U.S. Housing and Urban Development (HUD) and the Federal Housing Agency (FHA), both divisions of our federal government, offer a low-down payment homeownership solution titled FHA 203k Streamline program. This is a home lending program that can be used to purchase or refinance, and rehab residential 1- 4 unit properties.

Due to the terrible decline in the U.S. economy and the housing market the last couple years, real estate inventory has increased. Many home interiors and exteriors have declined and are in need of improvements. Some houses sit vacant requiring as much as $35,000 in repairs.

Consumers need to be aware of the opportunity that awaits them. They should not pass up buying or selling a home because it needs improving. One of the great benefits of the FHA 203k Streamline rehab program is that it is only one loan for purchase or refinance, including improvements; unlike traditional rehab loans. Using a traditional loan a buyer is required to make improvements before a long-term mortgage loan is obtained. Traditional rehab loans require two loans: One loan for the property and one for improvements. Upon rehab completion, a traditional permanent mortgage is created to pay-off the property (acquisition) and repair (construction) loan.

Often these two traditional loans involve higher interest rates during their brief pay-off period. The FHA 203k Streamline addresses this problem by offering one loan, at a long-term fixed, or adjustable rate, to finance both the property and the repairs. It allows homebuyers to buy real estate owned (REO) fixer-uppers that lenders offering traditional loan products would not repair.

This special government program has supplied current owner occupant homebuyers with funds to purchase their first home, or rehab the current home they live in. The loan is available to owner occupant home buyers of all income levels and current homeowners.

Repairs and improvements include a minimum of $5,000, and a maximum of $35,000. Some HUD – FHA 203k approved repairs include: Roofing, gutters & downspouts, septic, windows, doors, insulation, furnaces, air conditioning units, plumbing, electrical, appliances, kitchen and bath remodels, flooring, painting and energy efficient improvements.

Author: Peter Boyle
Article Source: EzineArticles.com
Provided by: Beading Necklace

A major investment such as a life insurance policy requires some serious thinking if the potential policy holder is to get the best possible return from their life insurance policy. As with any product or service requiring a large initial outlay, such as building work or a mortgage, the insurance companies provide life insurance quotes, which give the potential policy holder an estimate of how much their policy is likely to cost throughout the duration of the plan.

A life insurance quote is estimated based upon the terms and conditions of the policy itself, alongside the personal and financial information provided by the potential policy holder. This information typically includes details of their age, their gender and whether they are a smoker or a non-smoker. This is because life insurance is predicated upon the estimated lifespan of the policy holder, and statistics concerning the lifespan of men, women and smokers – as well as other health matters – are of great interest to insurers when working out premiums.

Among the statistics used by actuaries are mortality tables, a chart which shows every age and what the chances are of a person of that age dying before their next birthday. These charts are used in conjunction with an applicant’s medical history and the medical history of their family, looking out for a history of heart disease or other terminal illnesses, for example.

Life insurance quotes will also, as standard, include written terms and conditions stating whether the policy in question is a “term” or “permanent” policy – in other words, whether the policy lapses after a set number of years, or whether it is guaranteed to pay out whenever the policy holder should die.

People seeking to obtain the best deals on life insurance often engage the services of an insurance broker, who will use their expertise to shop around and look for the best deals on their behalf. If a broker – otherwise known as an insurance agent – is used, then any life insurance quotes will be sent to them and they will use this as the basis for their final decision-making.

Life insurance quotes should be carefully considered by the potential policy holder to ensure that they know exactly what all the terms mean and that they are familiar with the type of policy on offer. As with everything else, expert advice is invaluable but it will be up to the individual to make the final decision.

Kim enjoys writing articles on various finacial related topics, including Mortgages and Different kinds of Insurance .

Article Source:http://www.articlesbase.com/mortgage-articles/honesty-is-the-best-policy-for-accurate-life-insurance-quotes-1730059.html

What makes a loan a Jumbo?

Jumbo loans are classified as a mortgage that is above $417,000 in most areas of Texas. Before the shakeup in the mortgage industry that was the limit for all of the US. So if you lived in many parts of the East or West coast, a high percentage of the mortgages were in the Jumbo category. In 2008 Fannie Mae/Freddie Mac put increased the limit in “high cost” areas. Currently in many parts of California you can get a conventional loan for over $700,000. This is all based on the median house price in a given area.

