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Dirt-Cheap Loans on New Homes

Fri, 22 May 2009 21:29:27 GMT

Loans Mortgages Home Equity Loan Fri, 22 May 2009 21:29:27 GMT 496033 2009-05-22T21:29:27Z

Dirt-Cheap Loans on New Homes

posted: 185 DAYS 14 HOURS AGO

filed under: Loans, Mortgages, Home Equity Loan

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Would you buy a brand-new home if you could lock in an interest rate of, say, 3.63 percent on a 30-year mortgage? Homebuilders who've offered to "buy down" buyers' interest rates hope your answer will be yes.

Interest-rate buy-downs aren't new. In fact, builders, private home sellers and buyers have long been able to pay an extra fee to buy down the interest rate on a home loan. The extra fee, payable upfront, is priced in "points," and each point is equal to 1 percent of the loan amount. For each point (or partial point) that's paid, the interest rate on the loan is reduced by a set amount that's determined by the lender. Homebuilders that offer the incentive pay the extra points on the borrower's behalf as an inducement for him or her to buy a home.

A buy-down may help some new-home buyers qualify for a loan because the lower monthly payment improves the borrower's debt-to-income ratio, says Dan Klinger. Click here to read the full article and see how buy-downs may help you too.

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Want a Cheaper Loan? Join a Credit Union

Tue, 21 Apr 2009 16:33:39 GMT

Want a Cheaper Loan? Join a Credit Union

posted: 216 DAYS 19 HOURS AGO

filed under: Auto Loan, Banking, Credit, Cut Costs, Get Deals, Home Equity Loan, Loans, Mortgages, Personal Loans, Recession, Refinancing

Looking to score a mortgage or a car loan? That used to be easy, but the credit crunch has made banks a little tight-fisted. If your bank shakes its head when you ask for financing, maybe it's time for you to join a credit union.

During the subprime boom, these cooperative financial institutions invested far more conservatively than most banks, and today they're reaping the rewards of avoiding a bust. That's good news for consumers who belong to credit unions, where the average interest rate for used cars is far lower than it is at banks. Carmakers are even offering discounts on new-car loans through some participating credit unions. And many credit-union members enjoy lower rates on 30-year mortgages and home-equity loans.

So can you take advantage of credit-union benefits? Read on to find out.

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Credit Unions and Cheap Loans

At a credit union located within a Phildelphia Baptist church, one member -- the pastor -- opens an account. Credit unions in recent years tended to choose conservative investments over the high-risk strategies favored by banks, and today, many offer loans more freely and at lower interest rates.

Douglas M. Bovitt, AP

Inventory at a Chrysler-Jeep dealership outside Chicago in 2008. Troubled automakers Chrysler and General Motors have offered discounts of up to $1,500 to customers financing new-car purchases through credit unions.

Scott Olson, Getty Images

A Chicago used-car lot. Interest rates for used-car loans financed through credit unions recently averaged 6.65%, compared with 7.45% for loans financed through banks.

Scott Olson, Getty Images

An upscale townhouse-condominium under construction in March 2009 in Fairfax, Virginia, was a rare glimmer of life in a regional downturn on new-home construction. Interest rates on 30-year mortgages secured through credit unions in early 2009 averaged 5% -- half a percentage point lower than rates at banks.

Paul J. Richards, AFP / Getty Images

A FannieMae ad at the Mortgage Banker's Association Conference and Expo in San Francisco in October 2008. In early 2009, credit unions were financing home equity credit lines at an average interest rate of just 4%, compared with 5.7% at banks.

Justin Sullivan, Getty Images

MagnetBank in Utah was seized by the Federal Deposit Insurance Corp. in late January 2009. As banks continue to suffer years of risky investments, credit unions are emerging for consumers as safer, more stable institutions.

Douglas C. Pizac, AP

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Mortgage Fees Jump to Record Highs

Wed, 25 Mar 2009 16:57:40 GMT

Mortgage Fees Jump to Record Highs

posted: 243 DAYS 18 HOURS AGO

filed under: Home Equity Loan, Home Insurance, Loans, Mortgages, Recession, Refinancing

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Interest rates are at record lows, which makes this a pretty fantastic time to refinance. But there's just one problem...find out what it's going to cost you to re-do your loan.

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Short Sales Can Kill Your Credit Report

Wed, 11 Mar 2009 21:05:00 GMT

Short Sales Can Kill Your Credit Report

posted: 257 DAYS 14 HOURS AGO

filed under: Credit, Credit Reports, Credit Score, Home Equity Loan, Mortgages

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You might think that getting out of a mortgage you can't afford is your top priority, but if you are in this situation, don't forget to consider what sellling your house for less than it is worth will do for your credit score.

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Meet Our Ideal of a Real Estate Agent

Thu, 05 Mar 2009 17:33:15 GMT

Meet Our Ideal of a Real Estate Agent

posted: 263 DAYS 18 HOURS AGO

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Our blogger comes across an agent on TV who might just be the ideal seller and gets his tips on what to look for in your own real estate agent.

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Renting Makes Less and Less Sense

Thu, 26 Feb 2009 11:52:41 GMT

Renting Makes Less and Less Sense

posted: 270 DAYS 23 HOURS AGO

filed under: Home Equity Loan, Mortgages, Recession, Refinancing

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The calculus for deciding whether you should rent or own is shifting heavily in favor of owning thanks to falling prices and low interest rates. So if you're still shelling out to a landlord each month, you may want to take a second look at these numbers and rethink your living situation.

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Family May Lose Cave to Foreclosure

Mon, 23 Feb 2009 21:50:53 GMT

Family May Lose Cave to Foreclosure

posted: 273 DAYS 13 HOURS AGO

filed under: Beat Debt, Home Equity Loan, Home Insurance, Loans, Mortgages, Recession

A Missouri family bought a cave a few years ago, built a house within it, and now is facing foreclosure. The property is up for bidding on eBay. What would your bid be?

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Should You Get a Home Equity Loan?

Fri, 08 Aug 2008 15:55:05 GMT

Should You Get a Home Equity Loan?

posted: 472 DAYS 19 HOURS AGO

filed under: Debt, Home Equity Loan, Loans

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Ken and Daria Dolan, known as the first family of personal finance, answer your questions every Friday on AOL's WalletPop blog. This week, the Dolans consider a complicated predicament: Should you take out a home equity loan to pay off debt?
For More Dolans See: Dolans.com

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Steps Before Borrowing Home Equity

Tue, 29 Jul 2008 20:16:41 GMT

Home Equity Loan Tue, 29 Jul 2008 20:16:41 GMT 37100 2008-07-29T20:16:41Z

Steps Before Borrowing Home Equity

posted: 482 DAYS 15 HOURS AGO

filed under: Home Equity Loan

If you think you're ready to tap some of the equity in your home, do your homework first. The time you spend now could save you heartache (and plenty of dough) in the future. Take these four steps before signing on the dotted line.

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Home Equity Loan Strategies

Tue, 29 Jul 2008 20:14:20 GMT

Home Equity Loan Tue, 29 Jul 2008 20:14:20 GMT 37099 2008-07-29T20:14:20Z

Home Equity Loan Strategies

posted: 482 DAYS 15 HOURS AGO

filed under: Home Equity Loan

Record default levels have been hard on lenders and borrowers, necessitating change. Read about the latest trends in home equity lending.

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