Obama Unveils $75B Mortgage Relief Plan – CBS News #mortgage #relief #program


#obama mortgage relief

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Obama Unveils $75B Mortgage Relief Plan

President Barack Obama waves as he arrives to deliver remarks about the home mortgage crisis, Wednesday, Feb. 18, 2009, at Dobson High School in Mesa, Ariz. (AP Photo/Gerald Herbert) Close

Seeking to tackle “a crisis unlike any we’ve ever known,” President Barack Obama unveiled an ambitious $75 billion plan Wednesday to keep as many as 9 million Americans from losing their homes to foreclosure.

Announcing the plan in Arizona – a state especially hard hit by the housing crunch – Mr. Obama said that turning around the battered economy requires stemming the continuing tide of foreclosures. The housing crisis that began last year set many other factors in motion and helped lead to the current, widening recession.

“In the end, all of us are paying a price for this home mortgage crisis ,” Mr. Obama said at a high school outside Phoenix. “And all of us will pay an even steeper price if we allow this crisis to deepen.”

But while talking in broad strokes about the importance of the issue to the economy as a whole, the president took care not to miss the pain that the housing problems are causing in individual families

“The American Dream is being tested by a home mortgage crisis that not only threatens the stability of our economy but also the stability of families and neighborhoods,” he said. “While this crisis is vast, it begins just one house and one family at a time.”

More expensive than expected, Mr. Obama’s plan aims to keep between 7 million and 9 million people from foreclosure. Of the nearly 52 million U.S. homeowners with a mortgage, about 13.8 million, or nearly 27 percent, owe more on their mortgage than their house is now worth, according to Moody’s Economy.com.

Headlining Mr. Obama’s plan is a $75 billion Homeowner Stability Initiative, which would provide a set of incentives to mortgage lenders in an effort to convince them to help up to 4 million borrowers on the verge of foreclosure. The goal: cut monthly mortgage payments to sustainable levels, defined as no more than 31 percent of a homeowners income. Funding would come from the $700 billion financial industry bailout passed by Congress last fall.

Another key component would specifically help those said to be “under water” – with dwellings whose market value have sunk below the principal still owed on the mortgages. Such mortgages have traditionally been almost impossible to refinance. But the White House said its program will help 4 million to 5 million families do just that – if their mortgages are owned or guaranteed by Fannie Mae or Freddie Mac.

The White House says a typical homeowner with a $200,000 dollar mortgage would save about $2,300 a year, reports CBS News correspondent Chip Reid .

Some analysts say the plan will work only if the president’s jobs plan works first.

“You can modify all the loans you want, you can try to refinance loans, but if you don’t have money coming in through your pay, sort of weekly paycheck, you can’t pay anything,” said Nicolas Retsinas, director of the Joint Center for Housing Studies at Harvard University.

Analysts say Mr. Obama’s plan will help many borrowers stay in their homes – but economist Mark Zandi told CBS News correspondent Anthony Mason that he estimates that nearly 4 million foreclosed homes will be sold over the next three years.

“The housing downturn, the mortgage crisis is only intensifying,” Zandi said. “And I think even with this plan it’ll get worse.”

House Republican leadership and Senator Charles Grassley, R-Iowa, ranking member of the Senate Finance Committee, sent letters to administration officials asking for assurances that anti-fraud measures will be put in place to guarantee that taxpayer dollars are not used to re-do mortgages that were originally based on fraudulent documentation. Grassley notes that experts in mortgage lending say that anywhere from 30-70 percent of all mortgages inked in the last few years were based on fraudulent claims of assets or income.

Housing Secretary Shaun Donovan stressed that homeowners don’t need to be delinquent in order to get help.

“This is necessary policy. It’s smart economics. And it’s just and fair,” Treasury Secretary Timothy Geithner told reporters.

Asked why the cost had jumped to $75 billion from initial talk of a $50 billion effort, Geithner said, “We think that’s necessary to make a program like this work.”

And he said relief would be almost instantaneous, basically as soon as rules are published March 4. “You’ll start to see the effects quite quickly”, Geithner said.

Sheila Bair, chairman of the Federal Deposit Insurance Corporation, said previous efforts had largely flopped. “We’ve not attacked the problem at the core,” she told reporters. “We are woefully behind the curve.”

The biggest players in the mortgage industry already had halted foreclosures pending Mr. Obama’s announcement.