A quick history of Jumbo Mortgages

Any loan that is not insured by Fannie, Freddie, HUD, or VA is considered a non-conforming or portfolio loan. That means that the lender is holding that loan in their portfolio and it is not backed by a government entity. Up until 2007 many different loans were included in the term non-conforming loans. This included Subprime, Alt-A, and Jumbos. These loans were packaged up, securitized, and sold on Wall Street. In many cases there would be twenty-five to thirty percent of jumbo loans in these packages, the rest were subprime loans. When everyone came to the realization that many of the subprime loans were over-leveraged or non-performing, then the jumbos were unfairly thrown into the same category.

Then the credit crunch came along. Most lenders and banks began to horde cash and not loan money. Subprime and Alt A loans were gone almost overnight and jumbo loans were not backed by any government entity. So they had a similar fate. While many of the subprime loans were done with 0 down payment and poor credit, most jumbo loans still required a 5 to 20 percent down payment and above average credit. Currently the default rates on jumbo loans done in the last 5 years are lower than almost any other type of loan done in the same period. However because the investors that bought jumbo loans have been holding on to their cash, the market for those loans has been almost non-existent for the last 18 months.

For the last 10 years jumbo loans required a bigger down payment and carried an interest rate from .25% to .50% higher than a conventional loan. That all changed in 2008, for the few lenders that would still buy a jumbo loan they were charging between 1.5% and 2% more than conventional loans. This has created big problems on the housing market in the upper end of price ranges. Because of this short supply and expensive financing the luxury home market has been reliant on buyers that could pay cash for these properties. That limits a large segment of potential buyers.

Current Jumbo Loan Market
However things have started to loosen up, some lenders are realizing the hole in the market and are starting to finance jumbos again. Currently for some lenders Jumbo loans are .75 to 1% higher than a conventional loan, which is a huge decrease from earlier in the year. 20% Down-payment and good credit are a must.

Author: Luke Strawn
Article Source: EzineArticles.com
Provided by: Canada duty rates

Qualifying for an FHA program refinance may not be as easy as they would have you believe. The guidelines seem to contradict each other at times, and others are just downright confusing. Trying to figure out the positive and negative aspects of this government backed program may help in finding out if you can qualify for this type of refinance.

FHA refinances generally allow you to finance up to 95 percent of the value of your home, depending on certain factors. They also claim to offer the best available rates regardless of your credit score. However, judging by the guidelines that are put in place for qualifying for an FHA refinance, this doesn’t seem to be a valid claim.

New guidelines established in 2007 and taking effect as of July, 2008 did make it easier to qualify, but also don’t seem to provide the best rates “regardless of your credit score.” Borrowers who were delinquent on a non-FHA ARM can only qualify if they were 30 days late no more than twice or 60 days late one time in the previous 12 months. Borrowers can qualify for up to a 90 percent LTV refinance if they were no more than 30 days late three times or 90 days late one time prior to the rate being reset. This hardly means anyone can qualify “regardless of their credit score”.

To qualify for a refinance of a conventional loan of up to 95 percent loan-to-value, the borrowers current mortgage must not have been reported late in the last 12 months and must be current at the time of the refinance. Any late payments will bring the maximum loan value down to 85 percent of the appraised value.

Borrowers must also be living in the property and will not qualify for an FHA loan if they have not lived in the property for at least 12 consecutive months. Cash out refinances are not allowed on conventional mortgage refinances. There is a clause in FHA refinancing guidelines stating that cash out can be permitted on properties that are owned free and clear. However, if a property is owned free and clear, that would mean that there are currently no liens on the property. This would then not be a refinance but would actually become a new mortgage, so this clause doesn’t even seem to make sense.

In most FHA programs, there are also annual premiums and Up-Front Mortgage Insurance Premiums. Maximum loan-to-value ratios also vary by state depending on the average amount of closing costs for a particular state and the appraised value of the property. FHA refinances also offer streamline mortgage refinancing to existing FHA mortgage holders.

