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Email your home loan financing questions to Kristin Abouelata, Home Loan Specialist with Mortgage Investors Group, at question@kristinmortgage.com or call direct: (865) 567-0113 Toll Free: 1-800-489-8910. For more information visit her website at www.kristinmortgage.com Home Loans Plain Talk.
Arm Loan a Good Idea?
When deciding upon a home mortgage, one of the most common options to consider other than a fixed rate loan is an ARM loan. ARM is an acronym for adjustable rate mortgage. With this product, a starting rate is fixed for a certain period of time, and then when that time is up, the rate can adjust depending upon a pre-determined index and margin. This period can be from anywhere of 1 month or 10 years, and can reflect principal and interest or sometimes interest only payments. The adjust results in the mortgage payment either increasing or decreasing. There is also a cap on how much the interest rate can go up or down.
Many people today are afraid of ARM loans and automatically only consider a fixed rate loan when applying for a mortgage. Depending on the market, this philosophy is sometimes the most economical route. But many times it may be worth your while to consider an ARM loan.
Within the past year or so, there wasn?t any real discernable advantage to considering an ARM over a fixed rate loan. The rates were comparable. But lately, the rates in general have crept up and, when comparing them, the ARM rates can have a healthy edge.
When I take a loan application, I ask my customer what their future plans are. Only going to be in town for a couple of years? Do you work for a company that relocates often? Do you plan to expand your family any time soon? Answering yes to any of these questions is a trigger for me to present an ARM loan as an option. The average homebuyer only stays in their home 7.5 years. I recently had a customer who knew she would be in town for only 3-4 years. The difference between a fixed rate and an ARM rate was .375%. The ARM rate was fixed for 5 years before any adjustment would occur. No brainer.
There are a myriad of mortgage products out there for the consumer to consider. Ask questions of your loan officer, and more importantly, expect your loan officer to ask questions of you. And if you can?t sleep at night because you know that one day that ARM loan can adjust, just remember one thing. You can always refinance your loan when that time comes. Now, get some sleep.
Get a New Car Loan
A car loan is simply a way for you to go about paying for the car that you are looking to purchase.
Car Finance Loan – Get Your Car Finance Now
If you are finally finding yourself in a position where you would like to get yourself a car in the world of today thing you are going to realize that you are going to need to see it as much of your hard earned and precious time as well as a finance is for you to go about getting one. It really is not an option for you go about getting yourself a car just straight up out of your bank account as most people do not have that much disposal income laying around for such big purchases. The solutions this is to get yourself a Car Finance Loan through the use of an Internet website. So when you realize is comes the point where you should be looking for a very good deal on getting yourself a Car Finance Loan, getting yourself one through a vast array of different financial lending institutions that are on the Internet is going to empower you with the ability to get yourself a great deal on any low interest car loan without having to expend as much time and energy like it would take for you go from one bank to another bank or from one car dealership lot to another car dealership lot for all of the information is required to make a educated decision on what we give you the best possible solution.
When you decide to go about getting yourself a inexpensive low interest New Car Loans and it is going to allow you to get yourself a preapproval noticed in a very timely manner as well as saving an un heard of unknown of your time and energy simply because you had to go about filling out stacks and stacks of the paper work as well as terms and conditions that you go about doing if you’re to go about getting yourself a used a car finance through a bank or a car dealership. While this is not only the case, your also to be able to acquire self with a low interest car loan in only a matter of one day for you to be able to get your preapproval noticed when you go about getting yourself your low interest car loan online through the CarMoneyRealFast.
Car money real fast provides exceptional Car Finance services for the people of all credit situations including bad credit. Get car loans online now though you have bed credit.Car Money Real Fast offers a variety of New Car Finance at relative low interest rates. Get the best used car loan low prices with easy instant approval basis.
Why Car Loan Refinancing Has Become More Popular?
Have you ever thought about refinancing your current car loan? In the past few years, automotive refinancing has become more and more popular ? especially as the interest rates that independent used car dealers and even new car dealerships charge continue to go up. There is something you can do about it. You can decide to stop these higher payments now and opt for car refinance to bring your payments down. After reading this article, you may be interested in automobile refinancing for a new car that you have just purchased recently, or auto refinance for a used car.
