The first thing you need to do before being able to consider home mortgage loans as an effective means of financial ease is ensure that you are financially fit. This means that before you take the loan, or even make plans on investment towards a house you need to first make sure that you can. This does not mean just being able to do it at this particular moment in time but being able to do it consistently. If you are able to keep up financially then even with home mortgage loans you will not have too many problems down the road.

When it all boils down to it, there are certain things that no-one will be able to foresee. But being able to properly prepare for the worst is why people are able to overcome even that inevitable force of nature. Preparation is the key, and if you are prepared financially then home mortgage loans will not only prove helpful, but will also prove to be invaluable.

Depending on the kinds of loans that are made, things might be a little easier or harder for you. Certain types of companies have a very lenient policy and might even agree to the bending of the date when payment must be made. However, these companies are few and far in between. Just about everyone is having trouble financially these days, and this means that setting up home mortgage loans can have some dangerous consequences. In other words, these loans backfire simply by being unable to pay at the specified time. Needing money for the mortgage was already the problem in the first case. It is a very realistic prediction that the same kind of situation will occur, only this time the person will owe money to the people that gave the loan in the first place.

In a lot of ways this can be much more dangerous than simply being unable to pay the home mortgage. Being unable to pay those who offered the loan at the right time can yield some very difficult consequences. This is why it is always best to consider all other options before resorting to these particular types of loans.

Fortunately, one of the biggest helping hands one could get when it comes to managing a home would be to set up a home mortgage loan. Home mortgage loans are becoming increasingly necessary simply because people who own homes are unable to meet with the constant mortgage demands. When all of the factors come into play, it is actually a surprise that most families are still able to make ends meet. While setting up a home mortgage loan can be difficult and you will still eventually have to pay every single cent, a loan in that particular area can ease the burden tremendously.

The prices of homes have been inflating for the past decade because of all the ups and downs that the economy has been facing. In fact the current downward spiral is the biggest reason why home mortgage loans are becoming increasingly necessary and will only become more important as time marches on. These loans are considered to be the lesser of two evils in this day and age, because there is still plenty of risk involved as well as plenty of requirements. Unfortunately, necessity facilitates these factors and nothing can be done to change it for now.

This is a type of loan wherein the equity of the borrower’s home is the collateral. Many a times, such loans are taken to finance various things like medical bills, or a college education amongst others.

You must have an excellent credit history if you are thinking of taking a home mortgage loan. Also, the ratio of the loan to value must be reasonable enough. This loan is secured against the value of the borrower’s property and is also called a second mortgage. A second mortgage is usually of a shorter term than a first mortgage.

The Types of Mortgage Loans on Offer

The Fixed Rate Mortgage Loan: A fixed rate mortgage loan has a fixed rate of interest. The fluctuating interest rates won’t have any bearing on your loan and you can repay your loan amount at a fixed rate through a fixed period of time.

Adjustable Rate Mortgage Loan: The opposite end of a fixed rate mortgage loan. Herein, the interest rate of your home mortgage rate will fluctuate and be dictated by the various economic indices. In most cases, at the beginning of the loan period, you usually have to pay a low interest rate.

The Closed End Loan

A closed end home mortgage loan gives a lump sum to the borrower at the time of closing. No other amount is further given to the borrower. The maximum amount that can be borrowed is dependent on factors like the appraisal value of the home, income, and credit history of the borrower.

If there are no liens on the property, most often, a borrower can borrow an amount equal to the appraised value of the home. However, various states have different laws that determine the amount that can be borrowed on equity.

The Open End Loan

This offers its borrowers revolving credit. This essentially means that you as a borrower can determine when and how often will you borrow against the equity of your home. However, the initial limit of the credit line is fixed by the lender, and are available for up to 30 years, very much like closed end loans.

In most cases, the open end home mortgage loan is available at a variable interest rate.

Credibility and Choice

We have mentioned the point that your credit history would be an important factor in determining the interest rates offered to you. However, don’t just take this as a one way mode. As a borrower, you must also check the credibility of the lender. You can do so through various banking sources, consultants, etc.

Also your choice of the lender must take into consideration the comparison of offers, negotiations on the rate of interest, and other conditions. Conduct an intensive study of the market and only then choose the perfect home mortgage loan that will suit your needs.

These are just a few home mortgage loan pointers that might just be able to guide you in the right direction. So take due cognizance of what we have mentioned, and make the right choice.

