Pre-qualification vs. pre-approval for a mortgage

It’s summer and the real-estate market is getting hotter. Fear that the historic low mortgage interest rates will begin to go up, also putting added pressure on the market. So, it is obvious that pre-approval hold the edge over pre-qualified when shopping for a home. What is the difference between pre-qualified and pre-approved? Pre-qualification is …

New rules to clean up mortgage servicers

The Consumer Financial Protection Bureau (CFPB) has recently disclosed final rules aiming at those companies that deal with mortgage payments.  These rules are intended to disclose cost and bring relief to deal with struggling home owners.  This is a result of the financial crisis and abuses revealed in the past.  Consumer advocates as well as …

Understanding a reverse mortgage

Those who are 62 years or older, own and live in a home are eligible for a reverse mortgage.  In a conventional mortgage, home owners pay a monthly mortgage payment that contains an amortized portion of the principal plus the interest.  After each payment loan balance will be reduced by the amount of principal paid …

How U.S. diffused the impact of foreclosures

Two years ago when the Federal government investigated paperwork fraud of leading mortgage lenders, everyone thought that it will lead to a glut of foreclosed homes in the market driving the prices down and leaving years of inventory in the market.  Lenders reached a $25 billion settlement with the Federal government.  Two years later, the …

Popular HELOCs are coming back

Home Equity Line of Credit (HELOC) is known as the homeowner’s ATM.  Since 2006, they were in decline.  Homeowner’s used HELOCs as their credit cards to buy luxury goods, vacations, and cruises.  After a brief hiatus, once again they are back in business. In 2012, HELOCs are expected to climb to $79.6 billion and to …