What Is Reverse Mortgage? Useful Reverse Mortgage Information

But what is reverse mortgage? What is the benefit, which a senior can get, if he or she will take this loan? What is reverse mortgage for the heirs of the senior? And what does the loan mean for the financial status of a borrower?

The key idea of these loans is to reveal cash money from the home equity, so the target group is the seniors, which own their own homes, where they have equity left and which are their permanent homes. The loan is a long term commitment and nothing will be paid back until the loan will be closed. If the senior has traditional mortgage loan, he has to pay away that with the reverse loan.

1. A Home Owner Senior Will Qualify.

The only source of money is the home equity, which is also the only guarantee for the loan. This means, that the borrower can borrow a certain amount from the equity, which is his own capital. The rest is usually a loan. There is no income or credit score information needed.

The loan capital and all the costs will be paid back, when the loan will be closed, which happens when a senior will move away, sell the home or die. Then the home will be sold and the selling price is used for back payments. If it does not cover the whole amount, the obligatory mortgage insurance will pay the difference.

2. The Mortgage Refinancing.

Only a few seniors know, that they can use the reverse loan to refinance the original reverse loan. The home price increases makes this possible, because the senior will continue as an owner after he has taken the reverse loan. For instance, if 10 years has passed from the first reverse loan, the home values have risen significantly and made space for the new loan. He just pays away the old one and takes a new, bigger loan.

3. The Payments Are Tax Free.

This is clear, because a senior has paid taxes from the salary with which he has paid the usual mortgage of which a part is now the home equity. The paid interests can be reduced in the taxation once they have been paid during the closing process.

4. Max 3 Borrowers Are Accepted.

A senior can take the loan alone, with his spouse or with other two or three seniors, but all must be the owners of the home and qualified for the reverse loan, i.e. at least 62 years old.

5. The Compulsory Counseling.

Unfortunately the reverse loan market has a lot of fraud companies. To prevent the damages the federal government has ruled, that every senior has to meet the counselor, before he can sign the agreement. This meeting, despite of the fact that it is compulsory, is also very useful one. The counselor can advice about all financial options and give names of the legal and reputable lenders.

Juhani Tontti, B.Sc., Marketing. What is reverse mortgage? A senior has to know the key reverse mortgage information before he will proceed.

Where to Find the Best Mortgage Information

If you are a homeowner who is considering refinancing your home or other property the first thing you should do is go on to the internet which has many reliable websites regarding mortgage loans to assist you in making intelligent decisions about your specific needs and requirements in this area. The internet has all the current up to date information for you regarding the best and most cost effective mortgage loan policies. This information is yours simply by clicking your mouse and you can begin your comparison shopping process.

Doing your homework on the internet will provide you with information on many reputable mortgage loan companies and steer you away from bogus unreliable and sometimes dishonest mortgage companies. The internet even has websites that post lists of these unreliable mortgage loan companies with information on all of the complaints people have registered against them. If you choose one of these mortgage companies simply because they offer low interest rates you could be setting yourself up for a lot of stress in the future when the truth about their bogus plans come to the surface and it is too late to change companies. A wrong decision in choosing a mortgage loan company could cost your hundreds or thousands of dollars.

A reliable source that will provide you with accurate information regarding a mortgage loan company and its reputation with the general public is the Better Business Bureau. The Better Business Bureau has been serving the public for many years providing them with information regarding companies in every area of business you can think of. They will give you the history of any company including all complaints with complete details filed against them and let you know if the mortgage loan company you are thinking of getting your mortgage loan policy from is the one for you. The services of the Better Business Bureau are free of charge and their information is the most reliable you can find anywhere.

After comparing all the mortgage companies and what plans they have to offer in regards to your particular needs and after you have contacted the Better Business Bureau and received the information you need regarding the reputation and reliability of a specific mortgage company then you may want to contact a representative from that company and meet with them to clarify any questions in a more personal way than doing so online. This way you can get an even clearer clarification of the mortgage loan policy their company offers.

Addison Holmes is really into everything about homes, mortgages, loans, and the statistics that come along with them. He wants to show and inform everyone of his wide array of information to help people get the best possible deals, rates, tips, and more. If you are looking for more info, visit Tulsa Home Mortgage or Chesapeake Home Mortgage to find everything else you need to know about these topics.

