August 2007
Monthly Archive
30 Aug 2007 07:25 am
ARM Holders Wrongly Turning Towards Credit Cards
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The majority of U.S. consumers often have wallets full of plastic. Many obtain these cards with little knowledge of how they work or the way interest on purchases is calculated, and those least able to repay appear to be the ones getting into the deepest end of financial hot water. [tag]Credit-card companies[/tag] often offer tempting incentives like low or zero percent APRs, frequent-flier miles or cash back on purchases. Someone has to bear the cost of these promotions, and they are often the families already in financial. |
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29 Aug 2007 07:16 am
Deducting Mortgage Interest Can Be Tricky
| Before 1987, [tag]mortgage interest[/tag] on all residences could be deducted without limit. Since then, consumers with more than two residences are required to choose two “qualified” residences where mortgage interest could be deducted, but the selected residences are allowed to be juggled into the “qualified” category from year to year. A home does not actually have to be used to qualify as a selected residence. If there is no rental or personal use of a residence for an entire year, it can be designated as a selected residence and interest can be deducted. If it is rented or used only occasionally by the owner, no interest can be deducted under the personal-residence rule unless there are at least 15 days of personal use. |
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28 Aug 2007 06:00 am
Don’t Make These Mistakes When Mortgage Shopping
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Establishing good credit is the key to locking in a favorable mortgage rate, yet many buyers fail to check their credit reports before applying for a home loan. Even the most fiscally responsible buyers shouldn’t assume that their credit report is spotless. One in four people reported finding serious errors on their credit reports. Just because you qualify for a loan doesn’t mean it’s in your best interest to take it. If you’re already struggling to pay rent and a lender offers you a loan requiring even higher monthly payments, you should seriously consider the financial repercussions before accepting it. It’s important to avoid job hopping while your mortgage application is pending. If switching jobs in unavoidable, angle for a position that offers the same or better pay. |
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27 Aug 2007 07:18 am
Foreclosure Rescue Scams On The Rise
| As foreclosure rates rise, evidence from other parts of the country indicates the number of rescue scams may be increasing. The BBB for Clearwater, Florida, received 508 complaints about local foreclosure rescue companies in the past three years with 322 coming just within the last 12 months. Charlotte, North Carolina’s BBB office reported last year that two foreclosure rescue companies were operating; today the count is 15 and six have already had legal actions taken against them. Twenty-one new companies began operations this year in Cleveland. The most common form of foreclosure rescue scam involves a scammer taking an up-front fee, usually $1,000 or more, to solve the victim’s foreclosure problems, and then does little or nothing, pocketing the money. |
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26 Aug 2007 06:23 am
Reverse Mortgages Explained
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A r[tag]everse mortgage[/tag] is just what it sounds like — instead of a homeowner making payments to the bank to pay off a mortgage, the bank pays the homeowner who has a significant amount of equity built up. The lender, in return, puts a lien on the property. Borrowers receive money from a reverse mortgage in four ways: They can get a lump-sum payment, get a monthly cash stream, establish a line of credit or sign up for some combination of the three. To qualify for these loans, borrowers must be at least 62 years old. |
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25 Aug 2007 01:47 am
Dying Intestate
| Shockingly, less than 20 percent of U.S. residents have a written will. For those who have a will, after they die their assets will be distributed according to their wills by the local Probate Court. Probating an estate, even a modest one, usually takes six to 18 months or longer before the heirs can receive their inheritances. For individuals who die without a written will, the state law of intestate succession determines who will receive their assets. Especially in second marriages, the result is often not what the decedent would have wanted. Again, the local probate court supervises intestate succession distribution, subject to costs and delays. |
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24 Aug 2007 07:29 am
Buying Short Sales When The Mortgage Company Declares Bankruptcy
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One of the latest twists in an already topsy-turvy real estate market for agents and buyers is this — if a mortgage company owns a lot of property from foreclosures, then where or to whom does a buyer make an offer to purchase such property since the holder of the house no longer exists — at least in a healthy state. The short-sale market (better known as [tag]pre-foreclosure[/tag]) is alive and well around the country. But now we have the next challenge on these properties — buyers in the midst of a transaction with an entity whose status is questionable at best, and totally phased out at worst. Anyone involved in such a case or anticipating such a deal should be ready to wait a while for word from the bankruptcy court or the receivers of such a lender to determine what will happen with the properties. If the lien holder has filed bankruptcy, then its creditors will want to know how much cash or assets the company has to fulfill its debts. The houses may be considered such an asset and you may not be first in line to take over such a property if you’re in a contract with them. |
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23 Aug 2007 07:22 am
Trouble Securing a Mortgage? Try Your Local Credit Union
| As many mortgage lenders tighten loan underwriting standards and interest rates on jumbo mortgages rise, consumers may be able to find a friend in their local credit union. With less oversight and regulation, many of the mortgage loans made by credit unions are held in their own portfolios and therefore don’t need to be sold to investors. And, with most credit unions, there’s a more measured approach to how that mortgage works with the member’s overall financial picture, since the credit union is often that borrower’s primary institution. |
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22 Aug 2007 06:45 am
Wilkes County NC Log Home, Custom Designed and Constructed
Beautiful Wilkes County NC Log Home and Mountain Property.
