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Topic: First Mortgages
what is a first mortgage and a second mortgage?
December 12th, 2010
differencemortage
whats the difference between the two? what are examples of second mortgages and first mortgages? thanks!
A first mortgage is simple. It’s the first mortgage gotten on a property. It is typically the largest one.
A second mortage is jsut a secondary lein to the title of the home. The best known type is a Home-Equity loan. There are a few others, but that is the best type.
The big difference is if the home is foreclosed on, the first mortgage is paid first. Any money left would go to the second mortgage company.
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Topics: First Mortgages | 1 Comment »
Mortgages – Changing Times
December 12th, 2010
ongoingreactionexistingdiscount
With the ongoing credit crunch affected many areas of the financial market, many homeowners now find themselves struggling to cope with increases in repayments on loans, mortgages and other borrowing.
In reaction to these spiralling rates, lenders are raising mortgage costs in an attempt to keep the books balanced, despite two rate cuts in four months from the banks.
With increasing rates and a decreasing number of options to choose from when selecting a suitable and affordable mortgage plan, first-time buyers are now facing very difficult times when it comes to getting their foot on the first rung of the property ladder.
Those with existing mortgages can also expect to feel the squeeze as lenders struggle to cope with a market that is constantly changing.
With lenders now being cautious of mortgage applications, subsequently offering a limited amount of mortgages at fixed rates, the choice appears to be limited, but there are a few things you can look out for when searching for a mortgage to suit your budget:
- Shop around and compare prices on mortgages, there are now a large number of companies offering such a service, but don’t just rush into the first deal – weigh up your options, do some financial planning and budgeting to determine whether you are able to afford such a deal.
- During your search, don’t discount standard variable rate mortgages. They may be more expensive, but for borrowers who are unlikely to regularly remortgage, as well as those who may be priced out of the best loans deal they could prove to be the best option.
- If you are able to it could be worth overpaying your mortgage each month. By contributing a little extra you can help to slightly shorten the life of your plan, and with lenders now offering better deals on loan-to-value mortgages it could be a good option to help bring your costs down.
- Try and leave yourself several months of planning time before you commit to a standard variable rate mortgage, this will allow ample time to find the best rate – and could lead to a better deal if the market should fluctuate.
David Collins
http://www.articlesbase.com/mortgage-articles/mortgages-changing-times-362669.html
Topics: First Mortgages | 3 Comments »
Market Update 4-26-2010.FLV
December 12th, 2010
Mortgage
Mortgage Rates Market Update from RJ Baxter of First Mortgage Corp in Evergreen, CO http://www.cohomesandloans.com
Duration : 0:5:26
Topics: First Mortgages | No Comments »
0 Down CHFA Mortgages- First time Home Buyers in Denver Colorado
December 11th, 2010
Mortgages
http://www.ezchfaloans.com, 0 Down CHFA Mortgages for First time Home Buyers in Denver, Centennial, Aurora, Littleton, Lakewood, Highlands Ranch, Arvada, Westminster, Thornton, Boulder, Brighton, Parker, Colorado. If you are looking for 0 Down CHFA mortgages for First time Home Buyers in Denver, Centennial, Aurora, Littleton, Lakewood, Highlands Ranch, Arvada, Westminster, Thornton, Boulder, Brighton, Parker, Colorado. See this site.
Duration : 0:1:53
Topics: First Mortgages | 1 Comment »
Do I still own the house for the second mortgage, but the first was foreclosed?
December 11th, 2010
I had 2 mortgages, one for 80% and one for 20%. The first mortgage company foreclosed. It was sold. The second mortgage company did not foreclose. Public records now show my name and the new owners name. Do I still own 20% of the house?
* The mortgage really has nothing to do with the house other than as collateral. The mortgage is a contract between you and the lending company. They lent you $$ – you pay it back with interest. The 1st morgagor took the collateral. The 2nd will hound you to the grave for its pound of flesh.
Topics: First Mortgages | 5 Comments »
The Advantages of Uk Commercial Mortgages
December 11th, 2010
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The UK offers a variety of commercial investment possibilities and is the perfect place to close a commercial mortgage deal for property investment, business development, or personal purposes. Getting a commercial mortgage in the UK can be very beneficial for borrowers, as they will be able to quickly find attractive investment opportunities in the well-developed local market. Although the task of obtaining a commercial mortgage in the UK can at first be very problematic without specialized help (preferably a competitive UK commercial mortgage brokerage company), once you get your desired commercial loan you will rapidly realize the multitude of advantages, such as: possibility to retain ownership of your business, as well as business premises; gradual capital gain for your business over the entire period of the commercial mortgage repayment; lower interest rates; no rental instability; tax deductibility; highly efficient cash flow management.
The primary advantage offered by UK commercial mortgages resides in the fact that you will be able to retain ownership of your business and your business premises during repayment. As long as you make efforts to repay the loan on time, the commercial lender who has provided you with funding is not entitled to more than receiving interest on the mortgage. Another very important advantage of UK commercial mortgages consists in the fact that once you close such a deal, your business becomes an asset that can rapidly grow in value under favorable market conditions. By closing a competitive UK commercial mortgage, you will be able to ensure long-term capital growth for your business.