Best Place to Look For Mortgage Information

Home owners, those who plan on getting refinancing for their homes, have found that internet as the best source to get what they want regarding mortgage loans. A good reliable mortgage website is enough to get the info we want regarding all the stuffs related to mortgage and mortgage marketing plans.

You can also look out for forums where they discuss and share about mortgage loans and other stuffs related to mortgage. You will then be able to get all the info you need regarding mortgage loans. You will get to know about mortgage marketing idea and how to go about it when it comes to mortgage loans.

You can also compare different mortgage companies at the mortgage website itself and get to know the best among them and then choose from them. Since many of such websites are a powerhouse of huge resources regarding mortgage, you never have to look for it anywhere else. But you need to search and find only the best website which has all genuine information regarding mortgage marketing.

Finding the info from a reliable source is key, as you don't want to get caught in some bogus mortgage company after looking at an unreliable resource. If you really want to get a real mortgage marketing idea then reliability should play a major role.

The place where you can get the info regarding good mortgage company is at Better Business Bureau. They have all the info you need to know regarding a mortgage company. You can also find whether there are any previous complaints on that company, etc. This will give you a clear picture on whom you should go with your mortgage marketing or refinancing.

You should be prepared to some spend some money on this too, as some mortgage website charge you payment to get the information you need, this way you get only true and reliable information.

While looking for the mortgage marketing idea on the net you can also request an offline advice by asking one of their representative to visit your place and clarify it in a more thorough way rather than getting it done online. This way you can ask more questions and get a clearer clarification. With this method you will need to shell out some extra money but it is worth it as you get a good re-financing company which is cheap as well as reliable and this will only help you in long-term.

Caitlina Fuller is a freelance writer. Home owners those who plan on getting refinancing for their homes have found that internet as the best source to get what they want regarding mortgage loans. A good reliable mortgage website is enough to get the info we want regarding all the stuffs related to mortgage and mortgage marketing plans.

Mortgage Information Resources

People who are planning to purchase a new house or want to obtain a loan against their properties look at various mortgage information sources available before applying. There many mortgage information sources that can help the consumer research and opt for the right mortgage to suit his individual needs. These sources can be mortgage lending companies, mortgage brokers and agents and online forums.

Mortgage lending companies specialize in assessing and providing mortgage loans to homeowners. They are generally financial institutions such as banks and have dedicated departments with qualified officials to look after mortgages. The mortgage market is huge and a very competitive scenario today. Mortgage lending companies offer their researched analysis and updated understanding of the borrowers' need and the market.

Mortgage lending companies also employ representatives to help borrowers understand the fine print. These representatives can be contacted online, over the phone or in person by making a prior appointment. Mortgage lending companies understand the value of a mortgage to the borrower. Therefore, they offer free estimates via various channels and help their customers make the right decision as per their individual requirements. Mortgage lending companies allow borrowers to choose from fixed mortgage rates and adjustable mortgage rates.

Mortgage brokers are another great source of information as they access the mortgage plans of various mortgage companies. Mortgage brokers help the borrowers to apply for the desired loans and smoothen the documentation network. It is up to the lender to approve or disapprove the application of loan.

After going through all the information gained from various resources the final choice remains with the borrowers. Borrowers must thoroughly go through credit reports. It is necessary to understand all the document requirements and eligibility criteria. It helps make the application procedure easier and eliminates any chances of disapproval of the loan.

Mortgage Information provides detailed information on Mortgage Information, Reverse Mortgage Information, Mortgage Information Services, Mortgage Refinance Information and more. Mortgage Information is affiliated with Mortgage Rate Calculators [http://www.i-MortgageCalculators.com].

7 Pieces of Reverse Mortgage Information About HECM

The target of the HECM reverse mortgage loan is, that a senior borrower can keep his standard of living on a good level, despite of the fact, that his income has decreased.

Actually the money comes from the equity of the borrower`s home, but he will not pay anything back until the closing moment of the loan. This happens, when a borrower moves permanently away or dies. This is one of the corner stones in the HECM reverse mortgage information.

