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There are tons of investment situations where commercial financing can open up the doors to unforeseen opportunity. The right financing can make seemingly impossible financial goals affordable and realistic. When seeking financing, lender selection is one of the most important considerations for the potential borrower. The availability of financial lending options today is unsurpassed. Virtually every type of financial solution is now available for creditworthy borrowers. However, not every lender offers the right solution. Most lenders specialize in certain type of loans. In addition, lenders vary greatly in their rates, loan procedures, and even their lending terms. A borrower must take all these factors into consideration when shopping for a lending institution.
Mortgage lenders offer loans at rates and terms that depend on the borrower and property type. Interest rates will vary upon each applicant’s individual credit situation, the amount of money being requested and the down payment being made. Though rate shopping is a very important aspect of lender selection, it should not be the decisive factor. Several other costs can be incorporated into a loan, which must be taken into consideration. commercial financing, application fees, pre payment penalties are all important considerations. A reputable commercial mortgage lender will never ask for any kind of upfront fee. It’ important to make sure that your lender will not charge you unless your loan request is both approved and funded. Also remember to distinguish between fees and due diligence costs such as: appraisal, survey, environmental and other third party costs prior to final approval are typically required by all lenders. Beware of those lenders that claim their loan process does not require these fees. It would be unreasonable and not very cost effective for any lender to pay for the up front costs of every single pre approval.
Finding a mortgage lender can affect your life for the term of the loan. Finding a lender that will help you identify your specific needs and customize a solution to fit them is of vital importance to every borrower. Most borrowers would not know where to start. Expertise and professionalism are both key factors here. An expert mortgage broker can help identify your needs and suggest a suitable financial solution, properly package your loan, and help you feel confident about your choices.
At ALPHA OMEGA MORTGAGE, LLC, we find lenders that offer the best rates, and a wide array of commercial mortgage products that can be tailored to fit your financial needs. We work with a network of only the best commercial lenders, and offer personal consultations to guide you through the loan process from start to finish. So call us today!
888 284 5225
that fit your financial needs like a glove
Call 888 284 5225
or click here to visit us online
We realize you have many financing options for your commercial real estate, and we appreciate your consideration of Alpha Omega Mortgage, LLC in your selection process.
Many borrowers wonder why there can be a large range of mortgage products simply to refinance or buy commercial real estate. In a nuttshell, it is easy to see that loans & their terms can be grouped into very few broad categories and all seem comparable, but it is difficult to see the details that separate a loan that leads you to the closing table and one well suited for both your long and short term financial goals.
For example, a loan might have a 5 year fixed, 5% pre payment penalty and another a 5 year fixed and declining pre payment terms of 5% the first year, 4% the second, 3%, 2%, 1% the following three years. On the surface, they both have 5 year fixed rate periods and 30-year terms but in realty, one is better for the borrower who intends to refinance the sixth year to recuperate his/her down payment and the other for the borrower who intends to sell by having the buyer assume the loan for a 1% fee the third year.
We not only lend a keen ear to your loan scenario, but also offer invaluable input and advice. We at Alpha Omega Mortgage, LLC Will make sure you are suited with a commercial mortgage that fits both your financial plans for the long and short term. We not only lend a keen ear to your loan scenario, but also offer invaluable input and advice.
Tuesday, December 11, 200710:52:37 AM
Free Enterprise; the fight for an American Beauty,
“A call to entrepreneurship”
Free enterprise means men and women have equal opportunity to own economic resources, such as land, minerals, Industry and unlimited personal assets.
Free enterprise may also mean having the right to "life, liberty, and the pursuit of property"(John Locke). A phrase latter adapted by Thomas Jeffrson and became the most famous words in the constitution of the United States of America. "Life, liberty, and the pursuit of happiness".
Unlike the French "liberté, égalité, fraternité" (liberty, equality, fraternity) or the Canadians, "peace, order and good government", Cameroon “Peace-Work-Fatherland” you will note that, the US is probably the only country in the world whose Constitution urges and encourages its Individual citizens to pursue individual wealth and happiness for their own sake and not for that of the collective.
