November 9, 2009 at 7:06 am
Studies show the dream of homeownership is becoming a reality for a growing number of Americans.
For example, according to the 2005 Harvard Joint Center for Housing Studies State of the Nation’s Housing Report, minorities are making inroads into all housing market segments across the United States.
This trend is expected to continue with minorities making up a growing share of the homeowner population with each successive generation. The study reveals that nearly 35 percent of all first-time homebuyers are minorities and more than 40 percent of all renters are minorities-these could be or will be the homeowners of the future.
Companies in the housing and mortgage industries are taking notice of this trend and are making efforts to meet the needs of today’s prospective homebuyers.
“Mortgage lenders need to have people who reflect the communities they serve located in the neighborhoods that we want to serve if we want to inspire people to become first-time homeowners,” said Jackson Cosey, senior vice president of Emerging Markets for Wells Fargo Home Mortgage.
For instance, Wells Fargo recently introduced a program designed to help serve consumers with down payment difficulties or lack of traditional credit history by helping them qualify for loans they can afford.
Called the Home OpportunitiesSM program, it includes qualifying debt-to-income ratios that address the growing reality that homeowners need to spend a greater percentage of their income on housing.
Also, it provides for nontraditional credit references that enable consumers who do not have traditional or lengthy credit histories to qualify for the program. In addition, flexibility on down payments and closing costs allows customers to purchase a home without a down payment.
“Home-financing options such as this program will allow more people including first-time homebuyers and low- to moderate- income borrowers to do something they have only dreamed about: owning a home,” added Cosey.
October 9, 2009 at 7:06 am
Mortgage has become one of the most important elements in modern day living and a key concept that might help one out in fetching the intended amount of money one needs to fulfill his or her dream. However, the very term ‘mortgage’ has been derived from the French word meaning “dead page”. Nonetheless, a mortgage is a device used to create a lien on real estate by contract. It very efficiently used in creation of a lien on a contract basis.
The mortgage as a lien is usually created on real state – a house, for instance. It is more often used deliberately as a method by which individuals or businesses can buy residential or commercial property without paying the full value upfront. The borrower, (the person concerned for taking the real estate by paying a part of the total money on a contract basis) is often called the mortgager. The mortgager then uses a mortgage to pledge real property to the lender, who is more often called the mortgagee. It is usually put forward in the shape of a security against the debt (also called hypothecation) for the rest of the value of the property.
Therefore, it is quite evident that a mortgage is of prime importance to the mortgager, and perhaps more to the mortgagee. There are a number of banks and financial companies who provide a whole range of mortgages at different rates. It is also quite obvious that the individual will calculate and look after his own benefit as he would compare the different mortgage rates that are available on the market. This comparison becomes an important activity, as the individual in question is always concerned about his monetary benefit.