Top Northern Kentucky Realtor: mortgage interest rates

Showing posts with label mortgage interest rates. Show all posts

Wednesday, October 19, 2011

Other Solutions Realtors And Home Buyers Can Use To Avoid Predator Lenders

• Check out lenders with the Better Business Bureau, government websites, or other consumer groups. How long has the lender been in business? Have consumers filed many complaints? Does the lender belong to a trade association with ethics requirements for its members?

• Refuse to participate in transactions that may be fraudulent.

• Share predatory lending “horror” stories with regulators, other consumers, REALTORS®, counseling groups, housing professionals, and the media.

• Make contracts subject to the homebuyer receiving approval from a lender for a fair and affordable loan.

• Avoid unnecessary contract extensions that could cause the lender’s loan commitment to lapse.

• Get educated on the value of your home by asking your REALTOR® for a comparative market analysis.

• Review the HUD-1 closing statement before closing. Upon request, home buyers have the right to see this information 24 hours before the loan closing.

• Report possible violations to appropriate federal, state and local officials.

Bob Abner (Huff Realty) is a well-respected, top Realtor in the Northern Kentucky/Greater Cincinnati real estate market with vast experience in the real estate industry. For Northern Kentucky Real Estate Listings and Home buying and selling Information visit: http://www.BobAbner.com

Bob Abner, top full time Realtor in the Northern Kentucky area, serves the Campbell County, Kenton County and Boone County real estate market. Affiliated with Huff Realty, Bob gives both Buyer and Seller the very best in service and marketing. Sellers-marketing and exposure doesn’t stop until the house is sold. Bob Abner and Huff Realty are leaders in the real estate industry, selling your house in today’s market giving you a host of proven strategies producing the most exposure to get your home sold as quickly and profitable as possible. Buyers-you get years of real estate knowledge, expertise, and a myriad of services from beginning to end. Huff Mortgage has competitive rates, works closely with Bob and gives you e-mail updates each step of your loan progresses. Huff Title makes the closing process go smoothly. Huff Insurance has competitive rates and excellent customer service. One-stop shopping makes the home buying process as simple and problem free. Testimonials attest to Bob's hard work, communication and outstanding ability to negotiate and problem solve. Whether selling or buying a home, there is no better Realtor in the Northern Kentucky area than Bob Abner.

Tuesday, October 18, 2011

If The Loan Is An Adjustable Rate Mortgage (ARM) Ask:

• What is the initial rate?

• How long will that rate stay in effect?

• How is the adjusted interest rate determined? (Generally, a specified amount—the “margin”—is added to a current published rate—the “index.”)

• How often can the rate change?

• How much can the rate go up each year and over the life of the loan? What is the maximum monthly payment you could be required to pay? Would you be able to afford it?

• Does the loan set a minimum interest rate?

• Do the monthly payments gradually decrease the amount you owe even if interest rates increase? (With some loans, the amount you still owe can increase rather than decrease each month—called “negative amortization.”)

• Does the interest rate increase if your payments are late?

• Could you qualify for a loan with the maximum interest rate permitted under the mortgage? If not, do you anticipate earning more in the future so you will be able to afford the higher payment?

• Can the adjustable rate mortgage loan be converted (changed) to a fixed rate without refinancing into a new loan? Is there a charge to convert?

Bob Abner

Monday, October 17, 2011

Shop For The Lowest-Cost Loan

REALTORS® develop relationships of trust with the families they serve, and can help you avoid predatory loans by

encouraging careful shopping. Ask these important questions:

• What is my credit score? Can I have a copy of my credit report?

• What is the best interest rate today? Do I qualify?

• Is the loan’s interest rate fixed or adjustable?

• What is the term (length) of the loan?

• What are the total loan fees?

• What is the total monthly payment? Does this include property taxes and insurance? If not, how much will I need each month for taxes and insurance?

• Is there an application fee? If so, what is it, and how much is refundable if I don’t qualify?

• Are there any prepayment penalties? If so, what are they and how long do they last?

Bob Abner

Thursday, October 13, 2011

Beware of Predatory Loans!

For most families, buying a home is the biggest and smartest purchase they ever make. One of the keys to success is getting an affordable home loan with fair terms and reasonable costs. Unfortunately, home buyers need to be aware that some loans are not in their best interest. When loans hurt instead of help, they can quickly lead to foreclosure and even bankruptcy.

