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Last Build Date: Wed, 05 Jan 2011 22:13:52 GMT

 



Equity Direct Funding Conveys Many Good Tips on Home Ownership

Wed, 05 Jan 2011 22:13:52 GMT

Shared By Equity Direct Funding

Home mortgages aid a person to acquire a residence even if he or she does not have all of the resources to purchase it. It is a known fact that real house property rates soar high and require a huge investment. There are a number of people who can not afford to buy a house, as they cannot make a single significant investment. In such cases, home loans prove most effective to the customers.

Comfortable Period Of Repayment

The money borrowed can be returned over a specified period of time. The timeline for the debt is usually long enough that even a large sum of borrowed amount can be repaid without any hassle. Credit loans typically have a repayment period many years.

Since the repayment of these loans provides a lengthy period of time, the monthly installment is also not very high. Moreover, the customer can increase the monthly premium, if he or she wishes to repay the debt faster and avoid accumulating interest.

Types Of Home Loans

These loans are easy to refinance, as they can be paid in easy monthly installments. Small installments spaced over a period of a few years are easy to make. Moreover, the loan that is taken is secured against the house that the owner purchases. Until the debt amount is not paid back to the lender, the owner will not have lien of the house. The house for which the money has been borrowed is used as security. Such a loan is called an equity loan.

Certain lenders have greater specifications for the aforementioned loan. Some require that the borrower to pay some amount of the interest with the monthly payment, besides the principal premium. This interest is calculated everyday and compounded monthly. The directives for interest payment, however, vary with lenders.

Another way that money can be borrowed to purchase a house is by providing security in the form of real estate or mortgage. Money can be borrowed for a new house by taking credit against other property, which the borrower already possesses.

Moreover, the interest rate is fixed by the money lender. The amount of interest has to be added to the principal amount and paid back with the debt amount. It is important to note that, like in the case of many other types of loans, in a home loan, too, the total money that is returned to the lender is higher than the borrowed amount.

All types of home loans allow customers to become home owners with ease. However, it is important to note that failure to repay the loan will lead to foreclosure of the secured property. The secured property can be either the house, for which the debt has been taken or the other property provided by the borrower. However, the repossession only occurs after the borrower has been given sufficient warnings by the lender, and they have not been paid heed to.

Home loans are ideal for persons or families who have wanted to buy their dream house for many years but have lacked the finances. Their desire to own a house that they can call home does not have to remain an elusive dream.
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Equity Direct Funding Provides Various Significant Refinance & Mortgage Pointers

Fri, 10 Dec 2010 20:43:13 GMT

When going over your down payment, your lender may explore the subject matter of seasoning requirements with you. If you have money in a bank account for 3 months and it reflects regularly in sequential statements, that money is considered "seasoned" 3 months. Your lender may require that your down payment money be comprised of seasoned funds, and that any large influxes of capital into your bank account may have to be carefully and thoroughly explained, documented, and potentially disqualified. So start saving and plan ahead!

You will find loan types which do not require any form of documentation in this regard, particularly No Asset Verification mortgages or "no assets" loan programs. Just as it sounds, this type of mortgage does not require any verification of assets, however lenders generally do not allow the applicant to borrow more than 60% to 70% of the property value without some form of asset verification. There is another type of loan program which is increasingly popular over the last few years called Stated Income Stated Assets mortgages, which allows for limited verification of assets, and some of these programs allow up to 75% or 80% of the property's value to be loaned to the borrower.

Purchasing a home with no down payment, generally referred to as a "no money down" mortgage, has developed into a common way for first time buyers to enjoy the benefits of homeownership without significant savings, however it is beneficial to note that borrowers who want a zero down loan will be faced with higher interest rates and monthly payments and are statistically shown to have higher rates of default and foreclosure.

