Equity Talks

Making Home Affordable 105% Loans were introduced just this spring and the program has simply not been meeting the public need. Homeowners seeking to refinance their Fannie Mae or Freddie Mac Mortgages quickly found that the new 105% loans were helping a minority of people teetering on the edge of collapse. While it may seem obvious to people in trouble, here is why the limit was increased to 125% last week. Many homeowners simply cannot meet the required 33% debt to income limits necessary to refinance their loans due primarily to a job loss or cutback or other change in their financial situation. You see, many people purchased or refinanced their homes with much higher housing ratios: in many cases over 45%. So unless your income went up, the chances of a lower ratio will be slim even with a fixed interest rate. A careful look at the rates on the much touted 'DU Refinance' Programs our lenders are offering are just not so hot. Given you have to be in 'financial dist...

Loan Modification and Stimulus  Programs are the hot buzz words for distressed homeowners. But exactly what are they and who qualifies for help? Mortgage loan modification as a means to help folks in financial distress has always been an option --just not widely known. The basic premise is to renegotiate the terms of your existing loan contract with your mortgage holder. Generally, modifications are considered if your financial circumstances have changed, or you simply cannot afford the new adjustable rate reset. Most lenders want a hardship letter that holds water. (Not a good idea to complain that your stated income loan was a sham!) The key word is 'negotiation'. Few of us have the understanding of win win in a delicate balancing act with that creature we fondly refer to as 'The Bank'. Those friendly folks who loaned you money to buy or refinance just a few years ago, have built a very effective and impenetrable wall built of endless automated phone systems and...

Folks with good credit are finding it harder to get a decent Home Equity Line or Refinance terms these days. The current market is very challenging for many who had previously relied on their investments for income or cannot sell real estate in this market. Below are some options: First Step: Explore Loan Workout: If you have an Adjustable Rate Mortgage that is resetting to a higher rate, you have missed mortgage payments, or you may simply be financially stressed by a change of circumstances, you may approach your mortgage holder to negotiate new new terms. Your lender may offer several options including but not limited to: reinstatement, forbearance or a new repayment plan to suit your situation. When you call your lender directly ask for a supervisor for best result! As a consumer, you have every right to negotiate with your lender for better terms. Making your case to lower your rate or extend your loan requires a very solid plan and documents to back up...

Baby Boomers buck the trend and live longer! Our great grandparents often lived in the same house for a generation or more. As our families spread around the globe, caring for our parents in our homes as they age is less common. Boomers, the trend setters and the greatest mass of adults in America, are setting new trends in just how they age. Not only are boomers more educated, traveling more and enjoy more lifestyle choices, they are accustomed to having it 'their way'. Aging in Place: If you or someone you know was shortly born after World War II, then chances are you grew up in an exciting time of change including mini skirts and long hair . Baby boomers are accustomed to taking life in stride. Rather than accepting the traditional concept of retirement homes, many seniors (55 is hardly old!) are choosing to stay at home and enjoy the lives they have built, among friends and community, in the style to which they have become accustomed. Renovation Boom: Many seniors ch...