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  Introduction To Appraised Value When a property’s value is evaluated based on a given point in time it is called an  appraised value . During the  mortgage origination process , a professional appraiser performs the evaluation. The lender usually chooses the appraiser but it is the borrower who pays for the appraisal. It is not important for the appraised value to correspond to an asset’s or property’s market value. Knowing More About Appraised Value For the period of the  loan underwriti n g process , the appraised value of a home is a significant factor; it also plays a role in determining how much money can be borrowed and under what terms. the appraised value determines the loan to value ( LTV  ) ratio. For instance, the lender will require the borrower to buy  private mortgage insurance  when the LTV is greater than 80%. Whereas in a new appraisal if the LTV drops to 78%, the borrower may be able to eliminate the private mortgage insurance payme...

  When shifting from one place to another, many people want to  buy a new home  before they sell their current one. The real estate industry is continuously changing and keeps enforcing new rules. There are a few steps to follow before deciding on the upgrade - Before upgrading to a new house, it is ideal to set a budget by keeping the current savings in mind, and the rate at which the current home will be sold to reach a conclusion. Look at available homes online or visit open houses to understand your needs and your budget. Meet with real estate agents to know the value of the property and how they plan to market your current home if the new home needs repair etc. It is advisable to use the same real estate agent for buying and selling homes. Talk to multiple lenders and understand the various options available, because the interest rates and fees will vary. Choose a lender carefully. If you want to buy a house before selling your current home then look at ways that wil...

  To stop the use of the U.S. market for money laundering through illicit activity, the Biden administration is trying to expand reporting requirements on all-cash real estate deals. At present title insurance companies in 12 metropolitan areas are needed to file reports naming people making all-cash purchases of residential real estate through shell companies if the transaction exceeds $300,000. The acting director of Treasury’s Financial Crimes Enforcement Network, Himamauli Das, said more transparency in the real estate sector will restrain corrupt officials and criminals to launder through the U.S. real estate market. With thi s  move, the U.S. national security will get strengthened and it will also help in protecting the integrity of the American financial system added Das. For a long, the U.S. real estate market has been a continuous place for corrupt government officials and other illicit parties looking to launder revenue from criminal activities. The International Co...

  Introduction to Monetary Policy Monetary policy  is a set of tools built with the intention of promoting sustainable economic growth. A country’s central bank promotes these tools by controlling the overall supply of money that is available at the nation’s banks, its consumers, and its businesses. The sole intention of a monetary policy is to keep the economy pulsing along at a rate that is consistent. To discourage spending the central bank may force up interest rates on borrowing or to inspire more borrowing and spending they may force down the interest rates. The central   bank uses the nation’s money for playing with the rates. The rates it charges to loan money to the nation’s banks are set by the central bank. All financial institutions adjust the rates to their customers right from the big businesses who are borrowing for major projects or home buyers  applying for mortgages  are charged according to the rise and drop of the central bank. Ideally, custo...

  Even in the midst of market volatility and economic threats and the COVID variant, the US mortgage rates increased this week and remained relatively stable. According to the latest Primary Mortgage Market Survey of Freddie Mac the first weekend of December, saw the  30-year fixed-rate mortgage  average to 3.11%, up to one basis point from the week before. Same time last year, the home loan rate was 2.71%. Sam Khater, chief economist at Freddie Mac said during the changes in the economy there is still a consistency of rates because of the evolution of the pandemic, which poses uncertainty. T h is low mortgage rate environment is a favorable condition for refinancing he added. There was a dip of three basis points compared to a week in the average rate of a 15-year fixed-rate mortgage which is at 2.39%, same time last year, the 15-year fixed-rate mortgage was 2.26%. The five-year Treasury-indexed hybrid adjustable-rate mortgage climbed to 2.49% up by two basis points, in ...

  The Federal Housing Administration publicized a new approach to calculating student loan debt. This makes it easier for student loan borrowers to qualify for FHA mortgage loans, and also to qualify for larger loan amounts. If a borrower has student debt, then to determine their eligibility for an FHA loan the mortgage lender will take it into account. The student debt also impacts their  debt-to-income ratio  (DTI), thereby becoming a deciding factor of how large of a home loan they can qualify for. If a borrower is  c urrently making student loan payments, then the payment amount on their credit report will be included in their debt-to-income ratio. FHA will use the lower payment number for qualification if a borrower pays less than the amount on their credit report, and they can prove it. FHA will estimate a monthly payment equal to 0.5% of their outstanding student loan balance if their loan is in deferment or their credit report shows a $0 payment. Even if it i...

  Introduction To Debt Consolidation When a new loan is taken out to pay off other liabilities and  consumer debts  this act is referred to as  debt consolidation . Multiple debts are fused together into a single, larger debt, like a loan, that has more favorable payoff terms in the form of a lower interest rate, lower monthly payment, or both. Debt consolidation can be used to deal with student loan debt, credit card debt, or other liabilities. How Does Debt Consolidation Work? When different forms of financing are used to pay off other debts and liabilities that process is debt consolidation. If a cust o mer is weighed down with different kinds of debt, they can apply for a loan to consolidate those debts into one single liability and pay them off. Money then goes towards the payment of the new debt until it is paid off in full. As their first step for a debt consolidation loan most people apply through their bank, credit union, or credit card companies. If the bor...