Adverse Mortgages May not Benefit the Consumer Warns Mias
(ContentDesk) March 22, 2006 -- MIAS (the Mortgage and Insurance Advisory Service) is concerned that the boom in the sub-prime or adverse credit mortgage market will not necessarily translate into a better deal for consumers.In the past, the worst excesses of the sub-prime market could be summed up as, the miss-selling of the most expensive and complex mortgages to some of the least affluent and financially-astute people.With so many high street lenders moving into this sector, including Alliance & Leicester and new arrivals such as DB Lending funded by Deutsche Bank, MIAS would hope that this would change. However, the old adage that increased competition is always a good thing for customers, because it brings down prices, may not apply in the adverse credit market. Commenting, Alistair Good, Managing Director of MIAS (http://www.mias-ltd.co.uk ) said: The increased profit margins of the adverse credit sector must be hugely tempting to high street lenders. But amidst this flurry of product launches, a note of caution must be sounded: Some of these lenders have limited experience of what is an incredibly complicated market. With so many lenders with little prior experience moving into this sector, there is a real worry that levels of service could plummet. Outlining his reservations, Alistair Good said: This is of particular concern, because lenders helpdesks need to know their lending criteria inside-out, to enable mortgage applications to be processed quickly.
As it is, lenders frequently misadvise on regular high street deals - adverse credit, or bad credit mortgages (http://www.mias-ltd.co.uk/adverse-credit-mortgages.htm ) are far more complicated. If the wrong information is given to the advising broker, it could be catastrophic in situations where mortgage offers must be approved quickly for example, if a re-mortgage is needed in order to prevent a repossession. Commenting, Roger Milbourn, Director of MIAS, said: MIAS believes that fast processing is often essential for adverse credit mortgages (http://www.mias-ltd.co.uk/adverse-credit-mortgages.htm ), but more importantly these mortgages should only ever be recommended in the first place as a stepping-stone to high street lenders and good credit. Establishing long-term affordability is therefore key; otherwise a vicious circle can easily occur, whereby a customer grappling with high mortgage repayments falls into arrears which in turn, locks them into further expensive adverse deals in the future. For further information, please contact:MIAS Ltd0845 833 0878Managing Director: Alistair Good???alistair @ mias-ltd.co.ukDirector: Roger Milbourn?????????roger @ mias-ltd.co.ukNotes to Editor:The Mortgage and Insurance Advisory Service (MIAS Ltd) is a firm of impartial mortgage advisers, offering a comprehensive service to clients seeking residential and commercial mortgages and mortgage protection.Founded in 2002, MIAS has quickly gained a reputation for providing straightforward, impartial mortgage advice matching clients up with some of the most competitive deals around. MIASs experienced mortgage brokers (http://www.mias-ltd.co.uk ), have expertise in all sectors of the mortgage market and look after the whole transaction from beginning to end, making the process as smooth and as headache-free as possible..
Home Equity Mortgages
Home equity mortgages are loans that use the equity on the home as collateral. Home equity is the difference between the current value of the home and the amount owed because of the mortgage/mortgages. A home equity mortgage can also be said to be a second mortgage since the extra cash generated can be used for home improvements, thus increasing the value of the house further.
Like regular home mortgages, home equity mortgages also use the property/ home as the security.
In case of default, the lender has the right to take over the home.
There are many advantages of taking a home equity loan: it would reduce the current loan burden if taken at a lower rate; the funds generated can be used to pay off high interest debts like credit cards; sometimes, home equity mortgages enable some tax savings; they can be used to exchange the present mortgage for a shorter term mortgage. Other advantages include: lower closing costs, and faster closing.
Home...
Mortgages > Home Equity Mortgages
Don't Let The Tax Tail Wag The Commercial Dog! - Should you be fully geared with investment property?
(ContentDesk) May 20, 2004 -- We property investors are very good at gearing ourselves up to the hilt. We maximise the available mortgage so that we don't have to use too much of our own money and we get tax relief on all the interest.But is that always the best way?I suggest not. Later in life we will probably be looking for our properties to provide our retirement income. We can do this in two ways. Either by periodically selling off properties and living off the proceeds, or by using the net rent to pay our living costs.Ultimately it is down to cashflow, and if you choose the second option, your cashflow is better if you pay off the mortgage than it is if you keep the mortgage.
Let me demonstrate with an example. I have left out management and maintenance costs to keep it simple, but they would be the same in either scenario.Lets say you have six properties rented out at ?500 per month, and they are all mortgaged with the mortgage costs at ?300 per month, which isn't unrealistic...
Don't Let The Tax Tail Wag The Commercial Dog! - Should you be fully geared with investment property?
Mortgages > Don't Let The Tax Tail Wag The Commercial Dog! - Should you be fully geared with investment property?
Adjustable Rate Mortgages - Understand the Benefits Compared to a Fixed Rate Mortgage
Adjustable rate mortgages can be very tempting to home buyers, yet they carry a great deal of uncertainty. Fixed rate mortgages offer rate and payment security, but they are more expensive. It is important to weigh the pros and cons of ARMs and fixed rate mortgages before you decide which is right for you.There are many benefits with an adjustable rate mortgage. One benefit is that they usually feature lower rates and payments early on in the loan term. Lenders can use the lower payment when qualifying borrowers, therefore borrowers can purchase larger homes than they could otherwise afford.
