Tuesday, April 22, 2008

Searching for estate loan – visit EASYESTATELOANS.COM

If you are in search of estate loan than you have visited the accurate website because, Easyestateloan.com gives information about estate loans & real estate loan. Real estate loan are of two types real estate secured loan and real estate unsecured loan. In addition we also provide some important facts related to bank real estate loan, real estate loan rate, real estate home loan & land loan, commercial real estate loan broker, real estate investment loan, bad credit real estate loan, etc…

Estate loans can be known as secured loans. The borrower is mostly required to hand over a legal document to his lender, through which, the borrower as well as the owner of the new property transfers to the lender the collateral as the security against the loan amount. This is done because the real estate loans involve huge amount of money in it, so just to secure the lender's money and to guarantee that it will be repaid on time. Bank Real Estate Loans is strongly focused in the area of real estate lending. Bank Real estate loans tailored to fit your unique business needs. Bank Real estate loan is a legal term that encompasses land along with anything permanently affixed to the land, such as buildings. Real estate loan rate gives information about loan rate of real estate. Real estate loan rate also calculates loan rate, interest rate and many more. Real estate home & land loan means loan taken to buy a home or land estate. It also informs about the interest rate for such loan. Commercial real estate loan broker are those who give information about all aspects of commercial real estate - from office leasing or buying new property. They are the most knowledgeable, experienced and professional people to tell you how to sell your home at a reasonable price, and in a reasonable amount of time. Real estate investment loan gives information about investment loan. Real estate investment loans can be obtained from savings banks and commercial banks, savings and loan associations, thrifts and loans, and from credit unions. Whenever you apply for a loan, your credit history is reviewed. Depending on that your application may be accepted or rejected. Bad credit real estate loans are made for those individuals whose credit report is less than perfect. These bad credit real estate loans will allow you to buy a real estate with bad credit. Peoples who are new to real estate mortgage lending or who want to maximize, improve and sharpen their existing lending skills. Loan officer's real estate help people apply for loans. This lets people do things like buy a house or a car, or pay for college. Loan officer's real estate helps businesses by loaning them money to get started or to buy equipment. Loan officers are very busy when interest rates are low. This is because more people want to borrow. All these and many more information related to estate loan only on EASYESTATELOANS.COM

So, go and start searching for what ever information required. If you require any additional information’s which is not mentioned above than please visit our ESTATE LOANS directory.

Friday, April 11, 2008

The Recent Interest Rate Reduction

The Federal Reserve to lower key short-term interest rates today, the third consecutive meeting since September it has taken such steps. The Federal Reserve's Open Market Committee lowered its target rate for the federal funds rate by 25 basis points, to 4.25 percent. In a related action, the Fed's board of governors approved a 25 -basis-point decrease in the discount rate, to 4.75 percent.

On Sept. 18, similar concerns prompted the Fed to shave 50 basis points off the federal funds and discount rates. When the Fed governors met next, on Oct. 31, they made smaller, 25 basis point reductions in both rates -- the same action taken today.

One member of the committee, Eric Rosengren -- the president of the Federal Reserve Bank of Boston – today argued in favor of lowering the target for the federal funds rate by 50 basis points.

The federal funds rate is the rate banks charge each other for overnight loans. The Fed can influence the rate be easing or constricting the supply of money. The discount rate is what the Federal Reserve charges banks for short-term loans.

In slashing short-term rates at its last three meetings, the Fed is gradually reversing increases to the federal funds rate made during 17 consecutive meetings between 2004 and 2006. Those increases, instituted to cool the pace of economic growth, left the federal funds rate at 5.25 percent.

Your Down Payment Affects Everything

When preparing to buy a home, the first thing many homebuyers do is look at "homes for sale" ads in newspapers, magazines and listings on the internet. Some potential buyers read "how-to" articles like this one. The next thing you should do – before you call on an ad, before you talk to a Realtor, before you shop for interest rates – is look at your savings.

Why?

Because determining how much money you have available for down payment and closing costs affects almost every aspect of buying a home – including how you write your purchase offer, the loan programs you qualify for, and shopping for interest rates.

Mortgage Programs

If you only have enough available for a minimum down payment, your choices of loan program will be limited to only a few types of mortgages. If someone is giving you a gift for all or part of the down payment, your options are also limited. If you have enough for the down payment, but need the lender or seller to cover all or part of your closing costs, this further limits your options. If you borrow all or a portion of the down payment from your 401K or retirement plan, different loan programs have different rules on how you qualify.

Of course, if you have enough for a large down payment, then you have lots of choices.

