Finance, Loan, Debt and Credit.

January 31, 2016

Other Types Of Mortgages

Filed under: Mortgage — Tags: , — admin @ 12:47 pm

In addition to the traditional fixed rate mortgage and the adjustable rate mortgage we all know about, there are some other types of mortgage instruments that are not so well known. This article details a few of those less-than-traditional mortgage methods.
Jumbo mortgage: A jumbo is nearly always considered a non-conforming loan because it exceeds the loan limit set by Fannie Mae and Freddie Mac. These are the two publicly chartered corporations that buy mortgage loans from lenders. They do this to make sure that mortgage loan money is available at all times around the nation. You should know that the single-family limit benchmark changes yearly and if you need to borrow more than that amount, you will need a jumbo mortgage. A jumbo loan usually has a higher interest rate than traditional loans.
The advantage of a jumbo mortgage is it allows you to buy a more expensive house. The disadvantage is that you will normally pay a higher interest rate.
Two-step Mortgage: These are some mortgages that use certain elements of both the fixed rate and the adjustable-rate mortgage. They might be called 2/28, 5/25 or 7/23. A two-step mortgage allows for a fixed rate and payment for an initial period, followed by one interest rate adjustment, then a fixed rate and payment for the remainder of the loan term. For example, a 5/25 has an initial fixed rate period of 5 years, then an adjustment to the rate, and then 25 years of adjusted payments.
Balloon Mortgage: A balloon mortgage is right for some people, but a bad idea for most. Home buyers in a balloon mortgage will see lower rates and payments for a specific period of time, which can be anywhere from 3 years to 10 years. At the end of that time, however, the home owner has to pay off the principal balance in one lump sum. In some cases, the mortgage may be changed to either a fixed-rate or adjustable-rate loan, but in other cases, it cannot. A balloon mortgage is most often used for those who know that they will not be in the home for long, and plans for selling it later on are somewhat firm.
Assumable Mortgage: Assumable mortgages do not happen often. An assumable loan is usually conducted with the seller and they should be approached with caution. Because they can be tricky, you should always use the services of a good attorney before getting into an assumable mortgage.
The same is true for another type of mortgage known as seller financing. With this type of loan, you pay the seller directly instead of to a bank. The property is often used as the security for the loan.
Construction Mortgages: Construction mortgages are used when building a new home is a key issue. These types of loans typically use a two-step borrowing system. The home owner may pay higher interest rates during the construction phase. Then the home owner may go through a second closing at which time the loan usually converts to a more traditional, long-term fixed-rate loan.

Fha Loan Rates And Fha Loan Requirements – General Information To Know Before Applying

Filed under: Loan — Tags: , , , , , , , , — admin @ 12:46 am

Although many people think the FHA is a lender, this isn’t the case. The FHA does not issue loans for borrowers looking to purchase homes – they are actually a federal government agency, known as the Federal Housing Administration.  The FHA typically requires mortgage insurance on the loans funded through their underwriting requirements given by approved lenders. This way the lender gets protection in case of default by the borrower. Today FHA loans are very popular and they provide excellent options for those who want to purchase a home – especially first time homebuyers.  Of course, FHA loans are not the only options available for your lending needs. You can compare loans to find the right option for you, but this means you need to know more about FHA loan requirements, FHA loan rates, and other important information surrounding these types of loans.

Loan Requirements

First of all, let’s take a look at the FHA loan requirements.  There are quite a few requirements that borrowers must meet in order to qualify for this type of a loan. First of all, they would like to see proof of two consecutive years of being employed regularly, and they prefer it to be with the same company.

Another of the FHA loan requirements is that the payment on the home is going to be 28% or less of the monthly income you have coming in. In many cases they require you to have a certain down payment amount saved up and they also do not want more than two payments that are more than 30 days late showing up on your credit report. However, these loans are available for those who have lower credit scores. Many people who do not qualify for other types of loans are able to qualify for a loan through the FHA programs.

