Where To Find The Best Holiday Let Mortgage Information Adjustable Rate Mortgage Snafu Bull Markets And Bear Markets It S Your Home Stop Raiding The Piggy Bank
When it comes to finding the best holiday let mortgage information the internet holds a huge amount of resources.
Finding a holiday let mortgage can be a difficult task due to them being so very different from the mortgage you would take for your home. Understanding your options is essential and the more holiday let mortgage information that you can gather, the better equipped you will be when it comes to making the right choices.
The best way to go when it comes to taking a holiday let mortgage and getting the right information is to choose a specialist broker. There are numerous advantages to going with a broker and is essential as when it comes to the financing part of the venture this is the hardest part.
The mortgage broker has the advantage of being informed and knows what’s on offer and the best place to look for the best offer for your situation and will be able to lay your options out for you while advising you on the right choice.
A broker will be able to give you the best holiday let mortgage information when it comes down to such things as the terms of the loan, targeted monthly payments and the ideal rate. Going into holiday home letting is a huge risk to take, so the more information you have then the better the chances are of your business being successful, using a broker is just common sense and can save you money in the long run through making mistakes from not being aware of your options.
When it comes to the actual mortgage, they are complicated and you should never be afraid to ask your broker if you don’t understand any of the information relating to the deal that the broker has found for you. While you can be sure that from the information you have given the broker they will have shopped around on your behalf and found the best deal, there is nothing to stop you asking questions. For instance you should know if the mortgage has a fixed rate of interest or adjustable one and also if it includes a balloon payment, this is all essential information that you should be concerned about.
Above all the broker should be there to guide you and present you with the best holiday let mortgage information that is available, but you should never feel pressured. Always remember that they are there to help and give the best advice but when it comes down to it, it is your mortgage and you who is in charge.
Unfortunately we are all aware of the mortgage industry scandal and the sub-prime loan issues. I get a little upset when they try to hang the blame on independent mortgage brokers. Personally, I think it is the banking industry’s attempt to put the independent broker out of business. The broker surely didn’t write the lender’s guidelines. So, … who’s fault is it?
A single parent of 4 kids, working in the medical profession, refinanced their loving home. The financing was an adjustable rate mortgage and her payments, to start, were around $1700 per month. Later, as stated in the contract, the rate adjusted up and her new payments were about $300 more per month. There was no real problem at this point other than just a tightening of the budget. Unfortunately, a few months later she was laid off from work. Now she is about to lose her home. She claims she did not know she was in an adjustable rate mortgage and she claims she did not know how adjustable rate mortgages actually worked.
This woman is in the medical field and obviously doesn’t mop floors if she qualified for a $1700 mortgage payment. She knew she was in an ARM. There are mandatory disclosures that must be signed on all adjustable rate mortgages plus an ARM Handbook from HUD that must be given to the borrower. There is no doubt in my mind that she did understand how adjustable rate mortgages ADJUST! The only thing she didn’t count on was losing her job.
Country Wide Financial Corp. came out with some interesting data about their foreclosures. During the first 10 months of 2007 60% were of the foreclosures were caused by a loss or drop in income, 20% was due to divorce or illness. What I find really interesting is that under 2% were actually caused by the borrower’s new/adjusted rate.
Let us think about this. The Government has a plan to freeze adjustable rates on mortgages taken out between January 05 and July 07. This plan will be addressing less than 2% of the problem. The real issues are drop in or loss of income, divorce, and illness. Eighty percent of the problem is American Jobs (where have they gone?) and health care.
The lenders, not the brokers, created this problem and they should be held accountable. And, … why does the government always want to take control of things and spend our tax dollar to bail people and organizations out?
I do not believe the banks should be bailed out of this and I don’t think we should bail out the buyers who made bad choices. It is obvious to me that this was not caused by the mortgage broker. Sad will be the day for the consumer when the independent mortgage brokers are put out of business. There will be no more competition of rates and loan fees. Interest will be totally controlled by the Feds and large, for profit, banking institutions.
So much for the American Dream! Without the independent mortgage broker the average American won’t be able to afford the home their family dreams of. Any small credit glitches and a bank will either turn them down or charge them very high interest rates. The sub-prime market issues of today will pale in comparison to what these organizations will do when there is no more competition.
The difference between a bull and bear market is something that every sucessful investor knows. When the market moves downwards for a period of time the market is referred to as a bear market. Upward moving markets are bull markets. If a particular stock is doing well, it is said to be bullish. If it is losing value it is bearish. Of course, there are more to bull and bear markets than that, as you will soon discover.