Per the American constitution, being an Entrepreneur is like performing any other civil duty. It’s not just our right but our civil duty to be entrepreneurs. The fact is, to an extent we should all view and manage ourselves as individual business ventures. We truly have vested in ourselves the same financial and emotional risk it takes to start any business. In today’s economy, if you do not market your skills, invest in yourselves; manage your household budget as a decent fortune 500 company’s CFO would, your small company (yourself or your household) will wither away. It will be crushed by the competition and struggle for the rest of its existence.
Free enterprise and the pursuit of happiness means, we are free to undertake any enterprise that will assist us in the pursuit of our happiness. There would be no pursuit if there were no struggle to be ahead of the next person. There would be no struggle if we were not shoving others to the side and disadvantaging them so we can reach happiness and not they.
By "no one ought to harm another in his life, health, liberty, or possessions", John Locke probably meant fight fair in the struggle to be happy but fight non the less.
Unfortunately, this notion is being adapted more and more by new and sometimes Illegal Immigrants who come to this country and compete better for "life, liberty, and the pursuit of property” than American born citizens.
Why? Because unlike American born citizens, new found Americans who come from places where the notion that life, liberty and property are very scarce commodities, American born citizens tend to love the romantic and sometimes economically stunting idea that the “…pursuit of happiness" is not related to economic growth and scarcity of property.
American citizens are being besieged by the words in their own constitution. Had the word property not been replaced by an intangible assets such as happiness, then maybe American born citizens would have had two hundred years to master the art of entrepreneurship and know how to compete for this very scarce commodity more than anyone in the world.
I really think that, when Thomas Jefferson changed property to happiness, he trully thought that happiness being an intagible asset, can only be reached by the accumulation of “sufficient” wealth. “Sufficient” being relative to every individial’s ability and apetite to compete for scarce property.
If you trully want to be happy, you must compete and if you truly want to compete, you must treat yourslef as a business entity in an unforgivable market. You are your general, you are your CEO.
BEN AKOA
Commercial Loan Specialist
888-284-5225
Benaomtg@Maine.rr.com
AOMTG
Some suggestions
- credit scores reflect credit payment patterns over time with more emphasis on recent information. In general, your score may improve, if you do the following:
- Make sure all your bills are paid by the time they are due. Late, past due payments and collections will always have a negative impact on your credit scores.
- Keep balances at 50% of available credit on all credit cards and other "revolving credit accounts." High outstanding debt and maxed out credit lines will affect your scores.
- Only Apply for or open new credit accounts as needed. Don't open accounts just to have a better credit mix or more available credit– it will do nothing but increase your indebtedness or classify you as having too much available credit. this probably won't raise your score either.
- Do not transfer debt from one card or credit line to another but Pay it off. Unless you are spreading it around to have a 50% balance to available credit accross the board. Also, don't close unused cards as a short-term strategy to raise your score. Owing the same amount but having fewer open accounts may lower your score.
- Review your credit report from each reporting bureau once a year so you know what is being reported. Simply order one from Transunion in January, one from Equifax in May and one from Experian in Sepetember. It won't affect your score to request and check your own credit report. You have the right a free annual report from each reporting agency.
- Things that may Improve your credit scores Paying your bills on time is the single most important contributor to good credit scores. No matter how small the debt, it is crucial that you make timely payments. Furthermore, you should minimize outstanding debt, do not overextend yourself and refrain from applying for credit lines Unnecessarily.
- Applications for credit show up as inquiries on your credit report, indicating that you may be taking on new debt. It may be to your advantage to use the credit lines you already have to prove your ongoing ability to manage credit responsibly. Also, start making payments on Credit lines that are 60-90 days late or not yet in collection instead of leting them go to waste. Doing so may help improve your score better than opening new accounts.
