0 Mortgage Forecast for 2013

In 2013, the mortgage industry has the potential for change for lenders, brokers and consumers.

The Financial Services Authority (FSA) and the lenders and intermediaries in the mortgage market are closer to establishing a workable set of guidelines with an emphasis on affordability and solid underwriting standards.

Lenders, not brokers, under the proposed guidelines, assume the role of assessing whether a consumer qualifies for a home loan. Credit is issued only under the circumstance when a borrow demonstrates a strong probability of meeting payments without dependence on rising housing prices.

Future fluctuations in interest rate are also considered when determining affordability. Borrowers are discouraged to enter agreements where they assume low interest rates will exist infinitely.

Customers who undertake interest-only mortgages must prove credible resources to meet the repayment schedule as well, outside of considering potential rising property values.

The institution is also working on establishing guidelines for business owners who raise capital via home equity loans to fund their entrepreneurial ventures.

Chairman of the FSA, Lord Adair Turner, believes these measures ensure enhanced lending practices in the future when memories of the past crisis fade and the temptation to engage in more risky credit practices reappears.

The FSA encourages the implementation of these new guidelines for 2013, enabling them to be established prior to future growth in the economy.

Mortgage industry leaders like Paul Broadhead at the Building Societies Association believe these measures protect the consumer, while also giving lenders proper discretion in determining credit-worthy customers.

Others remain skeptical, like Charles Haresnape, managing director at Aldermore Residential Mortgages, who is concerned why intermediaries have been given a pass to determine affordability in giving counsel.

Grenville Turner, chief executive of Countrywide, favors the measures to clarify which party is responsible for determining affordability, but he thinks the timing of the new standards is questionable.

He fears that the current market climate inhibits 39 of 40 potential customers from qualifying for  mortgage loans. To prevent further market sluggishness, he argues lenders need to become more flexible in assessing affordability for new applicants notwithstanding a solution for the self-employed and current homeowners trapped in negative equity.

The timing aside, the FSA seeks ways to facilitate the process for consumers navigating the mortgage application process. To reduce a daunting abundance of information, the organization has streamlined its prescribed disclosure requirements for lending institutions. These entities are mandated to share 'key messages' with the potential customer at the appropriate time, instead of using the Initial Disclosure Document (IDD).

Independent firms, according to the new FSA guidelines, are no longer mandated to offer their customers a ‘fee only' option. They must disclose to consumers whether they are mining direct-only agreements. Should these intermediaries desire to propose a direct-only deal, the FSA wants to eliminate the mandate to disclose a Key Facts Illustration, thereby streamlining the process for the intermediary.

In addition, lending firms must consider whether rolling fees into a credit agreement is suitable. Should the customer desire this method, the lender must move forward with the loan in this matter.

For non deposit taking institutions, the FSA seeks to implement capital requirements for these types of lenders. Non-bank institutions must abide by a more risk-based criteria, where the capital requirement is augmented. Subsequently, these firms will have to establish protocols and controls to manage their liquidity risk judiciously.

The FSA seeks to streamline processes for niche markets in lending as well, thereby galvanizing the entire industry. Under consideration are equity release products like lifetime mortgages and home reversion plans, high net worth lending, sale and rent back, home purchase loans, business lending and bridging finance. The FSA desires to establish clear guidelines for the niche markets as it does in the conventional mortgage arena, ultimately providing a consistent, straight criteria for its affordability standards, income requirements and other pertinent factors in determining credit worthiness.

1 The Bank Bail-Out: Saving America's Banks

Much is known about the near-collapse of the housing market and the financial ruin that followed some of America’s largest banks. The more disturbing story is not how America’s largest financial institutions nearly caused the largest recession in US history, but how in the midst of the federal government’s efforts to stabilize the financial industry, the people, whose houses were being foreclosed and the small businesses on main street that suffered, were left in the dust. By examining the issues surrounding the collapse of the housing market and the federal government’s response, it is clear that the regular Americans were sacrificed in order to save wall-street.

In 2006 a problem arose across America. All economic indicators showed that prices for individual homes were starting to go down across the board. In order to try to force housing prices to increase, the Bush administrations authorized the Fed to lower interest rates and change the rules that pertained to borrowing. These new rules allowed an increase in the number of sub-prime mortgages, mortgages issued to lenders who might have problems with repayment. The result was that many people who previously could not afford to own their own home were allowed take out a home mortgage loan, which caused home prices to increase to record heights. With high prices and record profits, home developers began construction on new housing projects with the hopes of taking part in the housing bubble.

However, government deregulation, the saturation of the market with new houses, and sky-rocketing housing prices coupled with unnecessary financial risks taken by banks caused the housing bubble to finally pop. Homeowners woke up to discover that the value of their home was substantially lower than when they had originally taken out their mortgage for the same house. Many homeowners, who under normal circumstances would not quality for a home mortgage loan and were intending to sell their homes for more than what it was worth, found that their home was upside down and began to default on their mortgage payment. Foreclosures hit a record high and banks found themselves with a set of sub-prime loans that were now worthless, resulting in record losses for the vast majority of American lenders. On the precipice of the greatest financial collapse since 1929, investors and lenders alike solicited aid from the federal government.

