South Carolina | Home Loan | Mortgage | Refinance

Archive for August, 2009

The ongoing credit crisis has made it much more difficult for investors to qualify for an institutionally funded (bank, broker, insurance company) commercial mortgage loan. Underwriting standards have become significantly tougher and loan parameters have tightened. Very few deals are being accepted by the banks, and even fewer are actually closing. Many good loans that should receive financing are being rejected out-of-hand. We call this situation the “funding gap.” Recently many hedge funds and private equity companies have recognized that opportunity exists for firms that can help fill the funding gap by offering private commercial mortgages to quality borrowers who have been shut out by their banks. Over the last 18 months money managers have committed hundreds of millions of dollars to the commercial real estate finance sector. They are buying distressed mortgage paper directly from troubled lenders and they are very willing to write new loans against commercial buildings and development projects. But before commercial real estate investors seek a loan from a hedge fund or other private lender there are some important things they should know. Private commercial mortgage lenders are opportunistic investors; a hedge fund is in business to earn high returns for its investors in a timely and efficient manner. The loans they offer will be short term in nature (rarely more than 36 months) and will carry significantly higher interest rates and origination points than a bank or Wall Street broker would. Further, hedge funds will be very aggressive in foreclosure situations; they will take your property if you fail to perform. Funds and private lenders that we work with are currently charging 10%-15% annual interest with 3-4 points. This means that borrowers can expect to pay a 13%-19% APR. On top of that, borrowers are responsible for the cost of any third party reports that may be required such as appraisals, environmental assessments and feasibility reports. On the positive side, there is capital available for these private commercial mortgage loans and deals can be closed very quickly. Most funds prefer income producing, investor owned commercial buildings like apartment complexes, office buildings or self storage facilities. They will generally lend up-to 65% of a properties value and underwriting is equity based not credit driven. They will lend for both purchase and refinance, but private loans are “bridge” loans and a viable, realistic exit strategy needs to be in-place. In-other-words they will need to know exactly how they are going to be paid back. This credit squeeze has been devastating to the commercial real estate industry and the problems are not going away. As we all wait for the situation to improve private lenders, including Wall Street hedge funds and private equity firms, have cash and are willing to lend it.

MasterPlan Capital LLC – Commercial Mortgage Loans – Privately Funded – Equity Financing – Asset Management – Simple, 1 Page Commercial Mortgage Application Online – Quick Answers – Quick Close- The author, Vincent Remealto, is a commercial real estate valuation and underwriting analyst for MasterPlan Capital.

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Have you been looking into the prospect of buying a home? If you have, you may have heard about interest only mortgage loans and may be wondering if getting an interest only loan is the right option for you. What exactly are interest only mortgage loans? As the name implies, this type of mortgage is set up so that the borrower (you) pays only on the interest of the loan rather than applying part of the payment to interest and part to principal. Of course, this is not done for the entire life of the loan. When the mortgage is set up, the interest only payment is set up for a set number of years only.

Once that set number of years is up, the borrower “trades in” his interest only mortgage loan for a more traditional one in which he begins to pay down the principal balance as well. Typically, interest only mortgage loans are set up with payments being applied to interest only for the first ten years, and then the loan is changed.

The reason that many folks have been interested in interest only mortgage loans is that they allow the borrower to have a much lower payment for those first ten years. Since you are not paying any principal, the resulting payment is lower than it would be with more conventional financing. If you are buying the house as a home and anticipate having an increased income as time goes on, you may be able to qualify for the interest only mortgage loan because of this lower payment that reduces your debt-to-income ratio. If you are an investor, the interest only mortgage loans allow you to keep more cash flow to make home improvements in anticipation of selling or just to keep more of your money in your pocket if you are interested in selling the property relatively quickly.

There are disadvantages to interest only mortgage loans, as well, however. The major disadvantage is that it is more risky to the borrower. With more traditional financing, you are building equity in your house right from the very start, albeit not a lot at first, as even with traditional loans, the majority of your payments go toward interest in the beginning. With interest only mortgage loans, however, you are building absolutely no equity. Equity comes from paying down the principal, and since you are not paying any principal, you are not building any equity.

What is the problem with not building any equity? Well, you are running the risk of not being able to afford the higher payments when the interest only years come to a close, as these payments will likely be higher than they would have been with a different loan. So, if your career does not bring in the kind of money you expected, you may find yourself unable to meet the payment. Also, you may be unable to sell the house when you are ready to sell if that particular period of time is a buyer’s market. Too, you will be unable to get a home equity loan (refinance) because refinancing is based on the equity in your home, and with interest only mortgage loans, you build no equity.

