There has been a lot of talk in the news lately about sub-prime mortgages and how they are affecting the housing market as well as some of the other economic sectors. Many consumers may be wondering just what are sub-prime mortgages. It is a fair question to ask, but a somewhat difficult one to answer.
One reason it is difficult to define sub-prime mortgages is because they can vary, and they can vary a great deal, in fact. Most of the sub-prime loans that were issued in the past had at least some of the factors that are detailed in this article, but the combination of factors were generally mixed. This one of the reasons why the sub-prime market grew so quickly; these loans could be all but custom-made to fit the individuals taking them out. In some cases that was fine, but in many other cases those exotic mixes of factors were a recipe for disaster.
Some of the factors that went into creating sub-prime mortgages include: Read the rest of this article »
For those seeking to buy a home, a good place to look for help with loans is through the federal government. Some of the more useful and common loan programs that are currently being offered follow:
There are three government agencies that insure mortgages for homebuyers. The first is the Federal Housing Administration (FHA), which is part of the U.S. Department of Housing and Urban Development. The second is the Veterans Administration (VA) which works with active duty and non-active duty military personnel. The third is the Rural Housing Service (RHS), which is a branch of the U.S. Department of Agriculture. Read the rest of this article »
Active duty military personnel who are having financial problems with their mortgage payments have some avenue of help under the Soldiers and Sailors Relief Act which can be very beneficial to them and to their families.
Who is eligible for this program?
The provisions of the SSRA apply to active duty military personnel who had a mortgage obligation prior to enlistment or prior to being ordered to active duty (for Reservists). This includes members of the Army, Navy, Marine Corps, Air Force, Coast Guard, as well as commissioned officers belonging to the Public Health Service and those in the National Oceanic and Atmospheric Administration (NOAA) who are engaged in active service. Military reservists ordered to report for military service and those persons ordered to report for induction under the Military Selective Service Act as well as guardsmen called to active service for more than 30 consecutive days are also covered under the act. Read the rest of this article »
By now most American consumers have heard about the sub-prime mortgage crisis. It would be difficult not to have heard about it. What many consumers have not heard much about is the increasing belief that even homeowners with prime mortgages may be facing some issues in the near future.
Of particular importance is the threat of lower home values, even for those with the best of credit and the best of mortgage loans. It is no secret that as homes in a particular area begin to fall into foreclosure proceedings, surrounding homes will lose value. The problem seems to work exponentially, too, meaning the more homes that are being lost the more value surrounding homes lose. Read the rest of this article »
Most people think that business loans are all unsecured loans. However, it is possible to obtain secured business loans that can offer better loan terms than regular business loans with little risk for the borrower and for the lender. Commercial mortgages can provide all the funds your business needs with very reasonable loan conditions.
Secured business loans are becoming more and more common among businessmen as small companies begin to own their own commercial offices and headquarters instead of renting. Thus, they can take advantage of real estate by obtaining finance through secured loans. But, they can also use as security their future sells, thus obtaining finance with alternative forms of collateral. Read the rest of this article »
Mortgage refinancing is a financial solution for homeowners that due to market conditions or a bad credit were forced to request and were approved for a home loan with a high interest rate and other non beneficial loan terms. Once market conditions and personal credit score have improved, refinance is the right option to get rid of such a heavy burden. Read the rest of this article »
Even people that know virtually nothing about finance and Wall Street are talking about the serious impact the subprime mortgage catastrophe has had on our economy. While the incredible number of failed subprime mortgages may have started the economic tumble, the continued financial problems and people’s inability to obtain a mortgage or mortgage refinancing of their home is exacerbated by poor credit scores.
To make matters worse, with the horrifying increase in foreclosures across the country, the mortgage, and mortgage refinancing problem for mortgage brokers is just going to grow. Read the rest of this article »
The news isn’t good. Over 30 subprime lenders closed their doors this year so far, with many more to come in the next few months. And, one of the biggest subprime lenders, New Century is ready to bite the dust. With all this and more, I would consider the subprime market effectively “dead” until this shakeout is finally finished.
Many of you have asked what can be done to stop the mortgage hemoraging and how you’ll be able to survive the new realities of the marketplace. In response, I’ve put together some of the best feedback and tips from fellow warriors like you. Read the rest of this article »
One of the most frequent questions I get asked from loan officers is, “How can I go out on my own and start my own mortgage company?” Often times, the person is sick and tired of low-commissions, office politics, too restrictive a time-schedule, etc. There are hundreds of reasons why they want to get out.
They see the money other loan officers are making, and wonder why they aren’t making that kind of money too? After all, they are doing the SAME work. The difference, very often, is just in the commission payout. Branching out on your own, is an instant pay-raise and can often double or triple the amount of commission you are currently earning. Read the rest of this article »
Again the Fed raised interest rates. And if you haven’t felt the noose tightening yet, you certaininly will now. With rates continuing their gentle climb and the refinance market now nothing but tumbleweeds, you MUST TAKE IMMEDIATE STEPS NOW if you want to survive in this industry.
Here are 10 immediate action steps you can take now. And, I emphasize the word “ACTION”:
1. Give yourself an instant raise. Find a mortgage company that pays a small salary plus commission, or one that has a very high commission structure like many net branch companies do. Again, my recommendations are: Allied Mortgage, Carteret Mortgage, and 1st Metropolitan. They were my top three picks from my past article on mortgage net branching. They pay upwards of 70% or more and even if you only do a few loans a month, you can still make out pretty well. Ask yourself, how much you are earning now?
2. Stop loan fallout. Review all of your current loan procedures and notice at what stage the majority of loans are killed at. Is it during the sales pre-qual phase? Is it during processing? Is it at the closing table? Wherever your loans fallout is where you should focus and scrutinize your efforts. (If you don’t have an organized system in place, you can always use my Sink or Swim Loan Closing System at http://www.loanclosingsystem.com . No matter what, the important thing is to start somewhere and write all your mistakes down. And I’ve done a lot of the work for you!) Remember, if you can save just 1 extra deal per month from dying somewhere during the loan process, that’s an immediate $2,000 to $3,000 extra per month in your pocket. Cha-ching! Another instant pay raise.
3. Focus on purchase money loans. I would give-up on the refinance market unless you are going after sub-prime loans or debt consolidation cash-outs. The interest rates just aren’t there and it won’t make sense for your prospects. The days of 5% on a 30-year fixed are over. Don’t waste your time trying to rework a deal a thousand times. If the numbers don’t add-up, the deal is dead anyway. Read the rest of this article »