What was proposed by Secretary of the Treasury, Henry Paulson, and the White House to Congress was the Emergency Economic Stabilization Act, which included the $700 billion Trouble Assets Relief Plan (TARP). The intention was to create liquidity for banks and lending institutions to prevent their financial collapse and, in exchange, the financial institutions would eventually pay back the money borrowed from the federal government with interest once the institution became profitable again. Under the Obama Administration, TARP was extended to General Motors and Chrysler, and a separate fund was created to reconstruct Fannie Mae and Freddie Mac.

Though the EESA created stipulations for the restructuring of the financial industry in the United States, this bill, and any bill after the EESA on the federal level failed to establish a plan to help homeowners struggling with their mortgage payments or homeowners facing foreclosure. The bill also did not establish a fund to bail out small businesses that were directly affected by the housing market collapse. Appliance and furniture retailers as well as home construction companies were faced with huge profit losses, and many of these companies were forced to file for bankruptcy or close their doors permanently. Though state and civic governments have attempted to address the issue within their jurisdiction, no federal actions have been taken to help homeowners or local small business. Many of those on main street America felt betrayed by a White House and Congress that was elected to protect their interest, and instead passed legislation to save the multi-billion wall-street banks.

The truth of the matter was just that, the blame should not be placed on the homeowners or the banks, but the federal government that first deregulated the housing market then failed to assist struggling homeowners and businesses. The government traded long-term growth for short-term price hikes, a fateful decision that the American people struggle with today.

0 Using Your Bank as a Mortgage Lender

A mortgage is probably the biggest financial agreement you will ever enter into. For that reason, it is understandable to be concerned with who you end up receiving that massive loan from – not the least because it is, by definition, secured by the building you and your family call home. One major decision budding homeowners face is whether to go with their own bank for their mortgage, or contact a specialty mortgage company who makes home loans the bulk of their business.

Mortgage brokers can be best compared to a local independent insurance agent, or even a supermarket. They maintain relationships with a pool of lenders and usually offer several different “brands” of mortgage with small, but notable, differences.

There are two main benefits of choosing a mortgage broker over a bank: first, because of the range of mortgages they offer and the increased number of lenders they do business with, they can usually find a solution for borrowers with substandard credit or who otherwise find it difficult to borrow. They also have a greater range of options for unusual properties that a standard bank may not choose to deal with. Second, this freedom of lending and the fact that mortgages are their sole focus means that they are often faster to process paperwork, speed up closing times, and can work on your behalf to find the best interest rate available to you.

This service absolutely does come with a cost. Brokers are middlemen by definition, and so will have larger closing fees than going to a lender (such as your personal bank) directly. The brokers are also compensated by the lenders for making the deal. In addition, any given mortgage broker will probably work with a customer once and only once. This leaves no space for relationship building that may otherwise have had a positive impact on the loan and interest rates.

This contrasts strongly with banks. Often, by the time you are seeking a mortgage, you have been with your personal bank for at least a few years, giving them an insight into your cash flows and how you seem to handle money. This is increased even more if you maintain checking, savings, and credit accounts all within that same bank, or have taken advantage of other financing and investing products offered.

If you are responsible with your money, that relationship can make the bank more comfortable giving you improved an improved interest rate on the mortgage. If you have a history of doing extra business with the bank like purchasing CD rates and other instruments, for example, they may give you a break in hopes that you remain a faithful bank customer.

Both mortgage brokers and banks almost always end up selling mortgage loans on the secondary market. For that reason, the language in almost every mortgage is standardized. Notably, this erodes a concern some might have with a mortgage broker leaving the picture as soon as the deal is done: in the end, the borrower works with a lender who has sold the loan no matter what.

The primary difference between any two mortgage contracts will be the interest rate. Considering the size of most mortgage loans, even a tiny difference in the interest rate can reflect a substantial amount of money over the life of the mortgage. For that reason, it should be the number one concern when shopping around for a servicer no matter what.

Rarely, you may find a bank that offers what are known as “portfolio mortgages,” which means they will not be packaged with similar loans and sold off as an investable security. In this scenario, the bank may end up being a better option because they do not have to worry about the marketability of your mortgage loan on the secondary market. A prime example is a borrower just out of college with substantial student loans: the secondary market sees a borrower with a huge amount of debt other than the mortgage, whereas a bank holding the loan for themselves might be more willing to look at the greater picture of financial responsibility the borrower presents.

In the end, the interest rate should still be the driving force behind deciding on a servicer. Tight competition between mortgage brokers might mean you receive a better rate using one, but using a bank might let you take advantage of relationship building and history not considered as strongly with a broker. If the interest rates are identical, stick with a bank.

