Moishe Alexander’s Blog

Archive for the ‘Uncategorized’ Category

Not much is expected to change with interest rates in the coming month. There have been predictions from several major sources in recent weeks of an end to the current recession before the year is over, but then again, those type of forecasts were circulating in previous months as well and rates have not been much affected. As the economic recovery is believed to be slow, movement in interest rates will likely be slow as well. Its a great time to buy with Moishe Alexander.

To read more click here

Another advantage of home refinancing is that you can shorten the term of your mortgage. Let’s say, for example, that you originally had a 30-year mortgage and have been paying it for eight years. Thanks to mortgage refinancing, you can switch to a shorter term of either 10, 15 or 20 years. This can save you thousands of dollars of interest. Also, if the refinance rate is lower, but you maintain the same monthly payment, you will build up equity in your home more quickly, because more of your payment will be going towards principal.
Exchange an Adjustable Rate for a Fixed Refinance Rate

When interest rates are low, adjustable rate mortgages (ARMs) are the housing market’s darlings. However, as interest rates increase, that adjustable rate may not look as sweet. It’s also possible that you opted for an ARM because your financial future was less secure, or you weren’t sure how long you’d stay in your home. If, however, you’ve become financially stable and know that you’ll be staying in your home for several years, it may be beneficial to swap that . You’ll have more security knowing that your monthly payment will remain steady, regardless of the current market environment.
Access to Extra Cash – Cash-out refinancing

One way to put more money in your pocket is to tap into the equity you’ve built in your home and do a “cash-out” refinancing. In this scenario, you can refinance for an amount higher than your current principal balance and take the extra funds as cash. This can provide money for remodeling your home, paying off high-interest rate bills, or sending your kids to college.

for more from Moishe Alexander click here

A mortgage involves the transfer of an interest in land as security for a loan or other obligation. It is the most common method of financing real estate transactions. The mortgagor is the party transferring the interest in land. The mortgagee, usually a financial institution, is the provider of the loan or other interest given in exchange for the security interest. Normally, a mortgage is paid in installments that include both interest and a payment on the principle amount that was borrowed. Failure to make payments results in the foreclosure of the mortgage. Foreclosure allows the mortgagee to declare that the entire mortgage debt is due and must be paid immediately. This is accomplished through an acceleration clause in the mortgage. Failure to pay the mortgage debt once foreclosure of the land occurs leads to seizure of the security interest and it’s sale to pay for any remaining mortgage debt. The foreclosure process depends on state law and the terms of the mortgage. The most common processes are court proceedings (judicial foreclosure) or grants of power to the mortgagee to sell the property (power of sale foreclosure). Many states regulate acceleration clauses and allow late payments to avoid foreclosure.

Three theories exist regarding who has legal title to a mortgaged property. Under the title theory title to the security interest rests with the mortgagee. Most states, however, follow the lien theory under which the legal title remains with the mortgagor unless there is foreclosure. Finally, the intermediate theory applies the lien theory until there is a default on the mortgage whereupon the title theory applies.

to see more from Moishe Alexander click here

Moishe Alexander from Canadian funding corp watches the Mortgage news. http://www.youtube.com/watch?v=UcjjE43hhR8

posted by Moishe Alexander at Canadian funding corp.

A maze

The mortgage market is a bit of a maze

Mortgages should be straightforward – you borrow money to buy a house and pay interest on the loan.

But after a few enquiries, you soon realise that it’s not so simple after all.

In a hugely competitive market, building societies and banks are continually updating and extending their range of mortgages. The list is already extensive enough to baffle all but the most determined.

The most important points are how you pay back the capital you borrow and how you pay the interest on it.

Paying back the capital

You can either pay a little at a time as you go (repayment mortgage) or pay it all off at the end (Interest only or endowment mortgages).

Repayment mortgages – Each monthly payment pays off a little of the underlying debt, as well as interest on the loan. At the end of the term the mortgage is cleared.

This is widely considered to be the most easy to understand and least risky mortgage type. But remember if you do not keep up with repayments the lender can repossess the property.