- If you do have negative information on your credit report, such as late payments, a public record item (e.g., bankruptcy), or too many inquiries, you may want to pay your bills and wait. Time is on your side when trying to improve credit. There is no quick fix for bad credit, no magic snake oil pill.
- Any change to the credit report could affect your scores. Simply closing two accounts not only lowers the number of open installment accounts (which generally will improve your score) but it also lowers the total number of all open accounts (which generally lowers your score). Furthermore, such an action will affect the average age of all accounts that could either raise or lower your score. As you can see, one seemingly minor change actually affects a large number of factors on the credit report. Therefore, it is impossible to provide a completely accurate assessment of how one specific action will affect a person’s credit score.
- How long does it take to rebuild scores?
Actually, you don’t rebuild scores. You rebuild your credit history, which is then reflected by credit scores. The length of time to rebuild your credit history after a negative change depends on the reason behind the change. Most negative changes in scores are due to the addition of a negative element to your credit report such as a delinquency or collection account.. These new elements will continue to affect your scores until they reach a certain age. Delinquencies remain on your credit report for seven years. Most public record items remain on your credit report for seven years, although some bankruptcies may remain for 10 years and unpaid tax liens remain for 15 years. Inquiries remain on your report for two years.
Wednesday, December 19, 2007
Here are some lead generation techniques to convert as many contacts into clients as possible:
You never know when a visitor will decide to sign up for your newsletter or request more information. So it is very important that you put a mailing list box on each page.
ie, a free credit report, a free mini e-course, a free market analysis. Having a mailing list box/contact request box on your website is one thing, but to make sure people will actually sign up, you need to offer them something that will interest them (a Hook) something that will inform them and help them to solve one of their problems.
Once people sign up to get your free offer, it is your job to tell them more about your business without comming off too pushy, in order to build a relationship with them. More often, people who don't buy immediately will buy in the next 12 months. So, you need to make sure that you are always on the top of their expert list, so when they are ready to act, you are the one they come to.
Alpha Omega Mortgage, LLC
888 284 5225
Set up a series of information messages about your products or services, and the benefit of using them. The messages will remind them about your services and, more importantly, remind them of your expertise and come use your services. A series of follow-up messages will reinforce your relationship with the contacts.
Testimonials from satisfied customers are typically the best way to promote your business, and it doesn't cost you a thing. Stop selling and let your clients do it for you. Voluntary Enlistment is better than drafting.
Schedule to teach an adult ed cours in your local area every month or on a regular basis. This will promote your organization and services within your community.
888 284 5225
Alpha Omega Mortgage, LLC
179 Sheridan St.
Portland, ME 04101
Visit us online
Again, people don't buy from people they don't know, so offering a free consultation helps them jump off the cliff, take a leap of faith in you. During the consultation, they will see how you can help them and the benefit of working with you.
Statistics show that we need to hear or see a message at least 5 times in order to notice it.
Therefore, if you are one of those people who follow up only 2 or 3 times, you are losing opportunities to turn prospects into clients. That is why it is important not only to have a monthly or quarterly follow-up system, but to have at least a 5-step follow-up system in place. Using systems in your business is the best way to grow easily and effortlessly, and most of the strategies that I just shared with you are free, so you have no more excuses. All of these strategies work very well if you are starting your business, or if you need to refocus your business to get the result you are expecting after a few years. And when you are an established business, that is a way to keep growing.
Take some time to sit and think about it. Are you using 2 or 3 lead generation techniques, or do you have 10, 15 or more? Make a list, as I just did. Which of your lead generation techniques works the best for your business? What other techniques could you implement today? Schedule a new technique each month, set up a date to make sure you will respect your marketing calendar, track the result for each technique, see what works for your business, rid yourself of what has a less than 5% success rate and watch your sales grow.
How to improve your credit score
Credit Basics
damaged credit loans
what kind of loans does AOMTG Specialize in?
