Is it worth while to do an Interest only loan when refinancing your home?

There’s a company that’s offering 1.5% APR interest only loan for anyone that has a credit score of 620 or above. They advised that if I take the $800 in savings and invest it, I can use the savings to pay off all of my outstanding debt. In 5 yrs after the loan is over we would do it again but because it’s interest only that I’m paying the amount of the new loan will be more than the original loan. We just need some professional advise.


Check out these great, inexpensive Christmas gifts to find great gifts that will not put a dent in your wallet.

Would getting a lower interest rate loan to pay off credit card be a smart idea?

I have just under $6,000 on my card, which has about a 12% interest rate. I’ve never made a late payment and always pay above the minimum on all credit accounts/car payments/student loans. Would looking into getting a lower interest rate loan be a good idea or a naive one? I know personal loans like this are typically harder to come by, but I would like some opinions. Thanks!


Your man needs a great watch to enhance his style and define his character. Check out these Christmas Luxury Watches for Men at great prices!

Tax on joint interest income for couples living in different states?

I live in CA and my wife lives in NJ. We have a joint account with a CA credit union. Now CA only taxes the interest of CA residents. Since my wife’s non-CA income also contributes to this interest, how should I split it for tax purposes?


The popularity of movies is constantly changing. Can you guess what are the Top Movie Rentals this week?

FHA mortgage loans provide the Best Interest Rates, ((97%w 580 Fico))

FHA mortgage loans provide the Best Interest Rates

 Florida FHA Mortgage Loan

Florida home buyers should know the many advantages of the FHA mortgage loan programs. FHA loans were created to help increase home ownership. For the Florida home buyer the FHA program can simplify the purchase of a home, making financing easier and less expensive than a conventional mortgage loan product. Some highlights of the Florida FHA loan program include:

Minimal Down Payment and Closing costs.

Down payment less than 3% of Sales Price Gifts are allowed Seller can credit up to 6% of sales price towards closing and prepaid costs. 100% Financing available No reserves required. FHA regulated closing costs.

Easier Credit Qualifying Guidelines such as:

  No minimum FICO score or credit score requirements. FHA will allow a home purchase 2 year after a Bankruptcy. FHA will allow a home purchase 3 years after a Foreclosure.

APPLY NOW AT http://www.fhamortgagefhaloan.com/

 The Federal Housing Administration (FHA) is a United States government agency created as part of the National Housing Act of 1934. The goals of this organization are: to improve housing standards and conditions; to provide an adequate home financing system through insurance of mortgage loans; and to stabilize the mortgage market.

History of FHA home loans

Back in the the Great Depression, the banking system failed, causing a drastic decrease in home loans and ownership. At this time, most home mortgages were short-term (three to five years), no amortization, balloon instruments at loan-to-value (LTV) ratios below fifty to sixty percent.The banking crisis of the 1930’s forced all lenders to retrieve due mortgages. Refinancing was not available, and many borrowers, now unemployed, were unable to make mortgage payments. Consequently, many homes were foreclosed, causing the housing market to plummet. Banks collected the loan collateral (foreclosed homes) but the low property values resulted in a relative lack of assets. Because there was little faith in the backing of the U.S. government, few loans were issued and few new homes were purchased.

In 1934 the federal banking system was restructured. The National Housing Act of 1934 was passed and the Federal Housing Administration was created. Its intent was to regulate the rate of interest and the terms of mortgages that it insured. These new lending practices increased the number of people who could afford a down payment on a house and monthly debt service payments on a mortgage, thereby also increasing the size of the market for single-family homes.

The FHA calculated appraisal value based on eight criteria and directed its agents to lend more for higher appraised projects, up to a maximum cap. The two most important were “Relative Economic Stability,” which constituted 40% of appraisal value, and “Protection from adverse influences,” which made up another 20%.

The FHA Mortgage loans Today

Back in 1965, the Federal Housing Administration became part of the Department of Housing and Urban Development (HUD). Since 1934, the FHA and HUD have insured over 34 million home mortgages and 47,205 multifamily project mortgages. Currently, the FHA mortgage loan has 4.8 million insured single family mortgages and 13,000 insured multifamily projects in its portfolio. The Federal Housing Administration is the only government agency that is completely self-funded. However, although it claims to operate solely from its own income at no cost to taxpayers, there is an implicit guarantee that the taxpayer will help them in times of need.

During budget planning for 2008 HUD had been projecting $143,000,000 budget shortfall stemming from the FHA program. This is the first time in three decades HUD had made a request to Congress for a taxpayer subsidy. Even though FHA is statutorily required to be budget neutral, the GAO is projecting taxpayer funded subsidies of half a billion dollars over the next three years, if no changes are made to the FHA program.

FHA Required Down Payment

A mortgage applicant downpayment may come from a number of sources. The 3.5% requirement can be satisfied with the borrower using their own cash or receiving a gift from a family member, their employer, labor union, non-profit or government entity. Since 1998, non-profits have been providing downpayment gifts to borrowers who purchase homes where the seller has agreed to reimburse the non-profit and pay an additional processing fee. In May 2006, the IRS determined that this is not “charitable activity” and has moved to revoke the non-profit status of groups providing downpayment assistance in this manner. FHA has since stopped down payment assistance program through 3rd non profits. There is a bill currently in congress that hopes to bring back down payment assistance programs through these so called non profits.

