Getting a Construction Loan Vs A Mortgage Loan – Learn the Differences

Unless you plan to pay cash for your home building project, you will need to obtain financing for the construction and a mortgage for the outstanding balance when it’s finished. While you may have qualified for a mortgage loan before, getting a construction loan for your home building project can be a little challenging. 

Although it’s certainly possible to get a construction loan as an owner-builder, lenders may shy away from you at first, thinking that you aren’t qualified to handle such an undertaking. Consequently, it’s important to be very prepared and to show yourself in a capable, competent light when presenting your case to the lender. For example, don’t say, “I’ve never really done this before, but I’m willing to give it a stab.” Instead, be positive, prepared and professional. Never lie, but anticipate questions and concerns and have answers ready.

There are several types of construction loans to choose from, but one of the most popular for people building their own home is a construction loan that converts to a permanent loan once the home is complete.  Although there are no standard specifications for this type loan, as a guideline, most only require that you pay closing costs once. That saves some money and makes the process easier.  You don’t have to go through the qualification process twice.   The downside is that it is next to impossible to lock-in a permanent mortgage rate, since you won’t be closing the loan for six months to one year.

No matter what type construction loan you choose, you will likely be required to pay monthly interest on the construction loan amount during the construction phase. The amount you owe each month will depend on the amount you have “drawn” out of the loan, not the overall amount that you are allowed to borrow. If you are approved for a construction loan of $100,000 but you have only drawn $50,000 then your interest payment will based on $50,000. Typically construction loans are standard interest (not amortized) and are one or two percent over the prime rate, or whatever you have negotiated with your lender. 

Qualifying for a construction goes beyond the income and credit qualification requirements for a standard mortgage loan.  Bankers or lenders will want to know how you plan to tackle your project and that you are capable of building a home yourself. A thorough presentation to the bank will be in order. The following is an outline of what you will need to apply for a construction loan:

  • all the same financial information you would provide to get a standard mortgage loan (financial statements, income verification, credit report, etc.)
  • a set of your plans (they may ask for several copies)
  • detailed specifications (the materials and finishes you plan to use)
  • an estimate of the cost
  • an appraisal (ordered by the lending institution.  The appraiser will use the plans, specifications and lot value to determine the amount)
  • your lot information (whether you own it, etc.)
  • contractor bids (not necessarily required, but might be if this is your first project)

You might also consider providing any other documentation you can think of that will …

Can Your Mortgage Foreclosure Case Really Be Dismissed?

It is true. A mortgage foreclosure case can be dismissed. Florida foreclosure fighting attorneys at the Florida law firms have been successful in dismissing residential mortgage foreclosure cases pending in the State of Florida. Utilizing knowledge, experience and persistence, defense attorneys are able to have mortgage foreclosure cases dismissed.

The internet provides access to a vast and variety of information, documentation and viewpoints on every possible issue imaginable. Harnassing that ability with reality allows even an unrepresented borrower the opportunity for success in defending a mortgage foreclosure case.

Dismissals of foreclosure proceedings may be the result of several different methods of defending the foreclosure actions and prosecuting claims against the bank for truth in lending violations and unfair and deceptive trade practices among other grounds. Of course, the fortunate clients are always ecstatic to learn of the success of these “Florida Foreclosure Fighters” in their respective cases. After receiving a copy of the dismissal, homeowners are certainly thrilled at the news.

Utilizing the right of rescission pursuant to the federal Truth in Lending Act, among other legal arguments, attorneys and legal advocates may quietly forced the plaintiff to dismiss the case against their clients. In this instance, if a borrower is unable to obtain or afford legal representation, the pro se defendant is able to access information relating to the applicable truth in lending laws to his or her particular situation.

Form rescission letters are typically and widely available on the internet or in a local law school library. Ordinarily, this forms contain guidelines for the applicability to a particular situation. Of the dismissed cases, several matters included foreclosures initiated by the former Indymac Federal Savings Bank now owned and operated by One West Bank. Part of the foreclosure defense team discovered loan errors and miscalculations during the law firm’s loan audit and examination. If you have refinanced your primary residence within the last three years to an adjustable rate mortgage, you should consider a careful and professional examination of your loan documents. Again, software programs are available for download on the internet to review and examine loan documents.

