You may have heard this term recently and not be fully aware of what it is. First, it is not a loan modification. In a loan modification, you have to meet certain criteria and negotiate with the stubborn banks and hopefully in the end get some relief in the form of a lower payment or forgiveness for some of your outstanding mortgage. Second, it is not a short sale. In a short sale, you have to sell your home (with the banks approval), move and and start the process of finding a new home. Who wants to do that?
A mortgage principal reduction is a new form of relief for homeowners who owe more than 25% of their homes current value. In states such as Arizona, California, Florida, and Nevada, this represents a significant population.
This new service is made possible due to the negotiating power that institutional investors have with the banks. It is far more than what you could do or your real estate agent by him or herself for that matter. In the end, you will have a principal reduction that gives you 10% equity in your home, which for some is something they thought they would never see after the market dropped as it did.
Qualifying is even simpler than qualifying for a loan modification or a short sale which is even better news. The basics are that you need to owe at least 25% more than the homes current value, and not have a debt load of greater than 50% with the new lower mortgage payment.
My advice is to be very cautious of paying high fees to have someone help you with a principal reduction. For a while it seemed to be a solution, but one trusted advisor that I spoke with said that the banks are not as excited about doing these as folks had initially thought.
In the end, you might be better off trying to do your own loan modification.
Wednesday, January 27, 2010
Friday, January 22, 2010
Get a Home Loan and Get Paid for it?
Yes, as odd as it seems, one company has put together an amazing model that allows customers to get paid for referring home mortgage customers - including themselves. This means you can get paid for your own loan! Loan Home, Inc. is the company and all you have to do is register as a free affiliate then submit your loan; it's that simple. The company provides you with a link to share with others as well so you can profit from their loans as well.
The company even serves businesses by allowing employers to offer this amazing service as a company benefit and serves non-profit organizations, allowing the non-profit to generate much needed revenues by sharing a great service with their constituents.To learn more, visit www.theloanthatpays.com Today!
FTC Disclosure - This post was written by an affiliate of Loan Home, Inc who is compensated for successful referrals.
Wednesday, April 15, 2009
Do You Really Need a Home Warranty?
If you are buying a new home it should come with a builders warranty so you shouldn't have to purchase a home warranty insurance plan. If you are not buying a brand new home, I would strongly recommend making a home warranty a part of the transaction. Often a real estate agent with convince the seller to offer a home warranty as an incentive, but even if they don't offer one, you can write it into the contract. Sometimes (depending on the size of the transaction) the agent may even offer to purchase one for the purchaser as a settlement gift.
Even if you have to pay out of pocket, the cost is relatively inexpensive with most plans running between $250 and $600 per year. Many people don't realize that you can renew the home warranty after the first year.
But What Does it Cover?
Please know that a home warranty does not cover anything that could go wrong with your home. Typically, a home warrany covers major systems and applicances, but you will want to read the fine print to know exactly what is covered on the plan you are considering. Also, keep in mind that often there are deductibles or service charges in conjunction with claims.
The goal of the home warranty is not to eliminate every possible expense, but to help a new homeowner not have any costly surprise expenses after spending most of their savings on closing costs to get into their home.
For more information or to purchase a home warranty, visit American Home Shield.
Even if you have to pay out of pocket, the cost is relatively inexpensive with most plans running between $250 and $600 per year. Many people don't realize that you can renew the home warranty after the first year.
But What Does it Cover?
Please know that a home warranty does not cover anything that could go wrong with your home. Typically, a home warrany covers major systems and applicances, but you will want to read the fine print to know exactly what is covered on the plan you are considering. Also, keep in mind that often there are deductibles or service charges in conjunction with claims.
The goal of the home warranty is not to eliminate every possible expense, but to help a new homeowner not have any costly surprise expenses after spending most of their savings on closing costs to get into their home.
For more information or to purchase a home warranty, visit American Home Shield.
Saturday, March 28, 2009
Record Foreclosures Lead to Record Bankruptcies in 2008
2008 saw the greatest increase in personal bankruptcy since the bankruptcy laws were reformed in 2005 (33% according to MSN Money). Given the increase in the number of foreclosures, it was to be expected in that a bankruptcy is often a homeowners only option when faced with overwhelming debts, a mortgage shortage, or job loss. A confirmation of the connection of record foreclosures to record bankruptcies is the fact that 3 of the top 4 states for increased bankruptcies are also in the top 4 states affected by foreclosures; California, Florida, and Nevada.
Bankruptcy is not the end of the world. In fact, for many filing bankruptcy can be a relief. It means an end to outstanding debts, no more collection calls, reduced stress, and a chance to start over. I am not encouraging you to go our and file for bankruptcy to get rid of your problems. It is a huge decision and requires serious thought because it is certainly a mark that will stick with you forever even though it will eventually come off of your credit report.
Many ask the question "if they will ever be able to buy a home again?" and the answer is absolutely. It won't be the next day or even the next month or the next few years before a bank will underwrite their loan, but there are several options for those that have filed for bankruptcy to get into a home. A great resource for bankruptcy recovery is The Bankruptcy Mortgage Book, which is an A to Z guide to getting a mortgage after bankruptcy.
If you have not filed for bankruptcy yet, I strongly encourage you to do research some bankruptcy information resources online before you do.
These are challenging times indeed, but I have full confidence that as a nation we will weather this storm as we have in times past. My only hope is that we all learn from this and become better at saving and not living on credit or beyond our means.
Bankruptcy is not the end of the world. In fact, for many filing bankruptcy can be a relief. It means an end to outstanding debts, no more collection calls, reduced stress, and a chance to start over. I am not encouraging you to go our and file for bankruptcy to get rid of your problems. It is a huge decision and requires serious thought because it is certainly a mark that will stick with you forever even though it will eventually come off of your credit report.
