Global Public Articles

The financial markets hit some choppy waters this week. With successive drops of 427 and 445 points the Dow ended down substantially for the week.

For some positive news this marks the third week in a row where mortgage rates went down. The wild swings we saw earlier in mortgage rates have for the time being ended. The last 3 weeks saw less movement in all four of the major mortgage products.

30 Year mortgage rates are down to 6.04 dropping from 6.14 last week. All the other main mortgage products saw drops as well. Compared to the 30 year fixed rate the 5 year arm dropped a little more (.11 points from 5.98 to 5.87) and the 15 year dropped a little less (.08 points dropping from 5.81 to 5.73). Below are mortgage rates for the four major products for the last few weeks.

November 20, 2008
30-yr 6.04 15-yr 5.73 5-yr ARM 5.87 1-yr ARM 5.29

November 13, 2008
30-yr 6.14 15-yr 5.81 5-yr ARM 5.98 1-yr ARM 5.33

November 6, 2008
30-yr 6.20 15-yr 5.88 5-yr ARM 6.19 1-yr ARM 5.25

October 30, 2008
30-yr 6.46 15-yr 6.19 5-yr ARM 6.36 1-yr ARM 5.38

October 23, 2008
30-yr 6.04 15-yr 5.72 5-yr ARM 6.06 1-yr ARM 5.23

Moving on lets translate mortgage rates into a the mortgage payments one would pay on a 200k loan. We translated today’s rates as well as the rates from 3 weeks ago.

November 20th
30-yr $1204.24
15-yr $1658.67
5-yr ARM $1182.43
1-yr ARM $1109.36

October 30th
30-yr 1258.87
15-yr 1708.31
5-yr ARM 1245.77
1-yr ARM 1120.56

As we can see since October 30th the potential payment on a 30 year, 15 year and 5 year has come down quite a bit. The 1 year arm has remained relatively stable for the last few weeks. The 5 year rate is still probably the most unattractive mortgage product right now. Payments on the 5 year arm are pretty similar to the payments on a 30 year loan. Considering it’s hard to know where rates will be in 5 year it’s probably not worth to get a 5 year arm considering the small savings it currently offers.

The other thing we are seeing in the mortgage markets is that banks are still very reticent to give out loans. Zero down and no doc loans are pretty much dead. Because of the disappearance of no doc loans it has become harder for people that are self employed to get loans. Since so many potential borrowers have been pushed out of the market potential borrowers with 1031 jobs and money for down payments have very little competition for properties.

So what is going to happen moving forward. It’s hard to know what is going to happen with the economy in general. Although mortgage rates have been relatively stable recently if Obama makes any huge initiates in the housing market it could push mortgage rates pretty far in one direction or another. I expect that 30 year mortgage rates will stay above 5.8 until the end of the year simply because I don’t expect to see many major policy changes until Obama takes office.

Ki writes about trends with mortgage rates. His website provides a mortgage calculator widget and a tool that graphs mortgage interest rates

When you buy a new home you will most likely finance that loan. This home loan is known as a mortgage and there are many varieties that can be used based on the needs of the buyer. Mortgages are considered secured loans because they have collateral backing them, namely the home that the loan is being used to purchase. In addition, you may be asked to put some money down on the home, called a down payment. These down payments are usually 10-20% of the home value, but in some cases home loans can be had with $0 money down.

Where to find Home Loans?
Many lenders from credit unions to banks to online companies offer home loans. First time home borrowers can start by checking with the bank that they have their savings and checking accounts at, but don’t rule out the online option. Online mortgage lenders can be very competitive and you may find the best rates by shopping online for your home loan. It is also very easy to apply for a home loan online and you can get quotes instantly.

Determining eligibility for a Home Loan?
While a lender will use various criteria to determine your eligibility for a home loan the most important of these is your credit score. The higher your credit score is the better off you’ll be when applying for a new home loan. Your credit score is influenced by many factors including past repayments and the amount of debt currently being carried by you.

How are home loans paid?
Home loans are very long term commitments, typically for 30 years. Because the loans are so large most people will need this long to ensure their monthly payments are within their budgets. A home loan is paid on a monthly schedule in most cases although some mortgage brokers advertise bi-weekly mortgages that can save you money over the life of the loan by paying down the principle more rapidly.

When should I get a Home Loan?
Almost any time you purchase a home you’ll need a home loan. Very few of us have the free cash to pay cash for a home. The best time to do this is obviously when interest rates are low and home values are low as well. However, it’s really never a bad time to become a home owner as there are many other benefits, such as tax breaks that come along with home ownership.

One reason you might want to hold off on getting a home loan is if your credit score is very low. Bad credit home loans can be had, but they will be more expensive than a home loan with good credit. If you’re willing to pay extra to get into a mortgage with bad credit you may want to consider refinancing after several years when your credit score has improved.

To learn more about first time home loans and how to get a mortgage for first time home buyers please visit the authors website.

Obtaining a bankruptcy mortgage can really worry many debtors. However now-a-days it is not a thing to be worried about. There are many lenders who will offer you this loan. Bankruptcy may sound so as if it is the end of the world but for some people it is a blessing in disguised. They can come clean and start again from the scratch.

Before, getting a mortgage approved after bankruptcy was like climbing a huge mountain, but now as the percentage of people filing for bankruptcy has increase incredibly the lenders have also changed their mind.

Where to find the mortgage lender

There are arrays of bankruptcy mortgage lenders in the financial market. Although this is not just like the traditional mortgage, you will have to sweat a bit to get the right lender for the mortgage.

The internet will serve to be an excellent tool to search for the right lender. There are tons of mortgage lenders will offer you the mortgage that is best for your needs.

If you are finding it hard to get the right kind of lender, you can always turn to the brokers who will lend you a helping hand. They will search the bankruptcy mortgage lenders and you can choose from the list that they will show you.

