Regardless of inflation or other economi….

posted in Mortgage by Admin on February 26th, 2010

Regardless of inflation or other economic factors, your mortgage payment will never change.

How to Understand the Lock in Rate.

By Scott Staudt

Anyone who has been shopping for a mortgage for any time will know that a lock in period is the period during which the lender guarantees the rate and points of the mortgage loan. For instance, if you receive a 30 day lock in for 6 % and 2 points, the lender has to honor that rate and number of points, even if the interest rates go up within that 30 day period.

On the other hand, if you are not able to close on your home within this 30 day period, the lender is no longer bound by the lock in rate. If rates have not gone up during this period, this may not be a problem, but if they have, the borrower will face higher rates on his mortgage.

The usual term for a lock in period is 30 days, but it is not that easy to find, negotiate and contract on a home in that period. A lot of buyers will choose to add 15 days, but lenders usually charge extra for taking on the added risk of rates increasing.

The first thing most borrowers have to think about is whether or not they want a lock in rate. Your views on interest rates will influence this, since if you believe they are going up, you will want to fix a rate now. But if you think rates will go down because of the state of the economy, you should hold off for lower rates.

Most times, borrowers don’t want to even think about whether rates will go up or down, they just want to stick to the rate that is the best for their budget and they will lock in the rate.

A lock in rate can be a bit of a Catch-22, since buyers are told that thebest bargaining position to be in is to have a pre-approved mortgage. This means you have to negotiate your home loan and have a locked in rate in advance when you start shopping for a home. To perform all of this in 30 days is not easy.

Having some strong ideas of where you want to live will be a big help. In addition, we are in a buyers market, so your purchase negations should go quick and easy. It is a good idea to hire a home inspector in advance so you don’t have to waste time on this step.

If you are a borrower who is just on the border of qualifying for a mortgage, you should definitely opt for a lock in period to assure you the mortgage for at least this period. If you are in such a situation, minor changes in your own circumstances or the economy may eliminate your chance at a home loan.

The point to remember is that a lock in rate is best if you think rates will rise, if you don’t care to take a chance on them, or if you risk greatly increased rates because your credit is not good.

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Beware the Bloodsucking Home Mortgage Industry

By Eugene Garner

The greedy Mortgage Industry isn’t the honest industry that you may believe. A lot of of the banks in the Mortgage Industry have been caught red handed trying to defraud their customers while habitually seeking to shift the blame on to the clients that have just been following the financial strategies endorsed by our elected government representatives and their banking corporate masters.

Caution….Your banker is truly NOT your friend!

Any person apprised of current events must know by now that the banking industry is about as corrupt as it gets. Headed by the Federal Reserve, a private corporation owned by a cartel of insatiable money changers, have conveniently bought off your Government representatives to accept illegitimate bailouts, and their project now is to fleece you of your possessions by any method necessary.

One shrewd technique of robbing our assets is their foreclosure flimflam. In the event that they had actually loaned money for the loan they are foreclosing on, you could possibly dispute the legality. But then they never lent you a dime! No cash ever changed hands, just smoke and mirror entries to their balance sheet.

It performs In this way. You go to the bank pleading for a mortgage loan for the procurement of a house and have to jump through hoops and supply all sorts of irrelevant information and facts simply to find out if you measure up. After you are qualified, their fun commences.

Imagine you intend to procure a home for $120,000. The bank is willing to finance $100,000. In order to ‘fund’ your mortgage loan they will charge 3 to 6% of the loan total in outrageous costs. The bank then sets up an escrow account, and at close of escrow, this is what goes on:

The bank is granted a lien on the deed to your real estate(worth $120,000), your promissory note for $100,000 and up to $6000 in rates. This increases the bank’s tangible assets by $206,000 which, they will to loan out over again. Next the bank transfers your down payment and $100,000 to the seller, the $100,000 is really an entry in their books that just balances their books.

This $100,000 is manufactured out of nothing, it is just added to the Federal Reserve’s National Debt that was also created out of thin air, and you and I get to reimburse the interest on that debt……that’s labeled as the income tax that the IRS manages.

Because the capital they are lending you was generated from your note and never existed except for an entry on their ledger, it in time just devalues the existing U.S. currency.

It’s known as ‘fractional reserve lending’… look it up.

The banking group is now the only game in town and given that they regulate the money, they make the rules. They disregard the excessive interest rates that would humble a Mafia loan shark and play games with the home finance business.

Their method of fractional reserve lending denies their pretext that they don’t have money to lend since that approach makes money (debt) from thin air.

The negative news is that with the present political atmosphere nothing much will change soon.

The nice news is that there are regulations and protections for the client (which usually are forgotten by the banks) that level the playing field, IF and only IF the customer is aware of them. It is nearly impossible for the everyday individual to be informed of the legal jargon and the tangle of rules entailed.

(C)Homerun Lending, associated with Elink Equity offers the information and solutions to keep the banks honest from loan origination to closing with total protection of the client.

We take care of home loans, loan audits, refinance and foreclosure assistance. . Our responsibility is to save you money, time and your property.

In order to safeguard yourself from the potential traps implemented by the Mortgage business, find this service someplace, if not from us. Your financial safekeeping is at risk.

American Wide Loans- Home Loan Mortgage and Process

By Mark Kreischer

About: www.AmericanWideLoans.com

The first type of loan is the Fixed Rate Loan. If you are planning to buy a home and stay in it until you pay it off, then you will probably want a fixed rate Home Loan. With this type of Home Loan, you will be assigned a fixed interest rate, and that rate will not change for the life of the loan. If interest rates do skyrocket, yours will remain the same. Most poeple like this option the best.

The second type is the adjustable rate mortgage. This home loan interest rate basically goes up and down with the market so if the interest rate is low, so will yours; and if high, your home mortgage rate will, too. One disadvantage of this type is that the interest rate on Home Loan mortgage loan affects the payments so you will never know what your monthly mortgage payments will be so this type won’t be right for everyone.

The balloon Home Loan is the third type of loan and with this type, for a fixed amount of time with a fixed interest rate, you will do monthly payments. But in this type, you are to owe an unpaid balance in one lump of sum at the end of the payment schedule. So interest rates in this type of loan are much lower than the other two previous types.The only drawback of a balloon loan is at the end, you have to make a huge payment but if you plan to keep the house for only a short period, this can just be the right loan for you.

Understanding the various types of home loans that are available to you, you will be better prepared to make a decision on choosing a mortgage Home Loan for you and your family.

Getting pre-approved with a lender is always a smart move when looking to buy a new home. Not only will you be confident in the mortgage you will be able to afford, but you will enjoy greater negotiating power with a seller than buyers who have not gone through the mortgage pre-approval process.

Finding the right mortgage loan for your needs depends on dealing with a competent and reputable loan officer who can advise you on the different mortgages available.

Documentation is the key to the home loan process. Keeping clean credit and good records will help expedite the mortgage process.

Your mortgage loan package will be presented to underwriting. Once approved your loan documents will be drawn and escrow will review them and set up an appointment for signing.

Once you have approval on your home purchase, there are a few more steps to finish. Your loan officer and real estate agent will coordinate opening title and escrow, the appraisal process, home and termite inspection, and you will need to get insurance on your new home in place. Once these have been cleared, you are ready to complete the mortgage transaction.

Mortgage loan documents are signed, your new home loan is funded, and title is recorded.

We offer live support on our website, so you can get in touch with us and know the best solution for yourself.

For more information, please feel free to call us at 1-800-595-0594, or visit our website www.AmericanWideLoans.com

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