MLS Reverse Mortgage asked:


Foreclosure filings were reported on 2.3 million U.S. properties in 2008, an increase of 81 percent from 2007 and up 225 percent from 2006, according to the RealtyTrac U.S. Foreclosure Market Report released January 15, 2009. The soaring number of forclosures have sent ripples through the housing and banking industry with the affects being felt by millions.

According to RealtyTrac, California, Florida, Arizona posted the highest 2008 foreclosure totals. A total of 523,624 California properties received a foreclosure filing in 2008, the nation’s highest state total. Foreclosure activity in the state increased nearly 110 percent from 2007 and nearly 498 percent from 2006. With 385,309 properties receiving a foreclosure filing in 2008, Florida documented the second highest state total. Florida foreclosure activity increased 133 percent from 2007 and nearly 412 percent from 2006. Arizona’s 2008 total of 116,911 properties receiving a foreclosure filing was third highest among the states. Foreclosure activity in Arizona increased 203 percent from 2007 and 655 percent from 2006. Other states with Top 10 totals for 2008 were Ohio, Michigan, Illinois, Texas, Georgia, Nevada and New Jersey.

With mounting job losses and a weakening economy, forclosures and mortgage delinquencies are expected to continue to rise. The nation’s unemployment rate shot up at the end of the year, reaching 7.2 percent in December — its highest level since early 1993, according to a Labor Department report release January 9, 2009. That puts U.S. job losses at 2.6 million for 2008.

However, with all this doom and gloom in the housing market, there is a glimmer of hope for senior homeowners 62 years of age and older. That hope comes in the form of a HUD Home Equity Conversion Mortgage (HECM) or Reverse Mortgage. Those who have obtained a reverse mortgage need not be concerned with the increasing forclosure rates and whether or not they can make their mortgage payments. With a HECM reverse mortgage, there are no monthly payments required. 

Borrowers remain in their homes for life and never have to worry about making a mortgage payment again. All they need to do is keep the property in good repair, pay their property taxes and keep their homeowners insurance current and paid. 

For seniors who currently do not have a reverse mortgage, now may be the time to explore the option. It does not matter if a senior is currently late on their mortgage. They may still qualify for a reverse mortgage. To qualify all borrowers on title must be 62 years or older, occupy the property as their primary residence and not currently be in a bankruptcy. That’s it! 

MLS Reverse Mortgage has helped save several seniors who were months away from losing their homes. 

So, in these tough economic times, there is still hope for seniors looking for mortgage payment relief or cash out to enjoy life’s pleasures.

Learn more online: http://www.mlsreversemortgage.com

The House Team Of Mortgage Intellingence asked:


“Lower than prime,” you heard someone say. Like most Canadians, you were probably first skeptical and then confused. We tend to think of the prime lending rate as the invisible “floor” of lending rates. The very best customers can get very close to that floor. It is theoretically possible, we reason, to actually be ON the floor, but not possible to be below it.

Nevertheless, Canadian lenders offer mortgages at prime minus 0.5% to even minus 0.7%. So the floor isn’t the lowest you can go. There’s something under the “floor”. The rate known as “prime” has been the popular benchmark for lending in Canada. When business reporters talk about interest rate movement, they usually talk about what’s happening with prime. But there are other benchmarks in money rates, though they are typically for use by professional money managers. The most significant of these is the Banker’s Acceptance rate.

While “prime” is a set rate which is offered to a lender’s best customers, the Banker’s Acceptance is the rate which financial institutions use to lend money to one another. And it’s typically well below the prime rate. Look for the “Money Rates”section of your favourite newspaper, and you can compare Prime with the Banker’s

Acceptance rates for yourself. “Interesting,” you think, “but why does it matter?” Well, as new lending institutions begin to offer a slate of innovative new loan options, a new mortgage has emerged that is based on the Banker’s Acceptance rate: offering a mortgage rate of 1% over the 3-month Banker’s Acceptance.

If you compared the rock-bottom prime-based variable mortgage rate – prime less 0.5% to 0.7% – with the new adjustable BA-based rate, you would find that the BA-based rate would have delivered significant savings over the past several years, as rates were dropping. There are two reasons for this. Firstly, the BA-based rates have historically been considerably lower than prime. Secondly, the prime rate tends to be “stickier” in an environment where rates are falling. Often, the more fluid, market-based BA rates deliver the rate change more quickly.

Any variable- or adjustable-rate Ontario mortgage is an excellent option when interest rates are either dropping or stable. Not surprisingly, they’ve been a very popular choice in the past few years. There are some rumblings now that rates may begin to increase, but flexible-rate mortgages still remain an excellent choice for those looking to save some interest.

As always, you should consult with a mortgage professional to find the mortgage that suits your personal financial needs. An independent mortgage broker can provide you with information on a broad range of mortgage options from a wide variety of lending institutions, so you can compare features and options at a glance.

And remember, it’s worth taking some time to look beyond prime and explore what’s “under the floor” in mortgage options!