However, this process is slightly more complex if the pro se litigant is unfamiliar with mortgage terminology and identifying loan documents necessary for the process. However, there are services that are fairly inexpensive to obtain loan examination results. In other cases, the persistent and patient defense of the mortgage foreclosure case may lead to the case being dismissed at a status conference and/or show cause hearing before the presiding judge if the bank fails to timely move the case forward. In cases, such as the aforementioned matter, where the defendant is able to defend the case for some extended period of time, the judge often becomes frustrated with the case not advancing on the court calendar. In such instance, the court may dismiss the case for the bank’s failure to timely prosecute the case.

Common problems and issues existing in these cases included loans that were transferred and assigned through …

How to Find the Best Home Mortgage Rates

How to find the best home mortgage rates on a loan is a matter of plugging in all the factors of each loan into a mortgage calculator to see if you can afford it. Annual percentage interest rates and monthly payments are hardly enough information to see if a home mortgage is affordable.

For example, even the simplest loans can have the following factors to consider:

– Annual percentage interest rate (APR)

– Total principal loan amount

– Length of loan in months

– Annual insurance costs

– Annual taxes

– Prepayments monthly or annually (if any)

– Extra payments monthly (if any)

– Interest only payments (if any)

– Adjustable rate mortgage (ARM) interest rate changes (if any)

– Fixed rate period in months (ARMs only)

– Rate adjustment period in months (ARMs only)

– Starting interest rate (ARMs only)

– Expected adjustment percentage (ARMs only)

– Interest rate cap percentage (ARMs only)

You will need all of the above factors before you can calculate what your monthly mortgage payment is going to be. Rates on interest will usually be higher on longer term loans due to the increased risk to the lender. Often the insurance and taxes are not taken into consideration when computing home mortgage rates yet can have a profound effect on the final monthly payment calculation. Since APR is an annual percentage rate it almost goes without saying that the total interest paid for a 30 year mortgage is going to be twice that of a 15 year mortgage even if the interest rate is the same.

To calculate all these factors you really should use a mortgage calculator. There are several really good free ones on the Internet. To find them you can just enter “mortgage calculator” without the quotes into your favorite search engine. It is recommended to get several loan quotes from several lenders and compare them using the online calculator so that you get a better idea on how much you are going to have to pay both monthly and in total.

With the current state of the economy it is likely that rates are going to stay low for awhile. Of course, they will not stay low forever so if you want to buy a home then now would be a great time. Use your favorite mortgage calculator and see if you can swing the monthly payments using different loan factor scenarios.

Some people bought their home when the interest rate on home mortgages was much higher. These people may want to consider getting a mortgage refinance loan to take advantage of the low rates of today. Once again it is advisable to use an online calculator to compute the monthly payment based on each lender’s home mortgage rates. When refinancing always make sure to check to see if your mortgage has a refinancing or early payoff penalty. If it does, you will need to factor it in as well.

If you do not want to deal with the complexity …

Mortgages for Teachers with Bad Credit

Special bad credit mortgages are available for teachers. Educators have access to some exclusive mortgage products that are not available to other individuals. There are several low-interest mortgages open for teachers with bad credit. These teacher-specific bad credit mortgages have several advantages that ordinary mortgages do not enjoy.

A bad credit mortgage is an affordable way to clear your bad credit. You are very often asked what your credit rate is when you apply for a mortgage or home loan. Your credit worthiness is determined after considering the credit score contained in your credit report. A credit score less than 620 is considered a bad credit. However, many loan providers do not consider bad credit a hindrance in granting you a loan. A teacher with a credit score ranking below 620 can also obtain a mortgage thanks to special bad credit mortgages. There are different mortgages available for teachers with bad credit. Teachers can find a bad credit mortgage broker or lender via the Internet.

Different bad credit mortgage lenders have different requirements. They usually lend money after determining three important factors: they view the credit, check whether the person is capable of repaying the amount, and check the assets and establish the capability to undertake stronger down payment.

Many mortgage lenders are considerate to teachers, as teaching is a safe and sound profession involving little risk. As teaching is a long-term career, a teacher is treated as a low-risk applicant. Some lenders even take the risk of not accepting any deposit from teachers. Also, teachers enjoy many advantages such as low application fees.…

Guide to Mortgage PMT Insurance

Mortgage pmt insurance is a type of insurance that will make your mortgage payments in the case you cannot. Policies can differ greatly in the requirements for a payout and the method of the payout. Mortgage payment insurance may not be for everyone, but it can be beneficial for many. To understand a bit more about it, take a few moments to read through this article. You may find out this type of coverage will help you sleep a little easier at night.

