|
|
|
Home Loans and Mortgages – One Third of Homes in U.S. Overvalued
A new study by National City Corp. looked at home values for 299 American cities and compared them to where they “should be” based on a number of economic factors that determine home prices. The results were not encouraging; homes in nearly one...
How To Compare Home Loans
Finding a home loan lender, or mortgage lender, is the easy
part. Deciding which lender to use isn't. Since your home is
probably the single largest purchase you will make, it only
makes since to shop around for the lowest cost home loan.
...
How To Save Money On Car Loans
Have you noticed that everyone seems to have a newer car than you? There's good news. You can find a way to upgrade your old clunker to a newer model. There are many ways to save money on your car loan. Lenders are competing for your...
Secured Personal Loans - What you need to know about?
Each one of us needs money to fulfill our personal needs. It
could be to buy a dream car or to go out for a luxurious
holiday. Do you know you can use equity in your home to get a
loan? Yes, it's true. Secured personal loans are tailored to
help...
Small business loans can help you write your success story
Scene one: you are sitting on your office desk surrounded with files and work overload, you are thoroughly frustrated. You work hard and get paid. But somewhere something is lacking. Scene two: you work for yourself; you do what you want to do....
|
|
| |
|
|
|
|
|
|
Home Loans – Lenders Continue to Offer High-Risk Loans
Home prices in the Untied States continue to soar, and the remarkable run of real estate as the “must have” investment continues. The median price of a new home, which only recently crossed the $200,000 barrier, is now $215,000. The high prices of homes haven’t deterred buyers; sales in June reached a record number of units. There is some concern in Washington about the explosive real estate market, and Federal banking regulators issued lending guidelines in May that urged lenders to be more cautious when lending money for home purchases. How have lenders responded to these guidelines?
They have made it even easier to borrow money.
It seems rather odd for lenders to make it easier to lend money after having been warned that they’ve been lending money too easily, but that’s exactly what has happened. Some banks have lowered the minimum credit score necessary to obtain a home loan or increased the percentage of income that may be spent on a mortgage. Others have introduced loans that require no proof of income. Still others have begun offering a wider variety of no-interest loans and dangerous Option ARM loans, which can actually raise the principal of a loan after a buyer makes a payment. Why are lenders easing loan restrictions after being warned that they are too lenient?
The primary reason is competition. The market is red hot right now, and due to the fluctuations in the stock market in the last five years, everyone wants to invest money in real estate. With so many people flocking to borrow money, lenders want to do as much business as possible. They also want to do more business than their competitors. By lowering qualifying standards, lenders can lend more
money. It’s that simple.
There are several problems with this scenario. Some percentage of buyers will always default on their mortgages. When the standards for obtaining a loan are lowered, that percentage will certainly increase. While foreclosures currently remain low, they combination of lowered standards and rising prices will certainly contribute to an increase. An expected increase in interest rates would make the situation worse.
The effects of these changes in lending can be felt by most anyone. If you are considering buying a home with a mortgage, be careful. Don’t automatically assume that you will be comfortable making a $3000 house payment just because the lender tells you that you “qualify” for it. You must still leave within your own means, and the mortgage broker isn’t really concerned about that. He or she just wants to sell the loan, and doing so may not be in your best interest.
If you are going to take out a home loan, create a budget and determine how much you can comfortably pay each month. That figure will undoubtedly be less than what your broker is willing to offer. Stick with your own figure, and don’t let the fever of the marketplace sway you. After all, you are the one who has to make the payment each month.