“The plan I’m announcing focuses on rescuing families who have played by the rules and acted responsibly,” Mr. Obama said. “It will not rescue the unscrupulous or irresponsible by throwing good taxpayer money after bad loans.”

He issued a warning as well: “All of us must learn to live within our means again.”

He said the plan will not help those who took risky bets by buying homes to sell them, not live in them, or dishonest lenders who distorted facts for naive buyers, or buyers who signed on for loans they knew they could not afford.

“This plan will not save every home,” Mr. Obama said.

In tandem with the foreclosure plan, the Treasury Department announced it would double the size of its lifeline to Fannie Mae and Freddie Mac, seeking to bolster confidence in the mortgage giants effectively taken over by the government last fall. The government said it would absorb up to $200 billion in losses at each company, by using money Congress set aside last year, and will continue purchasing mortgage-backed securities from them.

The Treasury said the increased support for Fannie Mae and Freddie Mac didn’t reflect projected losses at the two companies. The two companies are currently projected to need a combined government subsidy of about $66 billion, well short of the new promise of up to $400 billion.

Asked about the doubling of the guarantees for Fannie and Freddie, Geithner said: “This is not a judgment about the expected losses ahead. It underscores commitment, and that is very important to help keep mortgage rates low.” Geithner said most not all of the money would come the financial bailout fund.

The president’s announcement came a day after he signed into law a $787 billion economic stimulus plan he hopes will spark an economic turnaround and create or save 3.5 million jobs.

At the same time, the administration was grappling with the darkening prospects for the U.S. auto industry.

Even as Detroit carmakers submitted restructuring plans to qualify for continued government loans, General Motors Corp. and Chrysler LLC asked for another $14 billion in bailout cash.

2009 CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.

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Mortgage Points Calculator – Chase Mortgage #monthly #payment #mortgage


#mortgage points

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Adjustable Rate Mortgage Terms You Should Know #canadian #mortgage #calculator


#5 year arm

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Adjustable Rate Mortgage Terms You Should Know – “ARM” Yourself with Knowledge

With interest rates on fixed-rate mortgages trending upward, adjustable rate mortgages (ARMs) can be an attractive alternative. Several times over the last 30 years, consumers have turned to ARMs in market conditions that favored short-term rates over the traditional 30-year fixed.

However, while most consumers responsibly carry an ARM, there have been situations where the ARM did not make financial sense, and as a result, the loan earned a tarnished reputation. News of negative amortization loans and optional payment plans overshadowed the true function of the ARM which involves neither.

The truth is, many consumers have benefitted from ARMs and prefer to use them as a tool to save money in the short-term while planning for the long-term. Current market conditions are once again leaning in favor of adjustable rate mortgages and it’s important to understand their function. Here’s information about ARMs, how to interpret the “lingo” and how to decide if it’s right for you.

Adjustable Rate Mortgage Definition

An adjustable rate mortgage is a home loan with an interest rate that adjusts on a predetermined basis. Most ARMs begin with a fixed rate for a certain period of time and then adjust up or down according to the index on which it is based, after the fixed period expires. For example, if you have a 5/1 ARM, the interest rate is fixed for the first five years and then the rate adjusts once each year beginning in year 6.

ARMs typically offer a lower initial interest rate than a traditional 30-year fixed mortgage. After the fixed period, the interest rate can fluctuate based on market conditions but the loan agreement typically has a lifetime cap so the monthly payments cannot exceed a specific threshold. When interest rates increase, typically, loan payments also increase and the same is true when rates go down. However, each time the rate resets, it does so on the remaining years and the remaining balance of your loan, not the initial loan amount, which can help mitigate an extreme disparity between the previous payment and the new one.

Adjustable Rate Mortgages

To comprehend the functionality of ARMs, there are a few terms you should understand when talking to your mortgage banker to determine if this loan program is a good match for your financial situation:

Index: The economic indicator used to calculate interest-rate adjustments for ARMs. The index rate can increase or decrease at any time.

Initial Cap: This cap is the maximum amount the interest rate can adjust after the fixed-period. (The initial cap and the periodic cap may be the same or different i.e. 2/2/5 or 5/2/5)

Periodic Cap: This cap puts a limit on the interest-rate increase from one adjustment period to the next.

Lifetime Cap: This cap puts a limit on the interest-rate increase over the life of the loan. All adjustable-rate mortgages have an overall cap.

Adjustable Rate Mortgage Loans

You should also be able to recognize these terms in their numerical form, as this is the way in which your lender will illustrate the type of ARM you qualify for.