Interest only mortgages – With this type of mortgage, you pay-off the interest on the loan but not the capital. At the end of the mortgage term you are expected to repay the capital, how you fund this is your business.

Interest only mortgages have grown in popularity in recent years amongst buy-to-let investors and first-time buyers in particular because, put simply, they are cheaper than a repayment mortgage.

However, some experts are concerned that many people taking out an interest only mortgage are not giving enough thought as to how they will repay the capital.

Endowment Mortgages – You use an endowment policy to provide life insurance and save funds to repay the loan at the end of the term (usually 20-25 years).

If the investment performs badly, you could face a shortfall on your loan at the end of the repayment period. In the 1980s endowments were very popular and heavily marketed by lenders.

However, many people were not told of the investment risk. This was mis-selling and lenders faced huge claims for compensation.

As a result, endowment mortgages have declined sharply in popularity. Relatively few endowments are sold today but there are still millions of policies yet to mature.

Mortgage application forms

Remember to read the small print

Paying the interest

You have to pay interest on any debt, and mortgages are no different. They differ only in the range of options offered.

Variable rates – This means you pay the going rate on your loan. The mortgage rate changes every time interest rates change or, as in most cases, the overall effect of any interest rate changes is calculated once a year and payments are altered accordingly. Whatever kind of mortgage you start with, it is likely to change to variable rates at some point.

Fixed rates – The interest rate is fixed for the period agreed – often two to five years. These are ideal for budgeting or if you think rates might increase. You do not benefit if rates fall, and will face penalties if you try to quit. Read more here

New housing starts rose 17 percent in May, according to figures released this morning by the Commerce Department, the third consecutive monthly increase. Building permits for new housing construction also rose, up 4 percent over April’s figures. Both figures well exceeded analyst’s projections; a survey by Dow Jones Newswires had predicted increases of 7 percent and 2.5 percent, respectively.

Casting a cloud over the positive news, however, was a report yesterday from the National Association of Home Builders suggesting that home builders have grown slightly more pessimistic in June about upcoming market trends. A three-quarter point increase in mortgage rates in recent weeks appears to be the main factor in dampening builder’s outlooks this month despite the strong uptick in May.

Unusually large increase in multifamily starts

New construction starts of single-family homes were up 7.5 percent in May, while construction starts of multiunit apartment buildings and condominiums of five or more units were up 77 percent following an unusually sharp decline in April. Both figures are subject to fairly large sampling error, so data for multiunit construction starts may represent a return to normal.

The sampling error on new construction permits is much smaller, however, suggesting that the 4.0 percent increase for May is pretty much on the mark. The Commerce Department cautions that four months are needed to establish a trend in any of the new construction data, meaning the three months of increases in new housing starts are approaching that mark. Moishe Alexander is president of Canadian funding corp.

more info here

http://www.mortgageloan.com/new-housing-starts-up-sharply-in-may-3346

Info from Moishe Alexander

There is an energy efficient home. From Florida to Alaska mortgage lenders are increasingly using energy mortgages to make homes more affordable and poising their companies to capture this new market trend.

What is an energy mortgage? An energy mortgage is a mortgage that credits a home’s energy efficiency in the home loan. There are two types of energy mortgages:

Energy Improvement Mortgage – Finances the energy upgrades of an existing home in the mortgage loan using monthly energy savings

Energy Efficient Mortgage – Uses the energy savings from a new energy efficient home to increase the home buying power of consumers and capitalizes the energy savings in the appraisal

In 1995 the Residential Energy Services Network (RESNET) was formed as a partnership between the national mortgage industry, Energy Rated Homes of America, and the National Association of State Energy Officials.

The ability to leverage a home buyer’s investment in energy efficiency increases the number of qualified home buyers and increases the purchasing power of the consumer. A recent analysis by the Environmental Protection Agency confirmed that energy efficient mortgages can have a dramatic impact on increasing the opportunities for home ownership. The analysis found that an average of 6.8% more families would be able to qualify for a mortgage through an energy efficient mortgage.

for more info view below:

http://www.natresnet.org/ratings/mortgages/default.htm