Month: February 2009

Before You Buy Foreclosed Home Know The Truth

Whenever a person wishes to buy foreclosed home there are certain things to be aware of that are not always apparent, especially not to someone that is new to this kind of dealing. The fact of the matter is that when it concerns buying foreclosed home there are things that are hidden and which if not understood can spoil a perfectly good business real estate deal.

Sub-Prime Imbroglio

The current sub-prime imbroglio has pushed more homes into the foreclosure market which means that for those who wish to buy foreclosed home there are sure to be several very tempting deals on offer. However, at the same time the average buyer can also easily misunderstand the present situation and so make some elementary mistakes regarding a foreclosed home s true value.

The normal way of thinking in regard to buying a foreclosed home is that these homes are always a good bargain buy, and they also believe that buying a foreclosed home only means getting the property at a very cheap price, after which with a little bit of maintenance work they can sell the same home for a hefty profit or even make it a home to live in while at the same time getting instant equity.

Unfortunately, things are not quite that simple and it is not every buyer that will succeed in buying a foreclosed home for pennies on the dollar. The plain truth is that the banks who are main lenders and owners of foreclosed homes are quite astute and they know the true value of their foreclosed homes.

Therefore, these banks are not going to simply give away their foreclosed homes because the home is a real asset for them and so they will generally expect the fair market value for their homes. They will also get the property properly appraised so that they know how much to expect for their properties and this price will generally not be as cheap as buyers may have expected.

So, to get the best deal when buy foreclosed home you need to do a lot of homework including working closely with reliable real estate agents so that you know the market value of the proposed foreclosed home. Only then will you be in a good position to bargain and buy foreclosed home at a decent price. This is especially in case you are planning on buying a HUD home foreclosure. As long as you know the real facts, you will stand a better chance of identifying the true value of a foreclosed home and by also exercising decent negotiating skills you can then succeed in buying a foreclosed home at the best prices.

The Beauty Of Interest Only Mortgage Calculators

When you sign for a mortgage and you move into your new home, you are expected to pay a monthly rate based on whatever terms and whatever mortgage rate you accepted. This is usually dependent on your credit score, how much money you make, the value of the home and other factors that the mortgage company considers when it comes up with your monthly payment. Sometimes you may have a mortgage where you have to pay the loan plus interest back. However, sometimes you can also find an interest only mortgage loan where you pay on the interest until a set time. When you have an interest only loan, you want to make sure your interest rate remains constant and that you re not going to experience a jump in your monthly payments. And even if your rate stays the same, you want to make sure you can afford the home you re going to buy. You can do this by using an interest only mortgage calculator. You simply fill in the numbers and figures it asks for and you ll be presented with your estimated monthly note so that you can determine whether or not you ll be able to afford that home.

Jumping Rates

Some mortgage companies will offer low rates at first to entice new buyers to come into signing for a new home. Then, in a few months that rate will jump. This often surprises new home owners who aren t expecting their rates to jump so high. So make sure you read the fine print after using the interest only mortgage calculator so that you are prepared for whatever s to come.

Talk To Your Loan Officer

When you have used the interest only mortgage calculator and you ve decided that the monthly rate is affordable, talk to the loan officer at the company or the bank you re dealing with to discuss the terms, the rates and other factors you may be wondering about. They will look at the interest only mortgage calculator and will then determine if the results are accurate. They will only be able to tell you the correct interest rate after running your credit but the interest only mortgage calculator should give you an idea of what you ll expect.

The purpose of using the interest only mortgage calculator is so that you can determine whether or not you will be able to afford the house you re looking to buy. It may be helpful to use several different interest only mortgage calculators from various companies so that you can determine which one will give you the lowest rate so that you don t overextend yourself financially.