Marcilio David is a Cardiologist and Internet Entrepreneur. Learn more tips and tricks about choosing the best mortgage, and a FREE Mortgage Ebook download at The Mortgage Guide

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You can use online auto loan calc that enable you to compute the monthly charges needed in making auto loan payments. All you need to do is enter the amount required by the auto loan calc such as purchase price, sales tax, fees, cash down payment made, net trade-in value and interest rate. The auto loan calc will make the necessary computations on how much monthly payment you are required to pay. By using the auto loan calc online you can have a fair idea how much is monthly payment required for your loan. Also, you can verify the calculation methods used by the lender.

Using the auto loan calc you must first provide the purchase price or selling price of the car before tax. Then you deduct the trade in amount to the gross selling price. The amount after deduction is the net price. Multiply the net price to the sales tax rate in order to get the sales tax. Then add sales tax and fees to the gross purchase price to get the total price of the car. Once you have the total price of the car, you deduct the amount you paid as down payment. Also, deduct the net trade-in amount from the total price of the car. Net trade-in refers to the trade-in value less the balance owed on the car being traded in. After deducting down payment and net trade-in amount to the total amount of the car you will arrive at the Loan Amount in the auto loan calc. This loan amount will then be multiplied to the interest rate in order to get the annual interest charged based on the loan amount.

There are different auto loan calc you can use online. Different auto loan calc may arrive at different amount if you use them but these auto loan calc more or less give you an idea on the range of auto loan payments you are expected to make. Also, auto loan calc can tell which automobile you can afford and which auto loan you should avail. In using the auto loan calc you will often come across the following terms: interest rate, APR or annual percentage rate, auto loan term, cash down payment, trade-in allowance, amount owed in trade, taxable fees, sales tax rate, net down payment and sales price. Be sure to know what they mean so as to prevent confusion later on.

What would you do if you needed cash? Whether it was to pay off some bills, go on holiday or do some home improvements, you need personal loan. Deciding you want a loan is easy but choosing where to get the loan may be slightly more difficult. Here are five things to consider when looking at personal loan companies.

1. This is business.

No matter where you get your loana bank or a finance companythat entity is out to make a buck (or many) off of you. While reputable businesses will be honest about the costs, as is required by law in most cases, they will not let you know whether you should go down the street to save a few hundred dollars.

Along those lines, you should definitely shop around when looking for a personal loan company. While most personal loans do not have the lengthy payback term that a mortgage does, this will still last for a chunk of your life, anywhere from several months to many years. You do not want to be a month into a five-year loan and realize you should have used another personal finance company.

Things to look for when shopping around:

- Interest rate. The interest rate on a personal loan can vary from 5% to 25%. Over the life of a loan, that’s a LOT of money. Ensure you are getting the lowest possible rate.

- Fees. Most businesses make their money on a personal loan in the interest they charge. However, some companies may charge fees and you should be aware of these fees and why they’re being charged. Is it to reduce the interest rate, or is it the company just making more money off of you?

- Application processing. How long will it take to process your application? And who makes the decision? How soon you need the cash will help decide which personal loan company to use.

This is by no means a complete list of what you need to keep in mind when looking for a personal loan company, but it should get you started.

2) What is the company’s reputation?

You do not want to deal with a fly-by-night operation that makes huge promises, gives you the money then starts charging all sorts of “fees” that have been written into the fine print. Nor do you want one that will mess with your credit. Some questions you should ask before signing with a personal loan company are:

- How long have they been in business? Just because a company is new does not mean it isn’t reputable, just as a company that has been in business thirty years isn’t necessarily reputable. However, most places that do poor business do not stay around for very long.

- Does the personal loan company have any recommendations on file? Perhaps the company has received some letters they can share from customers that have appreciated the business. While this may be a long shot, it may be worth asking.

- Better yet, do you have any friends that can recommend this company? If someone you know used the personal loan company and had a good experience, chances are you will do well with them too.

As before, this list can be added on to. It should get you thinking about the company’s worthiness to have your business. From there, you’ll come up with more questions on your own.

3) Does the personal loan company do secured or unsecured loans?

Do you know the difference between these two types of loans?