1 Everyday Financial Tips Parents Can Give Their Kids

There is a proper mindset regarding money that should be taught to children as soon as possible. A child that is taught proper money management skills at an early age will continue those habits as adults. Parents who really care about their kids will make sure that they have proper money management skills.

Tip 1-Having Proper Medical Coverage Is Mandatory

Medical bills are among the leading causes of bankruptcy in America. However, medical coverage doesn't have to be something that is expensive to carry. Cheap medical insurance quotes can easily be found online with a simple Google search. Another option for receiving coverage is to find an employer who is willing to provide medical coverage to employees.

Tip 2-Make Savings A Key Part Of Any Budget

Saving money can lead to a stable financial future. Having a healthy amount of money in a bank account can help to protect against a future financial emergency. You never know when you might lose your job and the money that goes with it. An unexpected medical bill could add to your expenses when you have not planned for it. Having a baby would certainly create new expenses that a healthy savings account would help you with. Having an emergency fund allows you to deal with the financial adversity that life is going to throw your way.

Tip 3-Pay Cash Whenever Possible

Credit cards can be a great help in times of emergency. However, credit cards can also cause financial problems if you rely on them too much. Never use a credit card when you can pay for something in cash. The interest that you have to pay is not worth it. Credit debt can become a larger problem should you ever lose your job and ability to pay on time.

Tip 4-Only Carry One Credit Card At A Time

The best way to minimize reliance on credit is to limit the amount of credit you have available. Carrying only one card at a time is a great way to make sure you are not going crazy with your spending.

Tip 5-Invest Your Money Wisely

An easy way to lose your money is to invest it poorly. Always take your time before putting any of your money in the market or probably invest in a real estate. Analyze the risks and potential pitfalls before giving anyone your money. One bad investment can drain you of all your savings.

Tip 6-You Will Never Get Rich Quick

The only way to build your wealth is to use patience and good planning. Saving money is a long-term project that requires you to make sacrifices for the greater financial good. Trying to get rich without working for it will generally cause you to lose everything.

Being smart with your money is an important part of a stable future. Having a stable source of money will give you security and peace of mind as you go through life. Financial security gives you so many options and choices as to how you want to live your life. The ability to save your money provides insurance against the adversity that life will throw your life.

0 Fiscal Cliff and Housing

It seems that for now we have avoided the fiscal cliff which was supposed to take effect in 2013. It is considered as an economically damaging set of tax increases and spending reductions which is good news for the housing industry, but for how long? The enactment of H.R. 8 or the American Taxpayer Relief Act of 2012 has the following provisions; it has increased income tax, increase in capital gain and dividend rates, exemption and deduction phase-out for all individuals with high-income.It has made permanent the alternative minimum tax relief and has increased the federal estate, gift and generation-skipping tax.

There will also be an extension of certain tax breaks but for a limited time which is generally two years for various business credits, exemptions including new markets tax credit, work opportunity tax credit, and the exclusion of gain on the disposition of certain small business stock. Well, this extension from the Tax breaks are good for home buyers since it will help lessen the number of foreclosure and will help borrowers whose mortgage is upside down to stay in their homes. You may recall, that a law was signed in 2007 stating that debt relief modifications, foreclosures and homes in short sale were no longer taxable and it was supposed to end in 2012. Now, if these tax breaks were not extended, homeowners would not agree in putting their homes in short sale because they would then be facing the tax bill and they would also not agree to the principal reduction loan modification which is way more successful than any other modifications because it leaves the principal as is. This latest development in legislation would do “mostly” good for the people. It somehow prevented the massive tax hikes and deep government spending cuts which could trigger the country to go into recession again. About ninety percent of the new tax revenue which will be collected for the year will come from families who are earning more than 1 million dollar annually. Meaning, only 1 percent of the population will be affected.

However, the negative part of the deal would be; the act did not extend the 2% reduction in Social Security portion of the FICA tax collected from wages, so as a result, a worker who earns a total of $113,000 per Social Security ceiling for 2013 will see an increase in taxes from his earnings of $2,274 this year. If an individual’s income is above $250,000 then expect the tax rate on stock dividends to exceed the current 15% level. Explained as; each extra dollar earned as investment income which includes dividends and long-term capital gains are now subject to the 15% rate plus a 3.8% surcharge under the Affordable Care Act or the “Obama Care” making now a total levy of 18.8% on your income.

In two weeks time the Congress will meet again to raise the debt ceiling. Well, whatever the outcome would be, ordinary citizens are being called to act and let their voices be heard by calling their representatives and let them hear your thoughts on this before it takes effect on March 1, 2013.