5/1: The five represents the amount of years the interest rate is fixed. The one indicates that the interest rate will adjust yearly after the fixed period.

2/2/5:(Note: Caps can be different depending on the term of the loan. For example, you may find that a 7-year ARM has a 5/2/5 cap structure). But for this example, the first two means that the most a rate can change is two percent the year after the fixed period expires. The second two means that the rate can change two percent every year thereafter, and the five means the maximum percentage that can be added to the initial rate for the lifetime of the loan.

For example, the maximum rate and payment you would experience for a $200,000 5/1 loan (2/2/5) at 3.99% would be:

It’s important to note that while interest rates can rise, they can also decrease, making your payments smaller. The example above reflects the most you would pay if rates increased to the maximum or lifetime cap. Knowing the maximum amount you could end up paying on your ARM is important, because it will help you decide if it’s best to refinance prior to the expiration of the fixed rate, or continue to allow the rate to adjust because it is still cost-effective. Even with the adjusted rates, the average rate on this loan is 5.365%, which is comparable or lower than a 30-year fixed rate. In addition, the ARM gives you the opportunity to save thousands of dollars the first five years of the loan (money you would have spent on the fixed-rate loan) and gives you greater equity in your home because you reduce your principal faster. Being the financially savvy client that you are, you realize that the savings could be used to pay down additional debt, add to your retirement fund or something more creative!

Ready to get started or curious about adjustable rate loan options? Contact a Home Loan Expert today !

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Who Wants an ARM? These Folks May Be Interested Adjustable rate mortgages (ARMs) often get blamed for the U.S. housing bubble burst in 2008. But as.

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Refinance To An ARM? The Timing May Be Perfect #home #mortgage #rates


#5 year arm

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Refinance To An ARM? The Timing May Be Perfect.

ARM Mortgage Rates Average 2.99%

Today’s mortgage rates remain near historical lows and, with more than 6 million U.S. homes eligible to refinance, a mini-refinance boom is underway.

According to Freddie Mac’s most recent mortgage rate survey, 30-year fixed rate mortgages currently average 3.93 percent nationwide; and, 15-year fixed rate mortgages average 3.16%.

However, for the right borrower, the 5-year adjustable-rate mortgage (ARM) looks excellent.

The popular ARM loan now averages 2.93%.

Mortgage Rates: 4.25 Points Beneath Averages

Each week, government-backed Freddie Mac surveys a network of more than 100 lenders to find the “national mortgage rate” for prime borrowers.

“Prime” borrowers are defined as those having a credit score of 740 of better; verifiable income with acceptable debt-to-income ratios; and a loan-to-value of eighty percent or lower.

The most recent Freddie Mac survey shows the average 30-year mortgage rate at 3.93%; and the average 15-year mortgage rate at 3.16 percent. Rates are available to borrowers agreeable to paying 0.6 and 0.5 discount points, respectively.

As compared to history, these rates are remarkable.

Freddie Mac has tracked mortgage rate data since 1971. Throughout those 44 years, the 30-year mortgage rate has averaged near 8.375 percent. Rates today are less than half of that.

Borrowers are required to pay far fewer points, too.

Historically, banks have assessed 1.3 discount points per loan to U.S. borrowers. Today, those costs are down close to two-thirds.

Borrowers are saving big money.

Historically, it’s required $375,000 to pay a $100,000, 30-year mortgage to zero. Today, that cost is $171,000.

Today’s homeowners pay 55% less to own their home outright.

Today’s ARM Mortgage Rates Drop Below 3%

Along with fixed-rate mortgage rates, adjustable-rate mortgage rates are near new lows, too.

Freddie Mac’s weekly mortgage rate survey puts the 5-year adjustable-rate mortgage at 2.99% nationwide with just 0.4 discount points required at closing.

The 5-year ARM and its low rate can be enticing, but it’s important to understand how an adjustable-rate mortgage works before choosing one to finance your home.

Today’s ARMs are governed by strict rules which determine by how much rates can change each year; and, which place limits to how high your adjustable-rate mortgage rate can go in any given year.

However, you’ll still want to know to what you’re agreeing.

ARMs work like this.

For some fixed number of years — usually between three and ten — the mortgage rates for an ARM cannot change. With a 5-year ARM, this initial period is five years. With a 7-year ARM, the period is seven years.

Then, after the initial, fixed number of years have passed, the ARM mortgage rate can change but only based on a pre-determined formula .

Most ARMs are limited to interest rate changes of no more than 2% per year, save for their first annual adjustment.

