Refinance Mortgage

This illustrates how an interest rate swap can transform a floating-rate obligation into a fixed-rate obligation and vice-versa

Duration : 0:7:4

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Compare bank mortgage interest rates by searching the Internet for Web sites that compare rates, contacting different banks for full disclosure information and using the variables of a mortgage interest rate to pick the best choice. Use the Internet as a guide for picking a good mortgage interest rate with help from a financial consultant in this free video on investments.

Expert: Roger Groh
Bio: Roger Groh is the founder of Groh Asset Management.
Filmmaker: Bing Hu

Duration : 0:2:48

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Westpac tried to justify its interest rate increases by comparing themselves to a banana smoothie company. See the video response for a hilarious parody.

Duration : 0:7:41

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Tax Credit for First Time Home Buyer Program, with Low Down Payment and Interest Rates thru Government Loan Assistance and FHA Mortgage. Buy Cheap Bank Foreclosures. Go To http://RealEstateMarketingThisWeek.com

Part 7 (Excerpt)

FHA Guidelines regarding foreclosures and first time home buyers; incredible home buying value

Ok I was just checking because I thought this was a story about all the mortgage backed securities that were going under. It started at the top and it worked its way down. The reality of it is that people were buying homes, not reading what they were signing, not understanding how it worked and shame on the people who were putting it in front of them, knowing that they didnt know and we all need to take a little responsibility here for this past crisis. It is not just the Wall Street firms; its not just the mortgage companies and banks, the brokers have little in fact to do with it, we didnt create the loan products that people were buying, we were merely disseminating it to the public. I am glad to say I was not a part of any of that. I was able to stay away and do traditional, conventional type financing for people. So luckily I didnt have a lot of clients who got stuck into that nightmare.

Speaking of that nightmare, Dan when we talk about the people who have had foreclosures, their lives have been turned around, turned over and they think that there is no where for them to go. One of the nice things about the Federal Housing Administration loan, the FHA loan, thats the first time home buyer type loan, the minimum down payment loan, its only 3 years after you have had a foreclosure that you can qualify to purchase a home again. So it is important if you have had a foreclosure, you need to point your future away from the flame, you need to save your money, do your best, work as tightly as you can on a budget and look forward to that time when you can go back out and buy a home again.

Property values are going to be up from where they are today, but there is still going to be plenty of great value out there and there are not going to be loan products that are going to get you in trouble again. They wont exist. What really caused the great inflation in home values starting in about 2002 was the financing was just getting crazy. I wont get into a whole lot of technical stuff about mortgage backed securities and all that, but the lenders were creating products, selling them off their books, thinking that they would never have to worry about them again. They sold trillions of dollars worth of these loans and those are the ones that are going bad.

Ones that were toxic in the first place: the stated incomes, the option ARMs, all those loans are all gone now. I was saying earlier today that we are back to where we were in financing in 1992-1993, back when the median home price was $75,000. Now I dont think we are going to go anywhere near that again, I think at $130,000 we are getting real close to the bottom of the market and what I was thinking was when I got into the business in 1995 and you were in at about the same time I was, and I remember talking to a guy who comes into our office to sell us loan programs, now this is the very beginning of the really crazy stuff, and he was saying we can do 70% no doc loans.

We go, what do you mean? If somebody puts down 30% they dont have to verify anything, they dont have to verify their employment; they dont have to verify taxes, anything. We were absolutely floored, but by the peak of the market we were doing 100% no doc loans. If you were breathing they gave you a loan and the credit scores didnt have to be that high, I think I saw them as low as 600…

Duration : 0:5:36

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Recently in the uk there have been 2 notable rises in mortgage rates which has resulted in thousands having their homes repossessed…what or who makes the rates rise???

The Bank of England fix the rate. Why do they put it up…for the same reason dogs lick their wedding tackle..because they can.

Thank You for your time.

Non owner occupied loan rates are always higher than mortgages for your primary residence. An exception to this is if you are buying a second home which the loan program will designate that it has to be so many miles (usually 50-70 miles) from your primary residence and you are to occupy the home at some point during the year. Most non owner occupied loans are for people that want to rent out the property for income and are viewed as having more risk.

Because interest rates on mortgages are low, I can afford a larger mortgage than if rates are higher. But if I take out a 5-year fixed mortgage, I don’t want to be stuck with a house I can’t afford in 5 years if the rates go up. So, what is the general rule for choosing a maximum mortgage amount?

I’ve never heard of a 5 yr mortgage and if you can afford to pay off a house in 5 yrs, you should just save your money for 5 yrs and pay cash and save the mortgage interest

If you’re spending more than 40% of your take home pay on the mortgage and taxes, then it’s too much

For example I currently live in Washington state and the rate I qualify for on any given day is about .5% over the lowest rate available. If I moved to California should expect basically the same rate. The rate I qualified for last Friday in Washington state was 5.9 would I have qualified for the same rate last Friday in California.

It depends on many things…

your credit history

the rates of the individual bank you are dealing with

your work history

if you have a relationship with the bank issuing the loan.

How many other members of Congress get such deals when we pay premium interest on our mortgages? I’ll bet all of them get sweeheart deals. What do you think?

Why do you think these people run for office?
You don’t think they actually go up to Washington D.C. to try to make a difference in the world do you?

Perks!

Watch the movie "The Distinguished Gentleman" with Eddie Murphy. It’s fictional but sooooooooooo reeeeeeallll.

I think you are talking about www.hud.com.

Bankrate.com is also a good one to check.