Posts Tagged mortgages
Rent to Own Homes, Is it Risky?
Posted by GuestPoster in Finances on November 19th, 2010
Rent to own homes are truly beneficial to consumers. It offers buyers a chance to get profit out of their monthly payment as well as have the time that they need to improve their credit so that they can qualify for a home mortgage loan. However, you might have heard of some setbacks with regards to rent to own homes. This are indeed well founded. And if you’re and interested buyer you might want to take a look at some of the risks associated with this payment scheme.
Most often, buyers who are not qualified for a conventional financing end up on other schemes of purchasing a home. There are lots of financing services available for buyers and the most popular is the rent to own homes. However, before you jump to the same bandwagon you need to wait. There are many rent to own dealers easily available for you but most often these dealers are trying to collect from buyers an upfront optional fee and when the deal is closed buyers are charged a monthly rental fee which is obviously above the current rate. The excess portion goes right to their bags, a truly ingenious way of profiteering.
It has also been noted that rent to own home contracts contain a clause stating that any equity built up over time goes to the dealers in case of a delayed payment even for just one day. It would truly be costly for buyers so they pay the monthly fee even if it’s obviously too high. The main thing is that buyers need to be doubly cautious with whom their dealing with. The good news is that there are many reputable companies in this business and choosing them is best option. It can save you from having to negotiate on your own and also offer you numerous protections.
Fixed Rate Buy to Let Mortgages
Posted by admin in Personal and Corporate Finance on November 12th, 2009
If you are thinking of buying a property so that you can rent it out, then it is definitely worth thinking about a fixed rate buy to let mortgage. Fixed rate buy to let mortgages are great for Property Investors, because unlike variable rate mortgages, they are much more predictable as far as the monthly outgoings are concerned.
Buy to let properties can make great investments because over the long term, they tend to be a lot less risky than the stock market or other types of speculative investment. And one of the great things about buying property is that it is a lot easier to borrow money for this than it is for pretty much any other kind of investment.
There are many mortgage lenders who will be prepared to lend you the money for a buy to let property, and a number of these lenders offer fixed rate mortgages.
The rate is usually set for a period of anywhere from 2 to 10 years, but more commonly between three and five years. Pretty much anyone over 18 with good credit will be considered for a loan, so long as they can prove that the rental income will more than cover the mortgage repayments, that they have an adequate deposit and that the property is a good investment and will only be used for rental purposes.
So have a good look at fixed rate buy to let mortgage offers if you are planning to own a rental property, there are some great offers about!
How Homeowners Can Benefit From An Adverse Remortgage
Posted by admin in Uncategorized on October 5th, 2009
If you have good credit, an adverse remortgage is probably a bad idea, as associated fees and interest rates are typically higher than those you’d obtain with traditional refinancing.
Usually those who are going to try to get an adverse mortgage can be separated into three different levels based on their credit reports. Those who are only a little behind in payments and have no judgments against them or bankruptcies are assigned to a low risk group.
There is the medium risk group, who have had credit problems over a great length of time, have one or more judgments against them of low value, but have no bankruptcies. All others fall into the high risk group.
The nice thing about an adverse remortgage is that the lender looks not only at the credit trouble the person taking out the loan has gotten into, but also the steps that person has taken to try and remedy the trouble and what caused the problem in the first place. How well one is doing at making his/her current mortgage loan payments is also a primary key.
After you’ve been assigned a risk level, your lender will present you with the terms of a loan with a fixed interest rate. This rate will probably be higher than usual, because you present a risk to the lender. In most cases, even these higher rates will be preferable to the adjustable rate mortgage one may have now. These loans will also allow you to repay additional debt, such as your credit cards, allowing you to establish a lower payment every month.
With banks currently taking fewer risks on their customers, it’s not easy to find an adverse remortgage currently. One factor that can make it easier for remortgaging in adverse conditions, however, is having a good relationship with the bank that owns the current mortgage. In most cases, this bank will be willing to work with all but the very worst credit risks to keep from having to foreclose on the home. Banks know full well that the only way they are going to sell a foreclosed property in the current housing market is by taking a serious loss on it. These banks also understand that by allowing homeowners to take advantage of an adverse remortgage, it’s more likely that they’ll be repaid completely.
Where Are Mortgage Rates Headed?
Posted by admin in Money & Finance on June 8th, 2009
While no one has a magic crystal ball to be able to say exactly where mortgage interest rates, or any rates or anything is headed for that matter, there is little disagreement among experts and people in the know that rates are headed higher. We’ve seen it over the past few weeks in mortgage interest rates already. And while there may be the normal day to day fluctuations of bouncing up and down a bit (though lately there hasn’t even been much of that, instead it’s been pretty much straight up), no one is expecting to see the kinds of rates we had just a few short weeks ago come back any time soon. In fact, many people say we won’t see mortgage interest rates at those levels again in our lifetime. Then again, no one was expecting to see the kind of economic recession we’re experiencing right now either. Who knows… but if you’re all set to get a new mortgage, whether for a purchase or a refinance, you might just want to lock it and move on to worrying about other things.