MLS Number: 50863, List Price: $359,900
Bedrooms: 3, Full Baths: 2, Half Baths: 0, Est Total SqFt: 2600, Type/Style: Log Home, Area: Area 6, Middle School: Cntrl Wlks, High School: Wlks Cntrl, Construction: Log
Foundation: Combination, Roof: Metal Roof, Floors: Carpet/Hardwood/Tile, Garage/Carport: None-Garage, None-Carport, Interior Features: Master Bedroom, Main Level, Large Master Bedroom, Walk-In Closet(s), Hardwood Floors, Fireplace(s), Great Room, Exterior Features: Double Pane Windows, Wooded Lot, 1-5 Acres, Hot Tub, Subdivision: N/A, Lot Size: 2.47, Apx SqFt: 2600 – 2800 SF, Basement: None
Contact Elizabeth Carter, 336.973.5594 or Greg Stikeleather, Broker, 704.880.5247 or email eacarter@charter.net
click here for more information
21 Aug 2007 07:16 am
New North Carolina Mortgage Law Worries Federal Regulators
Last week the North Carolina Home Loan Protection Act (HB 1817) was signed by the state’s governor, a law which impacts some of the core mortgage issues now being debated in Washington.
The legislation; bans prepayment penalties that trap homeowners in [tag]high-cost loans[/tag], requires lenders to document borrower income, requires all [tag]broker compensation[/tag] to be counted when determining whether a loan is or is not a high cost mortgage product, strengthens brokers’ duties to serve the best interests of their clients, and ensures that homeowners have the right to pursue legal actions when violations occur.
The North Carolina legislation passed 33-15 in the State Senate, 113-0 in the State House and was instantly signed by Gov. Mike Easley. However, like all state financing regulations, the North Carolina law does not apply to mortgages from federally regulated lenders. (more…)
20 Aug 2007 07:08 am
Banning Stated Income Loans
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A stated-income loan (SIL) qualifies a borrower using the income the borrower states, as opposed to the income the borrower can document. With an SIL, the lender agrees not to verify the income the borrower states on the application. SILs are priced higher than fully documented loans, and the foreclosure rate is also higher. With overall foreclosure rates reaching uncomfortably high levels, SILs have emerged as a possible weak point in the underwriting process. Regulators and legislators have been considering whether they should bar SILs or limit them in some way. Restricting SILs would be costly. The SIL was itself a response to limitations of the underwriting system. Many prospective home buyers have the income to afford a mortgage, but can’t meet the standards of full documentation. |
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19 Aug 2007 07:28 am
Fed’s Rate Cut Good For Borrowers
| Home buyers and sellers may have reason to cheer with the recent Fed action. The discount rate is the one the Federal Reserve charges qualified lenders, mainly banks, for temporary loans. Lowering interest rates encourages banks to lend more money to mortgage borrowers. That in turn could make it easier for home buyers, especially those using big-ticket loans called Jumbos, to get financing. The critical issue was getting the jumbo piece moving. Once that moves, then getting Alt-As moving and then even subprimes are next. |
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18 Aug 2007 07:31 am
Is Low Or No Down Payment for You?