The increase in home mortgages

Image by eric731
In the picture above, we see how banks were allowed to change the way they do business.

Before, they had to accumulate money from the community to loan as a mortgage.

Now they are allowed to accumulate money from the community and loan out many mortgages off the same amount of money.

In the old system, the FDIC had to be created to protect the community from losing all their money if a borrower defaulted.

Now, the FDIC only needs to cover a portion of the depositors money because if one person defaults it only affects a portion of the money, not the whole thing.

That is why a bank allows defaulters to modify their loan. The bank knows the modified amount is only modifying the fictitious, created money, not the actual community’s money. Yes, the banks lose some future money, but they did not lose actual money, since there was only a portion of the community’s money that was actually invested in their house.

What do you think?

www.DebtIndependenceDay.org

www.localbizblogs.com www.loanusmoney.com Call Today at (800) 905-9223 Loanusmoney.com is a mortgage company set on changing your view of the industry with our low rates, low fees and superior service. Our friendly staff will make you feel right at “home” during the whole process of obtaining a mortgage. We will walk you through buying that dream home or refinancing your current home step by step. The communication we provide is unbeatable and leaves you with that comfortable feeling that you are in the right hands. Loanusmoney.com offers Conventional, FHA, and VA loan financing so all your mortgage needs can be met without a doubt. You won’t regret calling Loanusmoney.com today for your absolutely free mortgage quote at (800) 905-9223 or stop by our convenient location at 5180 E 81st Ave, Merrillville, IN 46410 (on the north side of Route US 30). We also have First Time HomeBuyer seminars monthly. Loanusmoney.com works on a referral basis and we are confident that once you try us that you will refer all your family, friends and associates.

What Are Home Mortgage Loans

Basically, these mortgage loans refer to loans that people take out to enable them buy or build their own homes. More and more financial companies are offering these loans, including banks and other credit firms.

It is relatively easy to own your own home. This is because you will only be required to make an application for home mortgage loans and get the approval you require. After that is done, you will be well on your way to being a proud home owner.

Requirements for Home Mortgage Loans

Still, there are a number of things you need to consider before you apply for mortgage loans. For starters, you should have the ability to repay that loan in the long term. Usually, it will take you around 10 to 30 years to completely pay off your mortgage loan, unless you sell your house within that period of time.

This means that you should have a stable source of income. It may be a thriving business or a permanent job at a large firm that pays you well enough to enable you apply for these useful and indispensable home mortgage loans.

In the same way, you need to ensure that your credit is up to par. This means that your credit history should not be negative or damaged. Instead, it should be good enough, with a minimum score around 680. This will enable you to get the best terms with whichever mortgage loans you apply for.

Only when your credit rating is high can you be assured of getting good terms. Your interest rate will be much lower because the institution issuing the loans will consider you to be a low risk debtor. Therefore, be careful not to mess around with your credit. Similarly, the length of time in which to repay the mortgage loan will be lower if your credit is impressive and you have a high income paying job.

Sometimes, you will be required to present some sort of guarantee or security before you get clearance to benefit from a home mortgage loan. The guarantee is meant to safeguard the firm issuing the loan. It will impose upon you the will to repay your mortgage loan, so that you can get the security back.

However, the advantage is that nowadays, most finance institutions will use the house you buy as the security. Therefore, in case you continuously default on your repayments, the home will be repossessed. The scare of repossession will compel you to repay your loan as soon as possible.

To conclude, remember that it is now possible to get home mortgage loans. This will enable you to buy the house of your dreams. Therefore, your family will live in a more comfortable and lush surrounding as the end result.

Although the lower interest rates are the main reason for wanting to refinance, people might have a valid reason to refinance in any economic condition. Refinance mortgage may allow you to reach your objectives. This could be as simple as wanting to lower your mortgage interest by a straight swap between a high interest existing mortgage and lower interest refinance. Or as complicated as consolidating all your loans, credit cards and getting extra cash to provide cash flow for your business. Home improvement is another obvious reason for refinance mortgage.

As you can achieve most of your objectives with a home equity loan as well without touching your existing loan, refinance needs to offer lower interest rate for you to be worthwhile to switch the lender.

In the internet world we are living, you have no excuse not to have a through search of the available options before doing anything else. Find out what is on offer from refinance to personal loan. Then compare them with your existing loans and see where each fits in terms of providing you with a solution.