Special Offers
Our Unque Loan programs
How to Improve Your Credit
If you have had credit problems, be prepared to discuss them honestly with a mortgage professional. Responsible mortgage professionals know there can be legitimate reasons for credit problems, such as unemployment, illness or other financial difficulties. If you had a problem that's been corrected and your payments have been on time for a year or more, your credit may be considered satisfactory.
If you are currently in excess debt, there are four ways to control it: If your debts are under control now, but want to improve your bad credit history, the most important factor is to make your monthly payments on time. Use pre-addressed envelopes enclosed with your statements to mail your payments and call the company if you don't receive your usual statement. Also send your payment as early as possible if you carry a balance. Most companies calculate interest on a daily basis, so the sooner they receive your payment, the less interest you'll pay. Don't procrastinate. It's the day your payment is received that counts, not the postmark date. Give the post office sufficient time (five business days is a good guideline) to deliver your mail. Late payments may mean late fees, higher interest, and/or a negative mark on your credit report. Never send cash. Open a checking account if you don't have one, or spring for a money order and keep your receipt. Finally do not forget to tell your credit ors your new address when you move. If you are worried about making payments, make a list of your debts and when the payments are due. Contact your lenders immediately if you think you will have trouble meeting the monthly payments to arrange a payment schedule. Taking money from your retirement account or tapping the cash value of your life insurance policy to pay bills or living expenses may have serious implications you haven't considered, so try to get advice from an expert before you take any major financial actions. credit cards can be invaluable in a crisis, since they allow you to charge items and pay them off over time. But they can also be dangerous if you aren't careful and charge more than you can afford. If you do use credit cards, choose those with the lowest interest rates and pay them back as soon as you can to cut your costs.
If you are currently in excess debt, there are four ways to control it:
- If your credit is not in terrible shape, you can reduce your other expenses, even if it means making hard choices or changing your lifestyle to fit your income. Consider selling a second car, taking equity out of your home, applying for a non secured signature loan, obtaining a loan from a relative, selling your home and paying off your debts with the proceeds and then renting, cashing out your 401K/retirement benefits or selling family heirlooms, jewelry, etc.
- If your credit is already damaged or one of the above isn't an option, go through Consumer credit Counseling Services (CCCS). Check your yellow pages for the local number. CCCS may be able to help you pay off your debts as if you were in a Chapter 13 bankruptcy , but you don't actually file for bankruptcy . Most lenders will consider this and rate you as if you are in or have filed for bankruptcy .
- If CCCS won't take you, you may want to consider bankruptcy . Claiming Chapter 13 bankruptcy takes longer than a Chapter 7, but your credit will end up in a little better standing. Chapter 13 bankruptcy gives you up to 5 years to pay off your debts. The disadvantage is that you're in bankruptcy for up to 5 years plus your credit report shows your bankruptcy for 7 more years after you have finished paying off your debts.
- If you are so far in debt that you can never repay it, then the best solution may be a Chapter 7 bankruptcy . A Chapter 7 bankruptcy is the least desirable from a credit standpoint, but you are typically out of bankruptcy in 6 months and you don't have to repay any debt. The disadvantage is that this shows on your credit report for 10 years from the date of filing your bankruptcy . credit ors are starting to tighten their credit requirements, and you may have a tough time getting future financing.
If your debts are under control now, but want to improve your bad credit history, the most important factor is to make your monthly payments on time. Use pre-addressed envelopes enclosed with your statements to mail your payments and call the company if you don't receive your usual statement. Also send your payment as early as possible if you carry a balance. Most companies calculate interest on a daily basis, so the sooner they receive your payment, the less interest you'll pay.
Don't procrastinate. It's the day your payment is received that counts, not the postmark date. Give the post office sufficient time (five business days is a good guideline) to deliver your mail. Late payments may mean late fees, higher interest, and/or a negative mark on your credit report.
Never send cash. Open a checking account if you don't have one, or spring for a money order and keep your receipt. Finally do not forget to tell your credit ors your new address when you move.
