Mortgage Loans Articles

A house made of money with a vote above it
Jun, 22, 2012
Homeowners are being aided—and more importantly courted—by the Obama Administration in the pivotal months leading up to the Presidential election. By strategically using the Federal Housing Administration (FHA) to lessen the financial burden that mortgage borrowers are under, the Obama Administration has made a decisive move in rallying favor with voters for the upcoming election.
House in a noose
Jun, 12, 2012
When a homeowner possesses an upside-down home loan, making monthly payments can become an excruciating task. Those who can’t afford their payment often forego other necessities in order to make ends meet. If they still can’t scrounge up an appropriate amount of money, they often face harassment from debt collectors and ridicule from news stories degrading “immoral” homeowners. Even if the underwater homeowner is able to afford his or her monthly bill, the fact that their next door neighbor is paying half the price for an identical property can do a number on one’s morale. Short Sale or Foreclosure?
Burning house
May, 23, 2012
The mortgage loan crisis of 2008 gave rise to the largest recession our nation has seen since the Great Depression. This time of economic failure was so bad, in fact, that the period became unofficially known as the Great Recession. Immediately party lines were divided. Democrats pointed fingers at the Bush administration and Wall Street, while Conservatives pointed fingers at the government and borrowers themselves.
Sharp Rising Graph
May, 14, 2012
The Home Affordable Refinance Program (HARP) 2.0 is a rewrite of a previously failed program that was designed to help underwater homeowners refinance their mortgage loans. Despite the success of its predecessor, HARP 2.0 appears to be pulling its own weight and providing the nation’s homeowners with a decent service. The original HARP was designed with a contingency that eligible homeowners must have a loan-to-value (LTV) ratio of less than 125 percent. In other words, the value of an applicant’s mortgage loan could not be more than 125 percent of the securing property’s appraised value.
House printed on paper
May, 3, 2012
When home loan borrowers, particularly first-time homebuyers, begin looking at the real estate market, they may find themselves asking, “Why do homes cost so much money?” The answer, of course, is that land is not cheap. But there’s also the cost of planning, drafting, architectural expertise, raw materials, inspections, construction, more inspections, and then finally a finished real estate product is complete. While land will always be sought, valued, and priced accordingly, some are trying to reduce the cost of home loans by minimizing the cost of what we do on that land.
Burning House Made of Money
Apr, 30, 2012
At the turn of the century, the real estate market was on fire. Men and women of all ages in all walks of life were looking at their current job, their paycheck, and their financial situation, and telling themselves, I need to get into the real estate business. Property prices soared through the roof, borrowers were taking out record-breaking home loans, and the younger generations looked at real estate price tags with open mouths and wide eyes, wondering how on Earth they would ever afford to put a roof over their heads. Then the unthinkable happened: America’s economy collapsed in 2008.
Apr, 16, 2012
Now that we’re approaching what some believe is the tail of the recession, prudent investors and first-time buyers alike are looking at the current housing market and taking the initiative to capitalize on this once-in-a-lifetime opportunity. Today’s mortgage loan market has likely bottomed out, revealing figurative gold for those willing to dive headfirst into the housing market.
Blood money
Apr, 2, 2012
There’s a website called that, at first glance, looks like a Craigslist wannabe. Its homepage is a hub, listing states and localities that an individual can select in order to hone their search on a specific location. Then beyond that hub is another that contains all of the usual categories: automotive, jobs, rentals, real estate, buy and sell, and even a forum for other “backpagers” to discuss their interests. But then there’s another category that few would expect to see on a site devoted to “legal” classified ads: adult.
Principal Reduction
Mar, 26, 2012
Imagine a solution to the housing crisis that would keep hundreds of thousands (if not millions) of home loan borrowers in their homes, bring their monthly payments to manageable levels, lessen the stress on taxpayers, and, to top all of this off, save mortgage lenders money. This “imagined scenario” really sounds like a farfetched dream that takes the best of both worlds and combines them together in a utopian solution. But what if this wasn’t imagined, and instead a real possibility? According to a recent report by ProPublica, such a possibility is within grasp. There’s just one problem: some higher-ups won’t allow it.
Economic Bubbles
Mar, 6, 2012
Think about a traditional, common bubble. The image in our minds is made of soap or perhaps gum. Before a bubble is created it’s nothing more than flattened material, but after a rush of air that material rapidly expands and forms an inflated pocket trapped by the previously flattened casing. If somebody tries to blow too much air into their bubble, it suffers a quick pop, and within the blink of an eye it’s gone. Such a description is quite obvious, but it’s hard to comprehend such a cycle when it comes to our economy. And that begs the question: what exactly is an economic bubble?