Mortgage Crisis Amounts to Opportunity to Pillage for Some Gatekeepers
December 17th, 2009 by adminIf your mortgage is in default and you’re struggling to make your payments, be very careful about to whom you give money for the purpose of fixing your financial situation. Many people across the country have found that in their quest to find assistance for their dire financial situation, they have been completely victimized by fraudsters and con-men.
Some of the people involved with these scams have been real estate agents, lawyers, and mortgage brokers (among others); it seems like there is no restriction to which “profession” might stoop to taking advantage of the unfortunate homeowners who’re desperately trying to find a solution to their struggle to remain in their homes.
Many people across the country have unfortunately been taken in by “pay upfront” refinancing that results in the person who’s been given the money not helping the family renegotiate their mortgage and subsequently lost their homes plus any payment that they’d made to have their mortgages modified.
The US government has apparently had enough of people who’re struggling to remain in their homes and find work being taken advantage of and arrested forty-one people recently in a huge crackdown of mortgage scammers including lawyers and mortgage brokers from across four states. It is unfortunate that the very people whose job it is to help homeowners keep their homes are the ones who’ve turned their backs on them. Many government agencies worked together over many months to bring these fraudsters in; hopefully their arrests will save others from experiencing this kind of horrible betrayal.
Experts suggest that if you need to have your mortgage modified then make sure you work with reputable lenders and keep documentation of the process. You should not be required to pay money upfront for mortgage modification. Be wary of any “too good to be true” offers that you receive by phone; they may well be people looking for a free handout instead of the actual financial help that you need.
It seems that in this current climate of financial struggling and high unemployment, one of the most profitable money making endeavours is ripping off people’s money while they’re struggling to hold on to a roof over their head and that of their family. Hopefully law enforcement can keep up with the flood of ethically bankrupt gatekeepers who’ve gotten involved with these schemes.
Help With Remortgaging Your House – Some Useful Tips
November 7th, 2009 by adminA mortgage is the transfer of an interest in property (equivalent in law – a charge) to a lender as a security for a debt – usually a loan of money. Capped mortgages are very similar to fixed-rate mortgages, in that they will not climb above a pre-set rate, known as a cap. A lender offers a loan with a capped rate set for a certain period. During this period, the repayments of interest on the loan cannot climb above this cap.
Investment Property Mortgage Rate: Some Key Considerations To Note
October 22nd, 2009 by adminInvestment property mortgage rate is one of the most decisive factors when choosing a mortgage. Typically, the lower the interest rate, the better the mortgage. But the assessment of viability of a mortgage really depends on the type of mortgage and other loan terms. It is crucial that you shop around a bit to find a mortgage and mortgage rate that suits your requirements. A mortgage can be obtained from reputable banks, financial institutions, credit unions, and even private mortgage brokers, who would find the best rate possible for you.
Investment property mortgage rate can be classified into three major types: fixed-rate, adjustable-rate and balloon or reset.
Fixed-rate mortgage is a mortgage in which your interest rate and monthly payments are fixed throughout the life of the mortgage. There are two major types of fixed-rate mortgages based on the duration of the mortgage – 30-year & 15-year. The major advantage of a fixed-rate mortgage is that the interest rate and the monthly payments don’t increase with an increase in market rates. However, this can sometimes work against you, simply because the mortgage interest rate remains fixed even if the market rates are down.
Adjustable-rate mortgage (ARM) is a mortgage that has a variable investment property mortgage rate. ARMs usually start with a lower interest rate and lower monthly payments – this contributes to their wide popularity. However, it is imperative that you be aware of the specifics of an adjustable-rate mortgage, including the adjustment periods; indexes and margins; caps, ceilings and floors; and the number system.
Balloon or reset mortgage is based on a 30-year amortization schedule, with a 5-year or 7-year term. At the end of the term, you have an option to either pay off the remaining principal, or reset the mortgage at the current market rates. Therefore, you have the benefit of lower monthly payments, but you are required to repay the complete mortgage by the end of the specified term.
With several types available, you might be perplexed as to what type of investment property mortgage rate should you choose. The following few points will elucidate this aspect.
A fixed-rate mortgage is perhaps the best option if you plan to own the investment property for more than 5 years. But if you wish to sell the property earlier, or you want to start with a lower monthly payment, an adjustable-rate mortgage seems like an apt choice. And if you believe that your income will increase over time, and you can pay off the whole mortgage within 5 or 7 years, then you can go for a balloon or reset mortgage.
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