For example, at its first adjustment, a 5-year ARM is typically limited to a range of ±5 percentage points from the original “teaser” rate; and, a 7-year ARM is typically limited to a range of ±6 percentage points.

This first adjustment is the only time an ARM’s rate can move by such large amounts.

Beginning 12 months after the initial adjustment, and repeating every 12 months during the loan’s 30 years, ARM mortgage rates are subject to adjust again, but limited to just ±2 percentage points in either direction.

Your mortgage rate can never move more than 2 percentage points in a year — up or down.

In addition, your rate is “capped”.

ARM mortgage rates can’t move infinitely higher. ARM mortgage rates are restricted by “collars”, which are typically ±5% or ±6% from the loan’s starter rate.

The “rules of the ARM” protect borrowers. Payments can’t climb at the discretion of the bank; nor can rates changes based on some arbitrary factor.

ARMs can only adjust according to prescribed rules.

Are ARMs Better Than Fixed Rate Mortgages?

In today’s market, the mortgage rate of a 5-year ARM is a 94 basis points (0.94%) lower than a comparable 30-year fixed. Rates for the 5-year ARM average 2.99% and rates for the 30-year loan average 3.93%.

Because its rates are lower, 5-year ARMs save $52 per $100,000 borrowed at today’s mortgage rates.

Getting access to “cheaper payments”, though, should not be the reason you choose an adjustable-rate mortgage over a fixed-rate one.

There are 3 bona fide scenarios in which a homeowner should consider an ARM over a 30-year fixed.

The first scenario is one in which the homeowner intends to move or sell within the next 5-7 years.

For homeowners not in need of a “long-term” loan, an adjustable-rate mortgage can be an excellent way forward. There’s no need to pay more for the fixed-rate nature of a 30-year fixed rate loan when a 5-year ARM can suffice.

A second scenario for which to consider an ARM is when you know with certainty that you will refinance your home within the next five years.

This scenario can be tricky, however, because there’s no guarantee of what mortgage rates will be in the future when you decide to refinance; or whether you’ll qualify for a loan when the time comes to refinance.

Lastly, consider a adjustable-rate mortgage if you’re comfortable with the notion that your mortgage rate may change, and you’re budgeted to make larger payments.

Payments for an ARM won’t leap uncontrollably, but any increase to your payment can be an uncomfortable one.

What Are Today’s Mortgage Rates?

Current mortgage rates are low. Fixed-rate mortgage rates are below four percent and adjustable-rate mortgage rates are in the 2s. It’s a good time to compare your mortgage options and see what you can save.

Get today’s live mortgage rates now. Your social security number is not required to get started, and all quotes come with access to your live mortgage credit scores.

The information contained on The Mortgage Reports website is for informational purposes only and is not an advertisement for products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, parent, or affiliates.


What to Expect when Applying for a Commercial Mortgage Loan: Part 1 #loan #rates #today


#commercial mortgage

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What to Expect when Applying for a Commercial Mortgage Loan:
Banks and Private Alternatives
Part 1

If you have never borrowed money for your business before, you may be in for a surprise. Whether you want to borrow working capital to expand your business or leverage equity in a commercial real estate venture, you will soon find out the commercial loan process is very different from the more common home mortgage process. Commercial loans, unlike the vast majority of residential mortgages, are not ultimately backed by a governmental entity such as Fannie Mae. Consequently, most commercial lenders are risk-averse; they charge higher interests rate than on a comparable home loan. Some lenders go a step further, scrutinizing the borrower’s business as well as the commercial property that will serve as collateral for the loan. This means that the business borrower should have different expectations when applying for a loan against his commercial property than he would have for a loan secured by his or her primary residence.

Following is a list of questions the borrower should ask himself and the lender before applying for a commercial loan.

1. How am I going to meet the loan repayment terms?

Typically, bank loans require the borrower to repay his or her entire business loan much earlier than its stated due date. Banks do this by requiring most of their loans to include a balloon repayment. This means the borrower will pay interest and principal on his 30-year mortgage at the stated interest rate for the first few years (generally 3, 5 or 10 years) and then repay the entire balance in one balloon payment.

Many borrowers do not save enough in such a short time frame, so they must either re-qualify for their loan or refinance the loan at the end of the balloon term. If the business happens to have any cash-flow problems in the years immediately preceding the balloon term, the lender may require a higher interest rate, or the borrower may not qualify for a loan at all. If this happens, the borrower runs the risk of being turned down for financing altogether and the property may be in jeopardy of foreclosure.