About the Author:

Georges Kfoury is the founder and Chief Executive Officer of Leaderscorp Financial Inc. headquartered in Rancho Cucamonga, CA, a leading provider of mortgage financing dedicated towards providing affordable home loans. He founded the company way back 2003 from a ground level, without having the mortgage background. In spite of this, he was able to immediately take the company a level of generating annual income ranging from 8 to 10 million dollars.

5 Housing Market Trend in Chicago

The year of 2012 has had its ups and downs, and the following is information on the housing market trends last year in the Chicago area.

Housing market trends are famous for changing and every year there are different factors and issues that determine if it is a good year for buyers or a good year for sellers, or something in-between.

During 2012 the housing market trend in Chicago has been reported to be on the decline, according to the Trulia report. The average sale price for houses in the Chicago area between January and March was $160,750, which is a little over a 13 percent decline when compared to the price in 2011.

Market May Be Better For Buyers, Than Sellers
While this may be good for buyers, it isn’t good news for people trying to sell their homes who may be facing a situation where their homes are worth less than they paid for them. This is a bad issue that causes home sellers to lose money on sales, and even in some extreme cases, they may not even break even when they sell their homes.

The statistics also show that as of April 2012 the Chicago market price for each square foot of property was $124, which is also a decline from the same time in 2011 by a little over 12 percent.

Certain Neighborhoods Are Better Than Others

The market trend in the Chicago housing arena does show, however, that certain neighborhoods are doing better in sales than others. The ones that were doing better this year include North Side, Lincoln Park, the Loop, Wicker Park, De Paul and Bucktown.

Reports say that sales are brisk in those areas and buyers are investing in housing there, although no specific reason for it was listed in the Trulia report.

Chicago area, according to the U.S. Treasury Department, is on par with the rest of the country on the number of distressed homes at about 35 percent, while it is only one point lower on the national housing market. However, there have still been a lot of foreclosures in the Chicago area, according to the Chicago Tribune, which reported on the market showing a lot of vacant homes that were going unsold.

Experts Hope For Change in Trends

Experts are reporting that the Chicago market for housing is not very stable this year and that there is much financial uncertainty. Due to this, people who normally invest in the real estate market are standing by to see what transpires, as it is possible the housing prices will rise. The potential investors were heartened by recent reports from the Illinois Association of Realtors sales data for October, which showed an increase in the number of homes sold from the beginning of 2011. In fact, this rise is the best in the past six years for homes being sold in the Chicago area and have significantly gone up in the past two years.

Housing Time On the Market

The amount of homes for sale that are listed in the Chicago area is also a number that goes up and down. It is sometimes hard to get an accurate number in this area though, as many houses that are under a contract never close and this could cause flawed data to be counted. Even so, the trend has been for a rise in the homes available for sale, though when the recent home tax credit of $8,000 expired it brought this number way down in August of 2012.

However, while this was bad news for buyers, it means good news for sellers since there will be less properties on the market for people who want to buy to choose from. The only problem is that since the job market has not been good as of late, there are less people who can actually afford to buy these available houses.

The bottom line is that just like in many other communities and metro areas, the housing market in the Chicago area has had its share of ups and downs. If you are trying to either buy or sell a home, then you should talk to a realtor for the latest information and advice.

3 How to Save Up For Your Vacation Dream Home

Saving up for your vacation dream home is not as complicated as it may seem. However, it does involve a lot of self discipline and the willingness to make temporary sacrifices in the present in order to enjoy a luxury vacation home in the future. Following are some tips on how you can save up for the vacation home of your dreams, a bit at a time.
 

Saving Money

A number of financial gurus suggest that a person should set aside about 10% of his or her income and put this money in a savings account. This is a wise idea and should be done before a person spends money from his or her monthly paycheck.

Naturally, saving 10% of your income means that you have less money to spend in the present. Chances are you will probably have to make some sacrifices in order to save this amount of money. Perhaps you will have to eat out less often than before, buy secondhand clothing instead of new clothes and/or walk or ride a bike every so often instead of driving short distances. However, if the vacation home is worth it to you, then making these small sacrifices will not be such a big deal.

Increasing Saved Money via Investments

If you want to maximize your savings, then investing this money can be a good idea. Every type of investment comes with some risks, although some investment options are safer than others. Buying gold is a good way to make more money, as gold usually costs more at the end of the year than it did at the beginning. Other safe investment options include buying fixed annuities, putting the money in a savings account that accumulates interest and investing in bonds.

A person may also want to invest in a few risky investments, such as stocks and mutual funds. While there is a chance that one will lose money, these investments have the potential to be very profitable. You just need to do some research to see which exact stocks and mutual funds are the best ones to invest in at the present time. You will also need to keep an eye on your investments and be prepared to sell them quickly if they take a sudden downturn.

Calculate how much your vacation dream home will cost and then determine how much money you will need to set aside every month in order to buy the home of your choice. You can then determine if saving money is enough or if investing the saved money is also in order.

