists. Go To ModificationHotline.com and Complete Our Easy Form – It Takes 2 Minutes and Can Help You Save Your Home. http

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Loan Modification, Home Loan Modification, Mortgage Loan Modification, Mortgage Modification

September 2, 2010 by admin  
Filed under Real Estate Financing

realestatemarketingthisweek.com – Using Retirement Funds to pay your Mortgage is just a bad idea. Get a Loan Modification — Part 6 – So it doesn’t matter if it is a $100000 property or a $500000 property the cost to the lender is $50000 on the average nationally. So the idea of the upside down scenario, you may see banks more willing to entertain a broader audience of loan modifications or a broader request of loan modifications based on the fact that they know that now, what we are calling toxic assets, not only exist on their balance sheets, but they want to do something to avoid the additional cost of foreclosing on the property, to avoid the additional impact on our economy nationally with all these foreclosures mounting. So a loan modification that may not be the best or most ideal candidate today, dont throw the option completely out of the window. And to that point I would never tell a home owner to stop making their payments just to get a better loan modification, because as of today, this may not be the case two weeks or two months from now, but as of today, your servicer is not going to entertain a loan modification unless youre late in most cases. Heres the situation, though at first you may get mad at that and they get mad at me for it, but the reality of it is we have a real problem now with lots of people who are two, three, four months behind on their mortgages, this loan modification we are jumping in, we are getting attorneys involved and getting right

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The Mortgage Loan Process

September 2, 2010 by admin  
Filed under Real Estate Financing

So you’ve got your home offer accepted, now what? We’ll explain the loan process, step by step, so you know what to expect when your mortgage is being processed while you await a closing date.

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What is a second mortgage loan?

September 2, 2010 by admin  
Filed under Real Estate Financing

A second mortgage loan is based primarily upon these two conditions. A mortgage loan can be broadly understood as a kind of contract or a legal agreement, in which the borrower’s property is pledged as a security or collateral guarantee, and the borrowed amount or credit is generally repaid in small packets of predefined amount, which are also referred to as installments. As per the contract or the agreement, the buyer promises to repay the principal amount or the actual loan amount, and its interest, over a fixed period, also known as loan tenure in a regular and orderly manner. A lien is understood as a legal right or a claim imposed by the creditor or lender upon the property, against which the credit is taken or borrowed. In a simple language a lien means the creditor has a legal right to dispose off the debtor’s property, in case of defaults or the debtor’s inability to pay the loan installments.

A second mortgage is an additional mortgage loan, which is added to your first or original mortgage loan. Since the new mortgage loan is attached in conjunction to the first or original mortgage, it’s generally referred to as a second mortgage loan – second because it falls at number two position in relation to the main mortgage loan. This second mortgage loan has all the characteristics of its original or main loan. In short, you’ve a condition in which two mortgage loans remain side-by-side, each loan with its unique set or terms and conditions.

Why avail a second mortgage loan?

Now, if two loans are to share the same mortgage, i.e. the same security or collateral guarantee, what’s the need of going in for a second mortgage? The answer’s quite simple. When people go in for a mortgage loan, they understand the significance and the importance of a lien. Debtors know for sure, if they default, or end up with unforeseen circumstances and are unable to pay off their dues, the creditor holds a legal right to sell of the house offered as security and recover the dues. So individuals are very cautious about secured loans, and generally avail just enough credit to satisfy their requirements. As a result, the full potential of the lien is not utilized. It means if the property is worth $1,00,000/- a mortgage facility of $40,000/- or $50,000/- is generally availed against the security. The remaining potential is left unused. That’s where a second mortgage comes in. If the borrower desires additional cash, or has a need to finance some requirement, the unused potential left over from the first mortgage activity can be used for the additional mortgage. Due to this, the second mortgage is also referred to as a home equity loan. The two terminologies can be used in lieu of each other.

Advantages of a second mortgage loan

•The homeowners have to pay a smaller down payment, and in some cases, the down payment is totally avoided, to avail the additional credit. During the transaction, the homeowner has the option to break up the total loan amount into two separate loans referred to as a combo loan. The encumbrance or the risk factor is distributed between the two loans, allowing higher combined loan-to-values and a much lower blended interest rates.

•The additional funds can provide a homeowner with much needed cash to improve the quality of their home or pay off high-interest loans. The biggest advantage is it’s possible to avoid a refinance of the existing first mortgage.

•Second mortgage helps homeowners to avoid paying PMI, or private mortgage insurance. The resultant savings can be substantial depending upon the loan break down, and often saves the homeowner hundreds of dollars a month, in terms of additional expenses. If the first loan is kept at or below 80% loan-to-value, the additional PMI is not required to be paid.

•The monthly payments on the second mortgages are ideally low as compared to its first mortgage. The homeowners end up with a substantial amount of liquidity, which can be used to pay of existing loans or even finance a commercial project.

•The second mortgage is offered for both adjustable and fixed-rate options, so many options are available to choose from and to find the exact credit facility to fulfill your needs.

