Some Financing Options
Gap Financing when buying a home in Ontario is a term mostly associated with mortgage loans or property loans. Gap financing is an interim loan given to finance the difference between the floor loan and the maximum permanent loan as committed. This is to provide funding during the time between the end of loans extended during the development stage of a project and the beginning of the permanent mortgage extended to the buyer.When getting a home deposit or short term financing, a deposit advance is funded within 24hours of receipt of all paperwork and contracts requested normally.
Interim financing is not the same thing as gap financing. The difference between them is that gap financing is not secured. For gap financing, the project has a funding shortfall, or gap, because its contracts do not provide full funding of the costs of the film.
Mortgage Fraud - Rent-to-steal Say you're advertising to rent your home or investment property. A renter shows up who seems to have all the right documentation to qualify. It's a deal! The monthly rental checks start coming in on time. But behind your back, the renter (using an alias with fake or stolen identification) goes to the local court and files a false "satisfaction of loan" document complete with your forged signature, forged bank officers' signatures, and bank seals. This shows that the property is now "free and clear"- that is, there are no outstanding mortgages on it. Now the renter/ con artist is able to go to lenders and take out new loans on the property-often taking out several, practically simultaneously, in your name. Suddenly your renter vanishes and three or four banks are claiming title to your home.
For more imformation about financing please visit our blog: Money financing home deposit loan buying a property real estate deposit financing short term financing loan new home deposit broker
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( 2.9 / 92 )IndyMac: Your money is safe - FDIC
NEW YORK (CNNMoney.com) -- The FDIC stressed Sunday that the takeover of failed bank IndyMac is largely a "non-event" for most customers.
"Come Monday morning, it will be business as usual for all insured customers," said John Bovenzi, chief operating officer of the Federal Deposit Insurance Corporation, which insures U.S. banks.
When a bank shuts down, traditional accounts are insured to at least $100,000. Some accounts, such as annuities and mutual funds, are not insured at all. Individual Retirement Account (IRAs) funds are insured to $250,000.
If you had $100,000 at one bank and $100,000 at another, both would be insured, according to Allan Roth, a Colorado Springs, Colo. financial planner.
Individuals with multiple accounts in the same name at the same bank are limited to the $100,000 cap. If an individual has a $100,000 savings account in her name and a $100,000 joint account with her husband, both accounts would be covered.
"The difference is not in the number of accounts [that each individual has at an FDIC-insured bank]," said Roth. "The difference is in the titling [or name] on the account."
IndyMac Bancorp, once one of the nation's largest home lenders, was taken over by federal regulators on Friday and transferred to the FDIC.
While IndyMac customers did not have access to online and phone banking services over the weekend, they could access funds by ATM, debit cards and checks.
"That fact is that for insured depositors, IndyMac's conversion has been largely a non-event," said Sheila Bair, chairman of the FDIC in a statement.
IndyMac customers with uninsured deposits will get at least half that money back, and they could get more back, depending on what the FDIC gets when it sells the bank, said Bair.
Loan customers were advised to continue making loan payments as usual.
The FDIC disclosed last month that it was closely watching 90 financial institutions on its "problem list," up from 76 in the first quarter of 2008. The total assets of "problem" institutions rose from $22.2 billion to $26.3 billion, the FDIC said. The FDIC does not publish a list of trouble banks out of concern it could spur a bank run
But for non-IndyMac customers, Bair stressed that their money is safe.
"IndyMac is only one of 8,494 depository institutions operating throughout the country," she said. "The overwhelming majority of banks in this country are safe and sound. The chance that your own bank will be taken over by the FDIC is extremely remote. And if that does happen, you will continue to have virtually uninterrupted access to your insured deposits."
Bovenzi added that all IndyMac branches will reopen Monday with full operations. "Customers should view this as a change in ownership," he said.
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( 2.9 / 74 )
Money 2 Close Inc. will also lend ¡°Deposits¡± to First Time Buyers with the new home financing program.
This transaction is completed differently to Clients who are Selling and Buying property, as the Deposit Advance will only be funded when the Purchase and Sale Agreement for the property that you are buying is NOT CONDITIONAL (FIRM).
Mortgage experts money saving tips:
To save money, you must stay in your house longer than the "break-even period" ¨C the period over which the interest savings just cover the refinance costs. The larger the spread between the new interest rate and the rate on your existing loan, the shorter the break-even period. The more it costs to obtain the new loan, the longer the break-even period.
