"Just play. Have fun. Enjoy the game."Michael Jordan
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Have you considered a hybrid adjustable mortgage?
If you're not sure if you should sign up for an adjustable rate mortgage (ARM) or a fixed rate mortgage, you're not alone. It is very easy to get excited when thinking about your new home, and then get feel a bit deflated when it is time to start thinking ...
Home Loan For People With Bad Credit
Getting a home loan with bad credit has actually never been easier than it is today. Here are some tips to help improve your chances of success: Find A Good Real Estate Deal – If you can find a property that has some equity in it when you purchase ...
Maximize Your Chances of Qualifying for a Great Mortgage Loan Deal
Most mortgage loan advertisements promise rock-bottominterest rates, low down payments, and virtually guaranteed approval within justa few days. But for many prospective homeowners, the trip from advertising promisesto “sign-on-the-dotted-line” reality ...
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Understanding the Loan to Value Ratio
These days many renters are taking advantage of the present low level of interest rates to get into a home of their own. In addition, many current homeowners are taking advantage of those same low interest rates to refinance their home mortgage loans at more favorable interest rates. Therefore, whether you are a current renter moving into a home of your own or a long time homeowner seeking a lower interest rate, it is important to understand one of the most important financial formulas - the loan to value ratio. The easiest way to understand the loan to value ratio is that it represents the relationship between the amount of the outstanding mortgage as compared to the current value of the home. Since housing prices have been rising very fast in many areas of the country, many current homeowners have built up quite a bit of equity in their homes. Many homeowners, for instance, find themselves in the happy circumstance of owning a home that is worth substantially more than they paid for it, or substantially more than they owe on it. This means that the homeowner has equity that can be used to borrow additional funds, refinance the mortgage or even shorten the term of the mortgage loan. It is fairly easy to calculate the loan to mortgage ratio. It simply requires knowing approximately how much your home is worth, the amount of the outstanding mortgage and the amount of the original down payment. For our exercise we will use a home value of $150,000. The approximate value of your home can be estimated by looking at what similar homes in your neighborhood have sold for. When calculating the loan to value ratio, the first step is to take the original purchase price of the home, in this case $150,000 and subtract out the amount of the original down payment. For this exercise we will use a down payment of $20,000. The loan to value ratio is calculated by subtracting the $20,000 down payment from the purchase price of $150,000. In this case the resulting number is $130,000, which represents the $150,000 purchase price minus the $20,000 down payment. Dividing the $130,000 loan amount by the $150,000 purchase price gives us a loan to value ratio of 0.87, or 87%. It is important to know your loan to value ratio, since this number will be important to lenders any time you apply for a loan.
About the author:
Keith is a web site designer that builds useful content into sites http://www.searchforcredit.co.uk
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 Paulson calls for replacing Fannie/Freddie - Birmingham Business Journal
Outgoing U.S. Treasury Secretary Henry Paulson reflected on the downfall and future of embattled mortgage giants Fannie Mae and Freddie Mac in a speech before the Economic Club of Washington on Wednesday. He argued that there was widespread ...
PersonalFinance: Should you refinance? - Reuters India
WASHINGTON (Reuters) - Mortgage rates have been tantalizingly low and, for many, the decision to refinance has been a no-brainer. The year-end dip in mortgage rates to historic lows prompted a flurry of applications from homeowners wanting to cash in ...
Refinancing suddenly booms - Honolulu Advertiser
Historically low interest rates recently have sparked a mortgage refinance boom in Hawai'i that is helping homeowners and lenders during difficult economic times. The national average interest on a 30-year fixed-rate mortgage last week dropped to 5 ...
Appraisers sound alarm on part of new federal standards - Arlington Heights Daily Herald
WASHINGTON - When you apply for a mortgage to buy or refinance a house, should you be concerned that your appraiser is being paid much less - maybe just half - of the $300 to $600 you're charged on your settlement sheet? Should you know who pockets ...
Is It Time To Refinance Your Mortgage? - Forbes
Looking to refinance your mortgage? Do it now. Interest rates for 15- and 30-year fixed-rate mortgages are heading south of 5%, where they haven't been since Richard Nixon was president. Average 15-year fixed-rate loans, for example, are 4.67 ...
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