Who Can Benefit From These Loans

Many people will find that FHA loans can be very beneficial. Because of the low FHA loan rates available, people who want a reasonable interest rate can benefit. Those who have less than perfect credit can benefit as well because they can still get reasonable FHA loan rates, even though they may not have the greatest credit. People who do not have a lot of money to apply towards a down payment will find these loans a great option, because they typically require less than 5% down payment.  In addition, those who think they may have a problem getting a loan will find them a great option too.

Many advantages can be offered by these FHA loans if you meet the FHA loan requirements. You’ll find that FHA loan rates are very competitive. The down payment is smaller than with most other loans. Even if you don’t have a credit history that is established, the lender can look at rent, payment on auto insurance and utility payments as well.  With all the benefits that are offered, those looking to purchase a new home should definitely consider what these types of loans could offer them.

January 30, 2016

Consolidating Credit Card Debt For Substantial Savings

Filed under: Credit — Tags: , , , , , , , — admin @ 12:46 pm

Consolidating credit card debt can help you cut back on your monthly bills.

It doesn’t take long for credit card debt to spiral out of control. Being out of work for a short period of time, medical expenses, and many other things can cause our debt to feel uncontrollable. Fortunately there are companies out there that are in business simply to help those that need it.

Hector Milla Editor of the “Credit Card Debt Free” website — — pointed out;

“…Debt consolidation works by taking your financed debt and lumping it all together. The consolidation company will work with your creditors to reduce the amount you owe. In most cases they are able to reduce the amount of the interest owed, and many times they can negotiate a payoff amount. Once the consolidation company is able to iron all of this out, they will total up the amount of your outstanding debt at the new numbers. Then they pay the debt off, and have you make a payment directly to the consolidation company. In most cases, consolidating your debts is essentially paying off all your outstanding debt and taking a new loan. Not all companies work this way, but the vast majority of them do…”

In negotiating a payoff, your monthly bills can be cut drastically. Some people have reported saving as much as 60% a month in their expenses by doing this. It will also help save your credit score from decreasing anymore. If you are facing increasing credit card bills, increased interest rates, and there seems to be no way out, consolidation may be the best answer for you.

On top of helping to cut your expenses back, many consolidation companies also offer credit counseling. This is a great option to help those who have gotten in over their heads avoid doing so again. It’s important to stick with a plan. Going at this with no help can be hard. Credit counseling services in conjunction with debt consolidation can be a great way to fix a problem, and prevent it from happening again.

“…Many people face tough times. Seeking help doesn’t make someone weak. In fact, it’s the opposite. Knowing when to ask for help can be the strongest thing to do. If you are facing a financial crisis like so many people do, seeking a consolidation company can help save you from further turmoil. It’s a simple process, and can give you the stability you need to get back on track…” added H. Milla.

Further information about trusted and reputable companies for credit card debt settlement by visiting;

How to Choose a Competent Tax Professional. Avoid Becoming a Victim of a Tax Resolution Scam

Filed under: Tax — Tags: , , , , , , , — admin @ 12:47 am

Helpful Hints When Choosing a Tax Professional:



Christopher R. Jacquez is the President of eTaxrelief and can be contacted via the company website at:

January 29, 2016

FHA home loans for Buying a Florida home, ((97%w 540 FICO))

Filed under: Loan — Tags: , , , , , , , , — admin @ 12:47 pm

Florida home buyers should know the many advantages of the FHA mortgage loan programs. FHA loans were created to help increase home ownership. For the Florida home buyer the FHA home loan program can simplify the purchase of buying a  Florida home, making financing easier and less expensive than an other home loan program. Some highlights of the Florida FHA loan program include:

Minimal Down Payment and Closing costs.

Easier Credit Qualifying Guidelines such as:

To take advantage of the FHA program in Florida, give us a call 1-800-570-0448 or use our quick application at


There are lots of good reasons to choose an FHA home loan over other Florida mortgage programs, especially if one or more of the following apply to you:

If any of these things describe you, then an FHA home  loan may be right for you. Why? FHA home loans offer many benefits and a level of security that you won’t find in other loans including:

Low cost: FHA home loans have competitive interest rates because the federal government insures the loans for lenders.