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Over the past couple of years leveraging one’s assets with a low down payment mortgage has morphed itself away from those who don’t have any down payment money or for those qualified for a VA loan — to those who have down payment money but don’t want to use it. There are numerous books that discuss the subject, making a lot of sense. The math works when you compare investing money and compound interest and such and had been so popular it has spawned other books just hitting bookshelves promoting the same idea just in different formats. |
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17 Aug 2007 07:34 am
New Mortgage Disclosure Forms Proposed By Federal Regulators
| Federal bank regulators have published a new set of forms designed to give borrowers a better understanding of mortgages that can adjust to dramatically higher monthly payments. With increases mortgage defaults, consumer advocates say many lenders encouraged consumers to focus on the initial low-rate “teaser†period without fully informing them that their [tag]loan payments[/tag] could jump up in the future. The revised disclosure forms are intended to give consumers clear information about the risks of [tag]adjustable-rate home loan[/tag]s. Lenders are not required to use the new forms and are free to alter or design them as they see fit. However, banking institutions generally follow the regulators guidelines, which only apply to federally supervised institutions, not state-regulated ones. |
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16 Aug 2007 07:15 am
Mortgage Pre-Approval Inquiry Won’t Hurt Your Credit Score
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[tag]Mortgage pre-approval[/tag]s will definitely generate an inquiry because the lender is making a loan commitment. A lender’s prequalification isn’t a loan commitment but will show up as an inquiry if the lender pulls your credit report at your request. Mortgage and car loan inquiries are treated a little differently than when you apply for a credit card. If you are shopping around for a mortgage and apply at several places, the multiple loan applications won’t hurt your credit score as long as the applications were made over a relatively short period of time. |
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15 Aug 2007 07:53 am
Jumbo Mortgage Loans Becoming More Expensive
| Buyers of pricey houses and loan applicants who don’t want to prove that they told the truth about their incomes are finding that money has suddenly become more expensive to borrow. Rates on jumbo mortgages have skyrocketed recently, even as rates on conforming, fixed-rate mortgages slipped downward. This is bad news for people who want to borrow more than $417,000 to buy a house or refinance a loan, or who can’t or don’t want to document their income. Rising jumbo rates make it more difficult to sell a house costing half a million dollars or more. |
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14 Aug 2007 06:39 am
True Lakefront Lot in Malone Bay on W. Kerr Scott Lake, Wilkes County NC 28697
This one-of-a-kind lakefront lot is truly unique within the Malone Bay community. It is one of the most desirable, if not the most desirable lot among the few remaining properties with waterfront access to W. Kerr Scott Lake.
Malone Bay features 18 lots at W. Kerr Scott Dam & Reservoir. 14 are Lakefront and meet private dock requirements. This is a gated community with Lots ranging from 2.3+- acres to 6.8+- acres On the Hwy 421 side of the lake just off South Minton Road, Wilkesboro, NC 28697
Main Channel Views.
300 feet of waterfront.
Dock with boat slip and 2 jet ski slips.
2.86 acres.
MLS Number: 51155
List Price: $359,000
Lot Size: 2.86 ac.
Apx Acreage: 2.86
Type: Waterfront
Area: Area 2
Suitable Use: Residential
Topography: Rolling
Utilities: Underground Utilities
Road Frontage: Private Road
Restrictions: yes
Water/Sewer: Public Water
Miscellaneous: 1-5 Acres
Location: Malone Way
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13 Aug 2007 07:23 am
Using Spare Cash To Pay-down the Mortgage
| Some lenders, for a fee, will modify a loan contract. Because the rate on your mortgage is so low, it would be in the lender’s interest to have the [tag]balance paid down[/tag], even if not completely. Assuming the lender is willing, you can use your free assets to pay down the balance and then modify the contract based on the new balance. This would allow you to retain the 4.75 percent rate on half of your loan. If you pay off half the balance and the rate and term remain the same, the payment would fall by half as well. This would give you the peace of mind you are looking for. |
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12 Aug 2007 08:18 am
The Credit Market Reaches A Dramatic Stage
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The credit crunch that began three weeks ago reached its end stage yesterday, the Euro-American banking system locked up altogether. Dramatic, but not dangerous: central banks are pouring cash into the system. Ice water will quiet a mob of hysterics, but will not solve the underlying problem. Which is: [tag]massive credit losses[/tag] in the aftermath of The Great Credit Party, 2000-2006 (R.I.P.). So far, market losses on mortgage and other derivatives merely anticipate the actual credit losses from default and foreclosure, whose magnitude markets cannot know until well into 2008. One good solution is available, suggested timidly by a few public officials: get the handcuffs off the Fannie and Freddie portfolios, and get them into the market as buyers — and not just their traditional product, but any well-underwritten paper of any size or type. |
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11 Aug 2007 07:11 am
What the Daily Mortgage Market News Really Means
| Now that the problems in the sub-prime market have led to a revision of guidelines for conventional home loans, it’s more important than ever to maintain good credit. As in the past, solid credit and a fully documented annual income will still result in mortgage interest rates that are very attractive. News about the mortgage market is changing daily, so it’s important that you’re working with a home loan expert who knows and understands what all the market activity means for you and your mortgage. Understanding what kind of mortgage you have and the terms you’ve accepted is crucial in these market conditions.