Many ask the question "if they will ever be able to buy a home again?" and the answer is absolutely. It won't be the next day or even the next month or the next few years before a bank will underwrite their loan, but there are several options for those that have filed for bankruptcy to get into a home. A great resource for bankruptcy recovery is The Bankruptcy Mortgage Book, which is an A to Z guide to getting a mortgage after bankruptcy.
If you have not filed for bankruptcy yet, I strongly encourage you to do research some bankruptcy information resources online before you do.
These are challenging times indeed, but I have full confidence that as a nation we will weather this storm as we have in times past. My only hope is that we all learn from this and become better at saving and not living on credit or beyond our means.
Friday, August 29, 2008
MORTGAGE SCANDAL - Mortgage Company Giving Insider Info to Consumers!
We have always been committed to educating consumers and what we are now sharing with customers does not sit well with the big mortgage companies. We are sharing with consumers how to pay off their mortgages WITHOUT REFINANCING and in many cases WITHOUT SPENDING ANY MORE MONEY OUT OF POCKET.
The mortgage companies don't want you to know this stuff because the sooner you pay off your mortgage, the sooner they lose their monthly revenue stream AND they realize that you may never need them again! They are afraid that this will ultimately take MILLIONS of dollars out of their coffers.
If you are interested in learning what the mortgage companies have been keeping from you and specifically how you can use this information to pay off your mortgage in 1/3 to 1/2 of the time, please call Consumers Advantage Mortgage at 800-757-9704.
For those that are wondering, this is NOT a bi-weekly mortgage program.
Wishing you financial freedom!
The mortgage companies don't want you to know this stuff because the sooner you pay off your mortgage, the sooner they lose their monthly revenue stream AND they realize that you may never need them again! They are afraid that this will ultimately take MILLIONS of dollars out of their coffers.
If you are interested in learning what the mortgage companies have been keeping from you and specifically how you can use this information to pay off your mortgage in 1/3 to 1/2 of the time, please call Consumers Advantage Mortgage at 800-757-9704.
For those that are wondering, this is NOT a bi-weekly mortgage program.
Wishing you financial freedom!
Thursday, June 26, 2008
Getting a Home After a Bankruptcy or Foreclosure
While the rules have changed drastically with regard to mortgage lending, it is still possible to get a home after a bankruptcy or foreclosure. The three keys to this are:
1. Credit Restoration. Goes without saying.
2. Documentation of what caused you to have the bankruptcy or foreclosure.
3. A new positive house payment history. Before you get a mortgage, the best thing to do is find a home with creative financing to re-establish yourself. Save all of your cancelled checks as this will be your new "alternative" credit.
A few great creative financing options are:
1. Owner Financing. If the owner has equity, and a heart, you might land a deal here. The best about this is that you will likely have equity when you go to refinance, and a refinance loan is scrutinized less than a purchase loan.
2. Renting With the Option to Buy. You will likely pay slightly above market rent with a rent credit going towards your down payment. Ideal for those who need to save towards a down payment.
3. Lease-Purchase. Similar to a rent with option, in a lease-purchase, you normally establish the price up front, and you become responsible for the property as if you owned it. The key to success here is having enough time to get your credit cleared up to get approved for a traditional mortgage at the end of the lease term.
These deals exist, especially now that there are so many sellers trying to unload investment properties. Just make sure you do your homework so you know you are dealing with the owner and not a "contract owner" as this could cause you more trouble than it's worth - including the loss of your money and the house.
For the A to Z guide to financial recovery after a bankruptcy or foreclosure, I recommend getting a copy of The Bankruptcy Mortgage Book.
1. Credit Restoration. Goes without saying.
2. Documentation of what caused you to have the bankruptcy or foreclosure.
3. A new positive house payment history. Before you get a mortgage, the best thing to do is find a home with creative financing to re-establish yourself. Save all of your cancelled checks as this will be your new "alternative" credit.
A few great creative financing options are:
1. Owner Financing. If the owner has equity, and a heart, you might land a deal here. The best about this is that you will likely have equity when you go to refinance, and a refinance loan is scrutinized less than a purchase loan.
2. Renting With the Option to Buy. You will likely pay slightly above market rent with a rent credit going towards your down payment. Ideal for those who need to save towards a down payment.
3. Lease-Purchase. Similar to a rent with option, in a lease-purchase, you normally establish the price up front, and you become responsible for the property as if you owned it. The key to success here is having enough time to get your credit cleared up to get approved for a traditional mortgage at the end of the lease term.
These deals exist, especially now that there are so many sellers trying to unload investment properties. Just make sure you do your homework so you know you are dealing with the owner and not a "contract owner" as this could cause you more trouble than it's worth - including the loss of your money and the house.
For the A to Z guide to financial recovery after a bankruptcy or foreclosure, I recommend getting a copy of The Bankruptcy Mortgage Book.
Friday, June 13, 2008
Government Aids Investors and Struggling HomeOwners in One Move
Today the Bush Administration announced a suspension of an "anti-flipping" rule as a means of helping those facing foreclosure proceed with quick sales.
This is good news for both investors and homeowners facing foreclosure.
Read the full story at Yahoo News
This is good news for both investors and homeowners facing foreclosure.
Read the full story at Yahoo News
Monday, June 02, 2008
How to Buy a Home After a Foreclosure
This seems to be a very hot topic these days given the massive numbers of people that have been forced into foreclosure. First, let me say, you are not alone. Please don't let this get you down or get depressed - you can recover.
You need to ask yourself if you are ready to jump back into the market anyway. Renting can be a big relief in that you will spend less money out of pocket on repairs and maintenance, so while you are recovering this will keep your expenses down. Also, the market is still volatile; the worst thing you could do is put good money down on a home that once again loses value - that would be discouraging. Make sure you work with a trusted local real estate agent, that know what the market is doing in your area.