While you can take out a mortgage or refinance your home in order to buy a vacation home, it is cheaper and better to save the money and pay for the home without going into debt. The above tips provide a good starting point for anyone who wants to set aside money to buy a luxury vacation home.

About the Author: The author is an expert in the field of buying property and has written extensively on the subject. Click here if you are interested in good deals on luxury properties in Park City, Utah.

297 Top 5 Bad Credit Installment Loan Lenders

Installment loans have become popular in the United State’s loan market due to its high demand among borrowers.

Installment loans are the short term loans that can be very useful for you when you need cash in hand. They attract borrowers due to the adjustable payment schedule. Most borrowers who need installment loans have bad credit scores…and we all know that to get a loan with bad credit may be quite difficult.

Now if you are in hurry to get a loan with bad credit, you might not have time to go to your lender’s office, apply for the loan and wait for the lender’s answer. So, to help you out and save your time, the following is a list of 5 bad credit installment loan lenders who will not consider only your credit score and may qualify you for an installment loan with bad credit.

1. Ace Cash Express Inc:

Ace Cash Express is a leading financial service provider which provides installment loans with bad credit, bill payments, and check cashing. ACE is also listed as the biggest owner of check cashing stores in United States.

2. Money Now USA:

Money Now USA is not a lender itself but works as a lender for you. It has a very big network of lenders. It connects you to the lender which suits you best according to the information provided in application form.

3. Payday Loan Union:

Payday Loan Union is a direct lender that provides short term or installment loans with bad credit. They assure you that you will qualify for the loan even if you have really bad credit and the best thing is; you do not need to provide a credit check to qualify for loan.

4. AmeriAdvance.com:

AmeriAdvance.com has specialized in fast cash installment loans. They provide installment loan with bad credit with no such restriction of credit score and collateral. They try to approve your loan within maximum 24 hours.

5. AmeriCashLoans.com

AmeriCashLoans.com is a great place to find an installment loan with bad credit. What you have to do is to fill an online form and they will try to contact you within one business day. They also have offices in many states of U.S. and it is something that assures you that they are not scammers. 

Author's Bio: This article has been written by Allison Watkins a writer and, article provider for Badcreditwhiz.coma website that provides information on home mortgages, how to deal with bad credit mortgages and, the best way to stay on top of your mortgage payments.

2 Now Get Exactly What You Are Looking For

The Need For Real Estate Hunting

It is not needed to elaborate over why it is needed to have the real estate for you. It offers the security that is needed for anyone in their lives. Getting and investing in a house is the most obvious thing that a person would like to get in their lifetime. It is the most secure as well worthy investment procedure because the chances of the prices going down is less. Moreover a person should make a wide decision as far as investing in a real estate. There are a few factors that need to be taken into consideration as to taking the call for the purpose of investment as well as location that one is opting for. These are the factors that will be affecting the prices of the estate in the future. With industrialization taking place in full scale in all the places, it is very obvious that no place can be left untouched and the value of real estate is going to increase steady.

The Loans As Well As The Interest Factors

It is very important that the loan amount should be taken into consideration as well as the interest that you will be paying along the way. Make a conscious decision as to decide over the price that you will be paying for the property over a period of time. Real estate for sale will have many brokers in the mid way. But at the same time there have come up a lot of ways to make sure that they can reach to the parties directly without having to shell out extra bucks in the mean while. These all form to be very important factors for the people in the meanwhile. Buying a real estate sure does not come in cheap and for this real one needs to be very cautious about such expenditures that can be definitely avoided.

Locating A Lucrative Estate Online

Now that the need and the intervention of agents and middlemen has decreased considerably, one can get a lot of help online as well as the smart phones that have become so common in use these days. How is that possible? Well you can easily access the entire list of the real estate via the famous apps that can be downloaded on the phone. This makes it very easy to get in touch with the party themselves.

Real Estate For Various Locales

If you are seriously interested in real estate for sale, you need to be aware of the rates as well the future of the same as it varies from place to place. Generally in developed and technologically advanced nations the rates for purchasing in the real estate can be too expensive. In the same way it will comparatively easy to invest in underdeveloped and developing nations. One needs to have the intuition and the foresight in case they intend to take a chance in making a real estate investment decision.

3 How First-time Home-buyers Can Benefit From Kit Homes

Not every family can afford to purchase their very first home. Many end up living in rented flats, condos, or apartments just to be able to have a roof over their heads. In countries like Australia, the US, and some parts of the UK, kit homes are available and sold as alternative housing. These homes are prefabricated and do not cost as much as real estate properties.

The idea of living in a kit home may be too far-fetch especially for those who used to live in a lavish home with their parents and siblings. But today's economy is different and starting families are not always so fortunate when it comes to financial situations. You can avoid the problem of being in debt and having to pay a large accumulated sum for a mortgage by considering modern alternative housing.

