Mortgage rates in La Jolla, California - How to find the best mortgage rates in La Jolla... ow.ly/2MI7rW
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Showing posts with label Financing. Show all posts
Showing posts with label Financing. Show all posts
Monday, September 1, 2014
Mortgage rates in La Jolla, California
LA JOLLA, CA - Mortgages:
Mortgage rates in La Jolla, California - How to find the best mortgage rates in La Jolla... ow.ly/2MI7rW
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Mortgage rates in La Jolla, California - How to find the best mortgage rates in La Jolla... ow.ly/2MI7rW
NEW! Follow on Facebook and Twitter
Saturday, August 23, 2014
FHFA Unveils Plan to Streamline Mortgage Financing
Mortgages - FHA Common Mortgage Backed Security:
The regulator overseeing government-controlled mortgage finance giants Fannie Mae and Freddie Mac on Tuesday unveiled a plan for a common mortgage-backed security and asked investors if the program posed dangers to financial markets. The development of the new security is part of a program launched by the FHFA in 2012 to cut costs by replacing outdated systems at the two firms with a common infrastructure... ow.ly/2LIUKx
Carlisle Mitchell Insider Tips for Real Estate Investors is a trusted and reliable source of expert investment and market analysis for real estate investors world-wide. NEW! Now follow Carlisle Mitchell Insider Tips for Real Estate Investors on Facebook and Twitter
The regulator overseeing government-controlled mortgage finance giants Fannie Mae and Freddie Mac on Tuesday unveiled a plan for a common mortgage-backed security and asked investors if the program posed dangers to financial markets. The development of the new security is part of a program launched by the FHFA in 2012 to cut costs by replacing outdated systems at the two firms with a common infrastructure... ow.ly/2LIUKx
Carlisle Mitchell Insider Tips for Real Estate Investors is a trusted and reliable source of expert investment and market analysis for real estate investors world-wide. NEW! Now follow Carlisle Mitchell Insider Tips for Real Estate Investors on Facebook and Twitter
Thursday, July 17, 2014
Proof of income needed for mortgage
Proof of income needed for mortgage OK - What really qualifies as proof of income when you want approval from a mo... ow.ly/2KaWxx
Saturday, July 5, 2014
Wrap-Around Loans
A Wrap-Around Loan also known as a "Wrap" is a loan that is most commonly used with property with an outstanding loan. The seller lends the buyer the difference between the existing loan and the purchase price. The buyer's loan payments should be sufficient to repay both the existing loan as well as the seller's loan to the buyer.
Wrap-around loans are a form of owner financing. Some wrap-around loans require consent from the existing lender, especially on properties that include a "due on sale" clause in the loan documentation.
Wrap-around loans can also be structured such that the buyer's payments are directed to the lender, rather than the seller, and the lender then forwards the buyer's payment to the seller.
The owner (lender) should be able to charge a higher interest rate to the buyer that what is currently being paid on the loan. Buyers often seek wrap-around loans when they cannot obtain conventional financing or mortgages.
Wrap-around loans are a form of owner financing. Some wrap-around loans require consent from the existing lender, especially on properties that include a "due on sale" clause in the loan documentation.
Wrap-around loans can also be structured such that the buyer's payments are directed to the lender, rather than the seller, and the lender then forwards the buyer's payment to the seller.
The owner (lender) should be able to charge a higher interest rate to the buyer that what is currently being paid on the loan. Buyers often seek wrap-around loans when they cannot obtain conventional financing or mortgages.
Friday, July 4, 2014
Owner Financing
Owner financing also known as "creative financing" or "seller financing" is financing the purchase directly through the owner or entity selling it.
Owner financing often occurs when the prospective buyer cannot obtain funding through a conventional mortgage lender, or is unwilling to pay the prevailing market interest rates. Additionally, the seller may agree to owner financing if he or she is having difficulty selling the property.
Owner financing may only cover part of the purchase price, with a smaller bank loan making up the difference.
Owner financing is common in a buyer's market. In order to protect his or her own interests, the seller may require a higher down payment than a mortgage lender would. Down payments of 20% or more are not uncommon in owner financing.
The deed to the property is usually not transferred to the buyer until all of the payments have been made, but because no institutional lenders are involved, the overall terms of financing are much more negotiable, and can be set up to provide benefits to both the seller and the buyer.
The buyer saves on points and closing costs, while the seller can obtain monthly cash flows that provide a better return than fixed-income investments.
Owner financing often occurs when the prospective buyer cannot obtain funding through a conventional mortgage lender, or is unwilling to pay the prevailing market interest rates. Additionally, the seller may agree to owner financing if he or she is having difficulty selling the property.
Owner financing may only cover part of the purchase price, with a smaller bank loan making up the difference.
Owner financing is common in a buyer's market. In order to protect his or her own interests, the seller may require a higher down payment than a mortgage lender would. Down payments of 20% or more are not uncommon in owner financing.
The deed to the property is usually not transferred to the buyer until all of the payments have been made, but because no institutional lenders are involved, the overall terms of financing are much more negotiable, and can be set up to provide benefits to both the seller and the buyer.
The buyer saves on points and closing costs, while the seller can obtain monthly cash flows that provide a better return than fixed-income investments.