Do not attempt to purchase a home if you are buried in debt, have poor credit (middle score below 620), or don't have any money to put down. These are the kind of situations that led to the foreclosure crisis as we know it. There are hard money lenders out there that might seem to be helping you, but trust me the high fees and high monthly payments will make you wish you never bought another home. Take this time to repair your credit, so that when you are ready, you will have the best possible terms.
Perhaps you had a setback and you have recovered, but you don't want to wait the required 36 months following your foreclosure? Here are a few options:
1. If you are married and bought your home in only one spouses name, then congrats you are much closer than you thought. Simply work with a mortgage lender that will help you know what you need to do to obtain a loan with your spouses credit profile.
2. Find a Lease-Purchase home. This is a deal where the owner credits you some of your monthly rent towards the future down payment. Make sure they know that you need how every many months to recover from your foreclosure and don't let them sell you on the fact that they can "help you get a loan". The sad story is they may not care because if you can't buy the property after the lease term, you will lose all of the option money. Also, find a way to make sure they are current on their mortgage. You may want to write it into the agreement that they have to send you their monthly mortgage statement. There are too many cases of rental homes being foreclosed out from under the tenants. This is also a good reason to work with a realtor at a property management firm because they will make sure the rent is paid.
3. Owner Financing. Provided you can find an owner that doesn't need to get the equity out of their home and isn't going to take advantage of you, you can do a transaction where you pay them until you can qualify for a traditional mortgage. Document EVERYTHING including your payments (with canceled checks ONLY).
Before you know it, you'll be back on track just make sure not to buy above your means and get yourself in trouble a second time.
You need to ask yourself if you are ready to jump back into the market anyway. Renting can be a big relief in that you will spend less money out of pocket on repairs and maintenance, so while you are recovering this will keep your expenses down. Also, the market is still volatile; the worst thing you could do is put good money down on a home that once again loses value - that would be discouraging. Make sure you work with a trusted local real estate agent, that know what the market is doing in your area.
Do not attempt to purchase a home if you are buried in debt, have poor credit (middle score below 620), or don't have any money to put down. These are the kind of situations that led to the foreclosure crisis as we know it. There are hard money lenders out there that might seem to be helping you, but trust me the high fees and high monthly payments will make you wish you never bought another home. Take this time to repair your credit, so that when you are ready, you will have the best possible terms.
Perhaps you had a setback and you have recovered, but you don't want to wait the required 36 months following your foreclosure? Here are a few options:
1. If you are married and bought your home in only one spouses name, then congrats you are much closer than you thought. Simply work with a mortgage lender that will help you know what you need to do to obtain a loan with your spouses credit profile.
2. Find a Lease-Purchase home. This is a deal where the owner credits you some of your monthly rent towards the future down payment. Make sure they know that you need how every many months to recover from your foreclosure and don't let them sell you on the fact that they can "help you get a loan". The sad story is they may not care because if you can't buy the property after the lease term, you will lose all of the option money. Also, find a way to make sure they are current on their mortgage. You may want to write it into the agreement that they have to send you their monthly mortgage statement. There are too many cases of rental homes being foreclosed out from under the tenants. This is also a good reason to work with a realtor at a property management firm because they will make sure the rent is paid.
3. Owner Financing. Provided you can find an owner that doesn't need to get the equity out of their home and isn't going to take advantage of you, you can do a transaction where you pay them until you can qualify for a traditional mortgage. Document EVERYTHING including your payments (with canceled checks ONLY).
Before you know it, you'll be back on track just make sure not to buy above your means and get yourself in trouble a second time.
Friday, May 30, 2008
How to Get Rid of Private Mortgage Insurance (PMI)
PMI, or private mortgage insurance is required on any 1st mortgage with a loan to value of 80% or greater. Contrary to what many believe, its purpose is to protect the lender (not the mortgage holder) in the event of a default on the mortgage. As you pay down your mortgage to below 80% LTV (most require you to pay down to 78%), you should consider what your options are for getting rid of this extra payment.
1. Keep up with homes are selling for in your neighborhood. If you are at 78% loan to value based on what comparable homes are selling for, then simply call your lender to discuss this with them. Personally, I would call even at 80%. They may require you to put your request in writing and they may require an appraisal which you will need to pay for.
2. Refinance. If you know that your home would appraise for at least 20% more than you owe, then perhaps a refinance should be considered. This can accomplish many goals such as reducing your rate or converting an adjustable rate to a fixed rate at the same time. Just know that you will incur fees so make sure there is room for those fees within the 80% loan to value ratio.
3. Pay Down Your Mortgage aggressively. If you aren't close to being at the 80% LTV, then you need to look at how you get their as quickly as possible. You can pre-pay principal to make this happen, but the absolute best way to pay down your principal in the fastest amount of time is with a Money Merge Account. The Money Merge Account is a new system being used by thousands of homeowners across America to reduce their mortgage by 1/3 to 1/2 with out refinancing. It's not for everyone, but currently, you can get a FREE Mortgage Savings Analysis from MortgageZapper.com. I highly recommend the Money Merge Account as a valuable financial planning tool. It will not only help you reach your goal of paying down your mortgage to reduce PMI, but will help you achieve the seemingly unattainable goal if paying off your mortgage completely.
Once you get that extra $50 - $200+ in your pocket every month, I strongly recommend speaking with an investment advisor to discuss the best way to make it grow even further.
1. Keep up with homes are selling for in your neighborhood. If you are at 78% loan to value based on what comparable homes are selling for, then simply call your lender to discuss this with them. Personally, I would call even at 80%. They may require you to put your request in writing and they may require an appraisal which you will need to pay for.