Lower down payment requirements: FHA home loans have a low 3.5% down payment and the money can come from a family member, employer or charitable organization as a gift.

Easier qualification: Because FHA insures your mortgage, FHA mortgage lenders may be more willing to give you FHA home loan terms that make it easier for you to qualify.

Less than perfect credit: You don’t have to have perfect credit to get an FHA home loan. In fact, even if you have had credit problems, such as a bankruptcy, it’s easier for you to qualify for an FHA home loan than any other mortgage program.  

More protection to keep your home: The FHA has been helping people since 1934. Should you encounter hard times after buying your home, the FHA has many options to keep you in your home and avoid foreclosure.

FHA insures loans for lenders against defaults – it does not lend money or set interest rates. For the best interest rate and terms on a mortgage, you should compare mortgages from several different lenders. An FHA-approved lender can help you start the loan application process.

You may use an FHA-insured mortgage to purchase or refinance a new or existing 1- to 4-unit home, a condominium or a manufactured or mobile home (provided it is on a permanent foundation).

Fixed-rate loans – Most FHA home loans are fixed-rate mortgages (loans). The advantage of a fixed-rate mortgage is that your interest rate stays the same during the loan period, so you know exactly how much your monthly payment will be.

Adjustable rate loans – First-time homebuyers can be a little stretched financially. With FHA’s adjustable rate mortgage (ARM), the initial interest rate and monthly payments are low, but these may change during the life of the loan. FHA uses the 1-Year Constant Maturity Treasury Index (CMT) to calculate the changes in interest rates. An index is a measure of interest rate changes that determine how much the interest rate on an ARM will change over time.

The maximum FHA home loan that the interest rate on your FHA home loan may increase or decrease in any one year is 1 or 2 percentage points, depending upon the type of ARM you choose. Over the life of the loan, the maximum interest rate change is 5 or 6 percentage points from the initial rate. The advantage of selecting an ARM is that you may be able to expand your house-hunting value range because your initial interest rate will be low, as will your payment. Click for a more in-depth explanation…

Purchase/Rehabilitation loans – Sometimes you might see a home you’d like to buy, but it needs a lot of work. FHA has a loan for rehabilitating and repairing single-family properties called the SF Rehabilitation Loan program (203k). You can get one loan which combines the mortgage and the cost of repairs. The mortgage amount is based on the projected value of the property with the work completed. The advantage of this loan is that you can buy a home that needs a lot of work, but have only one mortgage payment, and you can complete the repairs after buying the home. Read more about these loans.

Indian Reservations and Other Restricted Lands – A family who purchases a home under this program can apply for financing through an FHA-approved lending institution such as a bank, savings and loan, or a mortgage company. To qualify, the borrower must meet standard FHA credit qualifications. An eligible borrower can receive approximately 97% financing and use a gift for the downpayment. Closing cost can be financed; covered by a gift, grant or secondary financing; or paid by the seller without reduction in value. More… 

Subprime loans are loans designed for homebuyers who don’t have a strong credit history or can’t qualify for a regular or prime loan. Lenders charge a high interest rate on subprime loans because the risk that a homebuyer may not make their payments is high. Because FHA insures the lender against this risk, the interest rates on FHA-insured loans are generally among the lowest in the market. Most subprime loans carry interest rates at least 3 percentage points higher than an FHA-insured loan. On a $100,000 mortgage, the monthly payment for a subprime loan would be over $200 a month higher than an FHA-insured loan.

The majority of subprime loans are also ARMs, where the interest rate can change a lot and greatly increase your monthly payments. Most FHA-insured loans are fixed-rate loans where the mortgage payment always stays the same. If you have an FHA-insured ARM loan, the rate can’t go up by more than one or two points in a year. The fees that lenders charge their borrowers for processing a subprime loan are also generally higher than on an FHA-insured loan.