The Right to Rescind Your Mortgage – a Powerful Tool for Negotiating a Loan Modification
Your best tool to negotiate with your mortgage company is the discovery of a Truth in Lending Act (TILA) violation, which in some cases may give you the right to rescind the loan. State and Federal laws require mortgage companies to follow specific guidelines when originating home loans and as a result many mortgage loans have TILA and/or RESPA violations which can be used as bargaining tools when negotiating a loan modification with the mortgage company.
Many of the home loans originated by brokers and lenders over the last few years have unexplainable fees and charges or were manipulated by overstating the borrowers? income or inflating the property value to allow the lender to illegally profit from the sale of mortgages to investors in the secondary market. Subprime mortgages with hidden interest rate adjustments and pre-payment penalties or Option ARM loans with minimum payment options allowed borrowers to differ interest to a point in future when the loan recasts and forces the borrower into hardship by paying a much higher mortgage payment. In most cases refinancing is not an option due to declining property values or high debt to income ratios. Only a Forensic Loan Audit can discover and document these violations, which may be used against the lender when negotiating a loan modification.
Another common violation occurs when the creditor fails to properly provide a notice of the borrower?s right to cancel. The right of rescission may be extended for up to three years in certain circumstances. When the right is extended for three years you can rescind the loan at any time before the three years are up meaning that the loan is treated as if it never existed. This means that the creditor must refund all interest paid, all closing fees, all broker fees, and even pay for your attorney fees.
The extended right of rescission is a powerful tool to help borrowers who have been victims of predatory lending. During a Forensic Mortgage Loan Audit we often discover TILA violations, which can be used as leverage when negotiating a loan modification.
This is not intended to be construed as legal advice.
Distressed Homeowners Fighting Back With Forensic Loan Audits
Washington, DC ? November 6, 2008. National Loan Audits announced today that troubled homeowners with adjustable rate mortgages who are having trouble getting their loans modified or who are behind with their payments and in danger of losing their home, now have access to Forensic Loan Audits, performed by mortgage industry experts, to discover if their lender violated the Truth in Lending Act or made any errors while preparing their closing documents and neglected to adequately disclose the terms of their loan.
According to the Truth in Lending Act even a small mistake with calculating the borrower?s annual percentage rate could be an actionable violation, enabling the borrower to rescind the loan. Therefore, the threat of a lawsuit is often sufficient to persuade an otherwise uncooperative lender to negotiate an attractive work out with the borrower.
Until recently Forensic Loan Examinations were only made available to large banks and lending institutions wanting to determine their own exposure to risk and potential legal liabilities prior to purchasing large pools of mortgage loans. But now a Maryland company staffed by veteran mortgage professionals is offering this service to distressed homeowners at an incredibly affordable price. ?While our competitors may charge up to $3000 for a Forensic Loan Audit, we decided to offer this product at a price almost anyone could afford? Said Dean Mostofi, the founder of National Loan Audits in Rockville, Maryland, a Washington, DC suburb. The firm charges $495.00 for a comprehensive mortgage document review and provides the homeowner with a 40-page written report that contains a detailed listing of their findings in an easy to read format.
Mostofi says that over 80% of the loan files reviewed by his firm contain violations ranging from small and unintentional mathematical errors to blatant fraud and misrepresentation. The most common violation is the understatement of prepaid finance charges and in many instances a mere $35 error within the Truth in Lending disclosure statement could entitle the borrower to a refund of all finance charges, closing costs and interest payments made since the inception of the loan.
Forensic Loan Reviews are also used by attorneys assisting borrowers with loan modification and foreclosure defense but according to Mostofi most lawyers who contact him don?t know much about the more creative legal tactics currently being employed by a handful of savvy foreclosure attorneys. Consequently, Mostofi also offers a consulting service to attorneys helping them understand the remedies available to their clients in the event the lender violated the Truth in Lending Act or if it cannot prove ownership of the note. ?Amazingly, many lenders don?t legally own the note? says Mostofi ?but since no one challenges their right to foreclose, they get away with it? he added.