2. Refinance. If you know that your home would appraise for at least 20% more than you owe, then perhaps a refinance should be considered. This can accomplish many goals such as reducing your rate or converting an adjustable rate to a fixed rate at the same time. Just know that you will incur fees so make sure there is room for those fees within the 80% loan to value ratio.
3. Pay Down Your Mortgage aggressively. If you aren't close to being at the 80% LTV, then you need to look at how you get their as quickly as possible. You can pre-pay principal to make this happen, but the absolute best way to pay down your principal in the fastest amount of time is with a Money Merge Account. The Money Merge Account is a new system being used by thousands of homeowners across America to reduce their mortgage by 1/3 to 1/2 with out refinancing. It's not for everyone, but currently, you can get a FREE Mortgage Savings Analysis from MortgageZapper.com. I highly recommend the Money Merge Account as a valuable financial planning tool. It will not only help you reach your goal of paying down your mortgage to reduce PMI, but will help you achieve the seemingly unattainable goal if paying off your mortgage completely.
Once you get that extra $50 - $200+ in your pocket every month, I strongly recommend speaking with an investment advisor to discuss the best way to make it grow even further.
Tuesday, May 13, 2008
What Lenders Could Have Done to Avert the Foreclosure Crisis
I was chatting with a friend yesterday about her upcoming balloon payment on her mortgage. Like many, she owes more than what the house is worth and we talked about options such as contacting the lender to modify the loan, or paying down enough principal over the next few years to get back to an equity position.
She asked why the banks don't want to work with customers to avoid the losses of foreclosure and that is a very good question. In fact, as I chatted with her, I told her that the lenders really could have avoided their own fate in some ways. I think that extending the fixed periods on ARM's would have been a far better solution that taking back homes, then going out of business - but I guess they didn't. Looking even further back, I guess they could have not made so many "dead man" loans (i.e. loans to anyone with a pulse). As with every other debacle of the banking industry, the government is stepping in to try and right their wrongs with the Foreclosure Prevention Act of 2008.
She asked why the banks don't want to work with customers to avoid the losses of foreclosure and that is a very good question. In fact, as I chatted with her, I told her that the lenders really could have avoided their own fate in some ways. I think that extending the fixed periods on ARM's would have been a far better solution that taking back homes, then going out of business - but I guess they didn't. Looking even further back, I guess they could have not made so many "dead man" loans (i.e. loans to anyone with a pulse). As with every other debacle of the banking industry, the government is stepping in to try and right their wrongs with the Foreclosure Prevention Act of 2008.
Monday, May 12, 2008
Two Words That Will Make you Millions in Real Estate Investing
I have been involved in the real estate industry in some form since 1992. As I came through the ranks, I learned from several seasoned real estate veterans that has made lots of money in the business. I went on to use many of their strategies and made plenty of money in real estate myself.
Years ago (probably around 1995) a real estate "guru" shared with me two words that he said would be the key to my success in real estate investing. Do you know what those two words are? "Make Offers" He went on to say "to get deals, you've got to make offers". Just imagine how much money you'd make on one real estate transaction (buying low and selling high). If it was conservatively $10,000 and you have to make 20 offers to get that one deal, would you do it? Considering an offer doesn't take that long to make, that would be $500 per offer you made - not too shabby.
The big question of course, is where to find properties to make offers on. Here are a few ideas:
1. Check the classifieds. This has worked forever, and still does. Try Craigslist.com and backpage.com for online ads.
2. Here is a free publication you might enjoy this. It's called "How to Buy a Home at a Discount". It is a free download (no registration, no email required):
http://www.bankownedassets.com/dl/discounted-homes.pdf
3. Finding pre-foreclosure properties. There is much to learn regarding pre-foreclosures, but the profit margins are almost always higher:
For more info check out: http://www.bankownedassets.com/pre-foreclosure
4. Banks often list their properties for sale. You can find a free list of banks here: http://www.bankownedassets.com/
5. Do you want to have periodic emails sent to you with homes that come available in your area which saves you time of looking through all of the bank lists, then you can visit the BankOwnedAssets.com Nationwide Foreclosure Center and subscribe. There is a small fee for this, but you can unsubscribe at any time.
6. Would you rather just call a local real estate agent that works with foreclosures in your area? You can request that by filling out this form:
http://www.atozlender.com/real-estate-agent-referral.cfm
7. Do you need to be pre-qualified for a home mortgage? If so,
visit: http://www.atozlender.com
8. Unsure about your credit rating? Check it here: Credit.com
9. Does your credit rating need improvement? Check out these professional and do-it-yourself credit repair resources:
http://www.bankruptcymortgagebook.com/credit-repair.htm
I think that covers it. If you have any other questions, please do not hesitate to contact me.
Years ago (probably around 1995) a real estate "guru" shared with me two words that he said would be the key to my success in real estate investing. Do you know what those two words are? "Make Offers" He went on to say "to get deals, you've got to make offers". Just imagine how much money you'd make on one real estate transaction (buying low and selling high). If it was conservatively $10,000 and you have to make 20 offers to get that one deal, would you do it? Considering an offer doesn't take that long to make, that would be $500 per offer you made - not too shabby.
The big question of course, is where to find properties to make offers on. Here are a few ideas:
1. Check the classifieds. This has worked forever, and still does. Try Craigslist.com and backpage.com for online ads.
2. Here is a free publication you might enjoy this. It's called "How to Buy a Home at a Discount". It is a free download (no registration, no email required):
http://www.bankownedassets.com/dl/discounted-homes.pdf
3. Finding pre-foreclosure properties. There is much to learn regarding pre-foreclosures, but the profit margins are almost always higher:
For more info check out: http://www.bankownedassets.com/pre-foreclosure
4. Banks often list their properties for sale. You can find a free list of banks here: http://www.bankownedassets.com/
5. Do you want to have periodic emails sent to you with homes that come available in your area which saves you time of looking through all of the bank lists, then you can visit the BankOwnedAssets.com Nationwide Foreclosure Center and subscribe. There is a small fee for this, but you can unsubscribe at any time.