1. Now You Can Buy A New Home With HECM.

You have to check the HECM terms, because they differ from state to state. A normal case is, that HECM terms allow you to buy a new home, because the idea is that the borrower has the freedom to use the money, how he wants.

2. New HECM Loan With Fixed Interest Rate.

Normally, when you take a HECM reverse mortgage loan, it has a variable interest rate. This means different payments on different months, but follows the market rates, which is fair in a way. Now you can get HECM with a fixed rate. The benefit is obviously a mental one. You will get a sure reverse mortgage information and with it some peace into your mind, because you know, how much you have to pay back in the closing.

3. You Can Order, How You Receive The Payments.

With an ARM HECM option a borrower can choose how the lender pays to him. The alternatives are as a lump sum, as monthly payments, as a credit line or as a combination of all these. You have to think, for which purposes you need the money.

4. Reverse Mortgage Information, New Margin Index.

The lenders do not anymore use the CMT index to measure margins for the reverse mortgage loans. The new index is called Libor, a London based index. This Libor offers better terms for the borrower with the idea to maximize the cash return to the borrower.

5. New Requirements Concerning Counseling.

There has been one problem, because many seniors have not understood all the terms. That is the reason, why the U.S. Department of Housing and Urban Development and the Federal Housing Administration have written new counseling instructions, which try to guarantee, that a borrower will understand all the key points before signing.

6. The Higher Loan Limits.

The new Obama administration increased the reverse mortgage loan limit, which a borrower can take on his house. To the end of the fiscal year 2009 it was raised from $417,000 to $625,500.

7. New Rules About Refinancing.

HUD and FHA have updated their rules of refinancing concerning the senior borrowers, who have made it to the maturity date on their present reverse mortgage. The new terms include so called Anti-Churning Disclosure form, which prohibits lenders to benefit from the reverse mortgage refinance on behalf of the borrower.

Juhani Tontti, B.Sc., Marketing. A HECM Offers All Benefits And A Counselor Explains How Does A Reverse Mortgage Work, So You Get A Good Product. Visit: Reverse Mortgage Information

First Home Mortgage Information

Are you considering buying a home? You will likely need your first home mortgage! So, as a virgin to home buying, this article will help you discover the information you need to get your first home mortgage!

The biggest need for lenders is security. This means in essence, that you have a stable job, and can pay the mortgage payments without putting too much strain on your finances.

The amount you borrow is what you get to purchase your home with, and then you have the interest rate. And this is what makes getting your first mortgage interesting, because you can save! And you can save big!

There are some points to remember, to be able to do that. For example, to be able to effectively make some great savings, you will want to research the options.

There are many lenders out there, and finding the best offers need not take up a lot of time. The first thing you will want to do, is to research as many places as you can find, then find the lowest interest charges.

The lowest interest charges is something that needs research, however, with the power of the internet, doors are opening for you! There are some points to remember. The first is that you will come across 2 main types of mortgages.

The first home mortgage that you will find, is those that are payed off within 30 years. There are also those that take 50 years to pay in full! I suggest against the 50 year versions, because they can take up a lot of money. Over the long term, you will find that the interest goes so high.

The first step is to research the several options available to you, but if you can afford it, go for a 30 year mortgage. This will result in the best combination. The first home mortgage that you will find, will either be a fixed rate or an adjustable rate version.

The main difference is how they operate. For example, the fixed versions are like the loans that you often find. They are great at giving you a clear understanding of how much you need to pay back.

The adjustable versions change, depending on the banks base rate. This can work to your benefit or against it, depending on your personal view of the economy.

Research, and you can find some of the best options!

To find the best mortgage deals check out home mortgage online and first home mortgage.

Home Mortgage Information to Find the Best Deals on Mortgages!

Are you purchasing a home? Yes? Well, how does saving up to $10,000 sound? If you would like to save big, then read this article. Inside this article, you will discover the information you need to know.

To save on a home mortgage, you need to find the best interest charges. The lowest interest charges, will make all the difference.

So, invest the time, and you can find some amazing options. So, invest the time, and you will find what you need.

The first thing that you want to do, is research several options that can bring about some great findings.