There is no single definition of predatory lending, because the term covers a wide range of abusive practices. Some practices may be predatory for one borrower but not for another, because everyone’s circumstances are different. Predatory lenders often take advantage of first-time homebuyers and others who may be vulnerable to high-pressure sales tactics.

I can provide information about predatory lending, refer clients to reputable lenders, and encourage families to make informed decisions about how to finance their homes. Responsible lenders play a vital role in helping families achieve homeownership, but consumers need to make sure they are not dealing with a predatory lender. Some unscrupulous lenders are only interested in taking as much money as possible, and are not concerned about whether loans are affordable, sustainable, and truly helpful to home buyers and homeowners.

Remember the old saying, "if it sounds too good to be true, it probably is!"

Bob Abner

Sunday, October 9, 2011

Possible Warning Signs Of A Predatory Loan

• Sounds too easy. “Guaranteed approval” or “no income verification” regardless of borrower’s current employment, credit history, and assets. These claims indicate the lender doesn’t care about whether you can afford to make the payments over the long haul.

• Excessive fees. Higher lender and/or mortgage broker fees than are typical in your market. Because these costs can be financed as part of the loan, they are easy to disguise or downplay. On competitive loans, fees are negotiable. It is common for home buyers to pay only one percent of the loan amount for prime loans. By contrast, a typical predatory loan may cost five percent or more.

• Large future costs. High-risk adjustable rate mortgages where the payment rises a lot after a short introductory period are seldom appropriate for families who already have had problems repaying other loans. Home buyers also should avoid a large single “balloon” payment (a lump sum due at the end of the loan’s term).

• Closing delays. The lender deliberately delays closing so the commitment on a reasonably-priced loan expires.

• Over-valued property. Inflated appraisals that allow excessive fees to be included in the loan and result in the borrower owing more to the bank than the home is worth.

• Barriers to refinancing. Prepayment penalties that make it hard for a borrower to refinance in order to pay off a high-cost loan by taking advantage of a low-cost loan.

• No down payment loans. These loans may be split into two mortgages, with one having a much higher cost. Home buyers should be sure they can afford the payments.

• Unethical document management. An ethical lender or broker will always require you to sign key loan papers, and they will never ask you to sign a document dated before the date you sign it.

Bob Abner

Wednesday, August 31, 2011

Dispelling the 20 Percent Downpayment Myth You're Hearing In The News - IMPORTANT TO KNOW

Dispelling the 20 Percent Downpayment Myth

The government proposal that could have significant impact on the future of the housing industry: the QRM, or Qualified Residential Mortgage, as part of the Dodd-Frank Act. According to the proposed QRM definition, lenders must hold 5% of the risk of any given residential loan unless it is considered a QRM, which is a loan that has a 20% downpayment and meets other debt-to-income and borrower credit history requirements.

While QRM would not automatically preclude loans from being originated with less than a 20% downpayment, these loans will cost significantly more, as the lender will be required to hold a percentage of the risk.

It seems the speculation and debate surrounding QRM is causing some low-downpayment home buyers to believe they will not be able to obtain financing. These prospective home buyers are hearing that lenders will no longer approve them for a mortgage unless they have at least a 20% downpayment. It appears this belief stems from misinformation from recent media stories and even some loan officers and real estate agents.

This is simply not true. Mortgages are available for low downpayment buyers, both through the FHA and through conventional loans backed by private mortgage insurance.

While news stories continue to emphasize nothing but “doom and gloom” scenarios, the reality is that market conditions have changed for the better in recent months. While the housing crisis has led to an increase in underwriting risk considerations, a more “normal” lending environment has resumed in a majority of U.S. cities and mortgage rates are some of the lowest in years. These low rates, combined with good deals on home prices, equal a time of unprecedented opportunity for potential home buyers.

Although it can be difficult to keep up with rapidly changing lending practices, real estat agents should, at a minimum, have a general understanding of the lending options currently available to help keep as many qualified home buyers in the market as possible.

Potential home buyers need credible, reliable housing finance information and they can find this information through partnerships that you have established with mortgage loan professionals who are up-to-date on the best possible options for buyers. Real estate agents are one of the most powerful influencers in the home-buying process, with the ability to provide clarity on misconceptions surrounding the current market and to encourage potential home buyers who may have put their home purchase plans on hold to resume house hunting at full speed.

Otherwise, qualified buyers with low downpayments may turn away from the market based on a misconception, which is a lost opportunity for them to purchase a home at a time of high affordability. This is the last thing anyone wants at a time when new buyers are needed to help the market recover.

By: Brian McMahon

Bob Abner