A balloon loan has other risks as well. If the borrower’s business is in a “risky” industry at the time the balloon is due (think of the oil and gas bust in the 1980s or the telecom implosion of the 2000s), the lender may back out of all refinancing for the enterprise. Alternatively, a lender simply may decide its loan portfolio has too many loans in a given industry, so he will deny future refinancing within that trade.

Non-bank lenders generally offer less stringent credit requirements for commercial loans. Some non-bank lenders will make long-term commercial loans without requiring the early balloon repayment. These loans, which may carry a slightly higher interest rate, work like a typical home loan. They allow a steady repayment over twenty or thirty years. It is often worth paying a one- or two-point higher interest rate for a fixed-term loan in order to ensure the security of a long-term loan commitment.

2. How much can or should I borrow?

Most bank loans prohibit second mortgages, so the borrower should go into the loan process intending to borrow enough to meet current business needs, or enough to sufficiently leverage real estate investments. For a traditional acquisition loan in which the borrower is buying a new property, banks usually require a down payment of 20-25%. So for a $600,000 acquisition, the borrower will need to come up with $120,000-$150,000 for the down payment.

Some non-traditional loans will allow the borrower to make a smaller down payment, maximizing the loan-to-value (LTV) at 85-90%. Such loans are generally not bank loans, but are offered by direct commercial lenders or pools of commercial investors. If the customer wants to borrow the maximum amount possible, the interest rate on such loans may be a point or two higher than typical bank loans. Before deciding how much to borrow, potential borrowers should:

  • Evaluate how much cash they are likely to need
  • Analyze their ability to repay the loan as it is structured

Research has consistently shown that the number one reason behind the failures of most small businesses is the lack of adequate capital to meet cash-flow needs. Because of this it may actually be safer for a small business to leave a larger cushion against unforeseen events by borrowing more money at the slightly higher rate.

The amount of the loan requested has an effect on which commercial lenders will fund the loan. Small businesses borrowing less than $2,000,000 will visit a different pool of potential lenders than those seeking loans of over $5 million. Small business loans are generally made by direct commercial lenders (easily located by internet searches) or by small local banks. Larger loans are generally made by regional banks, and very large loans are made by mega-banks or Wall Street lenders.


New York Reverse Mortgage Loans #compare #mortgages


#generation mortgage

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New York Reverse Mortgage

A reverse mortgage is a loan for homeowners age 62 and older that allows seniors to access a portion of their home’s equity. The loan generally does not become due until the last surviving homeowner permanently moves out of the property or passes away. After the borrower is no longer living in the home, the estate may choose to either repay the balance of the reverse mortgage or sell the home to pay off the balance. Any remaining equity from the sale of the home is inherited by the estate. If the balance of the reverse mortgage loan is greater than what the home sells for the estate is not liable for the difference.

The Council of Senior Centers and Services of New York City, Inc. (CSCS) states that, “The population of older adults living with financial insecurity is growing. The current economic recession, coupled with a dramatic expected increase in adults over the age of 65 by 2030, poses an enormous challenge to seniors’ abilities to remain in their homes and communities. According to the NYC Center for Economic Opportunity, 1 in 3 New Yorkers over the age of 65 live in poverty. CSCS’ landmark Senior Center Study shows that over 40% of older adults attending senior centers have annual household incomes of less than $10,000 and 90% have annual household incomes of less than $30,000.” Based on this study, it’s clear that the needs of many seniors in New York are often not being met.

NBC reports, “A retired single New York resident makes $17,000 each year from pensions, Social Security and other sources of income, according to WOW’s (Wider Opportunities for Women) Economic Security Database. This income, which is below the national average for the elderly, does not come close to the estimated $26,244 required annually if New York seniors were to live comfortably and with economic security.” According to NBC, mortgage payments and rent make up a large portion of seniors’ monthly expenses, and in states such as New York, where housing costs are higher than average, this has become a real financial burden for many struggling seniors. New York seniors are facing an uphill battle as medical and living expenses are increasing.

The New York State Office for the Aging (NYSOFA) serves as an advocate for over 3.7 million New Yorkers ages 60 and up. NYSOFA provides services such as legal assistance, consumer health care information, nutritional care, veteran’s assistance, financial and tax assistance, community programs to assist seniors, caregivers and family members, recreation, housing, energy, transportation and information and services. NYSOFA also has local offices to better serve residents with local resources. If you or someone you know is a senior who is struggling to make ends meet, your local NY State Office for the Aging may be able to offer assistance.

