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        <title>Denver Real Estate Blog</title>
        <link>http://www.denversrealestate.com/blog/tags/mortgage/</link>
        <description>Denver real estate topics including local metro Denver community news and events.</description>
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            <guid>http://www.denversrealestate.com/blog/types-of-real-estate-loans.html</guid>
            <link>http://www.denversrealestate.com/blog/types-of-real-estate-loans.html</link>
            <author>bruce@bruceswedal.com (Bruce Swedal)</author>
            <title>Types of Real Estate Loans</title>
            <description> <![CDATA[ 
There are so many real estate terms that it sometimes feels as though you will never figure it all out. Buying a home or property can be very confusing. To top it off, there are several types of mortgages you can take out to finance your home. With just a bit of research you can become more knowledgeable and prepared to undertake this process.

The four standard types of real estate loans are adjustable interest rate loans, fixed interest rate loans, balloon payment mortgages and convertible mortgages. With a fixed interest rate loan, you are set up with a specific interest rate and you pay according to that amount for the lifetime of your loan. With an adjustable rate loan, your interest rate can vary due to market fluctuation. This can be wonderful if the interest rate goes down, but if it goes up you might have difficulty budgeting enough money to pay the note each month.

A convertible loan is essentially an adjustable interest rate loan that can be converted to a fixed rate within a certain time. This can be very handy if you are anticipating an upcoming lower interest rate. If you are not careful though, the time can lapse before the rate lowers, or perhaps the rate will not lower as expected. A balloon payment loan is when not amortized any of the loan principle and it all comes due at the end of the term of the loan. This can help a homeowner make lower monthly payments and you will have a larger portion of your mortgage payment that can be used for the mortgage interest tax deduction.

With each loan there are other specific benefits and potential downfalls, and it is best that you discuss with your loan officer about which loan he or she would determine to fit your needs best. If you have an inconsistent or unreliable income, you could choose an option mortgage where you pay the interest and supply labor to &quot;work off&quot; some of the principle. The problem with this type of loan can be that the payments are too low and can actually cause the homeowner to fall further into debt.

Stretching out your mortgage for 40 or even 50 years will definitely lower your payments, but the downside to this type of mortgage is that you will end up paying a significantly higher interest rate than someone who pays off their home in 30 or even 20 years.
 ]]> </description>
            <pubDate>Sat, 08 Jan 2011 14:01:11 -0700</pubDate>
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            <guid>http://www.denversrealestate.com/blog/explaining-the-fha-mortgage.html</guid>
            <link>http://www.denversrealestate.com/blog/explaining-the-fha-mortgage.html</link>
            <author>bruce@bruceswedal.com (Bruce Swedal)</author>
            <title>Explaining the FHA Mortgage</title>
            <description> <![CDATA[ Metro Denver homebuyers have been utilizing FHA backed mortgages to fund their home purchases for decades.Some of the benefits offered by FHA backed loans are low down payment options, reasonable costs, availability to less than perfect credit and assistance if ever there is difficulty in making the payments.To be eligible for an FHA insured mortgage a borrower must plan to occupy the property as their principal residence, have a valid social security number, have a two year employment history, not be past due on any Federal debts and meet the flexible credit requirements.To make the FHA backed mortgage easy to understand I find it useful to give clients a pamphlet with all the pertinent information. This informational flyer can be opened through the link below.Open the pamphlet  FHA Improvements Benefit You  by clicking on the link.I am always available for any questions you may have. If you are considering buying or selling metro Denver real estate, call now for experienced and professional assistance. ]]> </description>
            <pubDate>Fri, 26 Feb 2010 11:00:44 -0700</pubDate>
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            <guid>http://www.denversrealestate.com/blog/fha-implements-new-rules-to-help-foreclosures-sell-faster.html</guid>
            <link>http://www.denversrealestate.com/blog/fha-implements-new-rules-to-help-foreclosures-sell-faster.html</link>
            <author>bruce@bruceswedal.com (Bruce Swedal)</author>
            <title>FHA implements new rules to help foreclosures sell faster</title>
            <description> <![CDATA[ 
FHA has made recent changes to their rules to help stabilize the home values and improve community distress in places where foreclosure activity is high.&nbsp; A temporary change of policy has been announced which will allow increased and quicker access to FHA mortgage insurance when purchasing some foreclosed properties. 

Through this announcement and the $2 billion stabilization grants announced for non-profit developers and local communities announced to stem the negative effects of abandoned and vacant homes in some communities, the current administration has shown a commitment to addressing these issues.

These changes further open up the credit market to potential home buyers who often run into roadblocks obtaining conventional financing, most home buyers in todays tightened market place frequently find FHA is their only financing option.

In the past FHA has prohibited using FHA mortgages to purchase homes owned by sellers for less than 90 days which kept buyers away from recently foreclosed homes.&nbsp; This waiver will temporarily allow buyers access to a broader range of foreclosure properties while still maintaining stringent control to prevent any predatory practices.

Less time is required today to purchase, restore and sell foreclosure properties to homeowners looking to move in.&nbsp; It typically takes much less than 90 days and home buyers using FHA financing found themselves excluded from trying to purchase these restored homes.&nbsp; Sellers were often unwilling to accept contract offers from buyers using FHA financing because they would incur additional holding costs while waiting for the 90 days to pass.

This temporary change will assist in stabilizing the real estate market and revive communities by allowing buyers to purchase bank owned properties, HUD properties and properties being resold utilizing FHA financing without a 90 day waiting period.&nbsp; This will result in quicker sales, more price stability and less neighborhood vacancies.

With the restrictions lifting home buyers will have more opportunities to buy affordable housing which they were previously unavailable giving buyers more opportunities in the market.

The one year waiver takes effect February 1, 2010 and is designed with protections in place against predatory lending.&nbsp; In that transactions must meet the following general guidelines.


Transactions must be at arms-length.&nbsp; This means the parties to the transaction cannot share an identity of interest.

Additional lender conditions will apply if the sales price of the property exceeds a 20% increase of the acquisition cost.

The waiver does not apply to Home Equity Conversion Mortgage.


HUD provides the specific text for the temporary policy on its website.
 ]]> </description>
            <pubDate>Tue, 19 Jan 2010 11:19:19 -0700</pubDate>
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