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It is a very probable reality that in these times of economic uncertainty, your financial capability is strong enough to face the many pressures of daily life. One of those pressures is the likely chance of losing your house. This is where a compelling loan modification hardship letter comes into play. It is a legal letter in which you describe your current financial hardships to your lender and state the steps that you have are taking in order to solve your financial problems.

A poorly written hardship letter can result in the rejection of a loan modification and can also cause the immediate foreclosure of your house. It must be borne in mind that lenders are very busy and back logged, especially during the current economic crisis. A strong persuasive hardship letter allows you to stand out from the rest of the crowd and turns your desire to keep your house into a reality. You have to keep your letter concise and as honest as possible. Most importantly, you have to convince your lender that you will not default on your modified loan payments. Continue reading ‘Writing a Persuasive Loan Modification Hardship Letter’ »

There are multiple schools of thought on this question and most of the time the answer will depend on the person buying the house. How much discipline does the buyer have with money? Do they need help making payments or are they able to make extra payments easily? There are lots of variables that are specific to each situation but here are some things to consider.

Would you rather have a bigger monthly payment for a shorter amount of time? With a 15 year mortgage you have to make big payments each month, no exceptions. If you buy a cheap enough house this could be easy for you. The biggest advantage is saving a ton of money on interest, the biggest disadvantage is the much larger payment that reduces your cash flow.

If you choose the 30 year mortgage and pay only the minimum each month you are looking at twice the purchase price of your home just in interest payments. Do you really want the bank to make that much money off of you? If you are able you should may additional payments in order to whack away at the total interest you’ll pay over the life of the loan.

Continue reading ‘Should You Have a 15 Year Or 30 Year Mortgage?’ »

This just in from BusinessWeek: “Nouriel Roubini, the NYU economist who accurately predicted the financial meltdown, writes an important commentary in The Globe and Mail about two disparate American economies: “There is a smaller one that is slowly recovering and a larger one that is still in a deep and persistent downturn,” he says.”

Roubini goes on to outline two separate Economies emerging within the United States — a smaller economy driven by large corporations that has slowly begun to emerge from recession, and the larger economy that is still in a deep and persistent downturn.

Echoing what I have been discussing in recent months with small business owners and in my Twitter postings @marketyoursite, small business owners Continue reading ‘Roubini – Small Business Behind the Lagging US Recovery’ »

Mortgage refinance provides borrowers with the option to reduce home loan payments or obtain cash from accrued home equity. Prior to refinancing mortgage notes, homeowners should become informed of the various options and compare interest rates and closing costs of various lenders.

The first step of mortgage refinance requires borrowers to review their current home loan documents. The majority of housing loans include prepayment penalties when loans are repaid before the contract expires. Homeowners carrying a first and second mortgage could incur substantial costs which negate savings obtained through refinancing.

Borrowers should conduct research to compare current home refinancing interest rates. Mortgage lenders recommend entering into mortgage Continue reading ‘Mortgage Refinance – Tips For Reducing Home Loan Payments’ »

In this day and age where time and money well spent is of utmost importance, the advances in technology have made kit homes a very good option for first home buyers. With the designs and number of types of these houses growing, it is no surprise that a lot of Australians are opting to buy more of them.

A new kit home design is that made of steel. These look just like any other house, and it will be hard to identify it as a kit home. The steel kit houses are light and easy to construct.

Because they are made of steel, they are also termite resistant. Termites cannot chew through steel, so your houses foundations are safe from their onslaught. Continue reading ‘Kit Homes and Home Loans’ »

Single mothers are often stressed, with the requirements that keep on procuring in family. This makes them work for long hours and sometimes even part-times jobs that can help her in paying rents and the other monthly bills. In such a scenario buying a house of own, can be of great help for single mothers. There are many programs designed for single mothers, especially those who are in the low-income bracket, to help them buy a house, and save some money that can be used in taking care of the other monthly expenses. Here are some tips that will help single mothers in buying a house.

1. Housing and urban development program, formed under the governmental assistance, provides loan to single mothers. This organization also provides financial help for single mothers by providing them loan on mortgage. These loans provided to them have very low interest rates, to ensure that the single mothers are benefited by the program.
2. Home investment programs; provide the amount that is required for down payment of the house, which mainly benefits mothers in low income bracket. Mothers who apply for the benefit must attach the income proof along with the form to be eligible for the benefit.
3. The local council also provides help for single mothers, by providing them home buying assistance, this kind of program are known as voucher program and its benefits may vary from state to state.
4. Single mothers working in positions like emergency medical assistant, firefighting crew member or kinder garden teacher are eligible for mortgages program called neighbor next door mortgages. Mother in any of the above profession needs to fill in the form and apply for federal housing administration insured mortgage, by paying the required down payment you can purchase a house from the home listed under, good neighbor next door program. The program designed to provide financial help for single mothers, has some set rules. According to the rule the house owner can live in the house for three years, from the date of purchase and then sign a second mortgage and a note for discount.
5. Insured loan is also an option for single mothers to buy a house, wherein you need to make a down payment, which is a nominal percentage of the real price of the house. Then the rest amount is paid by the private mortgage insurance people. The loan amount and the other charges added together are divided into small pieces that are paid as premium every month, which helps for single mothers.

Continue reading ‘Tips On Help For Single Mother To Buy A House’ »