Most subprime loans carry a heavy prepayment penalty that you must pay if you want to refinance your loan to a lower interest rate. These penalties can cost you hundreds or even thousands of dollars. There is never a prepayment penalty on an FHA-insured loan. You can refinance at any time and not worry about paying any penalties.

Unfortunately, because they don’t know these facts, many homebuyers who could qualify to buy a home with a fixed-rate FHA-insured loan only apply for subprime loans. Check out an FHA-insured loan before settling for a subprime loan!

Conventional loans usually require a larger downpayment than FHA and if you have less than perfect credit you may not qualify for an affordable mortgage with a low interest rate . The best thing to do is compare the cost of the conventional loan to an FHA-insured loan line-by-line. What are the fees for each? What is the interest rate? How much is the mortgage insurance? How much downpayment is required? For some borrowers, a conventional loan may be less expensive. For many others, getting an FHA-insured loan is the way to go.

Yes – as you will with most loans.

The Housing and Economic Recovery Act of 2008 provides for a one-year moratorium on the implementation of FHA’s risk-based premiums beginning October 1, 2008.  Consequently, effective with new FHA case number assignments on or after that date, FHA will no longer base its mortgage insurance premiums on a combination of credit bureau score and loan-to-value ratio.  The new premiums (upfront and annual) to be implemented for all loans for which a case number is assigned on or after October 1, 2008, are described below.  Mortgagee Letter 2008-16 is rescinded in its entirety.  Please note that certain parts of that mortgagee letter are retained and reiterated in the guidance that follows.

UFMIP= Upfront Mortgage Insurance Premiums:  FHA home loans will charge an upfront premium in an amount equal to the following percentages of the mortgage: 

Most home loans require mortgage insurance when your downpayment is less than 20% of the sales price. On conventional and subprime loans, mortgage insurance is provided by private companies. Whether private mortgage insurance is less than, equal to, or more than an FHA-insured loan’s insurance will depend upon the loan program and your qualifications.

Compare the cost of FHA home loan home loan compare  to subprime and conventional types of loans over the life of your loan. Then compare how much each one costs monthly. With the protection and value you get from an FHA home loan you will find it’s a very good deal.



Car Loan Repayment Is Very Important

Filed under: Loan — Tags: , , , , , — admin @ 12:46 am

Car loans are very important. They are helpful and highly needed in a turbulent economy such, as ours because, without them, buying and owning a car would virtually be impossible. The process of applying for a car loan is a very difficult one, but it is relatively easy and simple when compared with the process of paying back a car loan. The process of applying and being granted approval for a car loan is nothing compared to the process of repaying a car loan in terms of difficulty. A car loan is one of the most difficult type loans to pay because, a car by virtue of its very nature is a fast depreciating asset such that its purchase cost cannot be recovered even if it is resold a few days after buying it. When taking up a car loan, the lender normally requests that, you should provide a proof that you would not default in terms of payment. Such proof might entail having a reliable source of income or a stable and a non-debt stricken financial profile or portfolio. Being able to assess a consumer or customers ability to repay the amount that he has being financed with as car loan, is one of the most difficult task for a lender. Most people who have succeeded in paying back the money that they have being financed with as car loans were able to do so because they took advantage of the machinery that were made available to them. One of such machineries is a refinance loan. A refinance loan is a loan that you take to cover up for a loan that you are experiencing difficulty in repaying. Most people, who take up refinance loan to finance their car loans, usually do so because they are running out of time and need to repay the amount that they owe before the stipulated deadline. When you take up a refinance loan, you are granted the opportunity of being financed with the monies that you need to pay off the amount that you owe on your car loan.

January 28, 2016

The Perfect Mortgage Refinance!