The first place to invest some time into, is a real estate magazine, which can actually result in finding a lot of places that you can go with.

Most of the advertisements for finance, will be lenders, but some will be mortgage brokers.

The difference is that the broker is representing different lenders, and packages. The result is that they can save you time and money.

The other advertisements, are actually lenders who are advertising.

I have found another method to finding great home mortgage information and deals. I have found that researching online, can make all the difference.

So, invest the time into researching online, and you can come up with some great home mortgage information, as well as the latest deals.

The first thing to remember, is that you can actually go through and select the best options, if you jot down your findings with pen and paper. So, invest the time, and find the best!

Would you like to find the best refinancing offers? Go to these resources and find various refinance home mortgage packages and find the best refinance mortgages [http://www.refinancehomemortgages.info/uncategorized/refinance-home-mortgages/] for 2010.

Important Mortgage Information - What Do You Need to Know?

Applying for any loan can sometimes be complex, detailed and troublesome. Usually the Mortgage Loan takes the cake on this one. I will explain; if you have been through the process, you have a greater understanding about what it entails, than someone who is doing this for the first time. There are some customers, who do not like for anyone to "know their business", let alone a Mortgage Lending Institution. I do understand the fuss with all of the identity theft that goes on.

It is some what aggravating, (more so to some individuals) that so much information about their entire financial history is needed prior to approval of their loan. The question arises; why do they need to know so much about me? This part of mortgage lending has not changed much with "THE MORTGAGE MELTDOWN". Always remember, that not everyone sees themselves or their situation in reality; it must be verified and proven. Please know, (I am trying really hard to not say that everyone does not tell the truth). Document, document, document. That is the Industry strategy. With full documentation for all details, there is not room for loopholes.

The documentation requirements became less with the "Automated Underwriting Systems", "Desk Top Underwriter" of "FNMA" (Federal National Mortgage Association- "Fannie Mae" and "Loan Prospector" "FHLMC" (Federal Home Loan Mortgage Corporation- "Freddie Mac"). WOW! That is a mouth full!! I do not want to get you confused with this but this is a very important part of loan approval.

I will describe what the "automated underwriting system does". It allows the Mortgage Lender to input all of your financial information, and run your credit report. You must sign an authorization form prior to this being done OR give a verbal authorization. The latter is done quite frequently. Your information is evaluated then by either the "Fannie" or "Freddie" underwriting system. NOW, you really know how your loan is associated with these BIG GUYS. No, only partly, may I say! The system evaluates your credit, your employment/income history given on your application, assets (how much money you have, your downpayment and reserves), how long you have lived at your current address and the entire history you have stated. A mortgage application may be given face to face, by phone, mailed, email or fax. Upon evaluation, the automated system gives the Lender a preliminary status; approved/accept. IMPORTANT: the information must be authentic or the approval WILL CHANGE when information is verified and re-submitted to the system. It will spit out the MINIMAL documentation needed to submit the loan to the investor and what all requirements, including the appraisal of the property.

Please note: this is not all inclusive, but gives you some idea of the inside on how the Lender comes up with guided information concerning the approval of your loan. It takes some of the responsibility off their shoulders; but their duty is to submit any and all information implied by the mortgage applicant. A lot of work goes into getting your loan approved and this is "best practice" lending, geared toward your benefit.

I hope introducing you to the underwriting systems used within the system does not scare you. Not intended. This will actually help you know that you are being given every opportunity in getting approved. Your financial status, credit, assets, liabilities, and employment/income history are the tools used to evaluate you as a credit risk. Without the evaluation, their is nothing to build on. There is no loan without an evaluation.

Of course you do not deal directly with "Fannie" or "Freddie", no, but your Lender does as a general rule. Even thought these guys got into a little trouble, their guidelines and rules is what helps keep the Lenders straight. Then of course, the Agencies are regulated and are guided by RESPA,TILA, and the like. There is no such thing as a "good old boy" loan anymore. There are step, provisions, regulations and guidelines that must be adhered to and YES, IT IS FOR YOUR PROTECTION that all of this exist. 

I will be back with more.

Linda Todd

I have worked within Mortgage Lending for 30+ years. There is a lot of information that applicants never understand or know. My purpose is to help especially, the first time homebuyer know what to look for and questions to ask.