People generally like to stay in their own homes if it is physically and financially possible for them to live independently. Many seniors rely on their retirement income, which is likely to be based on a fixed income which may include pension, Social Security and personal savings. This is often not enough to afford in home care, major medical emergencies, or other unplanned financial strains should the need arise. A reverse mortgage loan may provide the necessary funds for seniors to afford to continue living in their own homes.

For eligible New York homeowners, a reverse mortgage loan could provide the financial assistance to allow them to stay in their own home while affording in home care, medical expenses or to make modifications to their homes for better accessibility. However, the borrower must continue to pay property taxes, homeowner’s insurance and maintain the home according Federal Housing Administration requirements.


Generation Mortgage #average #mortgage #payment


#generation mortgage

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Posted in Generation Mortgage

Nationstar Mortgage Holdings (NYSE: NSM), an active servicer of reverse mortgages, has acquired a portfolio of reverse mortgage servicing rights from Generation Mortgage following Generation’s exit from originations and subsequent wind down.

Nationstar paid $192 million to Generation Mortgage and received reverse mortgage net assets valued at $233 million, comprising $4.9 billion of unpaid principal balance assets and $4.6 of assumed liabilities, according to Nationstar’s most recent 10-Q filing with the Securities and Exchange Commission (SEC).

Generation, a longtime originator of reverse mortgages, announced in October 2014 it would be exiting originations and winding down its reverse mortgage business.

Last month, the Consumer Financial Protection Bureau (CFPB) published thousands of consumer narratives describing their various complaints with financial products, including reverse mortgages. But in the grand scheme of things, gripes related to reverse mortgages represent only a minute share of total mortgage complaints, according to new independent research.

Since it began accepting mortgage complaints in December 2011, the CFPB has published 138,086 complaints about mortgages through March 16, 2015—more than any other financial product, says the report Mortgages and Mortgage Complaints: The CFPB s Consumer Complaint Database Gets Real Results for Victims of Mortgage Problems from the U.S. PIRG Education Fund, a federation of state public interest research groups.

Urban Financial of America, LLC, has hired industry veteran Ron Bartley as Midwest area manager for the No. 3-ranked reverse mortgage lender’s Retail Sales Division.

“With nearly a decade in the reverse mortgage industry and 40 years’ mortgage experience, Ron is truly a seasoned mortgage veteran who brings expertise, client knowledge and exceptional recruiting talent to the table,” said National Retail Sales Vice President Scott Norman, in a statement.

Previously, Bartley was the Midwest area sales manager at American Advisors Group (AAG). Prior to that, he was a Home Equity Conversion Mortgage (HECM) advisor and central region team leader for Liberty Home Equity Solutions.

The only reverse mortgage market constant is change, and 2014 was no exception. This year saw the impact of product changes implemented in late 2013, as well as new changes: non-borrowing spouse protections, new principal limit factors, a top-10 lender exit, product innovation, and many, many others.

Industry members saw Generation Mortgage wind down its reverse mortgage originations business while AAG rose in the ranks to become the No. 1 lender by volume. Some borrowers received more proceeds under the new principal limit factors announced in 2014, and principal limit factors in general became more sensitive to interest rate adjustments — a big unknown for the years ahead. Continue reading

The Better Business Bureau Serving Metro Atlanta, Athens Northeast Georgia recognized Generation Mortgage Company with an award honoring ethical marketplace practices for the third year in a row. The company’s Chief Information Officer Walt Carter has also been named Corporate Georgia CIO of the year.

The awards were presented following Generation’s exit from reverse mortgage originations. announced in October. The company remains a reverse mortgage servicer and has continued in the business of securitizing reverse mortgage loans through Ginnie Mae.

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30 Year Fixed Rate Mortgage, Get A Low Rate #fixed #rate #mortgages


#30 year mortgage

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30 Year Fixed-Rate Mortgage

A 30 year fixed rate mortgage is a very popular home loan option. It s long term and fixed rate makes it attractive to many home owners. However, is it the right mortgage for you?

What Is a 30 Year Fixed Rate Mortgage?

A 30 year fixed rate mortgage is a long term mortgage option, spanning 30 years, with the same interest rate for the entire life of the mortgage. Due to this, homeowners with a 30 year fixed rate mortgage will have payments that stay the same, allowing them to know exactly how to budget their finances every month.