If you are worried about making payments, make a list of your debts and when the payments are due. Contact your lenders immediately if you think you will have trouble meeting the monthly payments to arrange a payment schedule.
Taking money from your retirement account or tapping the cash value of your life insurance policy to pay bills or living expenses may have serious implications you haven't considered, so try to get advice from an expert before you take any major financial actions.
credit cards can be invaluable in a crisis, since they allow you to charge items and pay them off over time. But they can also be dangerous if you aren't careful and charge more than you can afford. If you do use credit cards, choose those with the lowest interest rates and pay them back as soon as you can to cut your costs.
- The Mortgage Broker knows how lenders look at your documentation --
- The Mortgage Broker uses one credit pull to shop many lenders --
- The Mortgage Broker gets whole sale rates--
- The Mortgage Broker does the foot and paper work--
- The Mortgage Broker is an independent set of eyes --
- - Reason to hire a Mortgage Broker : The Mortgage Broker knows how lenders look at your documentation
The most important reason to hire a Mortgage Broker is that the Broker unlike you, knows exactly how lenders look at your -- documentation. For example, you might think your tax returns do not reflect enough gross income to submit a deal through a -- conventional lender (for a better rate and term) but the Broker would advise you the lender will take into account your tax -- right offs or take place more weight on the Net Operating Income (NOI) of the subject property. This simple move could be -- the difference between an 11% 2-year ballon mortgage from a hard moneylender and a 6.45% 5-year fixed 30-year -- amortization loan with a conventional commercial lender. Also, you might not get a chance to resubmit your loan through -- the same lender once they’ve seen something in the application they did not like. Whereas the Broker most likely knows-- Lender diplomacy work with the underwriter to correct the problem saving you considerable time, money and heart ach.--
- - Reason to hire a Mortgage Broker : The Mortgage Broker uses one credit pull to shop many lenders--
Every time your credit is pulled, your fico score takes a hit. Typically you have unlimited credit pulls within a 30-day period -- without taking a fico score hit as long as all pulls are for the same reason. Some banks, (Especially retail banks) would pull your score indiscriminately and it could register in the system as if you were shopping for a car at one bank and a credit card -- at another. 3 or 4 of these indiscriminate pulls could drop your fico score by 30 to 50 points in a 30-day period. This could be -- the difference between a 700 fico score and a 650 which in turn makes the difference between 3% down and a 10% down payment.--
- - Reason to hire a Mortgage Broker : The Mortgage Broker gets wholesale rates.--
Mortgage Lenders and Retail banks usually have a retail division and a whole division. The wholesale division deals with -- loan Broker s and other loan intermediaries. The main reason Broker s are given wholesale rates is because the bank pays them-- a fee proportionate to the rate the sell you. The Broker is paid both from the borrower and the lender. So, a Broker can most -- likely always get you rate bellow retail by taking a cut pay from the lender. Or if you want the lowest rate possible rate (par) -- you can opt to pay all the Broker fees up front instead of sharing that with the lender. Either way your rate will always be much -- lower than that given by retail divisions of banks and lenders.--
- - Reason to hire a Mortgage Broker : The Mortgage Broker does the foot and paper work. --
Most people seeking commercial mortgage loans are busy businessmen and women. Imagine having -- to go to work, run a business or do anything else your busy life requires and shop the perfect loan, gather-- all the documentation, --negotiate the fees and terms of your loan etc? You would have to be an 8 handed -- freak to make that happen. A decent Broker shop has two people efficiently working your loan. The power of a -- Mortgage Broker on your side is similar to shopping for a tee shirt and having all the department stores nationwide -- at your door each trying to give you the best deal. All you will have to do is provide the required documentation -- and either agree or disagree with the terms.--
- - Reason to hire a Mortgage Broker : The Mortgage Broker is an independent set of eyes--
Imagine having a seasoned pro doing your loan shopping? Well that’s what a Mortgage Broker does day in day out -- working with all types of lenders and has probably seen your loan scenario and its hurdles a thousand times. -- This means when it comes to loan shopping, rates and terms, their opinion is probably more valuable than your -- know-it-all buddy’s or the real estate agent who is trying to sell you the property. Would you rather pay a few thousand -- dollars for a seasoned set of eyes and avoid foreclosure or a heartbreak loan or no loan at all? I know I would.
click here to Contact Ben! or call 888-284-5225
If bank s were Islands, the land of money savers would be on one side of its waters and the land of money borrower s on the other side of its waters. The bridges between the three would be loan broker s and the federal government regulating the flow of every transaction would be the waters.