Another major advantage of UK commercial mortgages refers to competitive interest rates. Compared to other types of loans, UK commercial mortgages have much lower interest rates, especially in the case of repayments made over longer periods of time. In addition, borrowers can opt for fixed interest rates in order to know the exact sum of money that must be repaid each month.
Stability is yet another advantage if UK commercial mortgages. Unlike those unstable rental payments (which may increase unexpectedly), commercial mortgages eliminate such increases on the premises of less fluctuant interest rates. The stability characteristic to UK commercial mortgages allows for more efficient business planning.
In addition to the mentioned benefits of closing UK commercial mortgage deals, this category of loans also offers the advantage of tax deductibility. Payments are tax deductible and the net proceeds of the loan don’t represent taxable income. This can considerably reduce the amount of taxes paid by your business every year. Another notable advantage offered by UK commercial mortgages is that they allow for more efficient cash flow management. Considering the fact that the mortgage is received for a number of years, businesses can efficiently predict their profits and expenses, as well as plan their cash flow management in great detail. With the right repayment plan, UK commercial mortgages are some of the most beneficial types of loans designed for businesses.
For more resources regarding more Commercial Mortgages UK subjects we recommend you clicking this link.
Groshan Fabiola
http://www.articlesbase.com/finance-articles/the-advantages-of-uk-commercial-mortgages-75939.html
Topics: First Mortgages | 9 Comments »
When money is tight, is it better to pay some of your first mortgage or all of your second mortgage?
December 10th, 2010
recently
My wife recently lost her job, and our finances are too small to pay all of the first and second mortgages on our home. Is is smarter to pay some of the first mortgage, or all of the second mortgage? The first mortgage is with Indy Mac, second is with CIT. Anyone have any luck modifying loans with them? Since I am only one month behind with Indy Mac, they will not work with me. Thanks.
Paying "part" of your payment is not appreciated by the lenders unless you call first and work out a payment plan. Otherwise the entire amount you send them is credited to interest and does not pay down the loan at all. You want that loan to disappear.
Apx 4 out of 100 people who ask for a loan modification can get any help. Most of the modifications are to give you 6 months of no payments at all. This money is added to the "end" of your loan, so it is not a gift.
In some cases, the smartest move is to ask if they will accept a deed from you today. And you move into a small apartment or with family. You avoid a foreclosure on your record..
When money is tight, is it better to pay some of your first mortgage or all of your second mortgage?
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Topics: First Mortgages | 5 Comments »
SBA 504 Secondary Market Fix to Increase Liquidity to 50% of 2007 Levels
December 10th, 2010
Secondarymortgagetrading
Recorded at Coleman’s Webinar: “The New 504 Secondary Market Pool Program — Getting Main Street Access to Capital” on Wednesday, May 19, 2010
SBA-504 first mortgage lenders are now able to sell 85% participation interests of individual loans to pool originators. This new program, announced May 13th at the annual NADCO conference in Savannah, covers 504 loans funded after February 17, 2009.
Speakers:
Bob Judge
Partner
Government Loan Solutions, Inc.
ROBERT JUDGE possesses twenty-five years of fixed income trading and research experience with nationally, and internationally, recognized financial organizations. For the first fifteen years of his career, Bob worked in New York City as an institutional corporate bond trader with Nikko Securities, Yamaichi International, Deutsche Bank and Furman Selz.
In October 2006, Bob, along with Scott Evans and Rob Herrick, founded Government Loan Solutions, Inc. (GLS), for the purpose of bringing greater efficiencies and productivity to the SBA marketplace, through the use of technology. Bob holds a B.A. in Economics from Vassar College and an M.B.A. in Finance from the Stern School of Business at New York University.
Jordan Blanchard
CDC Direct Capital
(a wholly-owned subsidiary of CDC Small Business Finance)
Jordan Blanchard has been involved in SBA 504 lending for the last 20 years.
Currently, Jordan is executive vice president and manager of CDC Direct Capital, a wholly owned subsidiary of CDC Small Business Finance Corp. His focus is providing liquidity solutions to 504 first mortgage lenders as well as developing strategic partnerships for traditional and non-traditional lenders interested in offering 504 first mortgage loan options.
For the past year, Jordan has been dedicating significant time and resources to the pending SBA First Lien Mortgage Pool guarantee program. He is currently working with Pool Originators, Sellers, Investors and SBA to develop an active market once the guarantee program becomes effective. He is one of the founders of Secondary Market Access (SMA), a consortium of CDC’s and financial companies that have organized to source 504 first mortgages, then package, underwrite and facilitate funding through Pool Originators. SMA will be offering a number of ancillary services related to the guarantee program such as valuation, settlement, identification of investors, and the purchase and sale of residual loan interests.
Moderated by:
Bob Coleman
Editor
Coleman Report
Duration : 0:3:38
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Topics: First Mortgages | No Comments »
Mortgages and Remortgages – Which One Will Suit My Circumstances?
