A new study shows that the slow U.S economy has greatly decreased the number of illegal immigrants from Mexico. From a high rate of 1.6 million in 2000, the number of arrests decreased to 327,000 last year. This is a great decline since the early years of the 1970s.
Duane Conder, a freelance photographer is now selling most of his belongings in Ebay as he and his family is getting ready to move.
He said that it will be traumatic since his family has lived near San Diego for the past 11 years.
He shared that it just seemed so sudden that all the work was gone in an instant.
During the dot-com boom, his family moved from Texas to California. However, since California is currently struggling to provide jobs to their citizens with an unemployment rate of 11.7%, they had to foreclose their home and are forced to move out of California to go back to Texas.
The unemployment rate in Texas is lower compared to California at 8.4%. In 2010, around 75,000 new residents moved to Texas while California lost about 130,000.
Aside from having no jobs as the main reason for the movement of the people, housing is also another factor. In Los Angeles, a 3 bedroom home sells for about $1 million. A similar 4 bedroom house is only selling at $380,000 in Texas. The people who purchased the more affordable homes are those who moved from California.
Bill Gaiennie moved his family and business from California to Texas. He said that they will stay in Texas and just visit California from time to time. They exchanged their 1 bedroom apartment for a 4 bedroom home. He said that if they stayed in California, they need to be a two income family in order to live in the place that they are in right now. However, the no personal income tax and lower cost of living in Texas currently allows him to sustain his family even with only him working.
Important Information for Joint Mortgage Loan Applications
If you and your spouse are thinking of applying for a joint mortgage loan but one of you has bad credit, you may really have a difficult time. This is because the lender usually considers the lower credit score in deciding the rate of interest it will charge to the both of you. Here are some of the things you have to know about joint mortgage loan application with bad credit.
1.) The Person with Higher Credit can Apply for the Loan Alone Although with two borrowers it is easier to get a higher amount of loan, this is only possible if both of you has good credit. Thus, if one of you earns a good income and has a good credit, you can already qualify for the mortgage.
The person with the higher income is usually considered as the main borrower. Just know that you will not be qualified to a bigger of loan with only one applicant.
2.) Find a co-signer A parent, family member or close friend who can act as a co-signer can help you qualify for the amount of loan that you desire. For as long as their credit is good, any of them can take the place of your spouse with bad credit as a co-applicant. If you are thinking of obtaining an FHA mortgage, you must find a co-signer who is related to you. As a word of caution, you might have difficulties convincing your potential co-signer to sign for you if he or she has a higher income than you and your partner. The reason for this is that he or she will be considered as the primary borrower and that will be too risky for him or her.
3.) Legal Information If you have finalized your decision to apply for a loan using one of your names, you can still request for the deed of the property to be placed on both your names since the deed and mortgage are usually separate. But, there are instances when the lender has to decide on this so make sure to check their policy first. Moreover, if only one name is stipulated in the mortgage but the two of you will pay for it, make sure to have a signed agreement in place just in case you separate. This is especially a security measure for couples who are not married.
With the historically low rates, different financial institutions such as mortgage servicers, credit unions and banks are doing everything to encourage you to refinance. Before choosing one, make sure to know how long it will take.
Wells Fargo is sending out solicitations through mail showing the difference in their customers’ payments when they decide to refinance to a lower rate and shorter term loan.
Chase is going a little further than Wells Fargo. They are providing their customers with one day air informing their customer that they promise no closing costs and no appraisal for refinancing.
Advantis Credit Union offers their clients a 10-year mortgage that has a low interest rate of 3.29%. It has already given out 200 of this loan type since the month of January.
OSU Federal Credit Union has a raffle program that allows anyone who refinances their home, credit card or vehicle to join. The program will be giving out three cash prizes amounting to $1000 each.
Mentioning these different solicitations does not mean that they are right for you. Make sure that you compare the balance of your present loan and the overall interest payments with any possible cost of refinancing such as closing costs, interest payments and appraisal fee for the entire duration of the loan.
Even if there are long-term advantages of paying your debt in full, do not disregard the impact of a higher payment in your cash flow every month. You do not want to be forced in a cash crunch that will push you to sell your home in a struggling housing market.
Moreover, check around as much as you can. In the past year, many customers of major banks complained that their refinancing was slow. By looking at all your possible options, you can save money on lower fees and rates and you can find a lender that can quickly approve your loan.
The Impact of Mortgage Default in a Credit Score Credit scores really matter.
This is the reason why many homeowners who realize that they may lose their homes primarily worry about how it will impact their credit scores.
Homeowners can allow their homes to be foreclosed and their scores will be affected for 7 years. Another option is to have a deed as a foreclosure substitute wherein the home is given to the lender in exchange for the loan’s cancellation but this also results to a negative credit score.
Getting out of a mortgage through short selling the home is also a way to get rid of the house. In this option, the owner sells the house in a lesser price compared to the amount of his or her loan. This is also bad for the credit score.
A recent report from RealtyTrac Inc. showed that there is a 19% increase in the rate of preforeclosure transactions for quarter one and two of the present year. This rate oftentimes includes short sales. The data shows that short sales accounted for 12% of the total housing sales in quarter two. This is a rise from the 10% rate during the same time in the past year.
But is a there a specific order by which the ever-present system in credit scoring considers a short sale better than a foreclosure or a deed instead of foreclosure?
In case a person with a history of mortgage problem applies for a loan in the future, some lenders might look at a short sale as a better record compared to a foreclosure. However, the scoring system used in determining credit looks at the defaults as equally unpleasant.
Bradley Graham, FICO’s scores product management senior director, said that according to the examination of information that lenders communicate with credit bureaus about mortgage defaults, the weight of the different types of default are almost always equal in determining credit risk in the future.
Low Mortgage Rates Continue
The standard of 30-year fixed mortgage rate is at a new low record for the third straight week with a reduction to 4.35%, according to the weekly survey of Bankrate.com. In the previous week, this was at 4.37%. The average 30-year fixed mortgage has an estimate of 0.38 mark down and origination points.
A complete listing of mortgage rates in different areas can be found at http://www.bankrate.com/funnel/mortgages/
The mean rate for 15-year fixed mortgage stayed at 3.48% while that of the 30-year fixed mortgage is at 4.86%. The trend of the adjustable mortgage rates is different. For a 5-year adjustable mortgage, the rate is moving higher to 3.1%. On the contrary, the 7-year adjustable mortgage rate is getting lower to 3.21%.
Bankrate.com conducts their weekly survey every Wednesday. It uses the data given by top 10 banks. The results of its survey are also based from the record provided by top 10 markets’ thrifts.
A bad employment report pulled down the mortgage rates for the sixth straight week. Fears of a threatening recession and continuous economic depression have increased the attractiveness of long-term Treasury securities, with very low projected returns. Fixed mortgage rates and mortgage-backed bonds’ profits are highly correlated with the returns on 10-year Treasury notes. Although there is a possibility that the Federal Reserve will find ways to decrease the long term interest rates even further as a way to continue lowering mortgage rates, growing the number of qualified refinancers will make the low rates of mortgages impact the economy at a bigger scale.
The last period when mortgage rates were above 6% was in November of 2008. Specifically, the average rate for a 30-year fixed mortgage during that time was at 6.33%. So a loan of $200,000 back then required a monthly payment of $1,241.86. With the present rate of 4.35%, the same amount of loan will only charge $995.62 for monthly payment. This is a $246 difference every month for anyone who is refinancing at the current rate.
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