The intent of an audit is not to force the parties in to a lengthy and costly lawsuit but rather to encourage the lender to sit down with the borrower and to negotiate an affordable work out so the borrower can keep the home and the lender can mitigated its loses. ?The audit is to give homeowners more ammunition so they can stand a chance in negotiating a decent modification with lenders who have far more resources than the average borrower and often play hardball unless they are faced with the risk of a costly lawsuit? said Mostofi.
National Loan Audits was founded by Dean Mostofi and it is based in Rockville, Maryland.
Settlement Loan Application Process 101
Getting a settlement loan isn?t that daunting of a task. The process is different between each settlement loan provider, but usually takes around 2 to 7 days to get approval. You can usually fill out the application online or over the phone. The settlement loan provider will need to speak with your attorney and this may incur costs.
There are several factors that come into play if you?ll get approved for a settlement loan. One factor is the type of claim (or lawsuit type) that is currently pending. The amount you?re looking to get advanced will also be considered in the process. The duration of the case can also affect the ability to get a settlement loan, or affect the amount you can receive. Finally, the most important factor is the risk. This will be based on the merit of your case and how it?s looking in terms of your party winning the lawsuit.
Your settlement loan application will require all your personal information; including name, address, city, zip code, phone number and date of birth. You shouldn?t be required to give your social security number since your credit history does not play a factor into the decision, they may need to use it verify your identity.
You?ll then need to provide information regarding your pending case. Below is the a list of information you should have on handle, but not limited to?
Law Firm Name
Attorney Name
Law Firm Address
Law Firm Phone Number
Attorney Phone Number
Paralegal Handling Your Case
City & State of Court
Case Type
Provide Case Details (more detailed the better)
Accident Information (if applicable)
Defendants Insurance Information
Any Settlement Offers from Defendant
Liens & Assignments Regarding Your Case
Remember, you should consult your attorney prior to applying for the settlement loan. They will be required to speak with the settlement loan provider and this can incur a charge with you attorney. Most settlement loan providers do not charge any application fees, however in some instances you might be charged a fee. Make sure to inquire about any fees.
Are you thinking of getting a settlement loan? Legal Settlement Loans is the premier provider of information and educational resources for settlement loans. If your interested in learning more about settlement loans than visit the LegalSettlementLoans.com website today!
Why Do Lenders Prefer a Loan Modification Over a Foreclosure?
Lenders are known to be difficult when it comes to loan modifications. But did you know that they benefit at least as much from the process as you do? The main reason they balk at Mortgage Modification is that they have to train agents to handle them, and each case requires individual attention. But it also saves them a good deal of time compared to foreclosure, and may even have a few long-term benefits. Here are some good reasons why your lender might prefer a loan modification over a foreclosure.
It?s faster and cheaper. In a foreclosure, there are specific wait times that allow the borrower to get current with their mortgage. It?s not uncommon for the process to drag on for almost a year. These delays can cost your lender a good deal of money. A loan modification, on the other hand, takes an average of 30 to 60 days. All they have to do is go over your documents, talk to your loan modification attorney, and see if you qualify. The negotiations are the hardest part, but they don?t cost quite as much as foreclosure expenses.
It?s less work. To start the foreclosure process, your lender will have to assess late charges, file a Notice of Default, pay heavy lawyer fees, and arrange an auction to sell your home. And if you manage to get back on track and stop foreclosure, all the work simply gets filed away. Loan modifications involve less work on their part. You and your
What You Need To Know About Adjustable Rate Mortgages (Arm) – Loan Modification Help Center
Everyday we read about the worldwide financial crisis and, specifically, about the U.S. banking and housing crisis. To understand the challenges facing borrowers during the Housing crisis, it is critical to understand adjustable rate mortgages – how they work and how they can impact you.
ARMs offer both advantages and disadvantages. Unlike a fixed-rate mortgage, an ARM provides interest rates that change periodically – and payments that go up or down accordingly. At first, lenders generally charge lower interest rates for ARMs and this makes an ARM easier to afford initially. If interest rates remain steady or move lower, this can work to your long term advantage. It is important, however, to weigh the risk that if interest rates increase in the future, so will your monthly payments.
The initial rate and payment on an ARM will remain in effect for a limited period–ranging from several months to 5 years or more. After this initial period, the interest rate and monthly payment may change at regular intervals – every month, every year, every 3 years. This period between rate changes is called the adjustment period.