Next step is to prepare the documents needed while you are considering your options. The basic documents include your employment records, bank statements, credit card statements and income and expenditure statements as well as the details of your existing loans. Once you are convinced that you could benefit from refinance after paying all the costs involved with the mortgage application and obtaining mortgage, you need to apply for a pre approval to several lenders. Pre approval is a way of checking that you are eligible for the loans without incurring any further expenses.

When you have at least two pre approvals in your hand, you can start the elimination process to get to the lender you will apply for refinance mortgage. Make sure you understand the mortgage terms, fees, pre payment penalties and how will your interest rate be calculated. Is this a fixed rate, flexible rate or a short term fixed rate that will convert to flexible rate? Depending on refinance mortgage, the affordable rate you see today may not be that affordable in a year or two.

If you are convinced that you understand what you are getting into and happy with it, you need to fill out your mortgage application. Get all your documents out ready to fill the form. The application form needs to be complete and reflects the true picture of your financial position. Incomplete applications will not be considered by the mortgage underwriters. While you are filling your application, put yourself into the shoes of the lender. Try to give them reasons to give you mortgage. If you have a particular issue, such as one missed payment in your otherwise clean mortgage payment history, provide full explanation and documentation.

Mississauga Santa Claus Parade , November 30, 2008 / Habitat For Humanity

Image by bill barber
I’m still officially down for a bit, but I posted these for my extended families and friends. I don’t really expect comments since I won’t be commenting on yours for a bit.

From my set entitled “Mississauga Santa Claus Parade 2008″
farm4.static.flickr.com/3245/3075199413_9773a5e13b_s.jpg
In my collection “Places”
www.flickr.com/photos/21861018@N00/collections/7215760074…
In my photostream
www.flickr.com/photos/21861018@N00/

Taken from Wikipedia
en.wikipedia.org/wiki/Habitat_for_Humanity
Habitat For Humanity International (HFHI) (generally referred to as Habitat for Humanity or simply Habitat) is an international, ecumenical Christian, non-governmental, non-profit organization devoted to building “simple, decent, and affordable” housing. Homes are built using volunteer labor and are sold at no profit. In locations outside the United States, Habitat for Humanity charges interest to protect against inflation. This policy has been in place since 1986.

The organization was founded in 1976 in Americus, Ga., by Millard and Linda Fuller, whose vision grew out of their experiences at Koinonia Farm. The international operational headquarters are located in Americus, with the administrative headquarters located in Atlanta, Ga. Staff members at all locations serve to support and promote the activities of local, independent Habitat for Humanity groups, which initiate and manage construction, mortgages and homeowner selection worldwide.

In 1996, U.S. President Bill Clinton awarded Fuller the Presidential Medal of Freedom, the nation’s highest civilian honor, calling Habitat for Humanity “…the most successful continuous community service project in the history of the United States.”[1] By 2004 Habitat had built 50,000 houses in the U.S. and over 175,100 around the world, with Habitat groups working in over 100 countries. Although headquartered in the United States, two thirds of Habitat construction takes place in other countries. In 2005 Habitat built its 200,000th house, bringing the number of people sheltered in Habitat houses worldwide to one million. On November 13-14, Habitat for Humanity will build its 3000,000th house in Collier County, FL.[2]

On 4 August 2005, Habitat announced the selection of a new Chief Executive Officer for the organization, former president of stores of Musicland and executive pastor of the Edina, Minnesota Christ Presbyterian Church, Jonathan Reckford.[3]

In the fall of 2007, alternative rock bands Switchfoot and Relient K went on the Appetite For Construction Tour, partnering with Habitat while raising awareness for the organization and donating a dollar per ticket sold. The tour was highly successful, raising over 0,000 for donation to the cause. [4]

According to the official website,

Homeowner families are chosen according to their need; their ability to repay the no-profit, affordable mortgage; and their willingness to work in partnership with Habitat. Habitat for Humanity does not discriminate according to race, religion or ethnic group.

Independent, local affiliates of Habitat for Humanity International are allowed to interpret these guidelines as is deemed most appropriate for the location of the affiliate.

Homeowners are usually expected to put approximately 500 hours of “sweat equity” into their own or other project homes, although this amount may vary by location, the number of wage-earning adults in each family, and the recipients health issues.