Types of Mortgage PMT Insurance

There are several types or functions of mortgage payment protection insurance. There is protection in case of unemployment. There is protection in case of death. There is also protection in case of a disability that keeps you from working or causes a reduction in work hours. Policies are available that fit just one type, for instance, a policy that provides payment of your mortgage premiums if you become unemployed only. You can also purchase an all-encompassing policy that will protect against any instance in which you are no longer capable of making mortgage payments.

Who Should Consider Mortgage PMT Insurance

Payment protection for your mortgage is a good idea for most individuals and families with a mortgage. The first thing to consider is how much remains on your mortgage. If the amount is significant, insurance protection may be a good idea. You don’t want to leave the debt behind to your family if you pass away. It is nice to have a safety net in case you lose your job for an extended period of time. On the flip side, if there is very little time or principle balance left on your mortgage, this type of protection may not be necessary. Older individuals with a significant portion of the principle balance remaining on their mortgage are the best candidates, as well as young families who have recently purchased a home.

How Does Mortgage PMT Insurance Work

Of course, different policies will have different terms and conditions, but for the most part, you pay a premium for mortgage payment protection and in exchange the policy will either make your mortgage payments for a specific period of time or pay off the mortgage in full if you meet the requirements for a payout. If the requirement is death, then the mortgage will be paid off in full so that you do not leave behind a large debt. If the requirement is temporary unemployment, then the policy, after a waiting period of usually 60 days, the policy will make your payments for a specified period of time or until you become employed again. If you become permanently disabled and unable to work, most policies will then pay off the mortgage in full.

Shopping for Mortgage PMT Insurance

Mortgage payment insurance is similar to other types of coverage in that you will get a better deal if you take the time to shop around. Shopping around will give you the opportunity to gather information on insurance …

Time To Feel About Your Swimming Pool

Rain has hit us challenging this previous week with more than 5 inches at my house in five days. Besides guaranteeing that all people in the pool house can swim, home owners may want to establish a set of requirements, specifically when young children are involved. Summer time time pool parties or a late evening swim is often enjoyable when you personal your own pool. The correct upkeep of swimming pools is bets performed by expert firms, which know each and every detail that needs to paid consideration. I adore swimming pools and there are so a lot of extreme ones that capture my heart but amaze my thoughts. You can either opt to do the upkeep yourself or engage the swimming pool contractor to do it. You can negotiate a upkeep schedule with your swimming pool contractor to keep your pool in peak situation throughout the year. In other words, You can do something from a conventional rectangle to a pool which looks like it really is a collection of bubbles stuck with each other.

Fiberglass pools have a life expectancy of 25 years, creating them a low-expense option in the extended term. Another disadvantage is that if someday someone wanted to install a new extension de maison the old 1 would have to be dug up, broken out, recompacted and re-dug to the shape of the new pool. If you uncover oneself in that circumstance, you will need to obtain further coverage for external structures or know that only half the replacement expense of your pool (primarily based on a $20k price) would be covered. Adelaide Pool Fencing Guys is a family owned pool fencing business providing a wide variety of glass pool fencing to Adelaide. If you think installing a pool might be as well significantly for you, even with a single of these kits, you happen to be almost certainly appropriate.

No matter the agrandissement maison bois size or shape, buyers can see their perfect swimming space come to life in their own backyard, permitting close friends and family members a location to unwind for a lot of years to come. There are various varieties offered, and not all are made to shield folks from falling in. Even so, a professional pool installer will be in a position to suggest the best sort of pool cover for a user’s want. It really is a shame that insurance charges you so a lot for getting a slide on your pool. Of course, home owners have to attend to pool and deck upkeep in order to make their house much more attractive to prospective buyers. I believe what’s essential is the fun and relaxation 1 can get from these pools.

Some are as extended as an Olympic pool (25 meters) and are meant for coaching or workout. An experienced pool removal contractor can deal with every little thing for you in far less time than if you do it your self. DEPTH: If you have quite little youngsters …

What Is the Difference Between Reinstatement Vs Modification of a Home Loan or Mortgage?