I have seen baffled buyers left in the hands of strangers hoping they are getting the loan that is best for them without knowing for sure that it was! My goal in articles and my blog is to educate those who want to be educated or think they need to learn more.

It is very detailed and each step of the process has its own set of rules, including the property being bought by the buyer and, the contract its self.

Please stay tuned for more!

Home sales jump in August

Sales of existing U.S. homes increased in every region of the country in August, according to data from the National Association of Realtors, a welcome change after a few months of decline.

"Some improvement in August can derive from sales that were late in previous months, but favorable conditions, accessibility and increase rents at the base of motives," Lawrence Yun, NAR Chief Economist said in a press release. "Investors were more active in absorption of foreclosed properties. In additional to bargain hunting, some investors are on the market to hedge against inflation. "

Sales of existing homes jumped up 7.7 percent to a seasonally adjusted annual rate of 5.03 million units in August, from 4.67 million revised upward in July. The new number is 18.6 percent from a year ago.

The median price for existing homes is now $ 168,300, down 5.1 per cent from August 2010. Total inventory was down 3.0 percent on a monthly basis, 3.58 million homes, which is a supply of 8.5 months at current sales pace. In July, there was a supply of 9.5-month.

By region, sales in the Northeast grew 2.7 percent in August, while the Midwest saw increased sales of 3.8 percent. Southern sales were 5.4 percent, and sales skyrocketed in the West, where they increased 18.3%.

NAR President Ron Phipps said that market conditions are very affordable, but some reefs at home sales still exist.

"Throughout the year, the ratio of housing prices, interest rates and family income has been hovering at historic highs, meaning the best accessibility housing conditions in a generation," he said. "The biggest factor keeping home sales a healthy recovery were denied mortgages creditworthy buyers and evaluated assessments below the price negotiated."

Amber Nelson on September 23, 2011 in mortgage news, real estate information

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Mortgage rates dip below 4 percent

In another record-breaking decline, the average rate of interest on fixed-rate mortgages (174.378) by 30 years has fallen below the 5 percent mark for the first time in history, according to the mortgage finance company Freddie Mac Thursday.

The rate of 30-year FRM sank 3.94 percent, excluding taxes, during the week ending on 6 October, down from the previous all-time low 4.01 percent the week before. A year ago, the average rate was 4.27 percent.

Rates on 15-year shot hit new lows as well, sinking to 3.28% 3.26% from the previous week. A year ago was 3.72 percent. Variable rate mortgages a year brought a higher rate if you move up to 2.95% by 2.83%.

"30-year conventional fixed mortgage rates average fell below 4 percent for the first time in history this week following a sharp drop in Treasuries 10 years earlier in the week had raised concern about a global recession," said Freddie Mac vice President and Chief Economist Frank Nothaft in a press release. “…Interest rates for the weapons a year, however, rose, as the Fed began to replace 400 billion dollars of Treasury securities in the short term, that serve as benchmarks for many arms. "

He also cited recent comments by Federal Reserve Chief Ben Bernanke as adding to the pressure towards the low rate of investors. Speaking at the Congress of new Fed plan to sell short-term debt and buy longer-term bonds that Bernanke said,

"Should help a little, on growth and employment. It is particularly important that the economy is near, the recovery is faltering. "

While the rock bottom interest rates should be helpful to stimulate the housing market barely-breathing, there are a limited number of people who can benefit from them. Mortgage lending standards remain so tight that many do not qualify for home purchases and refinances. Refinancing is not even an option for most of the owners of 11 million U.S. homeowners who owe more than their homes are worth.

As Mark Goldman, a mortgage broker in Southern California who lectures at San Diego State University said the Washington Post. "It is difficult to refinance a loan these days. Only a few selected can qualify. "

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New homes sales decline at Record lows

Another monthly decline in sales of new homes has prompted a fresh round of worrying and despair in the United States real estate market.

New home sales in August fell for the fourth straight month to 295,000, according to the Department of Commerce, a six-month low and a pace that is likely to be the "worst year since the Government started keeping half a century ago," by the Associated Press.