6. Would you rather just call a local real estate agent that works with foreclosures in your area? You can request that by filling out this form:
http://www.atozlender.com/real-estate-agent-referral.cfm
7. Do you need to be pre-qualified for a home mortgage? If so,
visit: http://www.atozlender.com
8. Unsure about your credit rating? Check it here: Credit.com
9. Does your credit rating need improvement? Check out these professional and do-it-yourself credit repair resources:
http://www.bankruptcymortgagebook.com/credit-repair.htm
I think that covers it. If you have any other questions, please do not hesitate to contact me.
Wednesday, May 07, 2008
How your credit will affect your mortgage terms
Do you know your credit score? Well you should, especially if you are trying to get a home mortgage. Lenders will look at your credit scores from all 3 credit reporting agencies and based on the middle of three credit scores, sometimes referred to as FICO scores, here is how you will do:
> 720 - You can basically write your own ticket and just about get a signature loan based on the fact that you have proven that you know how to handle credit and have made keeping a strong credit score a priority. It also probably means that you are blessed to have not had any unforeseeable losses such as job losses, divorce, illness, etc which often ruins the credit of hard-working people. Trust me, I know this first hand.
680 - 719 - This is an ideal credit score range for getting a home mortgage with a minimal down payment, minimal fees, and optimal loan rates.
620-679 - This is where many borrowers fall, and most borrowers won't have trouble getting a loan here as long as they are not trying to use alternative loan documentation .
560-619 - These borrowers may have trouble getting traditional loans with minimal down payments. Options are sub prime loans or government loans (FHA).
500-559 - Borrowers here will have VERY limited options, due to their poor credit histories and most will not qualify for a loan. I strongly recommend getting the credit issues fixed, rather than over paying for a home loan. See below for info on getting your credit fixed.
< 500 - The only loan options available to people with less than 500 credit are hard money lenders, and I do not endorse them. If you have less than a 500 credit score, we are not able to assist you as we do not want to be associated with hard money loans. Also, you have to think about whether or not it is the right time for you to get a loan. If you get into a home and can't afford it, you really haven't accomplished anything for the long haul.
If you don't know your credit scores, visit credit.com to get your scores and get on your way to home ownership.
If you need credit repair assistance, the only company I can recommend is Lexington Law , a nationwide law firm specializing in credit repair.
I hope this is helpful in your journey to become a homeowner. Please contact Consumers Advantage Mortgage to apply for a home loan when you are ready.
> 720 - You can basically write your own ticket and just about get a signature loan based on the fact that you have proven that you know how to handle credit and have made keeping a strong credit score a priority. It also probably means that you are blessed to have not had any unforeseeable losses such as job losses, divorce, illness, etc which often ruins the credit of hard-working people. Trust me, I know this first hand.
680 - 719 - This is an ideal credit score range for getting a home mortgage with a minimal down payment, minimal fees, and optimal loan rates.
620-679 - This is where many borrowers fall, and most borrowers won't have trouble getting a loan here as long as they are not trying to use alternative loan documentation .
560-619 - These borrowers may have trouble getting traditional loans with minimal down payments. Options are sub prime loans or government loans (FHA).
500-559 - Borrowers here will have VERY limited options, due to their poor credit histories and most will not qualify for a loan. I strongly recommend getting the credit issues fixed, rather than over paying for a home loan. See below for info on getting your credit fixed.
< 500 - The only loan options available to people with less than 500 credit are hard money lenders, and I do not endorse them. If you have less than a 500 credit score, we are not able to assist you as we do not want to be associated with hard money loans. Also, you have to think about whether or not it is the right time for you to get a loan. If you get into a home and can't afford it, you really haven't accomplished anything for the long haul.
If you don't know your credit scores, visit credit.com to get your scores and get on your way to home ownership.
If you need credit repair assistance, the only company I can recommend is Lexington Law , a nationwide law firm specializing in credit repair.
I hope this is helpful in your journey to become a homeowner. Please contact Consumers Advantage Mortgage to apply for a home loan when you are ready.
Wednesday, April 30, 2008
Using A Home Equity Loan to Pay off your Mortgage?
So the Fed's are continuing to bring the short term interest rates down, this is good news. Some will say it doesn't matter, but lets take a look at what it really means.
Short term interest rates that are tied to the Prime are now a bit lower. Granted most people won't notice because many people choose to live on credit card debt. If you are looking to make a difference in your personal finances, now is a time to aggressively attack those credit cards.
How, you ask? Well, now Home Equity Loans are much lower as well. Back in 2004 Home Equity Loans (a.k.a. HELOC's) were all the buzz. As a loan officer, I think I did at least a few every week. They were like super sizing a loan "would you like a home equity loan with that? There is no additional cost and no extra closing costs as long as you keep it open for 3 years, and you never have to use it". It worked like magic and it was what people wanted. The savvy consumers took advantage of them and converted high interest credit card payments into lower interest, partially tax-deductible payments.
Well, it's 2008. and again, it's a great time to get a Home Equity loan, but this time, I don't just recommend paying off debts with it, I recommend paying off your mortgage with it. WHAT? Yes, you heard me right - I am recommending that you payoff your first mortgage with a Home Equity Loan. Before running out and doing this on your own, I will tell you that you have to work with a financial expert to make this work otherwise, you will be in lots of trouble. There is a special software that will take into account all of your debts including your first mortgage and show you how to leverage short term interest and its payment cycles to pay off all of your debts, mortgage included, in the shortest amount of time - usually less than 10 years.