Whatever you choose to put down, if you have and can document assets above and beyond the down payment and closing costs on the home and mortgage you can establish "reserves" with your application. Having ample capital reserves, good credit, and your down payment sitting in your bank account for a couple of months can in combination allow you to be entitled to some of the best programs available, and most likely save you hundreds of thousands of dollars over the life of your mortgage.By: Tristan Hunt



Equity Direct Funding Shares A number of Useful Refinance & Mortgage Ideas

Fri, 10 Dec 2010 19:15:27 GMT

Shared by Equity Direct Funding

Equity Direct Funding Dispenses A variety of Insightful Refinance & Mortgage Strategies :

Down Payment From Stocks & Bonds

When you've figured out exactly how much of the deposit you will likely make on your home loan, you're ready to determine how to document the source of your funds for the down payment and closing costs. Now you may be saying, "Why do individuals care where I get the amount of money?" Lenders really need to validate your source of funds to both evaluate the underlying associated risk in you as a borrower as well as to prevent loan fraud. This makes it necessary for you, the applicant, to carry comprehensive and specific files of exactly how the dollars that you mean to use for a down payment makes it into your hands. Money out of your own savings, checking & money market accounts looks better to the bank for a variety of reasons, and is among the easiest sources of capital to document.

Cash in the bank is also very easy to document. The lending company has the choice of suggesting that you deliver bank statements to them indicating that you have the money for the down payment and closing costs, or performing a formal Verification of Deposit directly with your bank. Nearly all loan companies ask for statements, generally 2 to 3 months if you are providing full income documentation or up to 24 months if you are providing alternative documentation of income.

When talking about your down payment, your lender may comment on the issue of seasoning requirements with you. If you have money in a bank account for 3 months and it reflects regularly in consecutive statements, that money is considered "seasoned" 3 months. Your lender may require that your down payment money be comprised of seasoned funds, and that any large influxes of capital into your bank account may have to be carefully and thoroughly explained, documented, and potentially disqualified. So start saving and plan ahead!

You will find loan types which do not require any form of documentation in this regard, particularly No Asset Verification mortgages or "no assets" loan programs. Just as it sounds, this type of mortgage does not require any verification of assets, however lenders generally do not allow the applicant to borrow more than 60% to 70% of the property value without some form of asset verification. There is another type of loan program which is increasingly popular over the last few years called Stated Income Stated Assets mortgages, which allows for limited verification of assets, and some of these programs allow up to 75% or 80% of the property's value to be loaned to the borrower.

Purchasing a home with no down payment, often referred to as a "no money down" mortgage, has turned into a common way for first time buyers to enjoy the benefits of homeownership without significant savings, however it is key to note that borrowers who want a zero down loan will be faced with higher interest rates and monthly payments and are statistically shown to have higher rates of default and foreclosure.

Whatever you decide to put down, if you have and can document assets above and beyond the down payment and closing costs on the home and mortgage you can establish "reserves" with your application. Having ample capital reserves, good credit, and your down payment sitting in your bank account for a couple of months can in combination assist you qualify for the best programs available, and potentially save you hundreds of thousands of dollars over the life of your mortgage.By: Tristan Hunt

Equity Direct Funding
 

 





Equity Direct Funding Shares What You Must Know About Acquiring Your Very First House

Thu, 04 Nov 2010 16:48:17 GMT

Shared by Equity Direct Funding

Couples who are seeking their very first household can get caught up in the excitement of owning their very first home and not spend close attention to details. The initial hurdle will be the down cost. Most lenders need a 10% to 20% down fee toward the buy value of the property. You will discover programs for initially time house buyers which may possibly waive the down cost or make it considerably reduced.

If you may have never owned a house just before, you may be eligible for initial time purchaser plans with government insured loans. These applications usually have less stringent requirements for credit ratings and down payments than private loan companies. If you're comfortable with your present lease cost, store for any house loan payment that will probably be about the exact same as your hire. A house loan cost will aid you build equity, a lease payment will not.
Equity Direct Funding has mortgage rates to help you get into your dream home.

Ahead of taking a look at potential properties, set a funds. Never go over funds when taking a look at properties to acquire. When the realtor says I know the perfect place and it's only a little a lot more than you want to shell out, tell them in that case it isn't excellent. Realtors make their funds on commissions and desire to sell you the most expensive property achievable. Stick with the funds and never let the realtor talk you into a house you can't afford. Do not even appear at a home you cannot pay for. Bear in mind that most houses might will need some repairs immediately after you acquire them and set some extra funds aside.