Erin Ryan asked:


In times gone by, there hasn’t been a specific type of mortgage known as a ‘first time buyer mortgage’. But, as property prices have raised so much in the UK over the last five years, leaving first time buyers out of the market, mortgage lenders have had to come up with some new and creative ways of lending to help people onto the first rung of the property ladder.

Ten years ago, first time buyer mortgages were easily calculated by simply multiplying your annual salary by two and a half. Nowadays it’s a lot more complicated than that!

Now there are hundreds of lenders offering thousands of first mortgages – all vying for your first time buyer mortgage business. Along with the competitive situation there are a great number of first time buyer mortgage deals to be had!

So, how should you go about deciding on your first mortgage?

If you have time and are fairly numerate, it’s possible to research the offering in magazines and on-line. You can compare first time buyer mortgages in terms of their promotional offers, costs, interest rates, fees, pay-back terms and how much the lenders might lend.

There are an enormous number of variables to consider. For that reason, consulting a mortgage broker or advisor can offer significant financial benefits. It is important to seek appropriate first time buyer mortgage advice. Probably of all the different types of mortgages, 1st time buyer mortgages offer the most variables – as the area has become more competitive.

Mortgage brokers or mortgage advisors who are independent will have access to and knowledge of all the mortgages on the market. They will not only know the differences between the lenders – how responsive they are, how flexible, how generous, but they will be up to date with the rates and offers. They will probably also be able to sell you other relevant ancillary products like life and property insurance should you need them.

When seeking first time buyer mortgage advice, you will find that many first time buyer mortgage advisors and brokers offer a free consultation, taking their earnings from the commission they earn when they sell a mortgage. Others will charge, possibly up to £800 for a consultation. You always have the right to ask how they are being paid.

Plenty of first mortgage information is readily available and in the public domain, in magazines or on the internet. If you want your mortgage broker to advise on a particular range of products that they feel suit your circumstances you will need to actively approve this. Offering mortgage advice is governed by the Financial Services Act and has to be carried out according to very strict guidelines and rules.

The main differences between mortgages are how much they cost and how you are charged. There can be quite a difference!

The main way in which the mortgage lender charges you for the loan is through interest payments. The interest charged is based upon the interest rates set by the Bank of England.

There are two main types of first time mortgages. The difference is determined on whether you pay for the interest and also pay back the loan, or just pay the interest on the loan. It’s a big difference that really needs to be understood when you are considering your 1st mortgage.

A repayment mortgage is one where you pay off part of the loan as well as interest on that loan every month. At the end of the term of the mortgage, usually between 25 and 35 years, you will have paid off the interest on the loan and you will have paid off the loan. The property will be yours.

With an interest only mortgage, you only pay the interest each month on the loan. Thus you are paying less out each month for your mortgage. You must be aware that at the end of the term, whilst you might have paid off the interest on the mortgage, you will still owe all the money to the value of the mortgage. With an interest only mortgage you will need to find some other way (typically some sort of policy) to pay off the mortgage if you want to own your home at the end of the term.

When you add up the interest you will pay on your mortgage you may be shocked to see what an enormous sum it is. There are ways of reducing it, the main one being by shortening the mortgage term when you are able to pay more into the mortgage each month. From two or three years after you take out your first mortgage, you should look into remortgaging.

There are also many other variables like fixed, tracker, discounted, variable, capped, offset – your first time buyer mortgage advisor will be able to help you choose between all the different 1st mortgages.

With the property crisis for first time buyers, the lenders have launched a number of first time buyer mortgages designed to help out. They often mean unconventional ownership options which will become more widely used as time goes by.

We have put together a list of popular first time buyer mortgages:

Guarantor mortgages: parents guarantee to pay your mortgage payments if you can’t.

Cash-back mortgages: purchase the house and receive a lump sum from the lender to pay some costs like stamp duty and furnishings.

Mortgages based on parents’ residual borrowing capacity: borrow more because your parents can help you with the payments.

Family offset mortgages: your family’s savings interest is offset against your mortgage interest.

Graduate and professional mortgages: bigger mortgages are offered to those who are dammed to have careers where salaires are expected to rise quickly.

Shared ownership mortgages: own part of a property, pay rent to the co-owner (usually a housing association) and get a shared ownership mortgage out for the part you are buying.

Extended term mortgages: start out with a repayment term of up to 40 years. It makes the monthly payments more affordable but you would pay a lot more interest overall if you didn’t shorten the term at some point.

High Loan-to Value mortgages: lenders might lend up to 130% of the value of the property. You start with negative equity but all your costs will be covered. These mortgages are only available to the rare few.

Joint mortgages: you team up with a friend or family member to borrow more, share the costs but have joint mortgage payment liability.

‘Renting a room’ mortgages: if there’s a spare room in the house, the rental revenue is taken into account when deciding how much to lend to you.

Rent to Buy mortgages: the amount of monthly rent you’ve been paying is taken as the account. It demonstrates affordability.

Shared appreciation mortgages: in exchange for a mortgage and an additional cheap ‘equity loan’ with which to buy a first home, you would have to give up some of the increase in value of your property to the lender when you sell it.

There are now so many options, the best thing to do is to seek first time buyer mortgage advice.