Moishe Alexander’s Blog

Posts Tagged ‘mortgage

Before this most recent economic downturn, the mortgage market was an absolute free-for-all. Brokers would look high and low to find anyone whom they might be able to scam away as a good borrower.

These fraudulent brokers would heap excess amounts of money to the loan to cover all household purchases including furniture.

When Barack Obama took office in November 2008 he vowed to fight this scam and fraud head on with strongly regulated borrowing laws. He failed to deliver on these promises and turned out to be a closet Liberal who wants everyone to own a home regardless of whether or not he can afford it.

Back to the drawing board. The following are 5 tips I strongly advise for easy preapproval of a mortgage:

1. Shop Everywhere…and Early On

Speak with various lenders to help decide which package will suit you best, Since no one person will have the best solution for you, make a point of shopping around a lot. Though, you must ensure you begin shopping early, as when you are pressed for time you will end up with terrible advice and will end up with a package you are unhappy with.

2. Prepare your Financial Bio

In order to be preapproved, the lender is going to want to assess your file very well. Have all the information of your past written down and written well. The easier it is for the lender to understand, the higher chance you have of being preapproved nice and early.

Check of the following as you prepare them:

  • W2’s from the past two years
  • The last two months bank statements
  • Proof of income from investments
  • Last 2 years worth of tax returns
  • Recent proof of income

3. No ONE lender can obligate you

4. Watch your Credit Score

The credit score is a crucial part of the lending process and as we explained earlier, this is now becoming something you will not be able to play around with. Bad credit score, no loan.

5. Watch the Expiration Dates

The preapproval letters from various lenders usually tend to have expiration dates usually around 90 days from the date issued. Ensure you have not passed the date, as you risk losing the quoted rate.

Wishing you luck on your mortgage!

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Loan.com wants to make your mortgage refinance process as straightforward as possible for you by arming you with the tools that will help you to make informed choices when looking for a mortgage refinance rate and terms. These tools include:

  1. The Borrower’s Bill of Rights – Our Borrowers Bill of Rights helps you avoid unethical lenders and get the most from ethical lenders.
  2. Truth about Loans – Our in-depth library of helpful articles tells you what to expect at every step of mortgage process.
  3. The Ethical Lender Rate Directory – The Truth about Loans section allows consumers to search for mortgage rates while at the same time flagging those mortgage lenders that abide by the Borrower’s Bill of Rights and are in good standing with the Better Business Bureau.

read more

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

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

Monday, June 15, 2009

Moishe Alexander says to turbo charge your portfolio. Stylish 5 bedroom 2.5 bath suited home has over 1178 sq ft of rental space plus a triple detached garage. Separate 2 bedroom suite with separate entry pulls in extra cash flow.

Comes complete with great tenants making this a totally turn-key property for you. Convenient area with nearby access to the new Ring Road and access to refinery row. Excellent neighborhood and HUGE upside potential due to the great purchase price, strong economic fundamentals and the mature area of Edmonton’s North East neighborhoods.

Produces $340 positive cash flow per month using an investor’s mortgage plan – taking advantage of current low rates

for more info go to:

http://www.edmontonrealestateinvestmentblog.com/