ARM's allow borrowers to take advantage of falling rates without refinancing. Instead of having to pay closing costs and fees, borrowers can just sit back and watch their rates fall without worrying about these extra costs. Adjustable rate mortgages can help borrowers save and invest more money. Someone who has a payment that is say $200 less with an ARM than with a fixed-rate mortgage for...
Adjustable Rate Mortgages - Understand the Benefits Compared to a Fixed Rate Mortgage
Mortgages > Adjustable Rate Mortgages - Understand the Benefits Compared to a Fixed Rate Mortgage
How Can I Tell The Differences Between All Of The Home Loans On Offer?
There are literally hundreds of home loans available but lets just look at the three main categories.
- There are the Purchase Home Loans, where you are looking at buying a new home.
- You have the Refinance Home Loans where you could already be in a home but want to find a better deal.
- And you have the Home Equity Home Loans, where you want to tap into the equity you have sitting in your home that you can use for something else.
Mortgages > How Can I Tell The Differences Between All Of The Home Loans On Offer?
Online Mortgage
The main advantage of applying for online mortgages is their
convenience. It is relatively easier to apply for an online mortgage than it is
for an offline mortgage. The Internet is a wonderful tool and one which you can
take full advantage of when looking for the best deals in online mortgages.
Many online mortgage lenders offer competitive packages for home buyers and
most of these offer free online mortgage quotes for your perusal. As a perk,
some of these sites also offer free online mortgage calculators to help you
calculate the costs and gains of the loan programs they have to offer.
The Benefits of Online Mortgages
Borrowers can stay involved with their mortgage dealings by applying for
a mortgage online.
With traditional mortgages, lenders may not give out enough
information, leaving the borrower practically in the dark throughout the whole
process. Online mortgages...
Mortgages > Online Mortgage
Home Mortgage
For months now, you have been looking at houses and home brochures and
you have finally found it - the house that's just right. So now, you're feeling
anxious to buy your new home, move in, and get settled. But this is not where
your search ends. You still have one more important task to do and that is
getting a home mortgage.
Contrary to popular belief, getting a home mortgage is quite simple.
All
you need in order to make the right decision is to who where to look, what to
look for, and what takes place when you apply for a home mortgage. Knowing what
to expect, especially if you are a first-time homebuyer, may make it easier for
you to get through the process.
Where to Shop
Some people may think that once they have found the house of their
choice, their shopping days are over. Actually, choosing the house is only the
first phase of the whole process....
Mortgages > Home Mortgage
HELOCs and Second Mortgages: Which One Should I Choose?
Whether you need some extra cash to pay off some credit card debts, or to make some home improvements, home equity lines of credit or second mortgages can be great ways to get started.
Many people looking to borrow money often opt for home equity line of credit, or HELOCs, for short.
They are a tempting first choice, because they can often give you the much needed cash at a low interest rate.
Another advantage to taking out an HELOC, or a home equity line of credit, is that they may provide the borrower with a certain tax break, but you would need to verify this with your lender or accountant.
One drawback to HELOCs, however, is the fact that borrowers are expected to put their homes up as collateral.
So, it is important that you think this decision through, before finalizing the loan, because you may be at risk of losing your home- and its equity- if you are late or cannot make your monthly payments.
Finally...
HELOCs and Second Mortgages: Which One Should I Choose?
Mortgages > HELOCs and Second Mortgages: Which One Should I Choose?
Best Mortgage lenders
The greatest advice that one can get while deciding on a mortgage loan is to shop around. Different mortgage companies have different policies and different prices. Hence, it becomes quite profitable to the mortgage buyer to have some knowledge of mortgages and to browse the market for the best deal.
The best place to begin hunting for mortgages is in the newspapers and on the Internet. Newspapers carry daily advertisements of mortgage selling companies. In most advertisements they mention their current interest rates and the points, which make all the difference between two mortgage companies.
This gives a good preliminary idea of which mortgage company would be the best to select. The Internet is more extensive. Websites of mortgage companies contain details on their various programs and the all-important customer feedback comments. Let these be the guiding force in selecting your mortgage company.
The most important thing to remember while looking...
Mortgages > Best Mortgage lenders
Adverse Mortgages May not Benefit the Consumer Warns Mias Mortgages voip
Luxury Gift Bags Created by Goodie Bagz Helped Honor This Year’s Recognition of Outstanding Individuals at the Freedom Awards
(ContentDesk) November 20, 2005 -- At this years Freedom Awards presented by the National Civil Rights Museum (www.civilrightsmuseum.org), honorees and special guests including Oprah Winfrey, Ruby Dee, Paul Rusesabagina, Angela Bassett and Tracee Ellis Ross enjoyed luxury gift bags to show appreciation for their contributions to humanity and their participation in such an esteemed and noteworthy...
Luxury Gift Bags Created by Goodie Bagz Helped Honor This Year’s Recognition of Outstanding Individuals at the Freedom Awards Adverse Mortgages May not Benefit the Consumer Warns Mias
Mortgages > Luxury Gift Bags Created by Goodie Bagz Helped Honor This Year’s Recognition of Outstanding Individuals at the Freedom Awards
Mortgages
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