Never jump into a contract with out knowing all of the facts. You'll require a title search and a home inspection on any home you consider getting. Normally the purchaser should shell out the charges for these services. Examine around for the lowest mortgage curiosity rates you'll be able to qualify for to conserve thousands more than the life from the loan.
Take a glimpse at the required deposit and the disadvantages of having insufficient funds for the deposit. When you do not have the quantity, the lender will slap on the insurance fee to the mortgage loan, increasing the mortgage loan sum by as much as $20,000. A no deposit house loan may be tempting for experts who can service the house loan but can't save for a deposit. Take note that these no-deposit loans have extra needs and you will find still the standard charges to pay. -Equity Direct Funding

There's the closing payment that may be really stiff for couples who're purchasing a residence on shoestring price range. Add all these costs to the actual home finance loan selling price and you get the picture. If the price in the entire mortgage loan is beyond your humble finances, search for any cheaper house and shop for other lenders who can provide inexpensive fees and a lower curiosity rate. Generally negotiate for reduced closing costs; lenders are willing to listen and give you a discounted closing charge.
So how do you compare lenders? Check out the APR or Annual Percentage Rate which will reflect the total price of the mortgage and calculate the Annual Percentage Yield which will show how the compounding curiosity makes the loan worth the trouble. Ask the lender to disclose both APR and APY. They are bound by law to give this data.

Right after you've completed your own personal financial analysis and decided how considerably you are able to find the money for to invest on a household, it is time to begin hunting around. Don't put in an provide on the initial property you see, check numerous properties prior to you make a choice. Chances are you'll be living there a lengthy time. By: John Dashwood

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Equity Direct Funding Offers The Advantages Of The Different Types of Mortgages

Wed, 27 Oct 2010 20:20:51 GMT

What are the advantages of fastened rate versus adjustable rate loans? By Equity Direct Funding

Having a fixed-rate bank loan, your month to month cost of principal and curiosity never change for the lifestyle of the mortgage. Your property taxes might go up (we virtually said down, too!), and so may possibly your homeowner's insurance premium element of the month-to-month fee, but generally with a fixed-rate bank loan your fee might be really stable.
Fixed-rate loans are offered in all sorts of shapes and sizes: 30-year, 20-year, 15-year, even 10-year. Some fixed-rate mortgages are referred to as "biweekly" mortgages and shorten the lifestyle of one's personal loan. You pay each and every two weeks, a total of 26 payments a yr -- which adds up to an "extra" regular monthly cost yearly.
Throughout the early amortization period of a fixed-rate personal loan, a big percentage of the once a month cost goes towards curiosity, and a considerably smaller aspect toward principal. That gradually reverses itself as the mortgage ages.

You could possibly opt for a fixed-rate bank loan in case you want to lock in a low charge. If you've an Adjustable Fee Mortgage (ARM) now, refinancing using a fixed-rate bank loan can give you a lot more month to month cost stability.
Adjustable Fee Mortgages -- ARMs, as we referred to as them above -- come in even extra varieties. Typically, ARMs determine what you should spend based on an outside index, perhaps the 6-month Certificate of Deposit (CD) fee, the one-year Treasury Security fee, the Federal House Personal loan Bank's 11th District Cost of Funds Index (COFI), or others. They may adjust just about every six months or as soon as a 12 months.

Most applications possess a "cap" that protects you from your month to month fee going up as well a lot at as soon as. There might be a cap on how significantly your curiosity rate can go up in 1 period -- say, no far more than two percent per calendar year, even if the underlying index goes up by much more than two %. You could possess a "payment cap," that rather than capping the interest price directly caps the quantity your month-to-month repayment can go up in one period. In addition, nearly all ARM programs have a "lifetime cap" -- your curiosity price can never exceed that cap amount, no matter what.
ARMs frequently have their lowest, most attractive rates at the beginning with the mortgage, and can guarantee that pace for anywhere from a month to ten years. You could hear people today talking about or read about what are known as "3/1 ARMs" or "5/1 ARMs" or the like. That means that the introductory fee is set for three or 5 a long time, and then adjusts according to an index yearly thereafter for the lifestyle of your bank loan. Loans like this are usually very best for individuals who anticipate moving -- and consequently selling the house to be mortgaged -- within 3 or 5 a long time, depending on how long the lower price will probably be in effect.

You may well select an ARM to take advantage of a lower introductory pace and count on either moving, refinancing again or merely absorbing the higher rate after the introductory pace goes up. With ARMs, you do risk your price going up, but you also take advantage when rates go down by pocketing much more funds every month that would otherwise have gone towards your mortgage cost.

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