Mortgage payments from homeowners are deposited into a locally-administered “Fund for Humanity,” the proceeds of which go toward future construction. In an effort to discourage predatory lenders from targeting Habitat homeowner families, mortgage agreements allow the Habitat for Humanity affiliate the right of first refusal. Should a homeowner family decide to sell their home during the period of their mortgage, the affiliate may buy it back at a price at least equal to the equity that the homeowner has paid into the mortgage.[5]

Habitat homeowners in the United States pay no interest on their no-profit mortgages. Habitat for Humanity organizations outside the United States adjust the no-profit loans to compensate for the inflation rate in their area, with the goal that “the repayments from one house should ideally build another house of the same design.”[6]

Habitat builds simple houses with locally appropriate materials. This could mean concrete block homes in Third World nations or poured concrete-walled homes in hurricane-prone regions of the United States. Chapters of Habitat in more developed countries are strongly encouraged to donate ten percent of the money they raise for local housing to the national group for the purpose of building Third World homes. For instance, Habitat New Zealand’s tithe helps to support an equal number of housing outcomes abroad, predominantly in the Pacific region.

Habitat relies on volunteer labor in order to construct simple and affordable homes for its partner families, as well as to build community and civil society in the areas in which it works. Most volunteers are unskilled prior to first working with Habitat, although some professional or retired tradesmen or contractors may donate their services. Many churches and other houses of worship (synagogues, temples, mosques etc.) sponsor houses and provide a large amount of the volunteers from their congregations. Some corporations and businesses who value good corporate citizenship provide financial support to the projects and/or donate materials for use in construction. Many politicians and celebrities have volunteered with Habitat, reflecting its profile as a highly regarded non-profit.

Habitat for Humanity International develops special programs to support local Habitat organizations. These programs are designed to engage specific groups for annual projects or on an ongoing basis.

Habitat has initiated a special program to help restore housing to the areas affected by Hurricanes Katrina and Rita. The effort is focused on getting the local affiliates in these areas back on their feet and prepared to build for their communities. It has also become a catalyst for other organizations, corporations and the government to provide help and support in rebuilding these areas, and has received considerable national media attention.

The program pre-builds housing components in nearby less-affected locations such as Jackson, Mississippi, allowing much of the construction to be accomplished while basic infrastructure is being restored. Pre-constructed components can then be shipped to the affected areas and built at a faster rate. Within two months of the time of the disaster, construction had begun on houses in the Louisiana cities of Covington and Slidell, near New Orleans.

Operation Home Delivery is Habitat for Humanity International’s hurricane rebuilding program, Harry Connick Jr., and Branford Marsalis are honorary chairs, and one of the many projects along the Gulf Coast, is the Musicians’ Village at New Orleans Habitat for Humanity.[7]

Habitat for Humanity runs a year-round alternative break program known as Collegiate Challenge for student groups age 16 and up.[8] Although summer, fall, and winter break trips are available, most participants go during their spring break. Collegiate Challenge volunteers travel to affiliates throughout the United States and participate in week-long building activities at their host’s work sites. More than 14,500 volunteers took part in Collegiate Challenge in 2008, making it one of the world’s largest alternative break programs. Since its inception in 1989, more than 150,000 students have participated in Collegiate Challenge.

As suggested by the name, Habitat for Humanity International places a strong emphasis on building outside the United States. Its international character dates back even before its formal inception, as founder Millard Fuller received considerable inspiration while on a three-year trip to the Democratic Republic of Congo (then Zaire) during which he and his family sought to apply Koinonia principles outside the limits of the small Georgia farm.

Volunteers today can build with Habitat affiliates throughout the world on Global Village Trips.[9] After having gone through training, trip leaders organize travel plans with the support of the Americus-headquartered Global Village Department, first formally established in 1988. Participants from all over are then able to register for trips to their destination of choice. Teams generally number between eight and fifteen, with trips usually last between nine to fourteen days.

When people of different faiths and cultures come together to build a house, individuals learn from and find new respect for one another. Coming together for the common goal of building a house with a neighbor in need has proven to be a successful way for bringing healing to divided communities and creating a sense of cross cultural unity.