Thursday, July 3, 2014
Conventional Mortgages
A conventional mortgage is a type of mortgage in which the underlying terms and conditions meet the funding criteria of Fannie Mae and Freddie Mac.
About 35-50% of mortgages, depending on market conditions and consumer trends, are conventional mortgages. In other words, Fannie Mae and Freddie Mac guarantee or purchase 35-50% of all mortgages.
Conventional mortgages may be fixed-rate or adjustable-rate mortgages.
The secondary market for conventional mortgages is extremely large and liquid. Most conventional mortgages are packaged into pass-through mortgage-backed securities, which trade in a well-established forward market known as the mortgage TBA (to be announced) market.
Many conventional pass-through securities are further securitized into collateralized mortgage obligations (CMOs).
About 35-50% of mortgages, depending on market conditions and consumer trends, are conventional mortgages. In other words, Fannie Mae and Freddie Mac guarantee or purchase 35-50% of all mortgages.
Conventional mortgages may be fixed-rate or adjustable-rate mortgages.
The secondary market for conventional mortgages is extremely large and liquid. Most conventional mortgages are packaged into pass-through mortgage-backed securities, which trade in a well-established forward market known as the mortgage TBA (to be announced) market.
Many conventional pass-through securities are further securitized into collateralized mortgage obligations (CMOs).
Saturday, June 21, 2014
Refinance Now Before Rates Rise
(HOUSTON) – There has never been a better time to refinance your home. That’s because of a little-known government program called the Home Affordable Refinance Plan (HARP).
The Home Affordable Refinance Plan allows Americans to refinance their homes at shockingly low rates, and reduce their payments by an average of $3,000 a year.
But here’s the catch – like most government programs, this is likely temporary. Currently the program is set to expire on December 31, 2015. But the good news is, once you’re in, you’re in. If the thought of a lower payment or fewer years on your mortgage sounds appealing, refinance now before rates rise.
The Home Affordable Refinance Plan allows Americans to refinance their homes at shockingly low rates, and reduce their payments by an average of $3,000 a year.
But here’s the catch – like most government programs, this is likely temporary. Currently the program is set to expire on December 31, 2015. But the good news is, once you’re in, you’re in. If the thought of a lower payment or fewer years on your mortgage sounds appealing, refinance now before rates rise.
Tuesday, June 17, 2014
How Real Estate Investment Groups Work
Real estate investment groups are like small mutual funds for rental properties. If you want to own a rental property, without the hassle of being a landlord, a real estate investment group may be the solution for you.
How it Works
A company will buy or build a set of apartment blocks or condos and then allow investors to buy them through the company, thus joining the group.
How it Works
A company will buy or build a set of apartment blocks or condos and then allow investors to buy them through the company, thus joining the group.
A single investor can own one or multiple units of self-contained living space, but the company operating the investment group collectively manages all the units, taking care of maintenance, advertising vacant units and interviewing tenants.
In exchange for this management, the company takes a percentage of the monthly rent.
There are several versions of investment groups, but in the standard version, the lease is in the investor's name and all of the units pool a portion of the rent to guard against occasional vacancies, meaning that you will receive enough to pay the mortgage even if your unit is vacant.
There are several versions of investment groups, but in the standard version, the lease is in the investor's name and all of the units pool a portion of the rent to guard against occasional vacancies, meaning that you will receive enough to pay the mortgage even if your unit is vacant.
Sunday, June 15, 2014
How Loan-To-Value Ratio Affects the Cost of a Mortgage
Loan-To-Value Ratio is a lending risk assessment ratio that financial institutions and others lenders examine before approving a mortgage.
Typically, assessments with high LTV ratios are generally seen as higher risk and, therefore, if the mortgage is accepted, the loan will generally cost the borrower more to borrow or he or she will need to purchase mortgage insurance.
Calculated as: Mortgage amount divided by the Appraised Value
For example, Jim needs to borrow $92,500 to purchase a $100,000 property. The LTV ratio yields a value of about 92.5%. Since bankers usually require a ratio at a maximum of 75% for a mortgage to be approved, it may prove difficult for Jim to get a mortgage.
Similar to other lending risk assessment ratios, the LTV ratio is not comprehensive enough to be used as the only criteria in assessing mortgages.
Calculated as: Mortgage amount divided by the Appraised Value
For example, Jim needs to borrow $92,500 to purchase a $100,000 property. The LTV ratio yields a value of about 92.5%. Since bankers usually require a ratio at a maximum of 75% for a mortgage to be approved, it may prove difficult for Jim to get a mortgage.
Similar to other lending risk assessment ratios, the LTV ratio is not comprehensive enough to be used as the only criteria in assessing mortgages.
Thursday, June 5, 2014
Assumable Mortgages
Assumable Mortgage - An existing mortgage which allows the next purchaser of a property to be liable for the payments and other obligations of the note and mortgage.
Depending on the type of loan, the assumption of the obligation by this next purchaser may or may not require a qualification and approval process and may or may not release the original mortgagor (borrower) from further liability.
A written release from the mortgagee (lender) is required to relieve the original mortgagor of responsibility.
Depending on the type of loan, the assumption of the obligation by this next purchaser may or may not require a qualification and approval process and may or may not release the original mortgagor (borrower) from further liability.
A written release from the mortgagee (lender) is required to relieve the original mortgagor of responsibility.
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