With this picture in mind, lets say we have three Islands named A, B and C. The ocean which is the federal reserve, deposits 1000 sea shells on Isaland A.Isalnd A by law must keep 20% of the sea shells and make the rest available for loans. A loan broker sells the availability of shells and loan prgrams of Island A to a would be entrepreneur from borrower land. The entrepreneur gets 800 sea shells and starts a business by buying commercial real estate sold by a citizen of Savers land who deposits 800 shells in island B reserve bank .
Now, isalnd B reserve bank by law must keep 20% of its deposits and make 640 shells available through loan programs to citizens of borrower land. A loan broker gets news that isalnd B reserve bank has some new programs and builds a bridge connect Isalnd be and part of borrower land where people need such programs. Another citizen of borrower land gets a 640 sea shell constrcution loan and hires people from savers land. who build the house, get paid and deposit 640 sea shells into island C reseterve bank .
Isalnd C reserve bank in turn make available 512 sea shells available for other loan programs through another loan broker bridge and the cycle goes on.
Over all 1000 sea shells were deposited by the ocean on Isalnd A and 1952 shells were put into circulation via bridges created by loan broker s another 488 sea shells still in bank reserves also available for circulation.That is a total of 2440 is now in circulation.
In other 1440 has been Created by the services of loan broker s.So, next time you see a loan broker , give him/her an appreciative pat on the shoulder. Because they are in actuality the money makers of our economy.
APPLY FOR A COMMERCIAL LOAN TODAY
Email Ben Akoa
Visit us online AOMTG
888 284 5225
- You can refinance your commercial real estate to;
- Consolidate debt
- equity take out for business expansion
- Pay off an existing baloon mortgage
- Create working capital,
- Capital improvements for resale purposes
- Acquire a new business / diversify a line of business
- Lower present rate / Payment to increase Net Operating Income
- Change loan types from adjustable to fixed
- Partner buy out.
- #1 Reason to refinance: For debt consolidation
- #2 Reason to refinance: equity take out for business expansion
- #3 Reason to refinance: Pay off an existing baloon mortgage
- #4 Reason to refinance: Create working capital
- #5 reason to refinance: Capital improvements for resale purposes.
- #6 Reason to refinance your commercial mortgage: Acquire a new business / diversify a line of business
- #7 reason to refinance: Lower present rate / Payment to increase Net Operating Income This is the easy one; a reduction in rate and increased loan term could help reduce your monthly payment via a lower rate and increase your net operating income
- #8 reason to refinance : Go from an adjustable rate mortgage to a fixed or just to refinance an adjustable rate mortgage
- #9 Reason to refinance: Partner buy out.
Cash out equity to buy out a partner or an ex husband / wife. We all know how essential that can be
Contact Ben
The most populare reason commercial real estate owners refinance their current mortgages, is to consolidate debt.
Refinancing to convert equity into cash to pay off eminent debt or high interest debt like short term bank loans, high yield company credit cards etc.) can be a very smart business move. So now, instead of multiple debts, you'll have one commercial mortgage loan.thats a few less bills to worry about each month.
Most of the times you will end up shooting two birds with one stone, ie get rid debt and lower your overall outgoing monthly expenses.