Other than living in an apartment or condo, you can still save up for a good-sized lot within your city or suburbs. You may also loan a considerable amount if your savings are not sufficient to purchase the land. As for a kit home, there's no need to spend hundreds of thousands of dollars because these are already prefabricated according to style and size.

Going DIY or without the help of a contractor can also save you several hundreds to thousands of dollars in construction costs. One way to ensure that you'll succeed here is by getting some helping hand from friends or family/relatives who know home-building and construction work. If you choose among steel frame kit homes, for example, you will get the instructional guide and the complete materials to help you assemble the home's sections onsite. This is called the 'homeowner-builder' approach and you can save more if this is your chosen route.

For those who have no construction know-how, the right way to go is to look for a local contractor who can help you. Negotiating your concerns and issues right away can help eliminate possible problems of not finishing the assembly process on time and/or incurring too much labor costs in the end. Lay out your plan of approach and timeline to prevent these things to happen. A reputable contractor is the best choice if you are after faster and efficient assembly of your steel frame kit home. Besides, the contractor won't be building the entire home from scratch as it is just a matter of putting the sections together in place.

If you are one of those families who care about the environment as much as you care about your savings, you will be doing your share of preventing too much waste and pollution within your premises and the surrounding area. There will be less construction materials, wastes, paint and chemical spills, as well as unnecessary trash during and after the assembly of your kit home. You can also save on hauling the excess materials, particularly on trucking services or your own gasoline expenses.

If owning a home can be daunting for most people, it is a good idea to look for better and affordable options such as steel frame kit homes. These are as sturdy and stylish as traditionally built houses and they use modern processing for faster onsite construction; hence the lower costs.

Author's Bio:
Ben Wall has been involved in real estate property development over the last ten years. He is passionate about this industry and wishes to share what he has learned from his experience with Australian suburban real estate to those who wish to know more about the business. He is also blogging for http://www.valleykithomes.com.au/ - Australia's preferred kit homes specialist.

0 Benefits of Buying a Home in the Winter

Most people think the combination of moving and winter is pretty miserable. Between dealing with the busy holiday season, a dwindling bank account, and inclement weather, winter isn’t usually the most ideal time to pack up and relocate.

However, if you’ve been thinking about buying a home, now might be the perfect time to do it. Here are six reasons why buying a home in the winter is a good idea.

1. Studies show the most popular time to buy or sell a home falls between April and July. Very few people choose to move during the winter. Therefore, it is pretty safe to assume those who do so aren’t doing it by choice. Many people sell their home during the winter out of necessity – job transfers, school enrollment and financial issues are the leading causes of sudden relocation. As a result, a homebuyer can usually find a pretty good deal and definitely has the upper hand when it comes time to negotiate price.

Homebuyers should note this information is region specific. Residents in warm locations – especially those in common retirement areas like Florida – don’t tend to follow the home buying/selling yearly cycle of other, cooler locations. Also, the complete opposite information tends to hold true for popular ski and winter sport regions

0 Repost: How the Mortgage Industry Can Help the US Economy

This is an article I recently wrote for Economic Intersect. Do visit the original article at http://econintersect.com/b2evolution/blog2.php/2012/10/09/how-the-mortgage-industry-can-help-the-us-economy

With the world still recovering from the 2008 global financial meltdown, the Federal Reserve is using every means necessary to stave off any potential threats to the U.S. economy. On September 13 Chairman Ben Bernanke announced another round of quantitative easing to further stimulate the economy which is suffering from sustained unemployment above 8% and little growth in GDP. As seen on CNNMoney the next morning (the 14^th), world markets were reacting with positively, pushing U.S. stock indices to their highest levels in five years. QE3, this round involving purchase of mortgage-backed securities by the Fed, continues the aggressive stimulus program it began after the financial crisis.

Follow up:

How Will The Fed Make a Positive Approach to the Market?
The Fed announced it will purchase $40 billion of debt every month for an indefinite period of time in an effort to inject long-term, stable growth in the labor market by bringing down the cost of borrowing. Quite simply, a reduction in mortgage rates provides economic stimulus by creating demand for housing and more refinancing, giving people more to spend. The Fed seems to believe that relieving banks of some of their MBS inventory will create more mortgage issuance.
It is no secret companies are hoarding deep pockets of cash, afraid to take on more cost and add workers due to fears of another economic recession and the reticence of consumers to increase their spending. QE3 is an attempt to alleviate concern by letting corporate leaders know the Fed will continue to get involved in an effort to inject life into the economy. 

Improvements Brings a Light to the Darkened Economy
Coincidentally, one economic bright spot this year is the very same asset class that helped incite the 2008 crash and subsequent recession – residential real estate. The housing market has bottomed out (at least many seem to believe so) and is now beginning what could be a long-term trend upward.

An improvement in housing prices led to a second quarter decrease in home mortgages being underwater, down to 10.8 million from the high of 11.4 million in the first quarter. In Southern California, housing prices are once again rising, spurred by increased August sales, which were up 9.0% in just one month and 14.2% higher than the same month a year ago. 

