Is it better to get a home loan thru home equity line loan?

Tom Reddin: A simple refinance for FHA mortgages
A great refinance program is available for homeowners with an existing FHA mortgage. It's from the Federal Housing Administration, store pills and it's called the FHA Streamline Refinance program. It's a fast and simple way to refinance and take advantage of today …
For more informaiton please visit here…

FHA Streamline Refinance completed with nothing due at closing
Mortgage banker: Ty Cabalsi, ailment (925) 400-7570, this site www.SpeakWithTy.com. Borrowing amount: $ 380,000. Loan: 30-year fixed; FHA Streamline refinance with neither appraisal nor income documents. Rate: 3.5 percent interest rate with 1.16 percent lender credit …
If you would like more informaiton please visit here…

Time Your FHA Streamline Refinance Closing To Avoid "Double Interest"
FHA Streamline Refinance closing dates should be at the end of the month Looking for the ideal date on which to close your FHA Streamline Refinance? Make it month-end. Close at any other time, and you risk adding thousands of dollars to your overall …
If you would like more informaiton please visit here…

Some cool castle pictures:

Castle from WEDway #2

Image by auntie rain
Cindy’s Castle and Tomorrowland in 1977. This shot has a pastel really feel to it, pill which is wildly at variance with how I don’t forget it. The Tomorrowland entrance does not look like this any longer.

I’ve been scanning some slides from the 1970s with a scanner I got as a birthday present, and it looks like it’s just in time, simply because this slide was in Undesirable shape.

If you would like to see more homes click right here…

Castle Gwynn I

Image by fallingwater123
Castle Gwynn – Arrington, TN.

TEXTURES:

&quotDramatic Sky Stock&quot by Essence of a Dream.
www.flickr.com/pictures/30886604@N04/3999574449/

&quotAntique Crackled Frame&quot by pareeerica
www.flickr.com/pictures/8078381@N03/3999796737/in/set-72157…

A lot more great houses click here…
Question by blaqbaron: How much can a new loan signing notary expect to make?
I am waiting for my background check to come from the state, pharm but when it does, visit this site I’m planning to use my notary commission to sign mortgage loans. I will have to start part time, story but I would like to go full time if possible & I wanted to know what type of income is possible & is it hard to break into with little or no connections in the mortgage industry
I am in the state of Ca

Best answer:

Answer by ModestyWins
Hello,

Standard is $ 50 for the first and $ 25 if it’s e-docs. If they have 2 loans (piggyback) typical is the $ 50 for the 1st and $ 25 for the 2nd and $ 25 for each loan you print. Remember when you print you print 1 set for the loan and 1 set for the borrower to keep.

Good Luck!

Know better? Leave your own answer in the comments!
Question by Newlywed: What caused the subprime mortgage crisis?
What caused the subprime mortgage crisis? In laymans terms please!

It seems like it just happened overnight – why were the homes not appreciating in value (equity), health and what will happen to the owners of the homes once they have been foreclosed on and the banks go out of business?

Best answer:

Answer by realtynewsman
Who’s To Blame For Mortgage Morass?
by Broderick Perkins (Sept. 11, purchase 2007)

When a Fortune/CNNMoney.com writer recently opined about those responsible for the mortgage morass, information pills the Feds and Wall Street were at the top of the list, but mortgage brokers and lenders weren’t far behind.
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According to Peter Eavis, there’s plenty of blame to go around for subprime mortgage foreclosure-induced credit tightening and the resultant fallout that’s blanketing the housing market and spreading to the general economy.

In “Subprime: Let The Finger-Pointing Begin!”, Eavis spreads the blame with a 1-to-5 finger-pointing scale, called the “Blame Factor,” where 1 pointing finger is little blame and 5 pointing fingers indicate the highest level of blame.

Eavis isn’t your ordinary man-on-the-street-on-a-soapbox.

Relatively new to Fortune, Eavis is a TheStreet.com alum who won a Gerald Loeb Award for his Fannie Mae coverage back in 2005 and is noted for early coverage of subprime issues. He was also among the first to cover the Enron debacle.

The offenders according to Eavis?

# The Federal Reserve gets 4.5 fingers because, said Eavis, it had the power to stop the risky business of subprime lending sooner, but actually encouraged the use of riskier loans as financially savvy.

Eavis specifically blames former Fed chair Alan Greenspan for keeping interest rates too low for too long. Low rates helped spawn the housing boom.

