11 posts tagged “mortgage”
I used an Excel based mortgage spreadsheet to see how the life of my mortgage would change if I paid a little more each and every month to the principal. It amazed me! By paying just an extra fifty dollars a month, I was able to shorten the length of my loan by five years and ten months and save more than $18,000 in interest!
The U.S. title-insurance industry faces increasing pressure from regulators to justify the fees charged to consumers for ensuring they have clear ownership of their homes, Title insurance can range from several hundred to several thousand dollars!
So here is what you do. Early in the process of buying a home or refinancing, let your real-estate agent and lender know you will select your own title insurer. Research title-insurance costs online and check whether there are fees on top of the premium (in many states, consumers pay separate fees to the agents for that research, on top of the premiums).
In yet another example of unintended consequences that make problems worse, new appraisal rules (Home Valuation Code of Conduct) are slowing the housing recovery.
The HVCC went into effect at the beginning of May. The HVCC forces a firewall between lenders/brokers and home appraisers. Now, lenders and brokers are forced to use appraisal management companies. Realtors say some of these appraisers are not only not local, they don’t even have access to the local MLS. They are doing appraisals using computer models, often incorporating distressed sales as comps, and often not even knowing that the home had extensive renovations or an addition. As a result, the appraisals are coming in far lower than the agreed-upon purchase price.
If you have saved money or made money because of this blog, tip
me.
For $3 you get to download my seminars. They teach you how to save
$130,000
over your lifetime by smarter spending, how to consistently make 7% on
your money, and how to earn $800 a month in your spare time!
From Randall Parker, Yahoo Answers
PMI protects up to 90% of the loan amount with proceeds payable to the lender.Indirectly, it allows banks to loan money when prudence might dictate otherwise.
PMI companies ARE paying out billions of dollars to lenders, but again, the lenders must foreclose first, and then file a claim to collect 90% of their losses. This is still not enough to stem the tide.
Keep in mind that a lender might only make 2-4% of the loan amount as profit, after selling the loan. If the loan goes bad, the lender has to buy it back, while making your missed payments. Then, the lender has to go through all of the expense of foreclosing or otherwise settling your case before trying to collect from the PMI firm.
If this was on a loan-by-loan basis, it might not be so bad, but that is not how it works. A lender will package $100 million worth of loans in a single offering. They might sell that bundle for $103-104 million. If the default rate goes over a certain amount, say 3-5%, then the lender has to give back the $103-$104 million all at once.
If a lender has a 5% default rate, they are out of business, because they had to pay all of their profits out to buy back those bundles. That's without even taking into account any of the lender's expenses of marketing, salaries, and operations.
If you have saved money or made money because of this blog, tip me. For $3 you get to download my seminars. They teach you how to save $130,000 over your lifetime by smarter spending, how to consistently make 7% on your money, and how to earn $800 a month in your spare time!
- If you are a handy person, buy a fixer-upper or a foreclosure
- You can get foreclosures emailed to you
- Find a live-in elder care position and keep someone out of a nursing home
- If you get along with your family, have 3 generations (grandparents, parents, kids) live together
- Consider shared housing and communes
- Live in a small house
- Try Manufactured Housing
- Live in an RV
- Live in an EDAR
I guesstimate these ideas can save you anywhere from $30,000 to $130,000, so help keep a roof over my head by tipping
I warned everyone in an earlier post, so here is what actually passed and gets no coverage in mainstream press or blogs:
- A provision to increase the national debt ceiling by $800 billion.
- While this bill is often referred to in the news as a “$25 billion” plan, the final amount will likely be much, much higher. The Treasury’s previously limited $2.5 billion line of credit to Fannie Mae / Freddie Mac has instead been increased to unlimited. The Treasury can now buy an unlimited amount of Fannie / Freddie housing securities and stock.
- In yet another example of persistent, big brother, big government, police state creep, anyone working in the mortgage industry will now be required to be fingerprinted.
- Finally, buried deep within the bill, is the provision that every credit card transaction will now be reported to the IRS. How this fits in to the housing crisis is anyone’s guess.
Homeowners with unaffordable mortgages will find relief at the Save the Dream of Home Ownership Events. Never before have thousands of homeowners at one time been matched with hundreds of Neighborhood Assistance Corporation of America (NACA) counselors who will re-underwrite or restructure mortgages to an affordable monthly payment. The service is free! To see when they are coming to your area, search their workshop locations.
If you have saved money or made money because of this blog, tip me. For $3 you get to download my seminars. They teach you how to save $130,000 over your lifetime by smarter spending, how to make an 11% return on your investments every year, and how to earn $800 a month in your spare time!
These companies include banks, credit card companies, eBay, Amazon and Google! LINK (bottom of page 11)
Payment Card and Third Party Network Information Reporting. The
proposal requires information reporting on payment card and third party
network transactions. Payment settlement entities, including merchant
acquiring banks and third party settlement organizations, or third
party payment facilitators acting on their behalf, will be required to
report the annual gross amount of reportable transactions to the IRS
and to the participating payee. Reportable transactions include any
payment card transaction and any third party network transaction.
Participating payees include persons who accept a payment card as
payment and third party networks who accept payment from a third party
settlement organization in settlement of transactions. A payment card
means any card issued pursuant to an agreement or arrangement which
provides for standards and mechanisms for settling the transactions.
Use of an account number or other indicia associated with a payment
card will be treated in the same manner as a payment card. A de minimis
exception for transactions of $10,000 or less and 200 transactions or
less applies to payments by third party settlement organizations. The
proposal applies to returns for calendar years beginning after December
31, 2010. Back-up withholding provisions apply to amounts paid after
December 31, 2011. This proposal is estimated to raise $9.802 billion over ten years