Filed under: Mortgage — Tags: , , , — admin @ 12:46 pm

Do you have an adjustable rate mortgage? Have you seen your mortgage payment increase repeatedly over the last few years? Mortgage Expert Jim Kemish revisits the recent dramatic changes in the interest rate environment and discusses an exciting new mortgage product that just may offer the perfect combination of low payment and long term stability that you are looking for.The Good Old Days
Ah, remember the good old days when the Federal Funds rate was 1% and the Prime Rate was 4%? This was the case in 2004. It’s amazing what a couple of years can do. The change began in June of 2004 with the first of the Federal Reserve rate hikes. We didn’t know it at the time but that rate increase was to be the first of many. By June of 2006 the Federal Reserve had increased the rates seventeen times.The Beginning of the End
As interest rates went up mortgage applicants began to turn towards adjustable rate mortgages to minimize their home payments. There is a bit of irony in this fact. Adjustable rate mortgages, by definition, adjust. And in an upward rate environment those adjustments will result in higher future interest rates for borrowers that opt for adjustable rate home loans. One might have expected borrowers to run in droves towards fixed rate mortgage products. But exactly the opposite occurred.The Rush to ARMs
There were reasons for this behavior. As interest rates were moving up real estate prices continued to soar. Home buyers found themselves purchasing in price ranges that they never would have imagined just two or three years earlier. In order to make their new giant mortgages affordable these buyers resorted to any home loan that promised a low payment, even if it was for a limited amount of time.The Price Paid
For a while these loan programs provided manageable payments, but the tides of change conspired to place these borrowers in unexpected discomfort. As the adjustment dates arrived borrowers found that their interest rates were increasing the maximum amount allowed. In some cases the increase was manageable, but in almost all cases the first increase was followed by additional increases scheduled to occur either every six or twelve months. Literally millions of borrowers have watched their mortgage payments double.Looking for a Way Out
Before long these home owners discovered that they needed to do something to relieve the budgetary pressure of their ballooning payments. We have seen many of our Florida mortgage customers in this situation asking to refinance into another adjustable rate mortgage for relief, only to discover that adjustable rates are no longer priced below fixed rate mortgages. Other borrowers have opted for negative amortization loans, temporarily postponing the day of reckoning when the combination of falling home values and their increasing principle balance force them to either face a much higher monthly payment, or sell their home.A New Option
We have another suggestion. There is an exciting new hybrid mortgage product available. Say hello to the new thirty year fixed rate interest only mortgage. This program has a very attractive low interest-only payment combined with the stability of a 30 year fixed rate mortgage. In addition, the interest only period lasts for a full 10 years. This is a fantastic option for borrowers looking for affordability without the payment risk associated with an adjustable rate program. As one might expect from the above description, during the first 10 years of the loan the payment will be interest only. For the remaining 20 years the payment will include principle and interest and will amortize over the remaining term.Principle Reduction for Lower Payment
An additional nice feature of this program is the ability to reduce your principle and cause a commensurate reduction of your monthly payments. These principle reductions may be made any time during the initial 10 year interest only period. The very next scheduled monthly interest payment will be calculated on the adjusted outstanding principle balance, allowing you to enjoy a reduced monthly payment. Any principle reductions made after the 10 year interest only period will not cause a recalculation of the monthly payment. Never Worry About Rate Changes Again
It is worth emphasizing, that unlike the interest only mortgage programs of the past, when the interest only period has ended the interest rate does not change. From year 11 onward you can continue to enjoy the security of your fixed rate mortgage amortized over the remaining twenty years of the loan. As Florida mortgage brokers we have found that this feature is very attractive to our many retired customers that feel the need to have a predictable mortgage payment.Are You Ready?
This program is available for both conforming loan amounts as well as for jumbos up to two million dollars. And, unlike so many of the adjustable rate products in the market, this mortgage does not carry a pre-payment penalty. So, if rates drop in the future you can refinance without facing a prohibitive penalty. If you have been on the roller coaster of an adjustable rate mortgage and are ready for some stability, but would still like to enjoy a minimal payment, this just might be the right choice for you.
Copyright © 2007 James W. Kemish. All Content. All Rights Reserved.