If your mortgage lender has sent you a letter demanding that you pay all of your back payments, as well as all late fees, penalties and legal fees in order to become current, then the process they are working with is called a reinstatement of your loan. Your lender views the delinquent amounts as defaulting on the terms of your home loan. This requires them to demand you catch up or they must foreclose on you and take your home. Can a home loan modification avoid this process and get you current without your having to pay this large amount? If the answer is yes, then why is this true? You may ask, what is the difference between reinstatement and modification of a home loan?

The demand for payment letter that a borrower receives is based on the terms of the loan. It only allows for paying the payment as described in your loan documents. If you are behind on your payments, you are still going to be held to the terms of your contract with the lender. There is no language in your loan to allow for changes. Therefore the lender has no other option other than collect or foreclose. You have fallen into default and the only contractual way to become current is to pay all past due amounts. Then your loan has become “reinstated” and you can keep your home as long as you continue to make payments on time. This process is called reinstatement.

But, the problem with the reinstatement process is, that if you are too far behind then you will be unable to find enough cash to catch up all at once. The language of your loan, then triggers a foreclosure that you are unable to stop.

Unless….You are able to work out an agreement with your lender to “change” the language and terms of your loan. This type of situation will call for “modifying” your loan. You modify the terms to make it possible for you to continue owning and paying for your house. It would include interest reduction to lower your monthly payment and taking your unpaid payments and putting them back into your loan. The new terms would have the effect of creating new monthly payments, which would be affordable to you. Your monthly payments would now fit within your monthly budget.

Why would the lender do this? Because, your lender loses a great deal of money whenever they foreclose on a home. This is complicated, but the costs your lender must pay can include:

1. The cost of the foreclosure process going through the court system.

2. Your home will probably sell for less today that just a few years ago due to the economy. If your lender receives less than you owe them, then they lose this money.

3. Care of your home while it is in the selling process. This includes large realtor commissions, utility bills and upkeep.

4. The lender borrowed money from an even larger lender …

Buying Vs Renting: When to Buy a House and When to Rent

Buying your first home can indeed be an incredible milestone in your life. In line with this, you may feel a mixture of many emotions like fulfillment, happiness but at the same time, there’s nervousness that may impair judgement. You feel nervous about this big decision that you have to make, likely the largest financial decision in your life. And one of the most common questions you have to face is – are you going to rent or buy? Let us discuss about buying vs. renting in this post.

Before you come up with any further decision about moving on your own, you have to ask yourself, is it time that you buy your own house or are you better off renting a home?

When to rent?

Living solo? Renting a home might be more suitable for you. Living alone in a big house may be a bit too much – too much space and too much work or cost for the upkeep. If you don’t have the money for a down payment and all the costs of owning a house then renting is likely more advisable. Also, if you are concerned about job security then this is a sign to perhaps continue renting for the moment. Think of the impact to you and your family if you decided to buy a house and then lose your job after few months.

How can you afford to pay for the mortgage? Do you need to rent a room or part of the house to make it work? These considerations are very important before you come up with your final decision.

Do not rush in to buying a house most especially if you’re not financially and mentally ready. There is nothing wrong with renting first. Being practical will give you more benefits in the long run. Most of all, your REALTOR® is a source of valuable information to you as a first time home buyer.

When to buy?

Now, when is the perfect time to buy your house? One main factor to that is when you are financially stable. And when we say financially stable it means that you have funds for at least a 5% down payment for the new house, a permanent and stable job and probably a savings to serve as your back-up plan, should you need to repair or renovate the home. Also, you have to remember that it doesn’t end in paying the down payment; you also have to pay for other costs in buying your own house like budget for the furniture, utilities and of course the monthly mortgage rate. During the purchasing process you will be writing cheques to home inspectors, insurance policies and lawyers.

Having a family could be another factor that will lead you into the decision of buying a house. Raising a family in a house you can call your own is definitely ideal. Having your own garden so that your children can play or a big kitchen where you cook and …

55 Years Old – Don’t Buy A House

If you have owned a house and paid off the mortgage over the years you know the first 10 years is almost all interest payments with very little equity.

There is nothing wrong with buying a house as long as you can qualify. That means a good down payment and a steady job. None of that no-down-payment nonsense. The buyer must be serious about making those monthly mortgage payments and have a good job. Banks are checking these days.

