Equity release mortgage scheme

Posted by on January 10, 2012 No comments

Lifetime mortgages allow you to release a cash lump sum from your home to spend as and how you wish, with typically no monthly repayments to make and you can stay in your home for life. The loan plus all interest accrued is paid in full to the equity release provider, usually when you and your partner pass away or move into long term care.

Drawdown lifetime mortgages are the same as a lifetime mortgage, however this time you are able to draw down the cash in stages, as and when you need it. The loan plus all interest accrued is repaid in full, when you and your partner pass away or move into long term care.

Home reversion plans allow you to sell all or part of your home to a reversion company in exchange for a cash lump sum or income. You can stay in your home for life and have typically no monthly repayments to meet. The plan comes to an end when the reversion company takes its percentage share of the property, usually when you and your partner pass away or move into long term care.

 

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Home Loan Rates Hit Fresh Lows: 30-Year Home Loan From 3.79 Percent

Posted by on May 20, 2012 No comments

The average fixed interest rate 30-year mortgage loan fell to 3.79% recently, yet another record low, based on information from Freddie Mac. That is down from 3.83% the week preceding, and also represents the third consecutive week of new low levels.

The 15-year rate edged just slightly less to 3.04%, from 3.05%. This decrease is also a new record low.

The low interest rates arrive among indications of progress in the property market. The quantity of property foreclosures and home loan delinquencies appears to be declining.

An array of weekly and monthly reports have been monitored as financial experts search for confirmation of a trend, whether it’s improvement or continuing hardship. With regards to rates, some of the elements hitting the US property market are originating further away. The economic uncertainty in Europe, in particular, has an impact.

The low rates are motivating demand. Home loan applications increased 9.2 percent last week as compared to one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey. The refinance portion of that index increased 13 %, with refinancing now comprising 74 % of the home loan applications.

However, much to the disappointment of a lot of homeowners, not everyone had the ability to take benefit of the low interest rates, in part as a consequence of the backlog at large lenders.

The recent data follow a claim that foreclosure filings in the U.S. fell to a five-year low last month as lenders upped initiatives to refrain from seizing properties.

One improvement in the housing landscape: The home loan delinquency amount for one-to-four-unit residential properties lowered in the first quarter of 2012 from the fourth quarter of 2011. Currently the mortgage loan delinquency rate is roughly 7.4% of all loans.

Before you shop around for a home loan or start looking for real estate, make sure you read Chad Weston’s excellent free report on Tampa homes and interest rates.