If you want more information on how to get this done, you can visit UFirst, or call me at 800-453-9290
Until next time,
Anthony
Short term interest rates that are tied to the Prime are now a bit lower. Granted most people won't notice because many people choose to live on credit card debt. If you are looking to make a difference in your personal finances, now is a time to aggressively attack those credit cards.
How, you ask? Well, now Home Equity Loans are much lower as well. Back in 2004 Home Equity Loans (a.k.a. HELOC's) were all the buzz. As a loan officer, I think I did at least a few every week. They were like super sizing a loan "would you like a home equity loan with that? There is no additional cost and no extra closing costs as long as you keep it open for 3 years, and you never have to use it". It worked like magic and it was what people wanted. The savvy consumers took advantage of them and converted high interest credit card payments into lower interest, partially tax-deductible payments.
Well, it's 2008. and again, it's a great time to get a Home Equity loan, but this time, I don't just recommend paying off debts with it, I recommend paying off your mortgage with it. WHAT? Yes, you heard me right - I am recommending that you payoff your first mortgage with a Home Equity Loan. Before running out and doing this on your own, I will tell you that you have to work with a financial expert to make this work otherwise, you will be in lots of trouble. There is a special software that will take into account all of your debts including your first mortgage and show you how to leverage short term interest and its payment cycles to pay off all of your debts, mortgage included, in the shortest amount of time - usually less than 10 years.
If you want more information on how to get this done, you can visit UFirst, or call me at 800-453-9290
Until next time,
Anthony
Friday, March 28, 2008
Looking to relocate? Check out these 2008 stats on US Cities and States
Safest States to Live in: http://money.aol.com/mortgage/safest-states-to-live-in
Most Dangerous States to Live in: http://money.aol.com/mortgage/most-dangerous-states
Most Dangerous US Cities: http://money.aol.com/mortgage/dangerous-cities
Safest US Cities: http://money.aol.com/mortgage/safest-cities
Best Places to Retire: http://money.aol.com/bp_retire/
Worst Places to Retire: http://money.aol.com/retirement/worst-places-to-retire
Healthiest State to Live in: http://money.aol.com/mortgage/healthiest-states
Least Healthiest States to Live in: http://money.aol.com/insurance/unhealthiest-states?icid=aimDBDL2_link1
Source: AOL Money
Most Dangerous States to Live in: http://money.aol.com/mortgage/most-dangerous-states
Most Dangerous US Cities: http://money.aol.com/mortgage/dangerous-cities
Safest US Cities: http://money.aol.com/mortgage/safest-cities
Best Places to Retire: http://money.aol.com/bp_retire/
Worst Places to Retire: http://money.aol.com/retirement/worst-places-to-retire
Healthiest State to Live in: http://money.aol.com/mortgage/healthiest-states
Least Healthiest States to Live in: http://money.aol.com/insurance/unhealthiest-states?icid=aimDBDL2_link1
Source: AOL Money
Tuesday, February 26, 2008
Where to find great foreclosure deals
Unless you've been sleeping under a rock, you know that foreclosures are at their all time high since the turn of the century. If you live in one of the top 10 foreclosure states (as I do), there is a chance you might be able to find a great deal on a house to live in or an investment property. According to an Associate Press article today, here are the top 10 states for foreclosures:
1. Nevada
2. California
3. Florida
4. Arizona (my home state)
5. Colorado
6. Massachusetts
7. Georgia
8. Connecticut
9. Ohio
10. Michigan
Here are two takeaways from this list:
1. If you are looking to buy or invest and live in once of these states - now is a good time to make your move. The market will definitely come back, and those who are able to take advantage now will do well.
2. If you are looking to move, you may want to consider one of these places if you want to start over a pick up a good deal on a home, which will likely be your largest investment.
A great resource for finding foreclosures is http://www.freeforeclosurelistingsonline.com/.
Stay tuned for my next posting on the mechanics of how to buy foreclosures. You can subscribe to the blog by using the form in the upper right column and entering your email address. You will receive my next blog post in your email.
Until next time,
Anthony
1. Nevada
2. California
3. Florida
4. Arizona (my home state)
5. Colorado
6. Massachusetts
7. Georgia
8. Connecticut
9. Ohio
10. Michigan
Here are two takeaways from this list:
1. If you are looking to buy or invest and live in once of these states - now is a good time to make your move. The market will definitely come back, and those who are able to take advantage now will do well.
2. If you are looking to move, you may want to consider one of these places if you want to start over a pick up a good deal on a home, which will likely be your largest investment.
A great resource for finding foreclosures is http://www.freeforeclosurelistingsonline.com/.
Stay tuned for my next posting on the mechanics of how to buy foreclosures. You can subscribe to the blog by using the form in the upper right column and entering your email address. You will receive my next blog post in your email.
Until next time,
Anthony
Tuesday, February 19, 2008
Thursday, February 14, 2008
What should be done about mortgage fraud
The other day, I spoke with a retired gentleman who was inquiring about a home mortgage. As I went through his scenario, it came to my attention that he had just refinanced a few months prior at 11.25% on a loan of over $700,000 (not a typo). Incidentally, he said his loan officer hadn't called him back but had assured him that after the refinance he could get a new appraisal and get the rate lowered. Here is where the bigger problem came in. I asked him how he qualified for the loan (fully documented, stated or other). His comment was "I'm not sure... we don't even make $6,800 per month" referring to his new mortgage payment that he was dipping into his retirement funds for every month to make his payment. To make matters worse, there was still no equity in the property.
So who is really at fault here? Is it the loan officer for trying to make a quick buck and being the alleged professional who very poorly advised this customer? Or is it the customer for signing loan documentation knowing that he could not make a $6,800 payment?