FHA Mortgage Insurance for Homebuyers

The FHA insures only a limited range of mortgages provided by FHA-approved lenders. PMI insurers service mortgages of the conventional market. PMI is required if a homebuyer borrows more than 80% of the property’s purchase price in one loan; the FHA insurance is required for any FHA mortgage, irrespective of the size of the down payment provided. The premiums for both insurances get cancelled at a certain point (was not true of FHA premiums before Jan. 1, 2001), but the conditions for this to happen are different (see below).

Mortgage insurance is available for housing loan lenders, protecting against homeowner mortgage default. For a small fee, lenders can obtain insurance for a value of ninety seven percent of the appraised value of the home or building. FHA loans are insured through a combination of a small upfront mortgage insurance premium (UFMIP), as well as a small monthly mortgage insurance (MMI) premium.

The (UF)MIP or (Up-Front) Mortgage Insurance Premium is the upfront fee you pay either in cash at close or financed into the loan. The MMI or Mutual (sometimes called Monthly) Mortgage Insurance is your monthly premium which is included in your payment. This MMI is an annual premium which is to be remitted monthly, it must be paid for 5 years regardless of your LTV (loan to value) if after 5 years your LTV is 78% or less it may be canceled on loans originated after 1/1/01. If your loan term is 15 years or less the 5 year rule does not apply.

In many instances where the home owner has a poor to moderate credit history, the monthly mortgage insurance premium will be substantially less expensive with an FHA loan than with a conventional loan regardless of LTV – sometimes as little as one-ninth as much per month depending on the borrower’s exact credit score, LTV, loan size, and approval status. A borrower with an FHA loan always pays the same mortgage insurance rate regardless of their credit score. This is especially of benefit to borrowers who have less than 22% equity in their homes and credit scores under 620. Conventional mortgage insurance premium rates factor in credit scores, whereas FHA mortgage insurance premiums do not. When a borrower has a credit score under 620, conventional mortgage premiums spike dramatically. If a borrower has a credit score under 575, they may find it impossible to purchase a home for less than 20% down with a conventional loan, as the majority of mortgage insurance companies no longer write mortgage insurance policies on borrowers with credit scores under 575 due to a sharply increased risk. When they do write mortgage insurance policies for borrowers with lower credit scores, the annual premiums are sometimes as high as 4% to 5% of the loan amount. Based on this, if a consumer is considering purchasing a new home or refinancing an existing home, they would often be well-advised to look into the FHA loan program.

 

Do you know what the best video game console is? Wii, xBox, PlayStation? Read this PlayStation Review and find out how it compares.

How does subsidized student loan interest work?

I will be taking out a subsidized loan for the first time, and have a question about the interest. If I take out $2,000 at 5% interest and it is deferred until after graduation. If I pay off the loan before it is due, do I have to pay the interest for all the years I have been borrowing the money or just the principle?
Can anyone please explain to me how the interest of the sub loan work? Thank you.


Did you know? There is always a how to video that will answer your questions!

What is an interest only loan and what are the benefits and drawbacks?

I was recently pre-qualified for a loan and the loan officer didn’t mention any other loan programs except for an FHA? I had to ask about the first time buyers program. I’m just wondering what are some other loan programs and where could I find out about them.


The Butterfly Garden for Christmas is a gift kids love. It is literally the gift of life. Check it out now!

What student loan company has the lowest interest rate?

I currently have a nelly mae loan(sallie mae) and they are way too high. Whats a good loan company for me to look at for next school year? PLEASE ONLY ANSWER IF YOU ACTUALLY HAVE TAKEN OUT A LOAN WITH THE PLACES YOU RECOMMEND.


Ever wonder what is the best LCD TV? I wonder if you’re watching your movies on one of the best LCD TVs…

What are all mortgages loans for first time buyer? What is the current interest rate on mortgages loan?

I am looking for some personal experience from the first time buyer.
Where is the best place to get mortgages loan?

Is there a federal mortgage loan?
I am looking to buy in the next few months and I need some one to guide me on loan and everything about home buying for the first time.


Teens need to be cool so you have to get them cool teen gifts. Got it?

What Kind Of Tax Return Can I Expect To Get Back Now That I Pay Mortgage Interest?

My wife and I just bought our first home in Los Angeles and I know that this coming tax year we can deduct mortgage interest and property tax. We both have full-time jobs, file jointly (both filed with 0 claimed dependants), and have a, before taxes, combined income of roughly $100k. The mortgage interest and property taxes for the year will total just over $30k. What kind of number could I roughly expect to get back in my taxes this year?

Other Items of Interest: Don’t stress about what to get your man this year! Check out the Christmas Gifts for Men 2009 where you will find a list of 50 gifts that men will love!

If I Consolidate My Student Loan With A Personal Loan Can I Still Write Off The Interest?

I had a federal student loan which I consolidated about 8 years ago to someone who eventually sold that loan to Citibank. I pay about 8.35% in interest. I am considering paying off that student loan with a personal loan where I can get a better interest rate. If I do this will I still be able to write off the interest I pay on my taxes?

Other Items of Interest: Digital Cameras keep getting better and Christmas is a great time to buy one. Thus, you should read How to Choose a Digital Camera so that you make the right decision.