But beware! The break-even period is not the cost of the new loan divided by the reduction in the monthly mortgage payment. This widely used rule of thumb is a misapplication of the principle that when explaining something to the consumer one should "keep it simple." Simple is good, except when it¡¯s wrong!
The rule of thumb does not allow for the difference in how rapidly you pay off the new loan as opposed to the old one. Lets say that in 1992 you took out an 11% 30-year fixed rate loan, which now has a $100,000 balance and 21 years to run. You refinance into a 7% 15-year loan at a cost of $3,750.
Monthly payment on the old loan = $1019
Monthly payment on the new loan = $899
Reduction in monthly payment = $120
$3750 divided by $120 = 31 months
The rule of thumb says that you break-even in 31 months. However, because of the shorter term and lower rate on the new loan, in 31 months you would owe $7,041 less than you would have owed on the old loan. So, the rule of thumb in this case seriously overstates the break-even period. Taking account of differences in the loan balance, you would actually be ahead of the game in 12 months, as shown below:
Savings in monthly payment: $120 for 12 months = $1440
Plus lower loan balance in month 12: $2620
Equals total saving from refinance: $4060
Less refinance cost: $3750
Equals net gain: $310
Next consider the case where an 11% loan taken out in 1992 was for 15 years, and now has only 6 years to run, while you plan to refinance into a 30-year loan. With the remaining term shorter on the old loan and longer on the new one, the difference in monthly payment rises to $1238. Using the rule of thumb the $3750 cost would be recovered in only 3 months. But this fails to consider the slower loan repayment on the new loan. Taking account of the slower repayment, you don¡¯t actually come out ahead until 14 months out.
The rule of thumb (dividing the upfront cost by the reduction in mortgage payment) approximates the true break-even period only if the term on your new loan is close to the unexpired term on your old loan. In other circumstances it can lead you seriously astray.
The rule of thumb also ignores the fact that if you had not refinanced you could have earned interest on the money you pay upfront to refinance; and if you do refinance and the payment is reduced, you can now earn interest on the savings.
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( 3 / 53 )At MortgageDirect2u.ca, our well-established relationships with over 60 lenders ensures you receive the best available mortgage - and the best available mortgage rate. From residential to commercial real estate, our home mortgage broker in Ontario can help you make the right decisions. Whether you`re buying a home, renewing your mortgage, or refinancing - trust the Mortgage Direct2u experts. Imagine a scenario where you can have access to extra cash, while simultaneously lowering your monthly mortgage pay-ment. This dream can become a reality through mortgage refinancing. A house is the largest asset you may ever own. Likewise, your mortgage payment may be the largest expense you will have in your monthly budget. Would not it be great to use this asset to reduce your monthly payment and put extra cash in your pocket? When you refinance your mortgage, you can take advantage of the equity in your home and increase cash flow.
Variable Rate Mortgage Financing
There is more to most variable rate mortgages than meets the eye. Just like mortgages, people typically fall into two categories: Variable Rate or Fixed Rate. ¡°Fixed rate¡± people feel most comfortable when they know their exact mortgage payment at all times. ¡°Variable rate¡± people are willing to experience the uncertainty of their payment amount in exchange for the savings that come with it Variable rate terms and conditions can be quite complex, however.
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( 3 / 55 )Some Financing Options Gap Financing when buying a home in Ontario is a term mostly associated with mortgage loans or property loans. Gap financing is an interim loan given to finance the difference between the floor loan and the maximum permanent loan as committed. This is to provide funding during the time between the end of loans extended during the development stage of a project and the beginning of the permanent mortgage extended to the buyer.When getting a home deposit or short term financing, a deposit advance is funded within 24hours of receipt of all paperwork and contracts requested normally. Interim financing is not the same thing as gap financing. The difference between them is that gap financing is not secured. For gap financing, the project has a funding shortfall, or gap, because its contracts do not provide full funding of the costs of the film. Mortgage Fraud - Rent-to-steal Say you're advertising to rent your home or investment property. A renter shows up who seems to have all the right documentation to qualify. It's a deal! The monthly rental checks start coming in on time. But behind your back, the renter (using an alias with fake or stolen identification) goes to the local court and files a false "satisfaction of loan" document complete with your forged signature, forged bank officers' signatures, and bank seals. This shows that the property is now "free and clear"- that is, there are no outstanding mortgages on it. Now the renter/ con artist is able to go to lenders and take out new loans on the property-often taking out several, practically simultaneously, in your name. Suddenly your renter vanishes and three or four banks are claiming title to your home.
For more imformation about financing please visit our blog: Money financing home deposit loan buying a property real estate deposit financing short term financing loan new home deposit broker
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