Tag Archives: home
The Number of Repossessed Home Hit Record Highs
A repossessed home is a residence that a bank has taken ownership of because the homeowner has failed to make his mortgage payments. While foreclosures have always been a part of the lending process, in recent years the number of repossessed home have hit record highs. From Los Angeles to New York City banks are foreclosing on homes at rates not seen since the Great Depression. This has left many of the nations biggest banks with huge inventories of repossessed homes that they are desperately trying to sell.
As a general rule, banks hate being involved in the real estate market. Not only do they have to pay for the fees associated with selling the home, but they also have to pay the costs of maintaining the homes. Foreclosures are also a liability to banks as they represent bad loans and failed policies. For these reasons and more banks are desperate to get rid of these foreclosed homes and are often offering them at well below their market value price.
If you are interested in buying a foreclosed home there are several things you should know.
It is not enough to simply look at a price and take the deal. Because repossessed homes are sold in “as is” condition, if there are repairs to be made and you buy the home you will have to pay for them. Don’t expect the bank to cover the cost of any repairs.
Since you are looking at homes that are currently in foreclosure, there is a good chance that their titles may have outstanding liens or taxes owed on them. While the bank usually clears the title before it puts the home up for sale, it is always better to be safe than sorry and check the title yourself.
Since most banks have large and growing inventories, they are desperate to negotiate and make deals. Even if you don’t have much experience, if you are a qualified homeowner with good credit you may be able to talk them down and get them to not only lower the asking price but to also pay for all closing costs. It is also always a good idea to negotiate a lower down payment and a good financing package.
Current home loan interest rates
Current home loan interest rates are at the best theyve been in many years. This means people wanting to buy a home or refinance have the opportunity to save money. An interest rate of even 1% below what youre currently paying can make a big difference monthly. Additionally you have the opportunity now to think about for how long you want to pay off your house. If refinancing the difference in interest payments might allow you to shorten your pay off time without vastly increasing monthly payments.
Step one in shopping for your mortgage is deciding what type of mortgage you want. Do you prefer a fixed rate that gives you a monthly payment that never changes or an adjustable rate that changes your payments when interest goes up or down? There are also balloon mortgages, VHA mortgages, VA mortgages, interest only mortgages well, you get the picture. Until you know what type of mortgage best suits your circumstances you could very easily end up comparing very different instruments and confusing yourself.
Navigating the world of current home loan interest rates and mortgages can feel more like sinking in a tide. There are hundreds of rules and regulations that govern lending, so besides having a sense for what type of mortgage you need it does not hurt to get the help of a professional, such as a mortgage broker, who can explain what various terms mean and offer ideas suited to your circumstances.
Do not be fooled by fancy promises. Lending is BIG business and there are some rather unscrupulous players in the game. So before you sign on the dotted line for any such services, check with the local Better Business Bureau or other consumer-watchdogs. See what type of rating and feedback they have on record before you enter into a binding relationship.
Its also important to realize that different lenders have different terms. Their prices to lock in an interest rate, closing costs, origination fees, administration fees, underwriting fees etc. will be different. Sit down and line up various lenders offerings line by line so you can really see who is offering you the best package overall.
EXAMPLE HERE
It is completely possible to get the best current home loan interest rates. The key is making you an informed consumer who asks questions and gets straight answers. If you feel that something is awry, try another lender. Youre investing a lot of money in something that should be a YES, not a MAYBE.
Best mortgage rates Canada, the best fixed mortgage rates and the best refinance mortgage rates are available for you here with the help of Perry Pappas, an experienced mortgage broker in Canada.