Mortgage Loan Programs

September 2, 2010 by admin  
Filed under Real Estate Financing

Which type of mortgage is right for you? There are many types of mortgage loans, from the traditional 30-year fixed-rate mortgage to hybrid loans and interest only loans. What does each mortgage loan program offer? Learn more about the different types of mortgage loans in this Expert Real…

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Looking For A Second Mortgage Loan?

September 2, 2010 by admin  
Filed under Real Estate Financing

A second mortgage loan is a subsequent loan and subordinate to the earlier mortgage. In other words, a second mortgage loan is used as collateral pledged for the first loan.

Length of Second Mortgage Loans

Second mortgage loans have varying lengths with which they are eventually paid off. Some second mortgage loans may last for as long as 15 or 20 years. Other second mortgage loans only require one year for repayment.

When you’re thinking of taking on a second mortgage loan, you will need to know what term best suits you. Discuss the repayment terms of the second mortgage loan with your bank or lending company. For instance, you get a second mortgage loan worth $20,000 to make some home repairs. With this amount, you might want to take on a second mortgage loan that will allow you to repay the entire amount in one or two years. If you pay a second mortgage loan that has a shorter term, the monthly payments may be too high.

Payment Calculations for Second Mortgage Loans

Before taking on second mortgage loan, be sure that you understand a couple of things first. Know how much your monthly payments will be for that second mortgage loan. Moreover, it is also helpful if you also have an idea as to where those second mortgage loan payments will cover.

Some second mortgage loans require you to make monthly payments on both interest and principal. Other second mortgage loans only require you to pay the interest of the borrowed amount.

The former type of second mortgage loans will allow you to significantly shorten your payoff period since with each payment you make, you are also chipping away at the principal. With the interest-only second mortgage loan however you will be required to pay back the entire amount that you borrowed as soon as the term ends. This type of second mortgage loan is also called balloon payment loans.

Second Mortgage Loan Costs

Fees may be charged by some lending companies for the money you borrow on second mortgage loans. The fees, referred to as “points,” are usually a percentage of the second mortgage loan. One point on your second mortgage loan is equivalent to one percent of the amount you borrow.

So, if you were to get a second mortgage loan of $10,000 with an eight-point fee, then you would have to pay $800 in “points.” Second mortgage loan companies may charge you in varying number of points so if it might be helpful if you do a comparison first.

Second Mortgage Loan Rates

Second mortgage loans have different payments plans. Most second mortgage loans have a fixed rate payment included in their payment plans. If you have a fixed rate second mortgage loan, the interest rate will be set for the whole loan term. This means that your monthly payments for your second mortgage loan will not be affected by any outside changes.

Some companies also offer second mortgage loans with variable rate payments. These variable rate second mortgage loans periodically experience rate adjustments. A variable rate second mortgage loan might be cheaper than a fixed rate payment in the long run. But this is only provided if the interest rates of second mortgage loans go down. If interest rates rise, then your monthly payments for your second mortgage loan will rise as well.

Find out more about financial issues at http://www.123-debt-consolidation-loans.com and start gathering as much information as possible before you make your decision.

Real Estate Financing – FHA Mortgage and First Time Home Buyers – RealEstateMarketingThisWeek.com

September 2, 2010 by admin  
Filed under Real Estate Financing

realestatemarketingthisweek.com – The old rules no longer apply and Suze Ormond should know that. – Part 7 – We have Dan Havey the author of Real Estates Future in the studio today. Michael, I was just curious, back when I got into the industry many, many years ago there used to be a rule of thumb that if you were going to refinance you had to lower your interest rate by at least two percent and I know as time went along and products changed that really became unnecessary, but I am just curious in todays mortgage market its a lot different than we were dealing with even two years ago. Is that still true that there is a 2% rule? Whats going on now? I happened to catch Suze Orman on television and she was talking about mortgages, the caller who called in to the program, the question became I believe similar to what Dan just asked, her comment was that basically if you’re in 6% interest rate or above now is the time to re-fi. That is what she said, a blanket recommendation. I know a lot of people put a lot of credence into what she says, maybe you could speak to that, the lowest interest rates you’ve seen in your career, you have been doing this for a while. I have, and they are. You know there was a lot of speak the last couple weeks about the Fed, the Fed funds rate by the way is the lowest it’s ever been in history. As of this week the discount rate is to the point that banks are lending money to each other at nothing, the Fed funds rate for intrabank lending is at zero

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Income, Credit & Home Loans: Buying a House : Private Mortgage House Insurance (PMI) Tips

September 2, 2010 by admin  
Filed under Buying A House

Private mortgage insurance (PMI) tips & how it can determine how much house you can afford. Find out how in this video on buying a home.Expert: Brett Staggs Bio: Brett Staggs has been working in the mortgage industry for the past 6 years. He has worked for a title company, a credit reporting company, and two major banks. Filmmaker: Dana Glover

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