Your loan choices include such varied programs as conventional fixed rate loans, adjustable rate mortgages, buydowns, VA, FHA, graduated payment mortgages and all the varieties of each.

Shopping Rates

A very important reason you need to have at least some idea of your down payment is for shopping interest rates. Some loan programs charge a slightly higher interest rate for minimal down payments. Plus, the interest rates for different loan programs are not the same. For example, conventional, VA, and FHA all offer fixed rate loans. However, the rates vary from one program to another.

If you shop lenders by phone, the loan officer will be able to tell which programs fit and quote you rates accordingly. However, if you are shopping on the internet, you have to have some idea of your loan program on your own.

Writing Your Offer

Another reason you need to have a clue about your down payment is because it affects how you write your offer to purchase a home. Not only are you required to put your down payment information in the offer, but different loan programs have different rules which also affect how you write your offer. This is especially important when dealing with FHA and VA loans.

If you are asking the seller to pay all or part of your closing costs, you have to be certain your loan program allows what you are asking. For smaller down payments, lenders allow the seller to pay less closing costs than for larger down payments. Some loan programs will allow a seller to pay certain types of costs, but not others.

Finally, your down payment also affects your ability to qualify for a loan. When you make a small down payment, lenders are fairly strict about having you conform to their underwriting guidelines. For larger down payments, they will tend to make allowances or exceptions to the rules.

Conclusion

As you can see, the down payment affects every choice you make when you buy a home. Although you should look at ads, familiarize yourself with neighborhoods, learn about prices, and read as much as you can - when you get ready to take action – the first thing you should do is figure out how much money you have available for the purchase.

How Much House Can You Afford?

To determine your maximum mortgage amount, lenders use guidelines called debt-to-income ratios. This is simply the percentage of your monthly gross income (before taxes) that is used to pay your monthly debts. Because there are two calculations, there is a "front" ratio and a "back" ratio and they are generally written in the following format: 33/38.

The front ratio is the percentage of your monthly gross income (before taxes) that is used to pay your housing costs, including principal, interest, taxes, insurance, mortgage insurance (when applicable) and homeowners association fees (when applicable). The back ratio is the same thing, only it also includes your monthly consumer debt. Consumer debt can be car payments, credit card debt, installment loans, and similar related expenses. Auto or life insurance is not considered a debt.

A common guideline for debt-to-income ratios is 33/38. A borrower's housing costs consume thirty-three percent of their monthly income. Add their monthly consumer debt to the housing costs, and it should take no more than thirty-eight percent of their monthly income to meet those obligations.

The guidelines are just guidelines and they are flexible. If you make a small down payment, the guidelines are more rigid. If you have marginal credit, the guidelines are more rigid. If you make a larger down payment or have sterling credit, the guidelines are less rigid. The guidelines also vary according to loan program. FHA guidelines state that a 29/41 qualifying ratio is acceptable. VA guidelines do not have a front ratio at all, but the guideline for the back ratio is 41.

Example: If you make $5000 a month, with 33/38 qualifying ratio guidelines, your maximum monthly housing cost should be around $1650. Including your consumer debt, your monthly housing and credit expenditures should be around $1900 as a maximum.

Debt-to-Income Ratios

To determine your maximum mortgage amount, lenders use guidelines called debt-to-income ratios. This is simply the percentage of your monthly gross income (before taxes) that is used to pay your monthly debts. Because there are two calculations, there is a "front" ratio and a "back" ratio and they are generally written in the following format: 33/38.

The front ratio is the percentage of your monthly gross income (before taxes) that is used to pay your housing costs, including principal, interest, taxes, insurance, mortgage insurance (when applicable) and homeowners association fees (when applicable). The back ratio is the same thing, only it also includes your monthly consumer debt. Consumer debt can be car payments, credit card debt, installment loans, and similar related expenses. Auto or life insurance is not considered a debt.

A common guideline for debt-to-income ratios is 33/38. A borrower's housing costs consume thirty-three percent of their monthly income. Add their monthly consumer debt to the housing costs, and it should take no more than thirty-eight percent of their monthly income to meet those obligations.

The guidelines are just guidelines and they are flexible. If you make a small down payment, the guidelines are more rigid. If you have marginal credit, the guidelines are more rigid. If you make a larger down payment or have sterling credit, the guidelines are less rigid. The guidelines also vary according to loan program. FHA guidelines state that a 29/41 qualifying ratio is acceptable. VA guidelines do not have a front ratio at all, but the guideline for the back ratio is 41.

Example: If you make $5000 a month, with 33/38 qualifying ratio guidelines, your maximum monthly housing cost should be around $1650. Including your consumer debt, your monthly housing and credit expenditures should be around $1900 as a maximum.