How to secure a bankruptcy mortgage

Obtaining a mortgage after bankruptcy is not that difficult now-a-days. However you will have to build up a good credit in the mean time. Having a clean credit after bankruptcy will help you to obtain the mortgage easily. Even a low rate mortgage is possible to obtain from the lenders.

Mortgage loans like home equity loans, interest only mortgages and business venture funding are all offered at a low rate by many lenders.

Even if you have just gone through bankruptcy, it is always better to get a mortgage that has a low interest rate than the others. This will help you save a lot of money and guide you towards the step of a secured financial life.

It is always better that you wait for two years to apply for the home mortgage. During this period you must try to clear all the bills with the creditors. It is very important that you have a good credit by clearing off the payments on time. You can show this proof to the lender so that they can trust you with the finance.

If you can, try to take the advice of a professional mortgage adviser about the mortgage loans. They will tell you which one of the mortgages is suitable for your circumstances. You will have a greater chance of getting the mortgage following their advice.

When you are searching for the right mortgage, you must always compare the rates of the different mortgages that are offered by the multiple lenders.

Remember that the lenders will not offer you the same packages. They will have different rates and policies. Try to understand the details of each of the mortgage and then decide. You must compare them and make sure it is satisfying you and your needs.

Charles Bretz is a Financial Advisor and Author on Money Matters.Get Your Free Money Guide. Click Here

The residential property market has been buoyed by the return of first-home buyers, new figures have shown.

According to the National Association of Estate Agents (NAEA), new entrants to the market helped to push up total house purchase sales for the first time since January. Figures from the group indicated that while estate agents typically handled five home sales during August, this rose to seven in September. This increase was in part attributed to the abolition of stamp duty tax on properties worth less than 175,000 pounds last month, which was said to have encouraged cautious first-time buyers to put in bids on property.

Indeed, Chris Brown, president of the NAEA, said that for those who can secure finance in these difficult lending conditions, now is the perfect time to get their foot on the first rung of the property ladder. Consumers who are looking for an effective way to boost the deposit on the home of their dreams may find that taking out a personal loan is appealing.

However, he noted that many current homeowners are hesitant about making moves on the market at the moment.

“It is clear that certain factors are in motion within the property market, with a decision being made on stamp duty last month, but this is still not enough. As property prices continue to drop the government needs to take action and make some drastic changes to restore confidence. It is evident from the results that despite some positive indicators, consumers are still cautious, with many continuing to adopt a wait and see attitude and are only moving if it is necessary. Those who are not desperate to move are staying put in their homes and waiting for some stability to be restored across all sections of the market,” he said.

The group went on to point out that with many homeowners still nervy about plunging house prices, figures indicate that estate agents are now being forced to work harder to secure deals. While the average time between instruction and sale stood 8.64 weeks in September 2007, last month average turnarounds took 14.13 weeks. However, while many consumers are showing a reluctance to commit fully to moving home, the number of people showing provisional interest continued to grow.

According to the NAEA, the typical estate agent had 211 house hunters on its books in September, up from 207 in August and 192 in July. However, such a figure is still down considerably on the average 326 people on the search for a home registered with estate agents around the country in September 2007.

For consumers who are keen to put in an offer on a property but are finding it difficult to get finance from cautious mortgage lenders, taking out a personal loan may prove an effective way to increase the size of initial deposit and reduce the perceived risk of extending finance for the sale of a home. Potential buyers may be particularly interested in applying for a loan after the monetary policy committee slashed interest rates earlier this month.

Abbi Rouse writes for AllAboutLoans.co.uk, an online loans comparison site, visit us today for information on all loan topics including cheap loans applications and online loans sourcing from all leading UK providers. Our Site: http://news.allaboutloans.co.uk/

A couple years ago when I started getting interested in credit repair I helped a couple who had credit scores in the low 500s. They had a previous bankruptcy and there were a bunch of accounts that they had included in the bankruptcy which were still reporting as if they had balances on them.

The couple had no idea what to do. They were just hoping that one day all this stuff would just go away. Eventually, it would. But, they didn’t want to have to wait 7 to 10 years to buy a house. So, I helped them with the letters they needed to do their credit repair and they sent them all out in the mail. Over the next 60 days, they got a lot more mail back than they sent out.

On a fairly regular basis, they were getting letters from the credit bureau reporting agencies confirming that the items they were disputing were being looking into. Then, the items were getting updated. The balances that were supposed to be zero, became zero. Some items were even getting deleted off their report. Wrong names were being removed. Time flew buy as they waited for the next piece of good news to show up in their mail box.

Like I said, they started in the low 500s. Their credit was so bad, I remember their embarrassment when I talked to them on the phone. I cannot remember the reason for the bankruptcy, but these were honest people. They had not gone out and run up a bunch of credit cards and then claimed they could not pay them. (Unfortunately, in my years of lending I have run into folks who have incurred a bunch of debt that they could pay off if they wanted to, but they decided to file for bankruptcy and get all the debt wiped out while they kept all the nice toys the credit cards allowed them to buy. Thankfully, the bankruptcy laws have changed and this kind of behavior is no longer tolerated.)

Of course, I did not judge my customers. I am thankful that I have not had to go through anything that put me in a position where I would have to make the decision whether or not to file a bankruptcy.

Finally, the day came, after all that mail, when I was able to get this couple a USDA Guaranteed Rural Housing loan. They were elated. The couples’ scores had come up over 620, and everything worked for the house they wanted to get.

Matthew Wierzbinski has created a self help credit repair tool. http://www.creditrepairgarage.com. This tool will allow you to create “everything” you need to repair your credit in about 10 to 20 minutes. You will not find any easier way to create all your dispute letters. Check it out.