2.3% Monthly sales drop last month was accompanied by a decrease of 9 per cent of the median new home prices, which fell to $ 209,100, a low of 11 months.

Analysts and the media are rather gloomy about the signs of such data. For example:

"The housing sector cannot get any worse," says Michael Englund, Economist at action economics in Boulder, Colorado, as quoted in an article by Reuters. "[Real estate] market is dead, and the record low mortgage rates do nothing to help, "said Ian Shepherdson, Chief U.S. economist at high frequency Economics as quoted in the Wall Street Journal."Sales are very weak, and there will be a very small improvement in the next two months. We expect a step up in distressed home sales, which will put more downward pressure on prices. It will be very slow return to normality, "said Celia Chen, a housing Economist at Moody's Analytics Inc. 's in West Chester, Pennsylvania as quoted in BusinessWeek."House prices fell the most since the recession started, on a percentage basis, during the great depression of the 1930s. It took 19 years to fully recover after the depression of prices, "said a commentator from the Associated Press.

On the positive, home builders are at least answering the question that fall in an appropriate manner. Total new home inventory in August fell also on bass.

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Foreclosures up in third quarter

Lenders are finally starting to draw up their backlogs of foreclosures, according to recent data RealtyTrac, but these days, these properties are embedded in a longer process.

In the third quarter of this year, foreclosure filings — default notices, composed of scheduled auctions and Bank repossessions — rose slightly by 0.3 percent from the previous quarter. While that growth is not stellar, is important as it is the first increase after four consecutive quarterly declines.

First time default notices jumped up most, 14 percent, a sign that the banks are ready to pursue more aggressively foreclosures on the rise again. And how it sounds weird that it might actually be a good thing.

Banks dramatically pulled back on processing foreclosures last fall as scandal ' robo-signature ' forced them to look more closely at their paperwork. That caused major delays and created a huge backlog of foreclosures. And it is generally believed by analysts that the housing market did not really recover until lenders to work through their inventory of foreclosures.

"Banks are beginning to process foreclosures again after the time to get their paperwork in order. Have made the care that they needed to do, "said RealtyTrac chief executive, James Saccacio, as quoted in an article by Reuters. "Now there is this wave of returning and more defaults are being processed."

So even if foreclosure filings is still down significantly from last year, the fact that they are on the rise may be good for the real estate market in the long run, as it means that the recovery process is back on track.

It may take a while for the exclusion, however, be processed quickly. RealtyTrac has reported that the average time for a property to be in foreclosure (by default the first warning to the Bank's recovery) has increased to 336 11.2 days or months. In the second quarter is was only 318 days or months 10.6. That period may shrink again as banks ramp up their machines to foreclosure.

Amber Nelson on October 15, 2011 in mortgage news, real estate information

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Mortgage delinquencies increase is cause for concern

Mortgage delinquencies inched up in the second quarter of this year for the first time in five quarters straight, directional displacement that has a little worried about mortgage regulators.

According to a new report from the Office of the Comptroller of the currency of mortgages that were delinquent between 30 and 59 days, there was 0.4 per cent increase to 3 percent in the second quarter compared to the previous quarter, while loans that were 60 + days late, the delinquency rate grew 0.1 percent to 4.9 percent.

These rate increases are so small, it would be easy for them. Statistically, second post generally increases in Mortgage delinquencies, making it difficult to say if the new rates are below the annual trend, or if there is something more behind them.

"It is something not to be overly worried, but it is clearly something to look to see where you're going," said Joseph Evers, Deputy Controller of OCC supervision Bank as quoted in a blog post to the Wall Street Journal.

Another official OCC mortgage, Bruce Krueger, seemed a little more agitated by the uptick in rates. In a conference call with reporters as reported in an article in MarketWatch, Krueger said:

"It is a problem that we think should be carefully monitored to determine if this is something more than just seasonal impact," he said. Said it will be important to see if new delinquencies move into the category of 60 days delinquent. "This is only seasonal? Or is this something more? So yes, we are paying very close attention to it. "

Overall the 12 percent of mortgage borrowers were both behind by one or more payments, or were already in the process of foreclosure. This proportion is up by 11.4 per cent compared to the first quarter. Beyond seasonal factors, the continually weak labour market is likely to blame for the rise.