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10 Aug 2007 07:36 am
The Importance of the Financing Contingency Paragraph
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Te [tag]Financing Contingency Paragraph[/tag] in the offer to purchase contract says to the seller that the buyer will buy his house contingent on the purchasers’ ability to get a loan to finance the house and may give 7 to 14 days for the buyer to remove the contingency. If the buyer is successful, then the transaction moves toward closing. If not, the seller could have a null and void contract or he could be looking at a buyer in default. This covenant is fraught with deadlines. Some agents get buyers and sellers in a time crunch, causing some to lose money, while others file lawsuits from the frustration of losing the purchase or sale. It can be used as a means to hold the buyer to the contract, but it can also be used as a means by which the buyer can get out of a contract. |
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09 Aug 2007 07:06 am
Mortgage Rescues and Remedies
| An industry that had become conditioned to rules that allowed most anyone to get a loan now must turn customers away. Some are proposing that the Federal Reserve step in to lower interest rates. There isn’t a lot of scope for that because mortgage rates today are only about 1 percent above their lowest point reached in mid-2003. Further, the Fed has many more things to consider in setting its policy targets than the transitional pain of the home loan market. Lowering rates will not affect the investor guidelines that have made some borrowers ineligible. Those who have become ineligible under the new rules would remain ineligible. Rates in the high-risk niches that are still being priced probably would fall a little, but nothing to match the previous price increases. |
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08 Aug 2007 07:36 am
Mortgage Rates For Big-Ticket Homes On The Rise
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The cost of financing a big-ticket home purchase in some of the nation’s priciest areas just got more expensive. Wells Fargo, one of the nation’s biggest mortgage lenders, raised the interest rates on it 30-year, fixed-rate, non-conforming (AKA jumbo) loan to 8 percent last week, up from 6.875 percent. Other lenders followed suit and more are likely to join them. Jumbo borrowers are paying a point and a half more than those who receive a conforming loan. That’s way up from the traditional premium spread of about a half to three/quarters of a point. Why should jumbos, whose borrowers often boast high incomes and assets, cost more than conforming loans? It’s because Wall Street has stopped buying the loans. |
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07 Aug 2007 06:59 am
7 Steps To Improving Your Credit Score
| BankRate.com recently found that 32 percent of Americans surveyed never check their credit reports and have no idea what shape it’s in. It’s time to find out and do something about it. Local lenders say the incidence of [tag]credit report[/tag] knowledge is even higher when borrowers sit down to apply for home loans. Less than 10 percent have seen their report and among those who have, most of the reports are old, many are only from one bureau and so they don’t have a complete picture. Your credit report is a sort of fiscal fitness report on your credit habits and the information it contains factors heavily into your credit score, a statistical analysis or numerical value placed on your credit behavior. Your credit score is commonly used to nay or yea your requests for credit and determine how much you’ll pay for credit approved. |
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06 Aug 2007 05:59 am
No Money Down May No Longer Be A Mortgage Option
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Lenders faced with growing piles of bad loans, even to borrowers once considered good credit risks, have clamped down on the no-money-down mortgage. Four out of 10 first-time buyers used [tag]no-down-payment mortgage[/tag]s in 2005 and 2006, according to surveys by the National Association of Realtors. But some lenders are now scrapping such loans completely. Others are pickier about who gets them. All figure that the more cash borrowers put down, the less likely they are to default. No-down-payment mortgages came into play about a decade ago, at first for wealthy borrowers with stellar credit. The idea was to give those borrowers loans that allowed them to buy houses without having to liquidate other investments, said Sean O’Boyle, a vice president at SunTrust Mortgage in Chevy Chase. “But the model deteriorated, and it became available to just about anybody in recent years,” he said. |
