Homeowners? insurance: The mortgage connection
October 31, 2007
A home owners’ insurance is the cover for the house against natural calamities as well as liability. This covers the house and its contents but also other personal possessions which the house secures. The natural calamities include fires and winds. It covers thefts and vandalism as well. It is also called hazard insurance (http://www.mortgagefit.com/hazard-insurance.html)
It is not mandatory, like in the case of automobile insurance to have a homeowners’ insurance. But when one mortgages, the deed of trust or mortgage requires the collateral to be insured. This is because in the event of a default, the lender must not suffer. If in the time span the house gets damaged due to a wind or accident, the value on sale will decrease and thus the lender will not be able to get back the debt balance.
Why does the lender insist on a homeowner’s insurance?
Firstly, the lenders’ name or the mortgage company appears on the certificate of the insurance policy. The lender is categorized as a ‘loss payee’ or a mortgagee. This ensures that the lender is entitled to the insurance amount if the borrower defaults.
Can You Acquire Good Credit Overnight? You Bet
October 30, 2007
Your credit file may not reflect all your credit accounts. Although most national department store and all-purpose bank credit card accounts will be included in your file, not all creditors supply information to credit bureaus : Some travel, entertainment, gasoline card companies, local retailers, and credit unions are among those creditors that don’t.
If you’ve been told that you were denied credit because of an “insufficient credit file” or “no credit file” and you have accounts with creditors that don’t appear in your credit file, ask the credit reporting agency to add this information to future reports.
Although they are not required to do so, many credit bureaus will add verifiable accounts for a fee. However, understand that if these creditors do not report to the credit bureau on a regular basis, the added items will not be updated in your file.
Sample Letter to Add Positive Information to Your Credit Record
Date
Credit Bureau Name
Address
City, State Zip
To Whom It May concern :
After reviewing my recent credit report from your company, I noted that my credit report does not include information that I know is important to providing a complete picture of me as a credit using consumer.
Mortgage After Bankruptcy
October 29, 2007
Most people probably assume that obtaining a mortgage to purchase a home, refinance or to consolidate debt after a bankruptcy is out of the question. In fact, many people are able to obtain these mortgage services, even 1 day after a bankruptcy discharge in some cases. Loan programs and lenders are available that require little or no time after the discharge of a bankruptcy. Here are a few tips to speed up the road to credit recovery and the mortgage services you desire.
First, continue timely paying on items such as your home and cars that were not discharged in the bankruptcy. Having at least a couple credit items you are paying on- time will help. Second, limit the amount of other debts such as credit cards or bank loans. Too much debt will make it more difficult to qualify for a loan, particularly revolving credit accounts such as credit cards. Your debt-to-income ratio is one part of the puzzle lenders will look at in determining your ability to repay a mortgage.
Filling Out The Loan Application
October 28, 2007
1. Property information. The application begins with a section on the property. Questions as to the type of loan sought, the terms of the loan, location and legal description of the property, the property’s value, and the manner of taking title must be completed. This information is used to determine how much security for the loan will be provided.
2. Borrower information. The next section of the application request a borrower’s name, address, telephone number, Social Security number, marital status, and employer. This information helps the lender to determine both the borrower’s ability and willingness to repay the loan.
3. Dependence. The lender will want to know hundred dependence the borrower must support. Although children help stabilize a borrower, they also add the financial publication of the borrower.
4.Implement information. The next section of the form asks for the borrower’s implement information and how to contact the borrower’s employer to confirm the information given.
5. Income. The section regarding income provides space for primary implement income, over time, bonuses, commissions, dividends and interest, net rental income, and information regarding income from any other sources.
Beware of Bogus Credit Repair Companies!
October 27, 2007
So-called “credit repair” companies claim they can remove negative information from credit reports. Advertising as “Credit Advisors,” “Credit Rating Correction Services” or “Credit Consultants,” they trumpet variations on this message: “Turned down because of bad credit? We can help!” Many of these companies charge hundreds if not thousands of dollars for the promise to “clean up” bad credit reports. But the truth is, these companies can only do what you could do yourself–at no charge.
Nobody can remove negative information that is accurate from your credit report. No company has a “secret” ability to remove all negative information.
But this doesn’t stop their claims. This deceptive quote is from a credit repair company brochure: “Charged-off accounts, collection accounts, judgments, tax liens, repossessions, and even bankruptcies can be removed from your credit records in less than one year (five to seven month average).”
One tactic is to bombard credit reporting agencies with requests to verify information. If a credit reporting agency cannot verify an entry within 60 days, it will remove the information from the report. But if the information is later verified to be accurate, it will go back in the report.
Adjustable Rate Mortgage - How They Work?
October 27, 2007
How does an ARM work.