The second reason to refinance commercial real estate is to convert equity into cash for business expansion purposes. Instead of taking on additional debt to add more Square footage to your business you might as well refinance and increase your payments by a few
hundred dollars rather than secure other assets to take on more debt. All you are really doing is recapturing funds you've already vested into the property when you made previous mortgage payments. This is definately a better alternative than tying up other resources as collateral for expansion funds or even worst taking on an outside investor for expansion purposes.
This says it all, being trapped under a huge balloon payment can be nightmarish. Espceially for small business owners with very little cash reserves to begin with Most balloon mortgages come in handiy when acquiring a piece of real estate because they generally have lower rates and may be easier to obtain that conventional mortgage loans Or to pay off that hard money loan you used to purchase that place. It might be due in 2 years or less.
Very popular amongst seasonal business men who might need working capital to cruise through the off season period especially if factoring is out of reach due to low annual credit card sales
Making your business have more curb appeal is always a sure way to reduce its time on the market if you are trying to sell. And a cash out refinance might just be the solution to creat access to such cash
Accessing equity to add a new service or line of products is a neccessary move in a growing market. Diversity can help grow your business to higher levels and refinancing could be a cheaper way to go to create such funds funds. Maybe even acquire an appartment building to increase cash flow or buy out a competitor
EMAIL BENAOMTG@MAINE.RR.COM
A variety of agencies participate in lending on commercial properties by insuring loans originated and (sometimes) serviced by approved lenders. Some of these agencies are managed by the government, while others merely enjoy certain governmental assistance such as tax deferment or exemption. Each agency defines a range of commercial loan programs for different commercial real estate property types, loan amount ranges, and funding purposes.
The Small Business Administration is a governmental organization that guaranties loans on commercial properties occupied by small businesses. SBA loans are intended as a "last-resort" for small business borrowers: in order to qualify for a loan from the Administration, a borrower must have been turned down by at least two conventional lenders. The main SBA program, originated by commercial banks and insured by the SBA, is the 7(a) program, for the most part intended for purchase/acquisition transactions and with loan amounts of less than $2 million.
FHA/HUD Multifamily Commercial Loans
In 1937 congress passed the National Housing Act, which established the Federal Housing Authority. The mandate of this organization was to encourage financial institutions to support the development and rehabilitation of, essentially, any building in which people live. The FHA is administered by the US Department of Housing and Urban Development (HUD), and is mainly focused on promoting home ownership. However, the agency also offers a wide range of insurance programs for the purchase and rehabilitation of multifamily commercial properties, including apartments, condominiums, student housing, manufactured home parks, elderly housing/assisted living facilities, and healthcare facilities.
Fannie Mae and Freddie Mac
The Federal National Mortgage Association (FNMA, Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), are both private companies designed to promote home ownership for low and medium class families. Neither company makes loans directly to borrowers; rather, they rather buy mortgages from the commercial banks, insurance companies and credit unions that originate them, providing a continuous influx of capital to those institutions. This capital can then be used to originate new mortgages. Like the FHA, the main focus of Fannie Mae and Freddie Mac is the residential market, but their activities bleed over into the commercial real estate realm through their involvement in multifamily residential properties such as apartments and condos.
-Article courtesy of Lendicom.com
Information you need to know about Adjustable Rate Mortgages
In recent years, more and more homeowners have begun to pass over the traditional fixed rate mortgage in favor of a newer variation, the adjustable rate ortgage (ARM). These mortgages work differently from a fixed rate mortgage in that their interest rate can rise or fall over the life of the loan.
That means you could pay less money in the long run, but you could also end up paying more (Most likely scenario).
ARMs offer a low initial interest rate that may help you qualify for financing, buy a bigger house, or obtain more money for expenses and other investments. But taking out a large ARM without measuring the risks can leave you with a monthly payment that’s too big to handle if rates rise sharply and eventualy lose your home like most americans are finding out.
While all ARMs work on the same principle, not all ARMs are created equal. There are different types of ARMs, with different features that can affect the way they work and the interest rate you pay.
So it’s important to look carefully at what you’re being offered.
HOW DO ARMS WORK?