Having an expert explain the qualifications of an FHA refinance may be the best way to decide if this type of financing is what you are looking for. Like other government backed programs, things aren’t spelled out as well as many people would prefer them to be. Finding an experienced mortgage broker or rep will be the best way to find out if you would be able to qualify for an FHA refinance.

Rob K. Blake, home loan expert and author, educates mortgage shoppers on finding local providers by state like North Dakota Mortgage Brokers and Lenders and provides reviews of national companies like Accredited Home Lenders.

Article Source:http://www.articlesbase.com/mortgage-articles/will-i-qualify-for-an-fha-program-refinance-1717648.html

With the housing and mortgage markets in peril, the jumbo loan is on the brink of extinction. Many lenders who offered jumbo loans have ceased doing business and many lenders that once offered jumbo loan programs have pulled them off the table. Purchasing a home using a jumbo loan is hard enough today, getting approved on cash out or debt consolidation jumbo mortgage loan refinances is even tougher. Fewer lenders today offer jumbo loans than ever before leaving many buyers with few choices when it comes to jumbo loans. One bit of relief came from the economic stimulus act of 2008 but it is only temporary and provided the home loan falls within the H.U.D. calculation.

On March 6, 2008, H.U.D. published new FHA loan limits and GSE loan limits based on the median prices of homes as mandated by the Economic Stimulus Act signed at the end of February by President Bush. The new loan limits are based on 125% of the HUD published median prices and are temporary. The new loan limits are temporary and are scheduled to go back to the previous limits of $417,000 after 12/31/2008.

Until December 31, 2008, the GSE or conforming loan limits have been raised up to a maximum of $729,750. The newly increased limits set by HUD range from $417,500 to the highest of $793,750 in Honolulu, Hawaii. Other limits have been temporarily raised for two, three and four family using the same calculation.

With the changing of underwriting guidelines, many homeowners and would be homeowners are frustrated from being turned down with their jumbo loan applications. There are many
homeowners who need to get approved for cash out jumbo loans and were literally laughed at by some lenders. Being turned down on a mortgage loan is no laughing matter.

Despite the financial crisis and the tightening of credit guidelines there are solutions for those needing jumbo loans. There are proven steps that borrowers should take which will improve the terms, conditions and pricing of a jumbo loan as well as increasing the chances of approval. A seasoned mortgage expert knows what’s needed for a loan approval and can help you through the loan process to a happy ending. The first step is to contact a mortgage expert who is familiar with jumbo loans and the current jumbo loan lending guidelines. An experienced mortgage expert can guide you through the application process and help you get approved for the jumbo mortgage loan that you need.

Author: Bill Burress
Article Source: EzineArticles.com
Provided by: Digital Camera News

Mortgage rates are near record lows right now and many people are trying to refinance a mortgage to take advantage. However, I think that throughout 2010 mortgage rates will gradually rise. This does not make refinancing a bad idea but it will make it cost more and a few homeowners will no longer be able to benefit if rates rise. Here are my mortgage interest rate predictions for 2010 and how I made them.

Homeowners looking to refinance right now can benefit from interest rates that are around 5% for a typical fixed rate mortgage. A general rule of thumb is that if a homeowner can save 2% or more in interest rates, refinancing a mortgage will be beneficial. Now though, with rates as low as they are, many people are able to save 5% or more in interest rates alone. This can equal a lot of money every month and thousands of dollars in savings throughout the life of the home loan.

Even though 2010 has just started, many homeowners are still applying for mortgage refinancing. At this rate, refinancings will be at an all time high by September, but that may change. I predict that sometime around April, mortgage interest rates will rise. I think that due to an improved housing market and overall economy, many homeowners will be in a better financial situation than they are in now. While these homeowners will still want to refinance, mortgage rates will rise by then to make it not so beneficial for some people.

I predict that mortgage rates will ultimately rise by 1.5% by the end of 2010. While this does not seem like a lot, it really adds up fast over the course of 30 years on a large loan. This rate increase, though minor, will eliminate the benefits of refinancing a mortgage for some people. However, many homeowners will still be able to see huge benefits of refinancing a mortgage, even with these rate increases in interest.