I fault the lender for even putting someone in a position to have to make the decision of whether or not to sign the papers. Granted, no one should ever sign loan paperwork that shows an income that they don't actually have, or a payment they can't actually make. In the end, it's the homeowner that has to live with their foolish decision, but what recourse do these customers have against the lenders?
I referred him to the attorney general in his state as there was nothing I could do for him.
Tell us what you think?
So who is really at fault here? Is it the loan officer for trying to make a quick buck and being the alleged professional who very poorly advised this customer? Or is it the customer for signing loan documentation knowing that he could not make a $6,800 payment?
I fault the lender for even putting someone in a position to have to make the decision of whether or not to sign the papers. Granted, no one should ever sign loan paperwork that shows an income that they don't actually have, or a payment they can't actually make. In the end, it's the homeowner that has to live with their foolish decision, but what recourse do these customers have against the lenders?
I referred him to the attorney general in his state as there was nothing I could do for him.
Tell us what you think?
Saturday, January 19, 2008
A Review of LifeLock ID Theft Protection (and a special offer)
I am sure that by now you have heard of Lifelock, the new ID Theft Protection company whose CEO is blitzing the media with his real Social Security Number. My first thought was "that's stupid", but then I figured that it has to work. I don't know if I would do that regardless, because I just feel it's something private; heck, I wouldn't publish my home phone number, so why would I give someone my Social Security Number.
Anyhow, I have spoken with several people, including the company that has done their multi media PR blitz at well as a Lifelock company rep who helped me understand more about what they do as compared to the other services out there. I found them to be a pretty amazing company and very likely will be a huge part in stopping ID Theft from occurring.
There are two types of Identity Theft protection plans:
The first is an insurance like product that will go to bat for you in the event of your identity being stolen. One such product is Identity Theft Shield sold through Pre-Paid Legal Services. I have been an ID Theft Shield customer for years and fortunately I have not had to use the service, however I do know of a few people who have used it and it has worked well for them.
The second type of service is the kind that actually prevents ID Theft from happening by being proactive rather than reactive. That is the kind of service that LifeLock offers. Another difference is that they cover children as well. Why is this a big deal? ID Theft in children is a fast becoming an issue as thieves know that if they steal the identity of a 10 year old, they have at least 8 years before that person will attempt to apply for their own credit.
In the end it boils down to whether or not you want to be proactive or reactive with your ID Theft protection. It's like the difference in having a good diet to stay healthy or have a great cardiac surgeon to do a bypass surgery; I think we all know which one we would prefer.
Because I was so impressed with LifeLock and wanted to share it, I have arranged for a special offer from LifeLock to my clients; and I am extending this to you as well. For just $9 per month (or $99 for the year), you can have full protection against ID theft. I don't recommend publishing your Social Security Number to test it, but I am sure it will give you and your family piece of mind.
To redeem this offer, simply visit: http://www.lifelock.com and use promo code CAMTG1
Here are a few facts about Identity Theft:
FACT: ID Theft occurs every 70 seconds.
FACT: The average ID Theft incident has a financial impact of roughly $90,000
FACT: It takes roughly 600 hours to clear up an ID Theft incident.
Don't wait - Enroll TODAY!
To redeem this offer, simply visit: http://www.lifelock.com and use promo code CAMTG1
Anyhow, I have spoken with several people, including the company that has done their multi media PR blitz at well as a Lifelock company rep who helped me understand more about what they do as compared to the other services out there. I found them to be a pretty amazing company and very likely will be a huge part in stopping ID Theft from occurring.
There are two types of Identity Theft protection plans:
The first is an insurance like product that will go to bat for you in the event of your identity being stolen. One such product is Identity Theft Shield sold through Pre-Paid Legal Services. I have been an ID Theft Shield customer for years and fortunately I have not had to use the service, however I do know of a few people who have used it and it has worked well for them.
The second type of service is the kind that actually prevents ID Theft from happening by being proactive rather than reactive. That is the kind of service that LifeLock offers. Another difference is that they cover children as well. Why is this a big deal? ID Theft in children is a fast becoming an issue as thieves know that if they steal the identity of a 10 year old, they have at least 8 years before that person will attempt to apply for their own credit.
In the end it boils down to whether or not you want to be proactive or reactive with your ID Theft protection. It's like the difference in having a good diet to stay healthy or have a great cardiac surgeon to do a bypass surgery; I think we all know which one we would prefer.
Because I was so impressed with LifeLock and wanted to share it, I have arranged for a special offer from LifeLock to my clients; and I am extending this to you as well. For just $9 per month (or $99 for the year), you can have full protection against ID theft. I don't recommend publishing your Social Security Number to test it, but I am sure it will give you and your family piece of mind.
To redeem this offer, simply visit: http://www.lifelock.com and use promo code CAMTG1
Here are a few facts about Identity Theft:
FACT: ID Theft occurs every 70 seconds.
FACT: The average ID Theft incident has a financial impact of roughly $90,000
FACT: It takes roughly 600 hours to clear up an ID Theft incident.
Don't wait - Enroll TODAY!
To redeem this offer, simply visit: http://www.lifelock.com and use promo code CAMTG1
Thursday, January 03, 2008
4 ways to agressively reduce your mortgage balance in 2008
Most well known financial gurus (Suze Orman, Dave Ramsey, Charles Givens) advocate paying off your mortgage early when possible. Most likely you've heard about adding extra principal payments to your mortgage to pay it off early. It definitely works, but most people are not disciplines or financially educated enough to do this consistently enough to make a difference. Here are 4 different strategies to keep in mind when looking for ways to pay down your mortgage without changing your lifestyle.