Is a 30 Year Fixed Rate Mortgage Right For You?

To decide if a 30 year fixed mortgage is right for you, ask yourself these four things:

  1. How Long Are You Planning On Staying In Your Home?
    If you re considering getting a 30 year fixed rate mortgage, you should also be planning on staying in your home for more than 5-7 years.
  2. Do You Prefer Your Monthly Mortgage Payment To Stay The Same?
    30 year fixed rate mortgages are famous for having an interest rate that doesn t change for the entire life of the loan, keeping your mortgage payments the same month-after-month, for 360 months.
  3. Do You Want a Low Mortgage Payment?
    Due to the long nature of this loan, a 30 year fixed rate mortgage makes your monthly mortgage payments more affordable in comparison to shorter length fixed rate mortgages (like a 15 year fixed rate mortgage). You end up paying more interest over the 30 years, but the principal repayment is spread over that same time period, which gives you more manageable payment amounts.
  4. Are You Purchasing or Refinancing?
    This mortgage option is great if you re looking to buy a new home. However, if you re looking to refinance your home that you already own at a lower rate, a 30 year mortgage may be too long for you. You may want to consider a shorter fixed mortgage term based on how much you can afford and what your mortgage refinancing goals are.

A 30 year fixed rate mortgage gives peace of mind to homebuyers who choose it, whether they are first-time homebuyers or just don t want to worry about fluctuating mortgage payments.

Did You Know?

As with most amortized loans, you pay off more interest (than principal) at the beginning of the 30 years of your fixed rate mortgage. As you pay your mortgage over time, this will slowly switch and you ll reach a point where you ll be paying more off in principal than interest.

What this means is as you first pay off your 30 year fixed rate mortgage, your principal balance won t decrease very much in the first couple of years, due to you paying off, mainly, interest. Once you begin paying off more principal in the later years, you ll see your mortgage balance decrease faster.

Why Trust Guaranteed Rate With Your 30 Year Fixed Rate Mortgage?

Guaranteed Rate has helped hundreds of thousands of people find the perfect home loan option for them, with a 95 percent satisfaction customer rating too!

Call us at 1-866-934-7283 or apply now we d love to assist you too!

Other loan options you might be interested in:


Compare 30 Year Mortgage Rates and Home Loan Programs – American Financial Resources #mortgage #lenders


#30 year mortgage

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Compare 30 Year Mortgage Rates

30 year home loans are easily the most popular home financing solutions for our clients. 30 year mortgages enable a borrower to spread their payments out over a 360 month period while offering the security of a fixed rate loan. And with most 30 year mortgages, you can make additional payments every month without incurring a penalty thus paying off your loan well in advance of the 30 year term (confirm this with your loan officer). We offer a wide range of 30 year home loans including FHA loans, jumbo loans, VA loans, USDA loans, mobile home loans, and traditional fixed rate programs. Whether you are looking to purchase a condominium in Hawaii, a rental property in New York, or a vacation home along the Atlantic Coast in North Carolina, we are here to deliver low 30 year interest rates and some of the best programs on the market.

Request 30 year interest rates (3 Choices):

  • Dial 800-316-9508 to request current 30 year mortgage rates .
  • Request 30 year home loan pricing using the Mortgage Rate Quote Form
  • Get started on your mortgage online .

Benefits of a 30 year home loan:

  • Predictability of fixed rate mortgage with payments spread out over a 30 year period.
  • Offers some flexibility in that borrowers can typically pay down their mortgages faster by electing to make additional principle payments (verify with your loan professional).
  • 30 year interest rates have been near historic lows for the past few years making them more attractive to borrowers.

Contact us today to compare our current 30 year mortgage rates with the other companies that you are researching. We think you will be glad you did.

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30-year mortgage, or 15? 5 questions to help you choose #pay #off #mortgage #early


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30-year mortgage, or 15? 5 questions to help you choose

Alexander E. M. Hess | 24/7 Wall St. Nov 7, 2013

It has been a slow and painful process, but the housing market is now in recovery and foreclosures have been dropping. Since the housing bust, regulators have focused on preventing borrowers from entering into potentially toxic loans. To help accomplish this, the U.S. government established the Consumer Financial Protection Bureau (CFPB) in 2010.

As part of this effort, the CFPB has proposed new disclosure forms to help borrowers understand the real risks and costs associated with their mortgage. But many potential borrowers are still unsure about the type of mortgage that is right for them. Many borrowers may be attracted to 15-year mortgages, which have a shorter term and lower interest rates than 30-year mortgages. But such a mortgage may not be right for their needs.

