I hope this finds the world well and you well as well. Say that five times fast! So happy Xmas and to all a good night.
Sunday, December 21, 2008
Friday, December 12, 2008
All About Bank Mortgage Service Costs and Fees
Have you ever wondered what mortgage servicing is? I have up and I'm not the sharpest stick in the shed. Mortgage servicing is a nice way for the banks to say they're charging you fees and you better enjoy it. Mortgage servicing means the bank will charge you a fee that is an administration fee for managing all aspects of your mortgage. This includes the worst-case scenarios when they homeowner is forced to go into foreclosure and it also means the mundane periodical duties that need to be carried out on the mortgage, including tracking your interest and principal tallies.
Mortgage servicing is very lucrative for banks and almost always a bank will choose to handle your mortgage servicing even if your mortgage has been packaged up with many other mortgages and sold to other banks in the form of mortgage-backed securities. I understand that mortgage-backed securities is a dirty word these days, and at the time of this post we blame mortgage-backed securities for the bad economy and the ills of the market. But in truth mortgage-backed securities can be a very powerful process in which many people can make a lot of money. Now back to what mortgage servicing really is.
All aspects of maintaining your mortgage are compiled into one big fee known as mortgage servicing. Anything to do with the money you own on a property has to be managed, calculated, and sometimes escrowed, and all of these small fees and sometimes large fees are compiled into one big fee labeled as mortgage servicing. In short this is where the banks make their money and why they get so filthy rich. It's the fees such as mortgage servicing which allows the banking establishment to create wealth from virtual vapor.
It all comes down to trust, and I know many people out there don't like the idea of trusting banks anymore, but it is a necessary evil in the modern world because we have to have somebody have our money. Money is transferred, wired, commuted into escrow, and transferred into real estate lawyers bank account in the escrow, and then moved to the parties involved at such time that property exchanges hands.
The bank is making money from the movement of all this money every day? A silly question to ask because we all know it is the banks. So if you ever look at your statement or read the small print when you're signing up for a mortgage try and notice the words mortgage servicing somewhere in the document.
Mortgage servicing is very lucrative for banks and almost always a bank will choose to handle your mortgage servicing even if your mortgage has been packaged up with many other mortgages and sold to other banks in the form of mortgage-backed securities. I understand that mortgage-backed securities is a dirty word these days, and at the time of this post we blame mortgage-backed securities for the bad economy and the ills of the market. But in truth mortgage-backed securities can be a very powerful process in which many people can make a lot of money. Now back to what mortgage servicing really is.
All aspects of maintaining your mortgage are compiled into one big fee known as mortgage servicing. Anything to do with the money you own on a property has to be managed, calculated, and sometimes escrowed, and all of these small fees and sometimes large fees are compiled into one big fee labeled as mortgage servicing. In short this is where the banks make their money and why they get so filthy rich. It's the fees such as mortgage servicing which allows the banking establishment to create wealth from virtual vapor.
It all comes down to trust, and I know many people out there don't like the idea of trusting banks anymore, but it is a necessary evil in the modern world because we have to have somebody have our money. Money is transferred, wired, commuted into escrow, and transferred into real estate lawyers bank account in the escrow, and then moved to the parties involved at such time that property exchanges hands.
The bank is making money from the movement of all this money every day? A silly question to ask because we all know it is the banks. So if you ever look at your statement or read the small print when you're signing up for a mortgage try and notice the words mortgage servicing somewhere in the document.
Monday, December 8, 2008
It's Time To Get Declined
It's really hard to get an installment (for anything) when your dog won't even give you a loan? Are you seriously looking for a personal installment loan with an APR (annual percentage rate) round about 5% and seven percent? If your personal finances are completely out of whack, and you have a FICO hovering between 600 and six seventy-five, you are probably barking up the wrong dollar tree. If you're tight you will not be able to afford the fleecing that comes with the terms of a high interest balloon loan.
A non-conforming loan fit's in to this category as well, because they generally have higher interest rates as well, and I mention this because there is some confusion regarding non-conforming loans these days online.
Trying to keep track of the ridiculous amount of options online can be thwarting. You can take it from me - I've been writing about installment loans for over 3 years now, and it's been an evolution you might say. The terms of finance are changing daily as we all move into the new world economy that the Republicans put us in.
What we truly need to do is mull over your personal situation from a "impersonal vantage point". Loan specialists and agents are not likely to O.K. a bad credit loan when your FICO history is third-rate. You must visualize your credit history from an objective point of view - just like the banks do.
Dickering with today's lenders is nothing like it was 2 years ago. You have to give banks good reason to feel comfortable about their risk level. One of the ways to make the banks feel unafraid is to provide security. I gather this is "banking 101" for most folks and likely you, but you would be startled if you could see how many consumers don't fully realize this. Arguably, a most borrowers figure that they're golden just because they still have a steady job. Not quite right.
The lesson of this conversation is for you to be aware of your credit rating and be aware of what the banking establishment sees. You can see the constant theme here can't you. We're talking about being reflective - looking at ourselves in the mirror and being honest about our consumer background.
Now one last thing I should proclaim, I need to tell you the most "life-or-death" component (not really) when applying for a loan. You have to get all of your personal debt in order. The banks don't like hunting high and low for your financial data just to find out out that you owe cash all over town.
You will not make and friends of trust at any bank with a reckless approach. The very nanosecond that your banker raises his eyebrow, the gig is over. These days, when the banks see anything negative in your financial past, it's "time to get declined".
A non-conforming loan fit's in to this category as well, because they generally have higher interest rates as well, and I mention this because there is some confusion regarding non-conforming loans these days online.
Trying to keep track of the ridiculous amount of options online can be thwarting. You can take it from me - I've been writing about installment loans for over 3 years now, and it's been an evolution you might say. The terms of finance are changing daily as we all move into the new world economy that the Republicans put us in.
What we truly need to do is mull over your personal situation from a "impersonal vantage point". Loan specialists and agents are not likely to O.K. a bad credit loan when your FICO history is third-rate. You must visualize your credit history from an objective point of view - just like the banks do.
Dickering with today's lenders is nothing like it was 2 years ago. You have to give banks good reason to feel comfortable about their risk level. One of the ways to make the banks feel unafraid is to provide security. I gather this is "banking 101" for most folks and likely you, but you would be startled if you could see how many consumers don't fully realize this. Arguably, a most borrowers figure that they're golden just because they still have a steady job. Not quite right.
The lesson of this conversation is for you to be aware of your credit rating and be aware of what the banking establishment sees. You can see the constant theme here can't you. We're talking about being reflective - looking at ourselves in the mirror and being honest about our consumer background.
Now one last thing I should proclaim, I need to tell you the most "life-or-death" component (not really) when applying for a loan. You have to get all of your personal debt in order. The banks don't like hunting high and low for your financial data just to find out out that you owe cash all over town.
You will not make and friends of trust at any bank with a reckless approach. The very nanosecond that your banker raises his eyebrow, the gig is over. These days, when the banks see anything negative in your financial past, it's "time to get declined".
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