Getting a home mortgage for borrowers who are 1099'd independent contractors is based on the businesses net profit from their federal taxes. There are new rules and laws that stipulate lenders to confirm a borrower's ability to repay the loan by this method. Who Fits Into The Category of Being Self Employed? If you own greater than 25% of a business, the mortgage underwriter will consider you to be self employed. The underwriter will...more
Finding the best mortgage rate thats available for your new home loan is an important step in turning your dream of being a homeowner into reality. It isnt always easy to find the rate that you want, however; it can take quite a bit of searching and comparing the rates offered by a number of different mortgage lenders. By researching mortgage rates online, the time that it takes to find the best loan rate available to you can be drastically...more
The foreclosure boom created by the economic downturn has left many homeowners and potential homeowners feeling as though adjustable rate mortgages are evil. However, there has been a great deal of debate on whether or not fixed rate mortgages really save you money. The big fixed rate draw is that you know how much your payments will be throughout the life of the loan, in other words there will be no surprises. Still, having peace of mind and saving money are two different aspects of fixed rate mortgages. If you are considering a fixed rate mortgage there are few things you need to consider when determining whether or not you will be saving money.The first question to ask yourself is what rate are you looking to lock in, or what is your target rate? The rate you start off at will be the determining factor on whether or not you are able to save money with a fixed mortgage. If you are starting at a rate of 5.3% and your initial monthly payments are more than 60% of your monthly income(s) the odds are you have started off with one foot in the ground. Since, you are not leaving yourself any room to save money. Homeownership is expensive and the first year is often plagued with...more
After the global economic crisis, the American peoples financial condition collapsed. People, who had taken loan for their home, were bankrupted and hence unable to return the loan. Their incomes went down much lower than the monthly installment. Consequently, the interest rate also increased. Condition became critical and homeowners reached on the...more
With the advent of the Home Equity Conversion Mortgage (HECM), or reverse mortgages, seniors have had an opportunity to take advantage of the equity in their homes. In many ways, this can be very beneficial. Seniors can use the money to pay off debt, make home repairs and renovations, help family members or take a trip of a lifetime.In order to be...more
We all tend to be prone to overreaction. All you need to do is turn on the news to find out the latest apocalypse du jour. Of course, the vast majority of these expected calamities that we get ourselves worked up about never in fact show up in our lives. Let's face it; we are a bunch of Chicken Little's running around shouting about the falling sky. One recent example of this is the media's incessant shouting about the skyrocketing of mortgage rates of late.Well, relax a little my friend, because I am going to lay out for you that perhaps this hysteria is overblown, and you aren't going to have to remortgage your next house at 30% interest.First of all, you must understand that while for a short period the rates on a 30 year fixed mortgage did indeed dip below 5%, you couldn't find anyone anywhere that knows anything about the mortgage industry that said this was going to be a long term sustainable rate. Furthermore, keep in mind that mortgage rates are always in flux and are continually moving around. The only thing that is certain is that going forward is that mortgage rates will fluctuate.Second, it may be helpful to fill you in on what has caused the movement in...more
Have you ever wanted to get rich quick? Well apart from winning the lottery, I hate to be the bearer of bad news but there is no get rich scheme. However, if you do want to have a fixed income then one option would be to invest in property.There are...more
Buying a new home is a big deal because of the expense involved. Fortunately the financial world recognizes this and has developed a wide variety of sophisticated means for normal people to get the funding to buy a home through loaning. If you know...more
One of the biggest expenses that we can have in our lifetime is that of a home mortgage. For many that means a nerve-wracking time while they're going through the process. It would be so much better if we understood the whole thing a lot better and...more
For many home owners the past year has kept them awake at nights wondering about their future in their current homes. Home owners with underwater mortgages are in a tough place these days; with a long climb back out of the recession and...more
Reverse mortgages have become a popular lending option for seniors who are looking to increase their level of financial freedom. As with all loan products, though, it can sometimes be difficult to find a reverse mortgage lender that you feel that...more
Homeowners all across the country can now refinance their mortgage using the Federal Governments Economic Stimulus Act. This stimulus plan will help many people qualify for a mortgage refinance even if they have bad credit, financial...more