There is a new relatively unheard of method of obtaining a mortgage which is intended for people with less than ideal credit or those who are first time home buyers. It is called co-buying. It is a name which is also synonymous with co-purchasing or co-signing. It has yet to gain major attention in the United States, but it has been rearing its ugly head in the UK and in Australia.

The basic concept behind co-buying is that you find someone to help you obtain your mortgage by being a co-signer and co-purchaser on your mortgage. This person is your “mortgage buddy”, who takes over part of the financial responsibility of your mortgage thus making you less of a risk for a lender. For a first time buyer this would appear to be an excellent way to get into real estate as fast as possible. More »« Less

TAGGED: finances, home, mortgage, real estate

UK Homeowners Struggling With Mortgage Payments

Yes it’s true. Other countries in the world besides the United States have populations struggling to make their mortgage payments. Our neighbors in the UK are showing signs of hardship as well today, the housing market remains primarily strong but these articles hint at a hidden picture which not everyone realizes exists, and if they aren’t careful with their borrowing, they may find themselves in this position as well.

Read up and enjoy a few of today’s mortgage headlines from the UK:

Homeowners Struggle to Meet Mortgage Payments

Thousands Risk All for Mortgages

Homes at Risk as Debt Rises

 

TAGGED: debt, market watch, mortgage payments, uk

It’s very surprising how many people don’t even know what a mortgage broker is. Perhaps it is time to actually look at what they do and how they benefit someone looking for a mortgage.

A mortgage broker is in essence everyones favorite person, he is the middleman. He benefits lenders by finding people to take their offers, and he benefits buyers (you the person trying to get a mortgage) by getting you the lowest rate you are comfortable with. A broker works independently from lending firms, often on a private level or out of a brokerage. A broker is a sleuth at finding different mortgage options. They often have multitudes of mortgage sources available from which to work with.

Unlike if you were to go to a bank, a mortgage broker isn’t bound by only the options that one lender offers, he is able to look at the bigger picture and help you find the best deal. This can be especially helpful for people with credit issues, which might ordinarily prevent them from obtaining a mortgage. They can also save time by going to all the mortgage sources at once, as opposed to a potential mortgage purchaser having to deal with individual lenders at a time.

What other benefits do they hold? Well they often are very knowledgeable about mortgages, and if you know nothing about mortgages whatsoever, other than the fact you need one, they will be a huge resource. Your broker will usually help you with all the necessary paper work too. They can tell you what you need to gather in order to have the best presentation to the lender.

Your broker wants you to get a mortgage, so they will do whatever they can to help. Do not however, let you broker push you into things. They should exist as a council to you not a handler. If they seem like a used car salesman, perhaps it is time to find another brokerage.

Do your research and find a broker whom you trust. Brokers are regulated but check with your local business bureau to get the real scoop on who you are trusting your mortgage with.

If you have more questions related to mortgage brokers I would highly recommend visiting Online Mortgage Advice, which is a great unbiased place for consumers to get the info they need.

TAGGED: brokerage, lenders, lending firms, mortgage, mortgage advice, mortgage broker

Foreclosures are a very common occurence in todays world. With a very volatile economy and the unfortunate existance of Adjustable Rate Mortgages, or ARMs, more and more people are finding themselves unable to make their mortgage payments and are teetering on the brink of foreclosure. Foreclosure is something you do not want to go through

Foreclosure is the process by which a lending agent, whether it be a mortgage company or bank move to sell a piece of property attached to a mortgage or deed. If you don’t make your payments expect to have you property foreclosed. These properties are usually put up for auction or foreclosure sale by the lender in an attempt to make back the money they put up for the home.  

Looking at the front page of the website Foreclosure.com one can see the saddening statistics of mortgage foreclosure on their front page. At the time this posting was published they had a total of 107,090 foreclosure listings on their site. This didn’t include the preforeclosures and bankruptcies they also list. Many of these foreclosures could have been held off by proactive action on behalf of the homeowner.

If the economy takes a stab at your interest rates on your mortgage, specifically if you have an ARM. It is critical to take an interest in protecting yourself. Contact your broker or lender immediately when you start to feel the pinch and ask for both advice and help. Lenders may allow you to modify your mortgage or refinance which could save your bacon, and some even allow for flexible repayment plans.

Also be prepared to cut out the luxuries in your life at least for the meantime in order to ride out the rough parts. As awful as condensed soup is at least you may keep your house by dining in.

Number one tip: Ask for help immediately, don’t wait until there is an eviction notice on your front door.

TAGGED: ARM, economy, foreclosure, mortgage, mortgage rates, refinance

Not to advocate doing anything too drastic when you have a bad experience related to owning a home, but Todd Carpenter, owner and writer of mortgage blog Lenderama, has a very entertaining recent post involving some disgruntled home owners and what they did to make some noise about their complaint.

Jog on over and take a look at his article titled “Never underestimate the power of referrals”, and enjoy the pictures!

 

TAGGED: home owner, mortgage, referrals

Weeks ago when reports began to filter in about the housing market finally slowing down dramatically, most of us dismissed them as usual media hype which has been forced on us for the two years during the housing market boom. All of the rumors about the big “bubble burst”, etc., seemed to find their way into the weekly financial news. Today however some continued trends are now hinting more than ever that the market is changing.

Congressionally chartered mortgage powerhouse Freddie Mac today reported that for the sixth consecutive week mortgage rates are dropping. 30 year fixed rate mortgages fell to 6.44% this week. 15 year fixed rate mortgages were down to 6.14%. Decreases in interest rates also occurred for 5 and 1 year adjustable rate mortgages.

The complete Freddie Mac findings can be found here:MORTGAGE RATES CONTINUE TO DRIFT LOWER AS HOUSING MARKET EASES BACK FROM RECORD HIGHS

TAGGED: housing market, mortgage rates