Loan modifications and refinancing

No matter how careful people are, debts can get on top of them. For almost every family, the monthly mortgage installment will be their biggest payment. If there's an emergency of some kind and more money has to be borrowed on a loan or credit cards, this can disturb the delicate balance between paycheck and monthly payments. What was affordable suddenly becomes unaffordable. How should families react when disaster strikes? The first rule is always to communicate with your lenders. If you have a problem, they should be the first to know. The second rule is to keep paying as much as you can on all your liabilities. The moment you stop, this sacrifices every creditor's sympathy for your problems. You are now a delinquent, and penalties and service charges will drive up the amount owing. Can this all be avoided? Well, with some care, you can talk some lenders into modifying the loan or refinancing the debt.

The modification you want from your mortgage provider is some reduction in the monthly installment. This may come from extending the term of the loan or from reducing the interest rate applied. Why should a lender modify the loan? The problem for lenders is that foreclosure is a sledgehammer remedy to crack a nut. If the lender does foreclose, there is a small mountain of fees to be paid to end up with ownership of a property it cannot sell in a depressed market. Indeed, lenders are now looking at increased costs to maintain and repair properties to prevent further losses in value. None of these costs will ever be recovered from the borrowers, particularly if they are forced into bankruptcy. It is more cost-effective to take less from a borrower and leave the house occupied. This preserves the asset value and keeps some money coming in from the borrower. Most lenders now have a dedicated department to deal with modification applications. Applying for relief is more likely to receive a constructive response today.

President Obama has pushed through a package called "Making Home Affordable". It covers both mortgage refinancing and modification. If you qualify, lenders must reduce your monthly repayments so that they are less than 31% of your income. To qualify, you must be current on your loan with no payment more than 30 days overdue. You must be able to show the resale value of your home has dropped by more than 15% and that your personal circumstances justify federal assistance. For these purposes, anyone with a mortgage from Fannie Mae or Freddie Mac qualifies automatically. This can entitle you to interest as low as 2% with all the lender's losses covered by the government and represents an excellent deal if you can bring yourself within the terms of the scheme. If you do not qualify, it will come down to you or a professional advisor acting on your behalf to talk the mortgage lender into agreeing a refinancing package on favorable terms. It's in everyone's interests that you save on mortgage installments and keep making some repayments to the lender. This way leads to peace of mind, knowing that the ownership of your home is secure.

Singapore Property Investor: Selecting Investment Property

We are Singapore Mortgage Brokers who help you get home loans or to refinance your

property.

The key things to consider in Property Investments are: -

* Affordability and holding power

* Rental yield

* Capital appreciation

Affordability and Holding Power

Ideally, you should not purchase an investment that is way beyond what you

can Safely Afford.

You should also have good holding power to withstand Mortgage home loan

interest rates fluctuation as well as have enough cash flow set aside for up

to 24 months of Mortgage Home loan installment.

This is important as market condition can become volatile and the last thing

you want to do is to sell your investment property at a huge loss in a

Singapore Property market stricken with panic.

You can check your affordability with us: - Email: loans@propertybuyer.com.sg

Rental yield and Income

Rental yield is important in a property investment. However rental yield

cannot be over-emphasized.

What is important is the Return on Invested Capital (ROIC), most commonly

referred to as ROI.

Rental yield is: -

Annual Rental / Property purchase price

Return of Invested Capital (ROIC): -

[ Annual Rental - (Interest financing cost) - (Maintenance & Misc Cost) ] / Invested Capital
By looking simply looking at a property investment and comparing yield can

be very mis-leading. It is similar to looking at P/E for shares. As rental prices

fluctuate, so does property prices.


Buying based only on investment yield is the of the most foolish mistakes a

property buyer/investor can make.

RENTAL DEMAND

Singapore's rental demands are mainly derived from foreign expatriates as

most Singapore citizens own their own homes.

RENTAL SUPPLY

Property stock do not stay the same, as Property Developers will likely get

first hand information from Governmental development plans in order to add

to the supply.

home loans are now @ 52 years low rates with Refinance

Home loans are now @ 52years low rate with Refinance

In current situation at United States the home owners are rushing for Refinance loans The slump in the mortgage field and the recession in the nation should dazzle the home owner/home buyer dreams. The sudden drop in home mortgage rates has propelled home owners to refinance their homes, but this drop could not spur people in new home purchases

At present Home Mortgage Rates Dropped 52 Year Low, The average rate on 30 - year fixed-rate FHA mortgage was 5.12 % in Dec 1956; this was the last time that rates were low

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Our teams of mortgage professionals are dedicated to provide effective & efficient results to the customers and we are specialized in online-marketing for purchase. FHA approved loans also available for the consumers.