- A secured loan has some type of collateral that you pledge to give the personal finance company if you don’t pay back the loan. In other words, you’ve “secured” the company’s ability to make its money back if you stop making payments because you lose the collateral. In the case of a mortgage, the collateral is a house. With a car loan, you risk losing your car. With a personal loan, you may pledge a valuable piece of jewelry or a collection of some type.

- An unsecured loan is similar to credit card debt. There is no collateral to cover the personal finance company’s investment if you default on the loan. By the way, that doesn’t mean you get away with anything. The company will come after you for an unsecured loan as quickly as for a secured loan.

4) How will your credit standing affect the loan company’s desire to do business with you?

Do you have bad credit or no credit at all? Some personal finance companies may not want to even talk to you in this case. There are other companies who would delight in taking your business however, as you’re considered a risk, there is a chance they would also charge a ridiculous interest rate.

Another possibility is that the company may require you to have a cosigner on the loan. This is more likely if you’re young and have bad or no credit. What this means is that you won’t get the money on just your signature saying you’ll repay the loan. The cosigner also signs the loan documentswhich are legally binding and can be used to collect in a court of lawand if you default will pay back the loan. If a company requires you to have a cosigner, this could be a problem. Many people will not cosign a loan (or don’t have the credit necessary to do so), because of the financial responsibility.

5) Do you like them?

Okay, this one may seem silly, but if you dread stepping into the personal loan company’s offices, or cannot stand listening to your loan officer’s voice, this could cause problems at some point. Whether this is a gut instinct telling you to run away or is just something that happens for no apparent reason, you don’t want to deal with any company that makes you uncomfortable. Keep in mind, just because you like someone doesn’t mean they will do a good job for you. And someone you don’t like may do a great job for you. However, stressing over your interaction with the personal loan company may not be conducive to ensuring you’re getting the best deal possible or not being taken advantage of.

Unfortunately, there are no absolutes when dealing with life, and that includes getting a personal loan. However, if you keep these recommendations in mind, ask any questions you have (no matter how dumb they may seem) and verify every step you take, then getting the money you need should be relatively painless.

You can locate the most popular Australian finance brokers at Start Local. All over Australia, you should make Start Local the first place you look. Start Local is Australia’s fastest expanding local search engine and business directory.

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Increasingly, lenders and charities are seeing home owners handing over the keys of their homes to building societies and banks. People are getting deeper into debt and the main debt is normally their mortgage, which causes deep anxiety and stress. It seems that they are the end of their tether and feel that they can’t stand the thought of actually meeting the issues to be faced by letting it get to the stage of court proceedings.

This is a sad state of affairs and a recent report states that High Street Lenders are “amazed” by fast growing numbers of home owners looking into voluntary repossessions. It appears that there is a trend to return to the state of affairs experienced in the early 1990’s when people were just returning their keys rather that contacting their lender and trying to find a way through things.

The recession has hit lots of people in a very short time. The housing market was buoyant in recent years and lots of people went into their homes full of hope regarding the eventual clearing of the mortgage and with confidence that the monthly payments would be manageable. Falling house prices, increasing likelihood of unemployment and a major recession have taken the shine off their dreams and many are deeply distressed and embarrassed to admit that they are unable co cope with the repayments. They would rather just give back the keys than face the lenders with the embarrassing facts.

It really doesn’t have to be like this. Your bank or building society is hearing of problems like this every day. You’re not alone and most certainly your lender wouldn’t want to lose you in this way. They’d rather keep your custom and try to help out a way of helping you to stay in your home and get back to the financial stability and confidence you had at the start of the home-owning journey. If you are really trying to find help and willing to contact the lenders, giving them all the facts, they may well be able to make some arrangement to help and to avoid the distress of going to court.

The fact is that even if you were to give up your home voluntarily, you could still be in financial trouble. Houses which have been repossessed are very often disposed of through house auctions. Lenders will obviously require their money back and especially if you’ve not been in your home for an appreciable time, the amount which the auctioneer is able to achieve may not even be sufficient to pay your debt in full.

If you have several small debts, all designed to get you out of trouble, they can mount up unbelievably. It may be possible to go through these and consolidate them into one more manageable loan. Most certainly a financial adviser will be very up to date with all aspects of debt management and you could be pleasantly surprised at some of the help that they can give. Whilst not everyone can be helped in this way, it seems that around two thirds of ask for help from one of the major debt organisations can be successfully given help and advice to enable them to stay in their homes.