December 10th, 2010
mortgage
If you’re using a mortgage to buy your home but are not sure which one will suit your needs best, read this handy guide to mortgage types in the UK. Taking out a mortgage has never been easier.
Fixed Rate Mortgages – the lender will set the APR (Annual Percentage Rate) for the mortgage over a given period of time, usually 2, 3, 5, or 10 years as an example. The APR for the mortgage may be higher than with a variable rate mortgage but will remain at this ‘fixed mortgage rate’ level, even if the Bank of England raises interest rates during the term of the mortgage agreement. Effectively, you could be said to be gambling that interest rates are going to go up, above the level of your fixed rate mortgage interest rate. If this happens, your mortgage repayments will be less than with a variable rate mortgage.
Variable Rate Mortgages – the lender’s mortgage interest rate may go up or down during the life of the mortgage. This usually happens (though not exclusively) soon after a Bank of England interest rate change. Most people consider that opting for a variable interest rate mortgage is best done when interest rates in general are likely to go down. They can then take advantage of these lower rates when they occur. It’s a bit of a gamble but if they are right, it could really work in their favour.
Tracker Mortgages – have a lot in common with variable interest rate mortgages in that the APR of the mortgage can go up or down over the term. The key difference between a tracker mortgage and a variable interest rate mortgage is that the lender will set a margin of interest to be maintained above the Bank of England base lending rate. So, as the Bank of England, in line with monetary policy, raises or lowers the base lending rate of interest, so the tracker mortgage interest rate will follow. Over the lifetime of the mortgage, it could be said that the borrower will neither be better off nor worse off because of interest rate fluctuations.
Repayment Mortgages – you will be required to pay a proportion of the capital element of the mortgage (how much you originally borrowed) together with a proportion of the interest that will have accrued on the capital element, with each monthly repayment. In recent years, repayment mortgages have become highly popular over the previous favourite – endowment mortgages. This is because, unlike endowment mortgages, as long as you keep up your monthly repayments, you are guaranteed to pay the mortgage off at the end of the agreed term. Monthly repayments may possibly be a little more expensive but many borrowers say that at least, they have peace of mind.
Interest Only Mortgages – very common amongst borrowers who are looking to secure a second property. The reason being, with an interest only mortgage, the borrower will only be required to make monthly repayments based on the interest element of the mortgage. The lender will require the capital element to be repaid at the end of the term of the mortgage. Again, as with variable rate mortgages, this could be regarded as being a little bit of a gamble because the borrower is hoping that the property will be worth at least as much at the end of the term of the mortgage, as it was at the beginning, allowing it to be sold and the capital element of the mortgage to be paid off. Any capital gain on the property (although possibly subject to tax) is yours. It could be argued that experience tells us that property prices rarely go down in the long term, but it can never be guaranteed.
Capped Mortgages – a combination of the fixed rate mortgage and the variable interest rate mortgage. A cap or ceiling is fixed for a set period of time. During this period, if interest rates in general rise, above the capped interest rate, the borrower will not pay anything above the capped level. Correspondingly, if interest rates fall, then the rate of interest charged by the lender, will also fall so it could be argued that the borrower gets the best of both worlds. It could also be said that a capped rate is like having a set of brakes on your mortgage, but beware, the lender is also likely to charge a redemption penalty on this type of mortgage, making it less portable than some of the other options available.
Discounted Rate Mortgages – here, the lender may offer a reduced level of interest to be charged over a set period at the start of the mortgage term. Many first time buyers or people who expect their salaries to rise considerably during the discounted rate period opt for this type of mortgage but it should be noted that the reduced rate period will come to an end and when it does, the monthly mortgage repayments to the lender may rise sharply. The lender may also charge a slightly higher rate of interest compared with other types of mortgage over the rest of the term of the loan in order to recoup the monies that they have foregone during the discounted rate period. There’s no such thing as a free lunch!
Offset Mortgages – an interesting newcomer to the UK mortgage market, although still comparatively rare in terms of choice and availability. The mortgage is linked to the borrower’s current account. Every month, the minimum mortgage repayment is paid to the lender but where there is a surplus of cash in the account after other uses and debts have been paid, this is also paid to the lender. Over the months and years, the borrower can potentially pay off their mortgage much quicker and have accrued much less interest than with other types of mortgage provided that a reasonable surplus is maintained in the current account.
So, to sum up, the UK mortgage market has many types of mortgage; any or all of which may be open to the potential borrower, dependent on their circumstances. If you’re looking to take out a mortgage, remember that whilst your broker will take care of the vast majority of the work on your behalf, it may still take around 3 months to complete as there is an enormous amount of work that goes on behind the scenes with solicitors and searches, valuations etc. At least now you’re armed with all of tehinformation you need on each type of mortgage available to you.
This article is free to distribute however, please ensure that all links remain as in the original.
Andy Silk
http://www.articlesbase.com/loans-articles/mortgages-and-remortgages-which-one-will-suit-my-circumstances-129678.html
Topics: First Mortgages | No Comments »