Amber Nelson on 1° October 2011 in mortgage loan News, mortgage news

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Loan program to help unemployed Fizzles

A recent Government attempt to save homeowners from foreclosures may post dismal results, according to the Department of housing and urban development.

The loan program of emergency homeowners was designed as part of the mortgage Bill Frank Dodd last year to help recently unemployed homeowners behind on their mortgage. At this point, however, HUD expects only 10,000-15,000 people to qualify within the deadline of this Friday. With approximately 100,000 applicants in total, the program could certainly be called less-than-effective.

The plan was to offer interest-free loans which might also be forgiven later to borrowers who had lost 15 percent or more of their income. Also had to be at least 90 days late on their home loans and could prove that once you have found a new job, could afford their monthly payments again. These requirements has proved to be too much for most of the applicants as HUD used a very complicated set of calculations to determine eligibility. In addition, borrowers could not be too far behind on their payments, and could not have lost their jobs over a year ago.

"Nobody could have anticipated how difficult it is to make statutory requirements to reach homeowners," said Lemar Wooley, a spokesman for HUD, as quoted in an article of CNN.

Not only were too stringent for many, but the timing of the programme limited its effectiveness. It was initially delayed by several months and then officially started at the end of June. Originally, HUD was only to allow applicants to apply for six weeks, but ended up giving up a two-and-a-half month.

For those who qualify, they could receive up to $ 50,000 or 24 months, depending on which is fulfilled in the first place. HUD expects average aid pay is between $ 35,000 and $ 45,000. Only about half of the $ 1 billion allocated will probably used for this program.

Amber Nelson on October 3, 2011 in mortgage news

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Consumers still down on Home prices

Most Americans believe House prices continue to decline next year, according to a recent survey by mortgage finance companies Fannie Mae and consumers are more pessimistic on most financial problems today than a year ago.

The survey September Fannie Mae found that respondents now think House prices will fall on average 1.1% by this time next year. That is a much bigger decline than the 0.5 per cent from August.

"The September survey showed a marked deterioration in consumer expectations, house prices over the next year – their weakest outlook since monthly tracking began in June 2010," said Doug Duncan, vice President and Chief Economist at Fannie Mae in a press release. "Despite a decline in negative economic titles during September … consumers continue to show very negative attitudes. At the same time, the proportion of consumers expecting mortgage rates to climb down sharply at the lowest level that we recorded, possibly influenced by the news that the Federal Reserve will keep interest rates low for years to come. "

In this latest survey, only 33 percent of consumers believe that mortgage rates will rise over the next 12 months, down from 45 percent in the month of August. Feelings may have been influenced by the recent decision of the Federal Reserve to bring long-term rates even lower.

In terms of greater economy, 77 percent of respondents felt that the u.s. economy is on the wrong track. While this is down slightly from 78 percent the previous month, is still an overwhelming negative outlook and that probably will translate into personal spending choices.

As Duncan commented,

"The lack of a sense of urgency to buy homes, given expectations for further declines in home prices and mortgage rates Low, coupled with the General pessimism regarding their personal finances and the economy portends badly for the recovery of the real estate market."

Amber Nelson on October 10, 2011 to interest rate, mortgage news, news

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Fannie and Freddie forecast Dour Outlook for housing

Mortgage finance Giants Fannie Mae and Freddie Mac recently released reports and perspectives about the State of the u.s. real estate market. Unfortunately, their predictions are not looking exciting.

Report of Freddie Mac, economic and Housing Market Outlook for October showed that home-ownership rates have fallen last year, sliding down 1.5 percent to 65.9% from 66.9% during the second quarter of 2010. Among those in the ' under age 25, home-ownership is down 4.4 percent, while the rate for those between 25 and 29 is down 7.0%.

And, consequently, the manufacturers focus on condominiums to attract those who do not buy more homes.

"New construction starts slowly is collecting and multifamily loan seems to be increasing even with origination volume this year stronger than 2010," said Frank Nothaft, Freddie Mac vice President and Chief Economist. "In part, the increase in Originations is related to low mortgage rates, improvement of apartment-sector economy and the return of traditional lenders which had decreased activity during the recession."