“Those rate decisions showed that Greenspan had chosen to use the housing market as his main instrument to prop up the economy after the 9/11 attacks. Using monetary policy to encourage a rise in home prices would be a highly unorthodox move for a central bank. But evidence suggests that Greenspan was overly keen to use housing for exactly that,” Eavis writes.

Recounting how Greenspan encouraged the use of adjustable rate mortgages (ARMs), he writes, “Greenspan gave a speech that blessed the creation of new loan products, including subprime home loans.”

# Eavis gave Wall Street 4 pointing fingers for backing the money to make the loans. He called the effort a “remarkable mortgage machine Wall Street’s investment banks and hedge funds concocted.”

The investments initially earned billions and, as such, became a monkey on Wall Street’s back until it was ripped off by soaring numbers of failing loans.

# Mortgage lenders also earned 4 pointing fingers for making NINJA loans (loans made to those with no proof of income, no proof of a job or assets). The industry has paid for its loose-money ways in terms of lenders going belly up, branches getting shuttered, stock prices crashing and demand plummeting.

# Mortgage brokers warrant 3.5 pointing fingers for enabling borrowers to get a fix when they couldn’t really afford it. Many of them continue to offer come-ons.

“And let’s face it, with their nonstop marketing on the radio and the Internet, they’re easy to scorn. They made millions, and as pure middlemen, they will feel relatively little in the way of consequences — aside from a sharp drop off in business,” Eavis writes.

# To the rating agencies, who blessed risky mortgage funds with invincibility, Eavis points 3.5 fingers.

Calling rating agencies’ work “financial alchemy,” Eavis says the raters are too often influenced by the investment fund makers and were under experienced in the new subprime based funds.

“The shortcomings of the system became blindingly apparent in July, when Standard & Poor’s and Moody’s abruptly downgraded nearly $ 6 billion of subprime-mortgage-backed bonds. Many of the subprime mortgages backing the bonds were less than a year old. That means the rating agencies had little idea about the quality of those loans when the bonds were issued,” Eavis wrote.

# Those who purchased homes with risky loans and took on debt they couldn’t afford, the borrowers, earned 3 pointing fingers for getting hooked.

Ignoring common sense, borrowers allowed themselves to be overwhelmed by low-interest rate carrots, TV shows promising real estate zillions, Web sites revealing home value jumps, offers of overnight home ownership and other come-ons.

“Now many will pay dearly for their poor judgment — losing their houses, having their credit ruined,” Eavis writes.

# Finally, appraisers, considered “bit players” in the game, get 2 pointing fingers for acting as “brokers’ handmaidens … who too often buckled under pressure from lenders to overvalue houses.”

Published: September 11, 2007

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I wrote this August, 2007.

American Dream Financing Opened Pandora’s Box

by Broderick Perkins

The mangled mortgage market is spreading monetary mayhem to a growing number of credit sectors throughout the financial world.
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Mortgage industry related conditions are melting down credit cards, wrecking commercial deals, sweating even the most creditworthy customers and causing foreign banks to cover their assets.

Unfortunately, just like the credit card customer who enjoys years of cheap credit spending, only to wind up in a protracted 12-step recovery program, the mortgage market hangover isn’t going to go away overnight.

Inebriated by speculative over-indulgence, Wall Street is reeling and the housing market hangs in the balance.

“The origins of the current crunch lie in the financial follies of the last few years, which in retrospect were as irrational as the dot-com mania,” wrote New York Times columnist Paul Krugman, in a recent opinion piece.

“The housing bubble was only part of it; across the board, people began acting as if risk had disappeared,” he wrote on.

From the dawn of the predatory lending push in the late 1990s to the subprime system breakdown in recent months, de rigueur high-leverage, low-cost loans were the word and the way and the key to the latest rendition of the American Dream.

The word was, get in now, by any means necessary, before home prices skyrocket.

They did and they did.

During the boom, lenders branded ever riskier mortgages and the real estate industry herded homebuyers like sheep toward loans which buyers have since learned they couldn’t afford.

Long and frequently considered “unsustainable” it was a housing boom fueled by risky mortgages never tested under the assembly-line production pace at which they were delivered.

Financing the American Dream this time around has opened a Pandora’s Box.

First out of the box were foreclosures that mounted as adjustable rate mortgages (ARMs) reset and sent ripples of financial distress through households and communities of low, fixed-income home owners who realized they’d been sold a bill of goods.

Several studies reveal up to 2 million homeowners will lose their home before the market bottoms, due to poor lending decisions, fraud, consumer ignorance and a host other factors.

As foreclosures mounted, the feds moved in to re-regulate the industry, but by then it was too little too late.

