Home Loan Focus

Archive for the ‘mortgages’ Category

There is another loan crisis that is brewing rapidly on the heals of the sub prime mortgage crisis.  Like mortgages, this other loan crisis revolves around one of the biggest investments (and possibly the most important) that most people will ever make.  This new crisis is brewing in the Student Loan market.

Many of the same banks and companies that made a killing in mortgages and even fraudulently took advantage of borrowers in the sub prime market as well.  Those same banks and companies used similar tools and marketing vehicles to go after another susceptible group of borrowers, high school and college students. 

This group of people were eager and in some cases desperate to take out money in the form of a loan so that they can go to college and get a good education, or at a minimum a degree.  That sounds very familiar on many levels to borrowers that were eager to consolidate debt, or reduce their interest charges or their total monthly payments or many other things.

At least mortgage borrowers get some sort of free gift maybe even personalized pens when they sign the close documents, but Students are just getting saddled with debt and if the recession does hit, this could definitely sap the vitality out of Generations X, Y, Z and beyond.

Here’s another great video in the series from Money Talks News offering ways to reduce your mortgage fees by pitting them against each other.

The key here is to stop and take time to go over the paperwork, one page at a time.

I just came across an interesting program that can enable people to borrow up to $30,000 on top of their FHA home loan.  The additional money can be used to repair or upgrade your future or new home in the following areas:

• Repair/Replacement roofs, gutters and downspouts
• Repair/Replacement/upgrade of existing HVAC systems
• Repair/Replacement/upgrade of plumbing and electrical systems
• Repair/Replacement of existing flooring
• Minor remodeling, such as kitchens, which does not involve structural repairs
• Exterior and interior painting
• Weatherization: including storm windows and doors, insulation, weather stripping, etc.
• Appliances – when at least $3,000 of basic home repairs are involved. Appliances may include free-standing ranges, refrigerators, washers/dryers, dishwashers and microwaves and may not exceed $2,000 in total cost.
• Improvements for accessibility for persons with disabilities

www.hudclips.org 

I think this is especially important as we consider the rising cost of energy prices. This type of loan can allow a home owner to upgrade to a more efficient heating or air conditioner or other appliances and possibly even add solar energy products.

We are kicking off a new site to to focus on home loans. The real estate market in the mortgage market are in a slight state of turmoil, and it’s even more important now to pay extra attention to that market, what’s going on in the industry, and what is right for you when you purchase a home and take out a loan or mortgage.

We are going to walk through this process, a look at best practices and new trends and figure out the best way to navigate the real estate and mortgage markets today. I will be walking you through my attempts to finance a home and sell my current home. In addition to my firsthand experience, I have a double major in finance and accounting and a Masters in international tax law. I have also completed required courses to sit for the real estate exam in multiple states even though I don’t work in that industry and have not sat for the exams.

My family has worked in real estate for close to a 60 years and through indirect experience from the family business I have additional perspective. I sold my first home was 10 years old, and I financed my first home I was 24. neither of those achievements are extra impressive today in the age of the Internet and the real estate booms, however the industry is tightening and starting to revert back to controls and mechanisms that have been ignored for the last 10 to 15 years. Current homebuyers need to be aware of the change in the industry, and the practices and policies of the industry if they are to navigate their way through the markets and make the best deals on their own behalf and avoid the pitfalls that come with being overextended and a mortgage or a home in a market where credit is contracting.

We’re hoping to gather your insights and questions and share our experiences along the way!