Archive for 'FAQ'
Are short sales deals good for the homeowner?
Short sales can provide a reasonable alternative for homeowners who have lost significant amounts of equity owing to the recent collapse of the housing market and ensuing sub-prime mortgage crisis. They should not be seen as an easy way out of an unmanageable home mortgage situation but can be more attractive than a foreclosure or [...]
Can I save money with biweekly mortgage payments?
If you make biweekly mortgage payments, you will save money in the long run. Homeowners who take advantage of biweekly payments are often shaving six to eight years off your original plan. It may not seem to make that much of a difference, but if you are serious about paying off your mortgage quicker, a [...]
Can I still get an interest only loan?
Interest only loans are still available but they are harder to find when buying or refinancing a home. Although an interest only loan does come with a few benefits, there are also several caveats to watch out for. Before you jump on the interest only loan bandwagon, it is important to understand the full scope [...]
How can I avoid PMI private mortgage insurance?
PMI (private mortgage insurance) is difficult to avoid if you do not have the required 20% of the home price as a down payment. While lending agencies have devised innovative programs for those buyers who cannot afford the required 20% down payment, such loan plans can be more risky than traditional mortgages. Private mortgage insurance [...]
Is a jumbo loan eligible for a loan modification?
While getting a jumbo loan modification is not as easy or common as modifying a basic loan, it is still possible. With the collapse of the housing market, many jumbo loans are likely to be upside down, meaning that the borrower owes more than the house is worth. This situation puts these loans at a [...]
What does the recent mortgage settlement with the banks mean to me?
On February 20, 2012, five major banks signed an agreement to settle charges related to negligent and abusive foreclosure practices in the largest multi-state settlement since the tobacco settlements in 1998. During the housing bubble, mortgage companies traded loans with little respest for securitization, often losing records of the home’s actual owner. In order to [...]
Should I pay points to refinance a mortgage?
Mortgages are, for many people, the single largest debt they will need to pay off in their lifetime. Because home loans can last for many years, a person’s financial needs may not be the same throughout the duration of the loan. Especially with so many people currently experiencing economic hardship due to the recession, it [...]
What is the difference between the prime rate and LIBOR index?
The major difference between the prime rate and the LIBOR index is the way they are calculated. However, before you can understand that aspect, you should have a clear definition of the two. The prime rate is the interest charged by commercial banks. It is called a prime rate because it only applies to those [...]
Why does it take so long to foreclose on a home?
In the past, foreclosure was a relatively rare event. Most foreclosures were genuinely “deserved” by people who simply walked away from their mortgage obligations. However, the picture is very different today. Many people who never thought they would face foreclosure are astounded to find that they simply cannot make their house payments, even if they [...]
What documentation do I need to refinance?
If you are refinancing your home mortgage, there are several steps you must go through to successfully complete your loan. You will need to gather certain documents for the lender and complete certain actions in a timely manner. While gathering this documentation may be time-consuming for some, the savings you get with your new loan [...]