Common Irs Tax Settlement Programs

Filed under: Tax — Tags: , , — admin @ 12:47 am

Full PaymentThe fastest way to resolve owed back taxes is by paying them in full. This includes paying the interest and penalties that have been assessed by the IRS back. These penalties and interest can quickly add thousands of dollars to your tax liability as they are constantly accruing. If you intend to fully repay the IRS then you should try to do so as soon as possible to avoid additional expenses.Installment AgreementBy negotiating an Installment Agreement (IA) with the IRS, you can repay all, or part, of your total back tax liability through manageable monthly payments. The specific monthly payment is based upon how much you owe and how much you can afford to pay. However, negotiating your payment will require a full disclosure of your and your spouse’s financial information. Additionally, as with all IRS tax relief programs, you can only enter into an agreement if you have filed all your necessary federal income tax returns.Streamlined Installment AgreementThis is a special type of Installment Agreement. Again, the Streamlined Installment Agreement (SIA) is just a monthly payment paid to the IRS to address your back tax liability. The difference is how it is calculated. An IA is based upon a comparison of income to expenses. An SIA is based upon how much you owe. So long as you owe less than $25,000 and the tax liability will not expire in less than five years, you qualify for this payment plan.Placement on CNC StatusIf you cannot afford to pay on your IRS back taxes at all, then you might qualify for placement on the IRS’ Currently Not Collectible (CNC) status. However, you will need to prove to the IRS that your monthly necessary living expenses exceed your monthly income.Offer in CompromiseThe final settlement program offered by the IRS is an Offer in Compromise (OIC). With an OIC you submit an offer to the IRS detailing what you can afford to pay in a lump sump. If the IRS accepts then by submitting payment you will resolve your tax debts. However, submitting an OIC requires disclosure of extensive financial information in order to prove that you could not repay your taxes fully over the next 4 or 5 years even if the IRS forced the sale of all assets that you currently own.Innocent SpouseThis is a very limited form of tax debt resolution. It is only applicable when one’s spouse files a joint tax return which accrues a tax liability without any knowledge on the part of the other spouse of what caused the underlying IRS tax liability. Although it is very limited, it is one in the best forms of tax debt resolution because it completely eliminates the debt, interest, and penalties from the innocent spouse’s IRS account. However, the “non-innocent” spouse still needs to seek a different form of resolution.

January 27, 2016

Auto Refinance Calculator – Getting Accurate Figures From an Auto Refinance Calculator

Filed under: Loan — Tags: , , , , , , , — admin @ 12:46 pm

An auto refinance calculator is an excellent tool that you can use to see if, and how, refinancing can save you money. It has an easy interface that allows users to input just a few basic figures, such as loan balances, interest rates, and loan terms. All the complicated calculations are handled in the background, and in just a split second you can have a fairly accurate comparison of your current and new prospective auto loan. There are many out there, but most of them will have ask for the following information. It’s helpful to be somewhat knowledgeable about them.An auto refinance calculator will often times ask for the “payoff amount.” This can also be labeled as “principal,” “loan balance,” or even simply as “loan amount.” The most important thing to understand is that you need to enter the amount given to you by your lender when you request a “payoff” quote. This is different from your loan balance, as it can include accrued unpaid interest, and estimated interest that will accrue from the date that you request the payoff quote to the date that your lender expects to receive full payment (usually 7-10 business days). This amount can also include extra fees, such as title transfer fees and prepayment penalties. So, just call your lender and ask them for a payoff quote. They will usually tell you something like, ‘your payoff amount is x dollars and this quote is good until…’ That way, you can shop around for a couple days knowing your refinance quotes are fairly accurate.Next, you’ll most likely have to enter into the auto refinance calculator, the new interest rate at which you will be refinancing. This figure varies from lender to lender. There’s no way you can know exactly what this will be without a lending company doing a full check on your employment and credit. So, you’ll have to do some educated guessing. Plus, since you are just window shopping you don’t want to have a bunch of inquiries on your credit report because that will lower your credit scores. This is the last thing you want when you finally fill out an auto refinance application. So call each of the prospective auto refinancing companies, or visit their websites to get an average…..

Older Posts »

Powered by WordPress