Loan


Ways to improve your credit score

Closing accounts also hurts your credit utilization ratio by reducing your available credit.

  • Maintain a mix of credit, including mortgage, home equity, auto loans and credit cards, and pay those bills on time...
    Banks, credit card companies and others use credit scores in deciding whether to give you a loan, how much money you can borrow and how much interest to charge you...
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    Balance sheet



    Personal balance sheet

    A personal balance sheet lists current assets such as cash in checking accounts and savings accounts, long-term assets such as common stock and real estate, current liabilities such as loan debt and mortgage debt due, or overdue, long-term liabilities such as mortgage and other loan debt...
    Often, these businesses owe money to suppliers and to tax authorities, and the proprietors do not withdraw all their original capital and profits at the end of each period...
    Looking at the equation in this way shows how assets were financed: either by borrowing money (liability) or by using the owner's money (owner's or shareholders' equity)...
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    Down Payment



    Until October 1, 2008, sellers had the right to help buyers build sums of money for down payments by contributing up to 6% of the home value...
    This is a much less common practice today, since few banks can afford it in the times when America is still healing the wounds of the recent mortgage crisis...


    Mortgage Down Payment Requirements

    There are lots of mortgage down payment options available for potential home buyers...


    Down Payment Assistance

    Down payment assistance programs are intended for helping potential home buyers, as well as those willing to purchase other luxury objects, build up an amount of money to cover part of the total value...


    Once you find a home that suits your preferences and wallet, with a 20% down payment, you can calculate the amount of money to be paid down as follows: multiply the original price by 0.20...
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    Down Payment Calculator

    In a way, FDA acts like some kind of insurance company, as it provides assistance for money lending institutions, should their clients default on their loans...
    Unfortunately, this practice contributed to the 2008 mortgage crisis in the USA and was rejected by most lending institutions...
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    FHA Loan Down Payment

    Unfortunately, that was way too generous and many borrowers failed to discharge their debts, which actually resulted in a severe mortgage crisis...
    According to the federal down payment assistance program, the mission of the Federal Housing Administration (FHA) has been to provide insurance services for money-lending institutions and home sellers participating in down payment assistance programs...
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    Here are some questions about the HARP refinance program

    (In November, 9 percent of HARP loans had a loan-to-value ratio greater than 125 percent; and for the full year through November, more than a quarter had L.T.V.s greater than 105 percent, the government said.)

    Who qualifies? In addition to a good repayment history — no late payments in the previous six months, and no more than one in the last year — the borrower must have taken out the loan before June 1, 2009, and it must be owned by Fannie Mae or Freddie Mac, the two government-sponsored mortgage finance companies...
    (You can search ownership using the “loan look up” tools on the HARP website; make sure you search by both Fannie and Freddie.)

    Continue reading the main storyContinue reading the main storyContinue reading the main story

    One potential bright spot is that mortgage rates fell this week, potentially making refinancings more attractive: The average rate for a traditional 30-year fixed-rate mortgage was 3.63 percent, the lowest level since May 2013, according to Freddie Mac...
    Before 2009, mortgage rates hovered near 6 percent, or higher...


    (Loan-to-value is a measure of how much the borrower owes, relative to the home’s value; the “L.T.V.” is obtained by dividing the amount of the mortgage by the value of the home.) But that cap was later removed, and now there is no maximum, if borrowers are financing into a fixed-rate mortgage...


    One problem is that some borrowers are skeptical or fear that an offer of a lower mortgage rate is a scam, even when their own lenders initiate contact, said Guy Cecala, publisher of Inside Mortgage Finance, an industry publication...
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