Despite the rise in popularity of the 15-year mortgage, it is not necessarily for everyone. For borrowers, it is important to get as much information about the different common mortgages institutions offer — and to understand the different terms. While the amount being borrowed, or principal of the loan, is often clear, the cost of the loan, or interest rate, is often less so.

In an interview with 24/7 Wall St. Guy Cecala, publisher of Inside Mortgage Finance. said borrowing to buy a home is a more complicated decision than refinancing. It is “much more of a calculation about what you can afford, how secure you are about your job, what’s the likelihood you’re going to want to move in less than five years.”

Borrowers must understand how payments, which consist of principal repayment and interest, will be structured under the different types of mortgages. They need to consider how much they will be paying for the loan, not just now, but in the future as well. And they should also consider their budget, age and other factors before deciding on a mortgage.

These are the questions to ask when deciding between and 15 and 30-year mortgage.

1. Can you afford to pay off the mortgage in 15 years?

Although a 15-year mortgage offers a lower rate relative to a 30-year mortgage, thereby allowing borrowers to pay interest for only half as long, a 15-year mortgage comes with a higher total monthly payment. This is because the principal must be paid off faster, making each principal payment larger.

Because borrowers pay down the principal balance faster, in the longer run they save on interest payments. Inside Mortgage Finance publisher Guy Cecala noted, “if you can afford the higher payments associated with the shorter-term 15-year mortgage, there is no reason not to take one.”

However, because the monthly payments are higher, it can strain borrowers’ ability to set aside money for retirement or their kids’ college tuition. These borrowers may be better-off with a 30-year mortgage. Similarly, if the higher payments of a 15-year mortgage mean borrowers have less money to invest elsewhere and diversify their portfolios, they may be better off with a 30-year mortgage.

2. Are you buying your first home?

First-time home buyers often benefit from selecting a 30-year mortgage because the monthly payments are lower. A longer-term mortgage can make a more expensive home more affordable for a new buyer. According to Cecala, most first-time home buyers “are trying to get in as much house as they can.”

Of course, 15-year and 30-year mortgages are not the only options available to consumers. Borrowers can take an adjustable-rate mortgage, which offers a low initial rate that stays unchanged for some period, such as five years. When the period expires, borrowers could pay more if interest rates rise. But for buyers who are not looking to own their home for too long and who are confident that they will be able to resell the home, an adjustable rate mortgage may be a sensible option.

3. Are you looking to refinance?

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If you already have a mortgage and would like to refinance, now may be a good time. Cecala noted that if your current payments on a 30-year mortgage are high enough, you might be able to refinance into a 15-year mortgage and make similar monthly payments while shortening your mortgage term.

An additional factor that may make refinancing more attractive is the current difference, or spread, between interest rates on 15-year and 30-year mortgages. According to Cecala, “historically, the difference between the 30-year fixed rate and the 15-year fixed rate has been about 25 basis points,” or about 0.25%. Currently, the spread between the two rates is especially large, at close to 1% in some cases.

4. Are you planning on retiring soon?

How close a borrower is to retiring plays a major role in whether to take out a 15-year mortgage. Typically, borrowers who take 15-year mortgages are at least 40 years old, according to Cecala. These borrowers are often willing to pay off the balance on their mortgages faster in order to retire with little or no outstanding debt on their homes. However, many older homeowners also must weigh prepayment — making early payments on their mortgage — against the need to save for retirement. According to the CFPB, 30% of homeowners aged 70 and older have outstanding mortgages.

5. Do you have a strict savings plan?

Choosing a 15-year mortgage over a 30-year mortgage also may be a worthwhile choice if you are not a disciplined saver. But many people may lack the discipline needed to save long-term, Cecala noted, especially in amounts that would offset what they would save by switching to a 15-year mortgage. He also added that “a lot of times people need that extra money for something else,” and so they choose to keep their money in a 30-year mortgage with lower individual monthly payments.

Some truly disciplined savers may actually benefit from carrying their mortgages into retirement. According to a May story published by Time magazine: “if you expect to earn more after tax on your investments than you pay after tax on your mortgage, keep the mortgage.” What you want to avoid in retirement, however, is a situation where you are juggling a mortgage on top of your basic costs of living, taxes and health care payments.

24/7 Wall St. is a USA TODAY content partner offering financial news and commentary. Its content is produced independently of USA TODAY.

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