I think that interest rates will rise due to mortgage lenders and banks holding back on approving some homeowners due to the improved economy. This means that struggling homeowners should take action now to ensure that they are able to actually get approved for mortgage refinancing. If the mortgage lenders and banks are less likely to approve people, they will increase rates. While they can not increase interest rates too much, 1.5% should be adequate to generate them even more profits and still make refinancing a mortgage a good decision for many people.

Take action refinancing a mortgage now before things get harder or more expensive in the future.

I have been underwriting mortgages for years. Recently, I got into a new business but I still wish to share my advice, tips, and industry inside happenings of the mortgage refinancing industry.
For more articles on Mortgage Refinance check out my website

Article Source:http://www.articlesbase.com/mortgage-articles/mortgage-interest-rate-increases-in-2010-1707978.html

Private mortgage insurance is an additional fee that a lender may require if you do not put down the minimum down payment towards a house, usually around 20%. Does this mean that you can not get the house? No! A lender may option for you to get PMI (private mortgage insurance) which in the case of a defaulted loan, the insurer will pay the lender anywhere from 20-30% of the mortgage balance.

The lender will option for you to get a PMI if they want extra insurance that they will get at least most, if not all the money back that they borrowed. Even if they do lose out on some of the money that was originally borrowed by a home owner, they will have enough to cover costs that are associated with foreclosure and the resell of the property.

So if you can not afford the down payment that the lender expects, realize you have other options and that does not mean that this home is completely out of your range. The premiums for private mortgage insurance are usually less than adjustable rate mortgages and fixed rate mortgages. The premium for private mortgage insurance is based on the amount the home buyer is borrowing as well as the amount of down payment that the home buyer can afford.

For example, the less amount of money you can put down to satisfy the down payment, the more the private mortgage insurance premium would be. The premium may also be larger in neighborhoods or communities where the living expenses are much higher than average communities in the United States.

Because the home owner is expected to pay more money as insurance to the money being borrowed from the lender, there is a time that the PMI can be canceled and no longer will have to be paid. This will be decided by the lender, but usually cancellation of PMI can take place when the home owner has paid up to 80% of the property’s purchase price or current market value. This 80% mark will based of whatever total is less: the purchase price or current market value.

The lender is responsible for putting in writing the fact that the home owner indeed has PMI and must be in contact annually of when the PMI can be cancelled. In order to protect the home owner from paying too much money as insurance, when mort of the value of the house is already paid for, the Homeowners Protection Act (HPA) established these private mortgage insurance policies.

In addition to the lender having responsibilities regarding PMI, the home owner must maintain timely payments, not to exceed 60 days late with a mortgage payment in two years, and 30 days late within one year. This protects the lender as well, so that the insurance is not cancelled if the home owner is too much of a risk, and may possibly default on the payments.

In order to cancel PMI, the lender will have to agree that the home owner has paid at least 80% of the purchase price or current market value. He or she can do this by having the property appraised and taking in to account an increase or decrease in value over the time that has elapsed. The HPA also requires that there be no other mortgage on it or a home equity loan. They basically want to see that you can continue with the monthly mortgage payments without defaulting. This way, the lender will get his or her money back as originally proposed.

The home owner does not get to choose the company that distributes the private mortgage insurance because it is protection for the lender. Therefore, the lender may choose the PMI company and you can not really change that. However, in order to avoid complications or fraud, always be apprised of the terms of the loan, what is required of the down payment, what are the minimums in order not to pay additional PMI payments, as well as the terms for cancellation. Work with only reputable lenders that are fully qualified and licensed professionals that have good references.

If you feel PMI is too much additional money to buy a specific house, you can always save more money for a down payment and then try again with a new property or the current one if still available. Only make financial decisions that are with in your comfort zone in order to avoid default payments, foreclosure, and other horrible incidents that occur when financial obligations are greater than one can meet.

Author: John R. Blakefield
Article Source: EzineArticles.com
Provided by: Digital Camera Times

The current mortgage market is a difficult one for buyers, with rising interest rates causing considerable consternation among homeowners. But for those on fixed rate mortgages, the next few months could prove particularly painful, as deals come to an abrupt end and mortgage payments shoot up. In some cases, monthly mortgage bills are expected to leap as much as 40%.