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05 Aug 2007 07:24 am
Profiting From Probates
| Probate property bargains arise when the owner has died and the heirs don’t want the property or the deceased left large debts, which must be paid from the sale of the property. Usually, these properties become available after the deceased’s estate has passed through the local probate court, frequently six months to a year or longer after the owner died. By then, the heirs and the estate executor or administrator are often anxious to close the estate, get their money and move on. The primary reason to acquire a probate property is to purchase at a below-market bargain price, either to live in as a principal residence or resell it for a profit. |
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04 Aug 2007 07:42 am
The Tax-Free, House Rich Way to Retire Wealthy
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Thousands of Americans age 62 and older are considering a reverse mortgage to build income. With reverse mortgages you no longer pay the bank, the bank pays you. In The Reverse Mortgage Advantage, renowned real estate expert Warren Boroson presents a thorough examination of the ins and outs of this intriguing investment method. Boroson dispels any myths and puts crystal-clear focus on the pros and cons of reverse mortgages. According to one reviewer, “the not only offers solid information, but it does so by way of easy-to-understand illustrations recounted with good humor.” |
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03 Aug 2007 06:58 am
Paying For Nursing Home Care With A Reverse Mortgage
| From Elderlaw, reverse mortgages, financial arrangements designed specifically for older homeowners, are a way of borrowing that transforms the equity in a home into liquid cash without having to either move or make regular loan repayments. If you own a home and are at least 62 years old, you may be able to quickly get money to pay for home care (or for anything else) by taking out a reverse mortgage. In a reverse mortgage, the homeowner receives a sum of money from the lender, usually a bank, based largely on the value of the house, the age of the borrower, and current interest rates. |
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02 Aug 2007 06:58 am
Can Mortgage Accelerators Help Borrowers Retire A Loan Early?
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Not every financial advisor believes mortgage accelerators are a good idea. Some recommend their clients invest extra cash in higher-yield securities, like equities, than use it pay off low-interest debt like a prime mortgage. The variable interest rate can also be higher on a HELOC than on a fixed rate loan. It can also be tough to figure out if a mortgage accelerator makes sense for any given borrower, according to Keith Gumbinger, of HSH Associates, a mortgage information publisher. “It’s an interesting concept,” he said, “but looking at the amortization is very complicated. It’s almost impossible to know if it works out for you. You can’t see how the actual borrower’s behavior affects it.” If borrowers increase their spending to the point where their cash flow goes into negative territory, that would slow the pay-off, not accelerate it. But for many borrowers who need a little imposed discipline, it may be a good deal. |
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01 Aug 2007 07:11 am
Country Club Home, Wilkesboro NC Real Estate For Sale
Just listed is this beautiful Wilkes County NC Executive Country Club Home.
MLS Number: 51211 List Price: $359,000
Bedrooms: 3, Full Baths: 2, Half Baths: 1, Est Total SqFt: 3425+
Type/Style: Tudor, Two Story, Area: 6
Elementary School : Moravian Falls Elementary
Middle School: Central Wilkes
High School: Wilkes Central
Construction: Brick Veneer & Other, Solid Masonry Foundation: Basement, block & brick. Roof: Shingle – Composition, Two Years Old, Floors: Carpet/Hardwood/Tile
Garage/Carport: Garage-Double Attached
Interior Features: Smoke Detector(s), Ceiling Fan(s), Newly Decorated, Central Vacuum, Large Master Bedroom, Walk-In Closet(s), Hardwood Floors, Basement, Fireplace(s), Gas Logs, Stone Fireplace, Workshop, Living Room, Dining Room, , Den, Cable TV w. broadband Internet
Exterior Features: Tiled Patio/Deck and Walkways, Private Yard, Level Lot, Set Back From Street.
Subdivision: Farmington
Lot Size: 1.14 acres, Tax Value: 312450, Apx SqFt: 3400 +
Basement: Partial, finished with large cedar-lined closet.
Contact Elizabeth Carter, 336.973.5594 or Greg Stikeleather, Broker, 704.880.5247 or email eacarter@charter.net
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