Lenders failed, shuttered branches and, if they were still standing, began tightening underwriting on new risky loans and withdrawing offers for others. With the financing rug pulled out from under the stratospheric price of homes, speculators bailed, and fewer non-investors could afford to buy.

The supply of homes for sale and for rent swelled and home prices shrank.

Some real estate market experts were still murmuring about a quick housing market recovery when Wall Street tycoons began to suffer the same fate as the home buyer on Main Street — a tapped out till.

Mortgages are often sold and repackaged as securities for sale to investors, but because of the added foreclosure induced risk associated with subprime and other risky loan-based securities, buyers (investors) balked and bailed out.

Two subprime loan-based Bear Stearns hedge funds, at one point controlling assets of more than $ 20 billion, this summer filed for bankruptcy protection, value all but drained from the funds.

Other such funds likewise have been crippled by the events.

Bailing investors aren’t limited to the shores of America.

Credit Suisse Group more recently shut the door on lenders selling its subprime loans, second mortgages, negative amortization option ARMs, and two or three year ARM hybrids.

And just last week BNP Paribas, a large French bank, froze operations on three funds worth $ 2.2 billion, citing U.S. subprime market problems after investors pulled out of the funds in droves.

This week BNP’s U.S. based Homebanc filed for bankruptcy, following in the footsteps last week of large home lenders American Home Mortgage Investment and New Century Financial Corp.

Krugman explains, “When liquidity dries up … it can produce a chain reaction of defaults. Financial institution A can’t sell its mortgage-backed securities, so it can’t raise enough cash to make the payment it owes to institution B, which then doesn’t have the cash to pay institution C — and those who do have cash, sit on it, because they don’t trust anyone else to repay a loan, which makes things even worse.”

Sitting on money to lend is also crushing so-called Alt-A level borrowers, those with better credit than subprime borrowers, as well as prime home loan borrowers with the best credit.

Where mortgages are available for them, lenders loan small amounts with higher interest rates.

San Francisco, CA’s Wells Fargo Bank recently curbed financing Alt-A loans and Charlotte, NC’s Wachovia, stopped making Alt-A loans through brokers and smaller lenders while curtailing some ARMs.

The one saving grace in the mortgage mess has been mortgage rates for conforming loans (those $ 417,000 or less and eligible for purchase or guarantee by Fannie Mae and Freddie Mac) remaining flat and even falling in recent weeks.

Not so with jumbo loan rates (for less-protected loans larger than $ 417,000) which reached 7.35 percent last week, the highest since April 2002 according to Bankrate.com.

Jumbo loans are crucial to the growing number of high-cost markets like California and others with already-high home prices heavily inflated during the last boom.

And just forget using those zero-interest rate credit cards as a bail out. Credit card issuers are also beginning to raise rates, reduce credit limits and tighten controls over who gets plastic.

Capital One Financial, said Friday, what’s in your wallet will begin to cost a lot more. A minority of its card holders enjoying credit at the bargain annual rate of 4.99 percent will soon have to pay 13.9 percent.

Even the otherwise relatively fit commercial sector is beginning to feel the liquidity drought caused by the overcast residential mortgage and housing markets.

A potential buyer for a 6.9 million square-foot portfolio of 100 properties, including those that house Apple and Microsoft offices in Silicon Valley’s otherwise fit commercial market, was unable to find the asking $ 1.8 million in financing to close the deal last week.

The San Jose Mercury News reported that area real estate mogul Carl Berg was unable to sell the portfolio “In a tangible sign that the crisis crippling the housing market is spreading to commercial real estate … .”

The vast majority of those who comprise the residential real estate market, home owners, real estate sales and lending businesses, home builders and affiliated industries, will survive this downturn unscathed.

But for those who don’t, it won’t be a pretty picture.

Published: August 14, 2007

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Question by amny: Is it better to get a home loan thru home equity line loan?
I am thinking of refinancing and Chase Bank is ready to give a 10 yr 170k home equity loan. Is this a better than my existing home mortgage loan. Is there anyone who has suggestions for this.

Best answer:

Answer by Daniel G
Typically home equity loans have variable interest rates … the very same type of rate programs that a causing the havoc in the current banking and real estate market. If your rate is fixed for the term, diagnosis you will have predictable payment streams that you can budget for. If the rates are variable, information pills and the underlying market rate goes up again, more about you may be asking for trouble. Try to get low fixed rates that you can pay off as quickly as possible. Having your largest asset at risk in case you experience job loss or other financial loss really sucks … believe me, I speak from experience.

What do you think? Answer below!