In the summer of 2005, tens of thousands of people took out a two-year fixed rate mortgage, making the most of interest rates as low as 4.25%. Since then, however, the Bank of England has raised interest rates four times to an uncomfortable 5.5%; and some economists are predicting a further rise in July, with a possible 6% interest rate before the end of 2007.

Investment bank Credit Suisse has estimated that one in five British homeowners switched mortgages to fixed rate mortgages in August 2005. If you are one of those borrowers, you may now face a shock as your two-year arrangement ends, and you move onto your lenders far steeper standard variable rate (SVR) – generally around two per cent above the bank rate. Some are even predicting that payments could rise by a third or even more for those who took out interest only mortgages – with repayments on a 400,000 interest only mortgage increasing from about 1,400 a month to about 2,000, a staggering rise of 43 per cent.

Even if you signed up to a good fixed rate mortgage that now allows you to shop around for new deals, you may struggle to re-finance the purchase of your home for anything less than 6%. In addition, banks and building societies have hiked their arrangement fees to 1,000 or more, a hefty increase on the fees charged in June 2005, when the best fixed rate carried an arrangement cost of just 389.

Such tales of doom and gloom, however, should not overly deter the canny homeowner. Lenders may offer good fixed rate deals in the hope that you will forget to move your mortgage at the end of the fixed term. You will then find yourself paying potentially punishing rates on their SVRs. The obvious advice is to keep a close eye on your mortgage arrangements and shop around for the best deal.

In addition, be wary of fixed rate deals that lock you in, charging a fee if you want to move the deal within a certain time-frame. For example, a two-year fixed rate deal might have a collar that stops you from switching deals for a further three years or even more. With the interest-rate hikes of the past 10 months, many homeowners on such locked-in deals might now be finding themselves forced to face stiff payments. To avoid such pitfalls, avoid fixed rate mortgages with extended redemption penalties. You will then retain your freedom to shop around for the best deals once the fixed rate comes to an end.

Also be wary of merely looking at interest rates. Some lenders will offset low rates with higher arrangement fees. Or lenders might offer substantially lower mortgage rates to customers who also buy buildings and contents insurance from them. If those insurance premiums are high, they offset the low rate – the lender makes a profit, but you may have unwittingly missed out on a good mortgage rate.

“Many existing borrowers now face substantial payment increases as their favourable fixed rate deals of old come to an end,” said Sophie Neary, product director at BeatThatQuote.com. “In this market, it has never been more important to shop around the mortgage lenders and plan ahead carefully.” BeatthatQuote.com has extensively researched the market, locating the best mortgage products and lenders for individual circumstances. Using a service such as this could help you better manage current uncertainties, ensuring you get the best out of your finances now and well into the future.

Author: Caroline Poynton
Article Source: EzineArticles.com
Provided by: Beading Necklace

It’s no surprise that so many Americans are looking for ways to buy a home with a low down payment.

After all, with so many other costs associated with a home purchase — like closing costs, furniture, moving expenses, etc. — coming up with a large down payment isn’t always an option. So the idea of buying a home with a low down payment can be very appealing to many buyers, especially first time home buyers.

Many people mistakenly believe that a down payment of at least 20 percent is required in all mortgage scenarios. This is the way things were for a long time. But these days, there are more flexible loan programs and terms available to home buyers. In fact, some mortgage lenders will extend loans to qualified buyers with a down payment as low as 5 percent of the purchase price.

Generally, a mortgage loan with a down payment of less than 20 percent is referred to as a low down payment mortgage loan.

But like all things in life (and in home buying), there are special conditions to buying a home with a low down payment. For instance, many mortgage lenders who grant loans with such a low down payment usually require that the loan be insured in some way. This insurance is aptly called mortgage insurance.

Mortgage Insurance for a Low Down Payment

Mortgage insurance is just what it sounds like — insurance on a home mortgage loan. This type of insurance protects the lender financially in the event that a homeowner defaults (ceases to make payments) on the mortgage.