1. Bull Also, Bear Markets
These terms refer only to long term fluxuations, not short term changes in the market conditions. This is because even during a bear market prices may increase temporarily.
2. A Reflection Of The Economy
Usually stock market conditions reflect the state of the economy. During bull markets the economy is doing well, unemployment is low and interest rates are reasonable. Bear markets usually occur during times of economic slowdown. Investors lose confidence and companies may begin laying off workers. At the extremes, an exaggerated bear market can lead to a crash brought on by panic selling. An exaggerated bull market can be caused by over-enthusiasm of investors. It leads to a market bubble that will eventually burst.
3. When To Make Money
Although most money can be made during bull markets, there are also opportunities during bear markets. Knowing the characteristics of each type of market allows investors to profit from them. As would be expected, when the market is bullish investors wish to buy up stock. The economy is doing well and people have extra money that they wish to invest in stocks. This creates a situation of short supply that drives up prices even higher. During bear markets, on the other hand, prices are falling so investors wish to unload their stocks and put their money in fixed-return instruments such as bonds. As money is withdrawn from the stock market, supply exceeds demand that drives prices down even further.
4. Bull Markets Offer The Best Opportunities
It is easiest to make money during a bull market. Getting in right at the beginning will allow you to make the most profits. During a bull market any dips in the market are temporary and should soon be corrected. The upward rising prices cant go on forever, though, so the investor needs to be able to gauge when the market reaches its peak and sell at that time.
Bear markets represent opportunities to pick up stocks at bargain prices. Getting in near the end of a bear market offers the greatest chance for profit. The prices will most likely fall before they recover, so the investor should be prepared for some short term loss. Short-selling is also an investment strategy during bear markets. Short selling involves selling stock that you do not own in the anticipation of further price drops, so that when it comes time to deliver you can buy the stock for less than you sold it.
Most Americans dream of owning their homes free and clear someday, part of their retirement nest egg. Yet, for many, this dream gets farther and farther from reality as they break into their home equity piggy banks.
“I am somewhat surprised at the number of our loan applicants, even many of our excellent credit quality customers, who have taken equity out of their homes over the last few years via cash-out refinances or home equity loans,” says Gary Miller, a 25-year veteran of the credit industry and CEO and co-founder of FirstAgain LLC, a financial services company based in San Diego, Calif. “Now, with larger mortgages and often less equity, particularly with the recent home price depreciation hitting many areas of the country, these people face a longer and more difficult path to debt-free home ownership.”
Before you decide to borrow against your hard earned home equity, consider the following:
* Are you using your home equity for something that actually adds value (equity) to your home, such as a remodeling project or a swimming pool or for something important in your life such as a child’s education or unexpected medical bills? This can be a prudent way to finance such expenditures. Home equity loan rates are attractive and the interest is usually tax deductible if you itemize. However, if you are using your home equity to finance vacations or pay your bills, think again, as you may be overextending yourself.
* Are you using a fixed rate home equity loan with the shortest term you can easily handle? Adjustable rates may make sense for the financially well off (and financially sophisticated) but for most people, a fixed rate and a fixed monthly payment avoid future payment shock and is the better alternative. Paying off your loan sooner obviously builds your home equity more quickly. Think of it as forced savings.
* Cash out refinances can make sense if you are improving your overall mortgage terms and using the cash for an appropriate purpose. Again, consider shortening your loan term if possible.
* Are you thinking about a home equity line of credit (HELOC)? This product is marketed like a credit card with adjustable teaser rates, ease of use and other incentives, encouraging you to use your home equity for just about anything with long repayment periods. Be careful. Having a HELOC in place may be prudent for certain purposes (for example, a future emergency) if you can be disciplined about not normally using it and pay it down quickly if you do.
* If you have excellent credit, you may qualify for an attractively priced unsecured loan that doesn’t require pledging the equity in your home. This type of loan, such as FirstAgain’s AnythingLoan, offers highly competitive, fixed interest rates and an ease of use not available with mortgage products. Entirely online and paperless, you can apply in the morning and have $10,000 to $100,000 in your account by the afternoon. It takes just minutes versus the days required for a mortgage loan.
“Given the more difficult lending environment caused by the recent sub prime meltdown, home equity products have become both more expensive and more difficult to obtain as lenders tighten their credit criteria and loan to value guidelines,” says Miller. “Our product represents a great alternative for those with excellent credit who don’t have a home equity loan option.”.
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