The borrowers interest rate is determined initially by the cost of money and the time the loan is made. Once the rate has been set, and it is tied to one of several widely recognized and published indexes , and future interest adjustments are based on the upward an downward movements of the index. An index is a statistical report that is generally reliable indicator of the approximate change in the cost of money.
At the time a loan is made, the index preferred by the lender is selected, and thereafter the loan interest rate to rise and fall with the rates reported by the index. Since the index is a reflection of the lenders cost of money, it is necessary to add a margin to the index to ensure sufficient income for administrative expenses and profit. Margin will usually vary from 2% to 3%. The index plus the margin equals the adjustable interest rate. It is the index rate that fluctuates during the term of the loan and the cause of the borrowers interest rate to increase and decrease, the lenders margin remains constant.
The index.
University: A Course in Personal Finance
October 26, 2007
Recent findings from the Educational Policy Institute indicated that the UK is the third most expensive place in the world to go to university. Combine this with figures from the Prudential, showing that a third of university students have considered abandoning their studies due to the financial strain they have encountered, and it is not surprising that many prospective students are finding the need to seriously think through the merits of going to University.
Whilst it is true that there are currently loans available from both the government and from banks that are designed to see students through their period of studies, for many this will mean emerging into their adult life with mountains of debt. Barclays Bank has stated it believes that once top-up fees are introduced it will cost about £33,000 to put a child through university in England and Wales. At a time when the number of students has greatly increased and the number of high paid graduate careers appears to have diminished, students now have to factor in the cost of living when making the important decision of where to study. In an article by the Scotland On Sunday, the experiences of a university student from Glasgow show that the question of finance already weighs heavy for some students in their choices of where, or even if, they can study. Moving out of the parental home to take full advantage of university life may become less of an option for students as costs increase and financial assistance decreases.
6 Things to Consider Before Refinancing
October 25, 2007
Perhaps you’re a homeowner in need of some quick cash.
Maybe you want to consolidate your debts so you have better control of your money.
Perhaps a lender is urging you to refinance because interest rates are low, and he has a too-good-to-be-true deal that will shorten your current loan’s term.
Here are 6 essential questions to ask yourself before making the decision to refinance.
1. What’s My Motive-and What Will It Cost Me?
Before you even consider a refinance, ask yourself this fundamental question: "Why do I need it?"
"Many times, people take out a new, larger loan to pay off credit cards, automobiles or even to purchase another home," says Norm Bour, host of the nationally syndicated U.S. radio program The Real Estate & Finance Show, and an experienced mortgage lender. "Sometimes they need the money to do home improvements or renovations."
If, however, you want to lower your current loan payments or switch to a different type of loan, you must calculate the benefits before going the re-fi route.
Federal Housing Administration (FHA)
October 24, 2007
FHA loan programs:
FHA Access
FHA Cal Gold
FHA Rural Gold
FHA Mutal Mtg. Insurance
FHA 203 (k)
FHA 203 b
FHA 251
FHA Title I program
FHA MIP Refund
The Federal housing administration was created by Congress in 1934 as part of the national housing act. The purpose of the act, and of the FHA, was to generate new jobs through increased construction activity, to exert a stabilizing influence on the mortgage market, and to promote the financing, prepared, and sale of real estate
nationwide. Today, the FHA is part of the Department of Housing and Urban Development (HUD).
The FHA’s primary function is to insure loans. FHA approved lenders are insured against losses caused by borrower default.
The FHA insurance program is called mutual mortgage insurance plan (MMI). Under the plan, lenders who had been approved by the FHA to make insured loans either submit applications from prospective borrowers to the local FHA office for approval, or, if authorized by the FH to do so, from the underwriting functions themselves. Lenders who are authorized by the FHA to fully underwrite their own FHA loan applications are called direct endorsement lenders (DE Lenders). A direct endorsement lender is responsible for the entire mortgage process, from application for closing. When a direct endorsement lender has approved and closed a loan, the application for mortgage insurance is submitted to the FHA.
SuperCharged Secret 1 of 5 - Credit Card Utopia
October 23, 2007
I AM THE CONSUMER. AND I HAVE LOW-RATE SUPER-POWERS!
Note: The following is part 1 of a 5 part series. Over the course of these next 5 articles, I am going to introduce you to several methods for maximizing the use and benefits of the best Credit Cards and offers on the market today. This information, when used in conjunction with one another, is unlike anything you’ve ever seen before. I like to call this approach, the "5 SuperCharged Secrets to Credit Card Utopia."
Without further Ado, let’s get started:
SECRET 1: I AM THE CONSUMER. AND I HAVE LOW-RATE SUPER-POWERS!
1) How would you like a zero interest credit card?
WHAT? Did you say ZERO interest? That’s like 0.00%, or .0000000%, or nothing, or nada, or no interest? Tom! Can’t be!!!
2) Actually, that’s exactly what I mean.
