Understanding The Asset-To-Value Ratio

By admin | July 15, 2013

If you are wanting to buy a home, then you must become familiar with different types of mortgages. Most mortgage companies and financial institutions use a formula to determine whether you qualify for your mortgage. The asset-to-value ratio simply takes into consideration the number of assets you have. They also consider your debt-to-income ratio when processing your mortgage application. Choose a mortgage company that offers the lowest interest rates in the industry. The interest rate Read the rest of this entry »

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Why Is The Term First Lien Position Important

By admin | May 8, 2013

The term first lien position is very important when you are considering purchasing or refinancing your home. The term is defined as any lien on the home where money is due has a certain position on the loan. Therefore, if you decide to purchase, sell or refinance your home the entity with first lien position on the title is paid first. For the most part, first mortgages take first lien position on title after completion of the transaction. The next lien position is generally followed by any second mortgage or piggyback loan, including Read the rest of this entry »

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Is The Housing Market Primed For a Bubble

By admin | May 4, 2013

The housing market saw perhaps the biggest bubble that has ever existed in this market just a few years ago. The damage that was caused by this was widespread, and it was something that garnered a lot of attention from the media. People from all walks of life were able to see the impacts that this had. Many of them were personally impacted.

The market today is still in recovery. Although it is not in as bad Read the rest of this entry »

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Calculating The Loan-To-Value Ratio

By admin | May 3, 2013

Loan to value ratio is an important figure that is used by lenders to determine eligibility for mortgage loans. The cost of the loan is usually dependent on the loan to value ratio. Whether you are purchasing your first home or refinancing a current mortgage, you need to know how to figure this ratio.

First, you need to know the value of the property. You can use the agreed upon purchase price as the property value. Subtract your down payment from the value. This Read the rest of this entry »

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What Is The Debt To Income Ratio

By admin | April 30, 2013

The amount of money that you owe various source (creditors) versus the amount you earn (income), is important to know. Your debt to income ratio is one of the more important numbers in your financial record. If you do not even know what it is, this can be problematic. Therefore, you should be looking into this particular stat.

Your debt to income ratio is a number that is calculated by taking the amount of debt you have and comparing it Read the rest of this entry »

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Is The Mortgage Industry Showing Signs of Recovery

By admin | April 29, 2013

The real estate and housing industries are showing strong signs of improvement. The first quarter of 2013 shows that home prices are steadily climbing and available homes for sale are falling. Interest rates on prime loans remain at record lows. Applications for purchase loans and refinance loans are up as much as 20 percent in some areas compared to this time last year. What is happening is the mortgage and real estate market has finally shown signs of life Read the rest of this entry »

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