The interest rate on an ARM is determined by two things: the index and the margin. The index is usually a standard measure of interest rates and the margin is an extra amount that the lender adds. If the index rate goes up, so does your interest rate and monthly payment. On the other hand, if the index rate goes down, your monthly payment may go down. Not all ARMs adjust downward, however so be sure to read the details about any loan you are considering.
Lenders base ARM rates on a variety of indexes. You should ask what index will be used for your ARM, how it has fluctuated in the past, and where it is published.
The margin may differ from one lender to another, but it is usually constant over the life of the loan. The fully indexed rate is equal to the margin plus the index. For example, if the lender uses an index that is currently 4% and adds a 3% margin, the fully indexed rate would be 7%.
Some lenders base the amount of the margin on your credit record – the better your credit, the lower the margin. In comparing ARMs, look at both the index and margin for each program.
An interest-rate cap places a limit on the amount your interest rate can increase. Interest caps come in two forms: A periodic adjustment cap, which limits the amount the interest rate can be adjusted up or down from one adjustment period to the next, and a lifetime cap, which limits the interest-rate increase over the life of the loan. By law, virtually all ARMs must have a lifetime cap.
In addition to interest-rate caps, many ARMs limit, or cap, the amount your monthly payment may increase at each adjustment. A payment cap can limit the increase to your monthly payments but also can add to the amount you owe on the loan. This is called negative amortization.
If you are considering an ARM, ask yourself:
- - Is my income enough–or likely to rise enough–to cover higher mortgage payments if interest rates go up?
- - Will I be taking on other sizable debts, such as a loan for a car or school tuition, in the near future?
- - How long do I plan to own this home? If you plan to sell soon, rising interest rates may not pose the problem they do if you plan to own the house for a long time.
- - Do I plan to make any additional payments or pay the loan off early?
Golden Rule: Before you consider any loan, ask questions and read the details. For information and news please visit Loan Modification Help Center
Loan Modification Help Center
Home Loan Modifications and Your Credit Score
A Home Loan Modification can help you stop foreclosure and stay in your home. But if you?re like most homeowners, you?re probably wondering how it will affect your credit, and whether in a good or bad way. Unfortunately, there?s no single answer?it all depends on how far behind you are and the kind of mortgage loan modification you?ll be granted.
Best-case scenarios
Technically, since you?re not borrowing any money, a home loan modification won?t hurt your credit score. If you?re paying less in interest, you have a smaller debt burden. And since most lenders prefer an interest rate reduction, there?s a pretty good chance that a Home loan modification will improve your credit score.
The implications are even better if your lender forgives part of the principal, although this is less common. If they write off $50,000 from your loan amount, it will show up on your report as a smaller loan, which can increase your credit score.
The lender factor
Unfortunately, it doesn?t always happen that way. It also depends on how your lender reports the home loan modification to the credit bureaus. Many of them will consider it paid for less than the original amount owed, which will count against your score. If you?re already in foreclosure, the impact on your credit can be substantial. Of course, compared to a short sale or a foreclosure, a Mortgage Loan Modification is still the best way to maintain your credit standing.
Tax implications
One of the early problems with Loan modification is that the amount forgiven is usually taxable. That means if your debt is reduced by $50,000, the IRS views it as income and imposes the corresponding tax. This can catch homeowners off guard during tax season, as many of them don?t know the tax implications at the time of the modification.
To avoid such incidents, the IRS announced in 2007 that Loan modification would no longer be classified as ?prohibited transactions.? This applied to all loans originated from January 2004 to July 2007, the peak of the sub-prime boom, and those due to adjust from January 2009 to July 2012. If your mortgage falls under these categories, you won?t have to file a 1099 declaring the change as taxable.
A loan modification is much like going to court: you can save your money and get a court-appointed lawyer, or you can invest in professional representation and get the best mortgage assistance. Your loss mitigation won?t happen overnight, but if with a capable Loan Modification Attorney, you can be sure you?re in good hands.
Loan modification Department helps you legally change the terms of your mortgage so that you can pay it off better But you can’t expect lenders to make it easy. In fact, many homeowners fail to reach a reasonable settlement with their lenders, and even those who do have to settle for less-than-satisfactory setups.That’s where your loan modification attorney comes in.