The financial community in the recent past has been required to make mortgages for those who did not qualify with no down payments and had no serious intention of paying if it became economically uncomfortable. It is too easy to walk away.

The true cost of home ownership is not just the monthly mortgage payment. In a new house all the appliances, plumbing, roof, pool equipment, window frames, etc., etc., everything has an estimated life expectancy after which they need to be replaced.

Buying an older home means all of the above will occur sooner. Replace or repair can be expensive.

The true cost of keeping the house is the mortgage payment plus upkeep. Oh and let’s not forget taxes. Then there is a little thing called insurance that is required by the mortgage holder.

The industry calls it PITI = principle, interest, taxes and insurance. Depending upon the length of time of the mortgage and whatever your down payment was it normally comes out 10% annually of the selling price divided by 12 or 1% of the selling price each month.

If the house cost $200,000 that figures about or close to $2,000 per month.

If you are 55 years old do you want to take on that obligation? Wouldn’t it be smarter to rent? If the same quality home can be rented for $1,200 per month the renter could save the difference of $800 each month and in 10 years at retirement have $96,000 plus interest. I can guarantee he would not have that in home equity if he bought the house when he was 55.

Furthermore renters pay much less for rental insurance and have the ability to move to a new location any time. Renters do not have to put on a new roof or replace an old hot water heater. No major upkeep out of pocket expense.

How about a 6 month rental in Canada for the Summer and 6 months in Florida, Mexico or Dominican Republic for the Winter? The only extra would be travel expenses.

With so many rentals available the foreclosure prices are not yet a great buy. If a person wishes to buy there are yet about 4,000,000 more distressed properties to hit the market in the next 2 years. Prices will be even lower than today.

Do the numbers before you buy.…

Ignite USB Lighter Manufactured

So frequently lighters are manufactured with very combustible supplies, therefor causing them to be hazardous and harmful. This is a product category exactly where, you are going to be glad to know, budget is hardly a concern: most windproof lighters expense in between ten and twenty dollars. The a lot more drawn out-wick and taller flame defend of the Zippo tends to make for a noteworthy preferred standpoint over alternate lighters. Another instance of the exquisite ladies variety of lighters at Pierre Cardin, this lovely piece is 1 for ladies of style. The International Common establishes non-functional specifications on high quality, reliability and security of lighters and suitable test procedures. Plug our lighter into any USB port for an hour to charge and get 100+ lights per charge. It features an auto piezo electric ignition, an adjustable flame, and butane stress.

This is a very standard hack, really just a physical connector adapter, and need to be basic adequate for pretty significantly anybody to do, if they need it. There really are a lot of devices that used auto cigarette outlet plugs that converted to the correct voltage: just about me know I have an old Treo adapter that would work, and an adapter from an old Alpine GPS unit that’d be fine, also. The only limitation is what you can match inside the tip of the lighters 2 electrodes that generate the high intensity electric arc.flameless lighters,usb lighter

The reusable hand warmer I have added to my outdoor gear is the Platinum Catalyst Flameless Metal Hand Warmer produced by Xtreme. The OBON MINI usb lighter is designed to be extremely slim so it can be placed anywhere you want like your favourite cigarette box. Innovation and design in the palm of your hands, these Flameless Lighter are really effortless to use in any climate and at any angle. Our team’s passion for innovative merchandise is what excites us to develop new and exclusive Flameless Lighters. Take charge with the Tesla Coil Lighters, a rechargeable electric lighter that calls for no flame, no butane, no hassle! Alternatively of employing gas, the ‘Carteret’ Flameless Lighter utilizes the internal coil that heats up via electrical energy to light cigarettes, cigars or anything else a single demands lit.

Windproof 3 High Powered Jet Flames Gas Refillable with Flame Adjustable Cigar Punch at bottom, slides back into lighter body after use. Now, that there are a number of models on the marketplace, this article singles out the best 10 best windproof lighters in 2016 critiques, to aid you recognize the greatest top quality models to acquire, in case you demand a single right now. On flipping the leading open, just an simple press of the single button produces two, crossed electronic arcs which heat up the cigarette to fire temperature, rather than set it alight with flame. Phoenix Automobile Energy Adapter for Samsung Phones, has coiled cord that plugs into cigarette lighter socket, three.five-mm plug, for a lot of Samsung phones, for about $25. Multifunction Pocket …