1. Make simple principal payments. I won't assume that you have a fixed conventional loan, but if you do, the difference is that you will not realize the benefits up front. It will reduce your principal at the end of the loan, or at the time of pay off. If you do have an Interest Only loan, you can make principal payments at any time, and the next month, you will see the evidence of a reduced payment because you cannot pay interest on principal that does not exist. Making periodic payments will help you, but not much and you really won't see the benefit until you either sell your home, or was down the road when you pay it off.
2. Make bimonthly payments. If you are paid every two weeks and live on a monthly budget, you will have two extra payments per year which you can put towards your principal payments, this will result in a mortgage reduction of approximately 7 years on a fully amortized 30 year mortgage.
3. Make consistent payments in excess of one payment per year. If you can afford it, you can make additional monthly payments in as much as you can afford. If you can afford to make double payments, then you will pay your home off exponentially quicker. If you calculate your payment based on a 15 year amortization and make that payment every month, you will pay it off in 15 years. The challenge here is that it will be a large payment.
4. Leverage Short Term Interest to Pay your mortgage. This is a new and more advanced financial planning concept, but it is catching on in the states. In short, you would acquire a home equity line of credit and use this account to deposit your check in and pay all of your bills out of. The theory is that as you deposit your checks, you will offset any interest payments and any discretionary monies will be used towards the mortgage. The BIG advantage, is that you can leverage the line of credit to pay down your mortgage in large amounts at the most opportune time based on your loan structure. This allows for the absolute fastest reduction of a mortgage (reduces the term by a third to a half), and even better, you can then take those funds once you have paid off your loan and begin to invest. In the end, instead of paying off your mortgage in 30 years, you will have paid it off in about half the time, and put those fund into an investment account and you are now not only debt free, but have used your home to accumulate more wealth than most people ever dream of.
I am promoting Option 4 as it is the most reasonable option for the average homeowner and the emphasis is on paying off the mortgage in the shortest amount of time without changing your current budget. This program can even help people with little to no equity and those who owe more than their home is worth. After a short period of time on the program, you will be back in your equity position and not have to take a loss if you need to sell.
If you are interested in a free mortgage analysis to see if your mortgage qualifies for this program, please contact me at anthony @ atozlender.com
Wishing you the best in 2008!
Anthony
1. Make simple principal payments. I won't assume that you have a fixed conventional loan, but if you do, the difference is that you will not realize the benefits up front. It will reduce your principal at the end of the loan, or at the time of pay off. If you do have an Interest Only loan, you can make principal payments at any time, and the next month, you will see the evidence of a reduced payment because you cannot pay interest on principal that does not exist. Making periodic payments will help you, but not much and you really won't see the benefit until you either sell your home, or was down the road when you pay it off.
2. Make bimonthly payments. If you are paid every two weeks and live on a monthly budget, you will have two extra payments per year which you can put towards your principal payments, this will result in a mortgage reduction of approximately 7 years on a fully amortized 30 year mortgage.
3. Make consistent payments in excess of one payment per year. If you can afford it, you can make additional monthly payments in as much as you can afford. If you can afford to make double payments, then you will pay your home off exponentially quicker. If you calculate your payment based on a 15 year amortization and make that payment every month, you will pay it off in 15 years. The challenge here is that it will be a large payment.
4. Leverage Short Term Interest to Pay your mortgage. This is a new and more advanced financial planning concept, but it is catching on in the states. In short, you would acquire a home equity line of credit and use this account to deposit your check in and pay all of your bills out of. The theory is that as you deposit your checks, you will offset any interest payments and any discretionary monies will be used towards the mortgage. The BIG advantage, is that you can leverage the line of credit to pay down your mortgage in large amounts at the most opportune time based on your loan structure. This allows for the absolute fastest reduction of a mortgage (reduces the term by a third to a half), and even better, you can then take those funds once you have paid off your loan and begin to invest. In the end, instead of paying off your mortgage in 30 years, you will have paid it off in about half the time, and put those fund into an investment account and you are now not only debt free, but have used your home to accumulate more wealth than most people ever dream of.
I am promoting Option 4 as it is the most reasonable option for the average homeowner and the emphasis is on paying off the mortgage in the shortest amount of time without changing your current budget. This program can even help people with little to no equity and those who owe more than their home is worth. After a short period of time on the program, you will be back in your equity position and not have to take a loss if you need to sell.
If you are interested in a free mortgage analysis to see if your mortgage qualifies for this program, please contact me at anthony @ atozlender.com
Wishing you the best in 2008!
Anthony
Monday, November 05, 2007
Save BIG on your next mortgage with Mortgage Zapper!
Consumers Advantage Mortgage has just launched a new "2nd Opinion" mortgage pricing service. For a small fee (with a money back guarantee), we will review your loan documents to see if there are any fees that you are able to negotiate out, AND provide you with a quote from a "no-fee" direct lender and give you the option of sticking with your current lender, or doing the loan with our designated lender.
There is NO RISK - if we can't save you money, we will refund your processing fee, 100%, no questions asked. You owe it to yourself to make sure you are getting the best deal on your mortgage.
The site has just been launched the in "beta" at a discounted rate of $49 and we expect to save customers thousands of dollars in both up front fees and over the life of the loan by offering reduced rates through reputable direct lenders.
Visit www.MortgageZapper.com TODAY to save on your next mortgage!
There is NO RISK - if we can't save you money, we will refund your processing fee, 100%, no questions asked. You owe it to yourself to make sure you are getting the best deal on your mortgage.
The site has just been launched the in "beta" at a discounted rate of $49 and we expect to save customers thousands of dollars in both up front fees and over the life of the loan by offering reduced rates through reputable direct lenders.
Visit www.MortgageZapper.com TODAY to save on your next mortgage!
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