About the Author
©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a site devoted to debt consolidation and credit counseling, and HomeEquityHelp.com, a site devoted to information regarding mortgages and home equity lending .
|
|
|
|
|
| Cheap Loans | car, personal & secured homeowner loans ... |
| Compare over 400 UK personal (unsecured) and secured homeowner loans, including car loans, to find the cheapest deals... |
| www.moneysupermarket.com |
|
| E-LOAN: Mortgage Refinance, Home Equity, Auto Loans, Savings ... |
| E-LOAN offers home mortgage, refinance, home equity loans, lines of credit, auto and motorcycle loans, savings accounts and CDs with great rates online. |
| www.eloan.com |
|
| Loan Center - Yahoo! Finance - News, Education, Daily Rates and ... |
| Loan Center - The Yahoo! Finance Loan Center provides useful tips, calculators, and rate data to help you choose an auto loan, mortgage, or personal loan ... |
| loans.yahoo.com |
|
| FREE LOANS QUOTE - the customers champion. Finding you the right ... |
| COMPARE! Let us get you a loans quote with minimal fuss. We're the UK specialists. |
| www.moneyweb.co.uk |
|
| Personal Any Purpose Loans : Loans.co.uk : Personal Loans UK |
| Offers consumer loans for any purpose in the United Kingdom. |
| www.loans.co.uk |
|
| FinAid | Student Loans |
| An education loan is a form of financial aid that must be repaid, with interest. ... The interest rate on the Stafford Loan for new loans first disbursed ... |
| www.finaid.org |
|
| GovLoans.gov - Find the Right Loan for You |
| GovLoans is a partnership of many Federal agencies and organizations with a shared vision - to provide improved, personalized access to government loan ... |
| www.govloans.gov |
|
| Loan - Wikipedia, the free encyclopedia |
| Bank loans and credit are one way to increase the money supply. ... Abuse in the granting of loans is known as predatory lending. ... |
| en.wikipedia.org |
|
| Mortgages, Refinance, Home Loans, Home Equity Loans at Quicken Loans |
| Online lender offers simplified residential loans and competitive mortgage rates. Headquarters in Livonia, MI. |
| www.quickenloans.com |
|
| Mortgage Loans - Compare Mortgage Rates - MSN Money |
| Get a mortgage loan that’s right for you. Compare mortgage loan rates of top lenders. |
| moneycentral.msn.com |
|
| The Student Loans Company Ltd. |
| Provides details of the Student Loans system which is part of the Government's financial support package for students. |
| www.slc.co.uk |
|
| Sallie Mae - Private Student Loans, Stafford, PLUS, Student Loan ... |
| Apply online for federal and private student loans, consolidate student loans; financial aid and scholarship information for college, graduate school and ... |
| www.salliemae.com |
|
| Loan Guaranty Service, Home Page (U.S. Department of Veterans Affairs) |
| This page provides content and information related to the Loan Guaranty Home Loan Program. |
| www.homeloans.va.gov |
|
| Fool.co.uk - Compare Loans - Personal Loans and Unsecured Loans |
| Compare over 200 UK loans including personal loans, secured loans, and unsecured loans. Search all loans and apply online. |
| www.fool.co.uk |
|
| LendingTree Home Loans | Refinance | Home Equity | Mortgage Refinance |
| Service network of lenders that enables consumers to compare rates, apply for and get approval for competitive auto loans online. |
| www.lendingtree.com |
|
| Direct Loan Home Page |
| The US Department of Education's lending arm for students in participating schools and student loan consolidation. |
| www.ed.gov |
|
| Personal, home equity loans for union members at Union Plus |
| Union Privilege offers Union Plus benefits -- including credit card, mortgage, loans, insurance, scholarships, health care savings and other discounts -- to ... |
| www.unionplus.org |
|
| Countrywide Financial - Home Loans - Equity Loan Mortgages ... |
| Countrywide Home Loans is the nations largest independent mortgage lender offering home equity, HELOC, refinance, mortgages, debt consolidation and other ... |
| my.countrywide.com |
|
| Secured Loans UK - Secured Personal Loans - accepted.co.uk |
| We search over 200 secured loan plans to find the best deal from our lenders - accepted.co.uk. |
| www.accepted.co.uk |
|
| UK Loans : Personal Loans, Secured Loans, Cheap Loan Quotes |
| The UK Personal Loan Store offers comparisons of the UK loans, personal and secured loans. Also offers tips, articles and latest loan news section. |
| www.ukpersonalloanstore.co.uk |
|
|