Foreclosures and Their Impacts
The government’s 2011 shift in policy to address housing supply and not housing demand has been the stimulus for a significant decrease in foreclosures. Three million homeowners have lost their homes to foreclosure since 2009, but that number has fallen since the 2010 September peak. Congress is considering a plan that would help responsible borrowers significantly reduce their mortgage payments several hundred dollars per month, yielding mortgage holders a $3,000 per year increase in savings. 

With homeowners stuck in mortgages at 6 or 7% interest and housing values beneath their pre-recession levels, there has been little mortgage relief available until now. This is an expansion of The Home Affordable Refinance Program (HARP) that has helped homeowners to stay in their residences. According to makinghomeaffordable.gov, with HARP homeowners whose mortgages are owned or guaranteed by Freddie Mac or Fannie Mae can refinance their homes if they meet a certain set of conditions. A recent analysis by Morgan Stanley concluded that refinancing half the mortgages held by these institutions would translate to a $46 billion dollar a year increase in capital for consumers to spend. 

Unemployment and Its Negative Effects
A housing recovery has always been essential to signalling a turnaround in the economy and the infusion of jobs into the workplace. The construction industry was one of the hardest hit segments in the recession, losing 2.2 million jobs, approximately one quarter of all jobs lost in the financial crisis.

The massive pre-recession run-up of housing prices led to millions of new jobs related to housing, but the slow recovery in real estate has equated to a tepid recovery in that sector’s job growth. Unemployment among construction workers has been sustained above 12%, far above the nation’s recent unemployment figure of 7.8% in September. With GDP hovering below 2% so far this year, a growth spurt in housing could dramatically help this figure. Real estate construction has traditionally contributed 5% to GDP, more than double the current 2.3%. 

HAMP Study Says Banks Unable to Deal with Volumes of Mortgage Mods
The government's mortgage modification plan has seen its downfalls as well as successes. While attempting to modify about 3-4 million mortgages, HAMP has completed only 1.2 million. A study has been released authored by economists from the Federal Reserve Bank of Chicago, the Office of the Comptroller of the Currency and four high ranked universities which explained this shortfall. In the study, it was shown that the largest banks were not staffed or organized sufficiently to deal with high volumes of mortgage modifications, and would have come up short even without the added load from HAMP. The study also found that about 800,000 homeowners were not processed because of confusion in processing and clerical mistakes.

0 Repost: Housing Will Be What Pulls Us Through

This is an article I recently wrote for The Niche Report. Please do visit the original post at http://www.thenichereport.com/blog/housing-will-be-what-pulls-us-through/

The worldwide economy is shaky at best. In fact, there are more doomsday predictions about total economic collapse out there right now than there are about any other subject. So who do you believe, and what could make the world a more stable place to live economically speaking. When you set aside the EU problems with government debt, the slowdown in Chinese manufacturing, unrest in the Middle East and chaos in South America and Africa, all you have left is the U.S. economy; the largest economy in the world for both consumption and production. Yet, the U.S. continues to struggle with high unemployment, low manufacturing data and soaring prices for the average consumer.

So Where Does the Problem Lay?
The United States has always relied upon the housing market to pull it up from a recession. Throughout history, when times were tough, the construction industry pulled the weight of the other lacking industries. However, the housing construction industry has not been able to contribute to the overall growth of the country for six of the last seven years. It is only in 2012 that home construction has begun to show signs of life.
In a recent article released by Reuters, 35 of the top 38 economists in the country believe that the housing industry is finally beginning to return, and that the home construction industry will actually contribute to the GDP figures this year.

When home construction occurs, jobs are created, support businesses see an increase in demand, and government generates considerable revenue. In fact, the Government Accounting Office has stated that each new home built creates at least $90,000 in overall revenue for government entities.
The other problem is the large amount of homes available on the market today at extraordinary low prices. Because home values have dropped so much, and there are too many homes available, the desire to purchase is absent.
While it would be normal to think that low prices would drive demand, the opposite is true. People see home values dropping and do not want to take the risk that if they purchase a home now it will be worth less next month. When people see home prices continue to rise, they will interpret that as “time to buy” before prices go too high.

Other Contributing Factors
High unemployment rates are also a large cause of the housing industry problems and the overall economic downturn. Unemployment has remained over eight percent for several years, and people are simply afraid to commit to purchasing a home because they do not know what tomorrow will bring with their employment.
Unemployment, once you factor in the reported rate of 8.3 percent, and the additional six percent that are no longer looking for work, you have a population that is almost 15 percent unemployed. When you combine this figure with the amount of retirees, students and people receiving disability compensation that are out there, the number becomes closer to 25 percent. That is nearly one-quarter of the country not earning a living, consuming goods to boost the economy, or purchasing real estate.