Regarding Fannie Mae, they require constant economic trouble, with slower growth rates will also purchase applications and mutual home. Fannie put the chances of a repeat recession by the end of 2012 to close to fifty percent.

"In this type of environment, the housing market remains very slow and consumer willingness to dig into their savings products of big ticket is very low," said Fannie Mae Chief Economist Doug Duncan. "There was a bit cyclic seasonal pick-up in housing activity recently as the spring and summer sales are generally stronger than autumn and winter, but the point of main indicators of housing sales bouncing along the bottom, at least until the end of 2012."

Duncan also pointed out that as foreclosed properties continue to plague the market, prices remain weak. And if this is true, he says, "Home prices are a key factor for any positive movement of the real estate market", so it might be a long recovery indeed.

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Aumentando le tasse di ipoteca possa abbassare il rischio di contribuente

In an attempt to start weaning mortgage finance Giants Fannie Mae and Freddie Mac out of taxpayer funding, the two companies may need to start higher taxes as a lender of charging and require additional mortgage insurance.

According to Edward DeMarco, Director of the Federal Housing Finance Agency and the current regulator of Fannie and Freddie, these changes could reduce the risk of further loss of housing for taxpayers.

These changes would have to be phased in gradually and would not happen immediately, but should be expected in 2012, with some warning, "as he said in a recent speech at a Conference in Raleigh Mortgage DeMarco.

Fannie and Freddie, which buys and secure mortgage loans from lenders and then bundle and resell to investors, have been taken into conservatorship of Government in the autumn of 2008, when they were collapsing and considered "too big. too fail. " Now the two giants back about 90 percent of mortgages in the country.

DeMarco said the FHFA has tried to find ways to limit the involvement of the taxpayer in two companies, as the Federal Government has not yet decided on a plan for the future of Fannie and Freddie.

"We all knew that reforming the housing finance system was going to be difficult, but I think the general expectation was that further progress would have been made by now," said DeMarco, as quoted in an article in the Washington Post.

Opponents of proposed tax hikes mean rising costs will be passed on to consumers and will further depress the housing market. Yet DeMarco told reporters that,

"These are steps we can take and we think we are in charge of recruitment which are favourable in that direction. This will measure ultimately consumers from price and availability of mortgage credit, and in another macro sense … whether there is a sense of confidence in real estate markets or stability. "

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Existing Home Sales fall in September

Sales of existing Us homes fell last month, but rose on an annual basis, according to data of the National Association of Realtors.

Total sales fell 3.0 percent to a seasonally adjusted annual rate of 4.91 million in September from a revised plan 5.06 million homes in August. Compared to same time last year, however, sales were 11.3%.

"Existing-home sales have bounced around this year, staying relatively close to the current level in almost every month," said NAR chief economist Lawrence Yun. "The irony is conditions have improved accessibility to historical highs and more creditworthy borrowers are looking to buy houses, but the proportion of failures of contract is double the level of September 2010. Even so, the volume buyers success is more than a year ago and has remained fairly stable-this speaks of a claim was not satisfied. "

The NAR found that 18 percent of its members reported contract failures in September, the same as August but up dramatically from 9 percent from a year ago.

"Throughout the year we discussed the fact that many buyers are home mortgages is denied," said NAR President Ron Phipps. "On top of that, lending limits have been lowered, which means that buyers of higher-priced homes, including many in the markets more expensive housing, now have to pay a higher interest rate for a mortgage jumbo buyers that qualify for a conventional loan. We need to remove the roadblocks for a housing recovery-i.e. no more obstacles in the way of financially qualified buyers.

Regionally, sales increased 2.6 percent in the Northeast, drooped 0.9 percent in the Midwest, fell 2.6 percent in the South and surrounded by 8.8 per cent in the West.

The median price home to the country fell to $ 165,400, down 3.5 percent in September 2010. An important contributing factor to the decline in the price is the amount of distressed homes on the market. The 30 percent of sales they made last month.

Inventory of existing homes fell to 2.0 percent in September, 3.48 million. At the current rate vendito representing a supply of 8.5 months. That is down from a supply of 8.4-month of August.

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