Don’t hesitate to ask for advice. Ask for whatever help you need, be completely open with you lender and you may well be able to work out how to handle things, until everything picks up again.

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Sometimes debt can seem overwhelming. In those instances, or even before things get that far out of hand, get back to basics and try some of these debt handling solutions.

BASICS — Lower insurance deductibles for your homeowners, renters and vehicles policies where appropriate and save money. Don’t take chances on bouncing checks; instead get covered with overdraft protection and pay about the same as what it would cost for one bounced check to cover our account for an entire year. Ask your banker about packaged account services. Many offer free savings and checking accounts with free overdraft protection and checks, free online bill paying and more. When you shop, check your receipts, even for groceries. Many times items ring up at incorrect prices. Sometimes store policy allows for no errors, meaning you get the items free if it wrings up wrong. So carry along a handheld calculator or pencil with small notepad to tally up your charges.

REACH OUT- If you have medical debt, the first thing healthcare offices try to do is get you to charge the bills or refinance your home, etc. STOP. Before you take such a drastic step, check with legal counsel. There are often other steps to take first. For example, notify the billing parties and tell them you need to apply for financial aid. Many have forms to complete, and although they may be lengthy, remember they’re for free money to pay your bills. Reach out, take forms and fill them out. Then set up minimum payment arrangements for the remaining balances, even if it’s just $10 a month for 30 years. Healthcare bills are not like credit card debt and do not need to be reported to the credit bureau in the same manner.

Also reach out with merchandise and return any recently purchased items that you can for a refund. Credit cards and mail order companies generally allow you 30 days to inspect your purchase. Return any you can for refunds. If purchases are beyond the 30 days and for various reasons don’t hold up to their end of the “bargain;” i.e. they broke already or never worked right to begin with, get on a letter writing campaign pronto. Write the place of purchase and copy the manufacturer, the distributor, the Better Business Bureau and your state Attorney General’s Office. State the reasons our product is faulty and that you want a refund. It’s often rewarding to get help with other entities like these. No need to go it alone!

So before your debt gets out of hand, take charge and get back to basics. Put some of these debt handling solutions into practice and make the most out of what you have.

Masni Rizal Mansor is a successful webmaster and publisher of Best Reward Credit Card.. He provides tips on how to apply cash back credit card and gas reward credit card.

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Commercial mortgage loans are provided by lenders for purchasing properties and equipment, or for meeting operating costs for commercial or business purposes. These loans usually have lower interest rates (6% to 13%) than residential loans. Thus, commercial mortgage loans are considered as useful tools for establishing and improving a business. The main beneficiaries of commercial mortgage loans are real estate businessmen engaged in construction, acquisition and refinancing of properties.

Commercial mortgage loans are secured loans, that is, you must provide a security, property or business asset, for getting these loans. Like home mortgages, you have to repay these loans within a specified period of time. Usually, a 2% arrangement fee is charged for these loans. Commercial mortgage loans may be fixed or adjustable rate mortgages. The term of these loans can vary from 10 to 30 years.

Commercial mortgage loans offer more flexible repayment options than traditional loans. You can pay on a biweekly, monthly, quarterly or annual basis. Many lenders offer a fixed interest only period. You can repay commercial mortgage loans by generating additional funds from assets you purchased using the loan.

Qualifying for commercial mortgage loans can be a little difficult. The loan provider will look at the resale value of the property, the income generated from the property, your company’s credit history and income resources, and also the worthiness of the guarantor. The minimum loan amount available for commercial mortgage loans varies with the lender – it usually falls somewhere between $100,000 and $250,000. The maximum amount available is usually unlimited, but it solely depends on the value of the security. Most lenders provide 70% to 90% value of the property as maximum loan amount.

Many online mortgage providers offer commercial mortgage loans. These include conduit lenders, portfolio lenders including banks, credit companies and life insurance companies, government sponsored enterprise (GSE) and non-bank lenders. Generally, conduit companies and credit and life insurance companies offer long term loans.

The terms of interest, interest rate and the minimum loan amount available defer with the lender. There are many sites on the Internet that provide comparison of interest rates of different providers.

Mortgage Loans provides detailed information on Mortgage Loans, Bad Credit Mortgage Loans, Refinance Home Mortgage Loans, Online Mortgage Loans and more. Mortgage Loans is affiliated with Investment Real Estate Loans.

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