What Can Be Done?
For the economy to heal in the United States, and around the world, a serious look must be taken at government debt burdens, the way commodities are traded and educational opportunities.
The people must begin to educate themselves to compete in the new millennium. Once they can return to work, they will become consumers again. Once they feel safe, they will begin to purchase homes and other goods and the economy will heal.

1 10 Things You Should Invest In

If you are considering getting involved in investments, you should know which things are the best products that will give you the most return on your money. Here are 10 things that you should invest in: 

Land

Owning and investing in land has been something that has brought people anything from a few hundred dollars in rent every month to millions of dollars when they sold it. It all depends on the type of land that you buy. If you manage to buy them when the prices are low and then sell when the prices are high, there are big returns you can net for your initial investment.

Housing

Just like land, investing in buying property in the form of homes or businesses can net you hundreds to millions of dollars. You buy these properties for purposes of either renting them or selling them. It all depends on whether you want to become a landlord or just want to buy a property, fix it up, and “flip it” and earn more money than you bought it for. 

Mutual Funds

Mutual Funds part of the stock market and are a group of selected stocks bought by the mutual fund. Most have between 5 to 30 companies in the mutual fund. That fact provides more safety than if all your funds were spent on only one company.

1 A Guide on Getting a Mortgage For Your Property

Buying a home is an important step for any adult. Whether it's your first home or your fifth, getting the mortgage is one of the most important, but often stressful, parts of buying a home. In order to get the job done and save on money at the same time, it is helpful to do your homework before you begin working on getting a mortgage for your home.

The Mortgage Comes First

If you want to look for a home without worrying about whether you can afford it, many prospective home buyers are now applying for the mortgage before going house hunting. This can help the buyers in two ways. First, the buyer will be able to know how much money a lender is willing to give them for a mortgage, letting the buyer search for homes that are specifically in their price range. Second, getting the mortgage first will also let sellers know that you are ready to go if you decide to make an offer. They will not have to wait for the bank to approve your finances.

Interest

What determines how much a person can afford is often left up to what interest rate you can get. The better your credit is going into the mortgage process, the more likely you are to get a lower interest rate. Interest rates are also based on current economic conditions, so if you do a little research you will be able to target the best time of the year to get low interest rates for your mortgage. If you settle for a higher interest rate to get the home quickly, you do have the option to refinance down the road.

The Term

Another factor that will determine your monthly mortgage payments is the term of the loan. Most first time home buyers go for the maximum term,

11 Take the hassle out of moving home

The very thought of moving house is enough to send a shiver down the spine of most clear thinking adults. Not for nothing is moving home ranked amongst life’s most stressful experiences. It’s often both physically and emotionally draining. There’s so much to consider. Are you physically strong enough to DIY or help your removalists? Do you have delicate or precious items that are likely to be damaged if not carefully handled? And if you’re using a removalist- how on earth do you choose one?
 
As someone who has (unwisely) moved without the aid of removalists, I can vouch for the benefits of using a good removalist company. If I’d known in my early twenties what I know now about the perils of the self-move, I might not have chronic back pain and a pathetic collection of broken antique lamps. 
 
Using the services of a professional removalist company offers a host of benefits and can significantly minimise the hassle involved with moving home. Many professional removalists will deliver boxes to your doorstep, saving you the indignity of stalking supermarket loading bays and needling the fresh produce department for boxes.

3 Designing a Home on a Budget

Owning a home gives people many benefits over renting, one of these being the ability to remodel, redecorate, and renovate every inch of the living space if desired. These changes can give the home a very personalized feel, as well as set the tone for the house as a whole. From redoing rooms so that they all match with each other to simply changing a few things to suit the ever-changing tastes of both adults and children, the one thing that typically holds people's decorating dreams back is the cost.

Although many types of remodeling is not cheap, there are ways to accomplish even the biggest of tasks for reduced prices - it just takes a bit of research and planning.

Read more at my post on Designing a Home on a Budget.

6 Finding Your Perfect House

With the real estate market pumping out numbers that are at an all-time low, you may be finding that it's time to start house hunting. Now, before you start hunting for that perfect house, there are a few things that you should know before signing that offer sheet. To make your house hunting process a little easier, here are some things to keep in mind:
 
Room to Grow

For starters, let's take a glance into your future. What do you plan on doing? Do you plan on having children? Do you have a family set in stone now? The reason you will want to know

11 The Cost of Moving House

Moving into a new home can cost a considerable amount of money. The amount of money that is required to move depends on numerous factors. Moving is one of the most important financial decisions that you can make which is why the cost of moving has a direct impact on the entire moving process.

The property market and estate agents

Moving house requires additional costs because there are various purchasing requirements. This includes buying items such as removal boxes or new furniture. Buying these items contributes to the cost of moving. Stampduty and other forms of tax can also add to the cost of moving house. These are mandatory and part of the legal moving process.

The cost of moving house also depends upon