Mortgage lenders usually require mortgage insurance on loans with a down payment of 20 percent or less. In other words, some form of mortgage insurance is almost always required for a low down payment mortgage. The home buyer is usually required to pay the cost of this mortgage insurance.

Two Types of Mortgage Insurance – Government and Private

Let’s recap what we have covered so far. We know that it’s possible to buy a home with a low down payment, and that a 20 percent down payment is not always necessary. We also said that most lenders who offer mortgages with a low down payment (below 20 percent) will also require some form of mortgage insurance. Thus, buying a home with a low down payment almost always requires mortgage insurance.

With that straight, let’s talk about the two types of mortgage insurance — governmental and private.

Government Mortgage Insurance

Government-backed mortgages are usually insured by one of three federal organizations. These mortgages are either insured by (A) the Federal Housing Administration, or FHA; (B) the Department of Veterans Affairs, or VA; or (C) the Department of Agriculture’s Rural Housing Service, or RHS.

Each of these agencies has its own criteria for the types of loans they will ensure. For example, the VA Home Loan program only applies to military veterans or their spouses, and RHS loans are usually reserved for people in rural areas.

The FHA requires a minimum down payment of 3 percent. They also limit the loan amount that they’re willing to ensure based on geographic area.

So this is governmental path to buying a home with a low down payment. When you obtain a mortgage loan backed by one of the federal organizations listed above, you can make a down payment less than the traditional 20 percent.

Private Mortgage Insurance

In addition to the three governmental options above, there are also private companies willing to insure mortgage loans. This too can be a path to home buying with a lower down payment. Private mortgage insurance is aptly referred to as PMI. Private mortgage insurance is available to a much wider audience than the governmental options listed above. For instance, there are no restrictions regarding military service or rural residence.

Private mortgage insurance, or PMI, is available on a wide variety of low down payment home loans and there is no pre-determined limit on the loan amount (as there usually is with the government-backed mortgage loans).

Conclusion

These days, it is certainly possible to buy a home with a low down payment. In this context, “low” refers to a down payment of less than 20 percent. These types of home loans require some form of mortgage insurance, either government insurance or private mortgage insurance (PMI). Here are some resources to help you learn more about home buying with low money down.

* You may republish this article online if you retain the author’s byline and the active hyperlinks below. Copyright 2007, Brandon Cornett.

Author: Brandon Cornett
Article Source: EzineArticles.com
Provided by: Canada duty rates

Millions of homeowners are eligible to get a mortgage refinancing through use of President Obamas stimulus plan. This plan enables millions of people to get interest rates lowered to as low as 2%, and other huge mortgage refinancing benefits, in an effort to lower payments and save homes from being lost. Here is how President Obamas stimulus plan helps homeowners who are refinancing a mortgage.

This plan from Obama is backed by over $75 billion in Government funds. The stimulus targets over 8 million people who are having a hard time paying their home loan every month, and need to save money, avoid losing their home, or both. Money is being given to mortgage lenders and banks when they help homeowners, and follow the rules of Obamas stimulus plan. This means that millions of people can find financial relief, and save their home, by getting a mortgage refinancing.

Even people who owe more than their home is actually worth, have bad credit, or are facing other financial hardships can find a mortgage refinancing option from Obamas stimulus. Never before has a program this big been enabled to help so many people. Millions of people, entire neighborhoods, and the entire housing economy will benefit from President Obamas mortgage bailout.

Do not be a victim to a bad housing market and economy and lose your home. Take action now and stop or prevent foreclosure or loan default from ruining your future plans. Refinancing a mortgage with President Obamas plan is easy and very beneficial for millions of homeowners. Contact a mortgage lender or bank today and see what options and potential benefits await you if you refinance a mortgage with the stimulus plan.

I have been underwriting mortgages for years. Recently, I got into a new business but I still wish to share my advice, tips, and industry inside happenings of the mortgage refinancing industry.
For more articles on Mortgage Refinance check out my website

Article Source:http://www.articlesbase.com/mortgage-articles/how-president-obamas-stimulus-plan-helps-homeowners-refinancing-a-mortgage-1698352.html