There are many projects that go hand in hand with the house building projects that allow these homes to supply their own electricity through the use of solar. US companies such as Pacific Gas and Electric (PG&E) have partnered with Habitat for Humanity to provide complete solar grids for a few homes.[10] There are also other solar projects, mostly in the US, like one in San Francisco,[11] as well as normal citizens that are trying to make a difference by raising funds to get more of these solar homes built.[12]

During Home Builders Blitz 2008, more than 1,000 building industry professionals in 110 Habitat for Humanity affiliates built 263 new homes across the United States. This was the second national Home Builders Blitz program, which was begun on the local level in 2002 in Raleigh, N.C. Since then, the professional homebuilders industry has supported Habitat by building more than 800 homes.

Former U.S. President Jimmy Carter became involved with Habitat for Humanity in 1984 and has since become its most high-profile proponent. He has been involved in fund-raising and publicity as well as actual homebuilding, taking part in the annual Jimmy Carter Work Project “blitz build”.[13]

In 2008 Habitat for Humanity celebrated the 25th annual building project with the Carters and renamed it to include Mrs. Carter. The Jimmy and Rosalynn Carter Work Project focused on supporting the Gulf Coast community seeking to rebuild after hurricanes Katrina and Rita. Despite periodic downpours, volunteers got most of the work done during one week in June to finish building and fixing 60 houses and frame 48 more.[14]

Originating in 1991 with a Charlotte, North Carolina home built entirely by a crew of female volunteers, Habitat’s Women Build program encourages women to make a difference by building homes and communities. Women Build projects provide an environment in which women can feel comfortable learning construction skills they might not otherwise have the opportunity to learn. Globally, more than 1,200 homes have been completed by Women Build volunteers. [15]

Habitat ReStores are retail outlets that re-sell new and used building and household materials donated by large companies, job sites, and individuals. For some Habitat affiliates, like Habitat for Humanity Toronto, the ReStores generate sufficient revenue to cover all administrative costs. This means that every dollar donated to the organization goes directly to home building, and not to pay for overhead such as administrative costs.[16]

The video for rock band Bon Jovi’s song “Who Says You Can’t Go Home” features Habitat for Humanity volunteers as well as the band building homes as part of Habitat for Humanity in Philadelphia, close to Bon Jovi’s native New Jersey. It reflects Jon Bon Jovi’s dedication to the organization and highlights the importance of community unity, faith, and involvement.

The Habitat Bike Challenge began in 1995 as a product of Yale University’s Antony Brydon’s desire to spend a summer biking across the United States while raising money for Habitat. Along the way from coast to coast, riders raise money by explaining Habitat’s mission and even building along with Habitat affiliates in the towns they stop. Riders must raise a certain amount before the trip and spend nearly three months of their summer spreading the word about Habitat and getting communities involved. Bike and Build grew out of the Habitat Bike Challenge in 2002. Over five seasons, Bike & Build has contributed ,144,231 to housing groups to fund projects planned and executed by young adults; this includes 1,327 donated from the summer of 2007.[2]

Although Habitat for Humanity enjoys high name recognition and regard as a non-profit, it has also been the subject of criticism. An article in the Weekly Standard [17] magazine questioned the cost-effectiveness of Habitat building projects. It is difficult to estimate effectiveness, as total volunteer hours on-site and aggregated homeowner financial data are not available.

However, Habitat houses in the United States are more affordable for low-income families than commercially built houses because volunteers help build the homes, which are sold at no profit. [18] In many countries, purchasing a Habitat house costs even less per month than renting substandard housing.[19]

Families are required to show an ability to pay for their home in addition to the need for housing. With these requirements, homeless and low income families may fail to qualify for a Habitat home. Most American Habitat affiliates perform credit checks and criminal record checks on applicants before partnering with them for the construction of a home. Some critics therefore allege that Habitat misrepresents the nature of its work by partnering with families that might be considered nearly “middle-income.”[20] To address this, many Habitat affiliates in the United States partner only with families that fall below the government-set “poverty line” for their area. The current poverty rate is measured according to the United States Department of Health and Human Services Poverty Guidelines.[21]

The credit and income requirements help assure that Habitat applicants are able to maintain their houses. Foreclosures on Habitat houses have been very low: 2%, according to official figures. The homeowners’ monthly mortgage payments are used to build more Habitat homes.[22]

Habitat’s founder, Millard Fuller, and his wife were dismissed by the Habitat board of directors on January 31, 2005, citing “a pattern of ongoing public comments and communications by the Fullers that have been divisive and disruptive to the organization’s work”[23] after Fuller was accused of “suggestive comments and inappropriate touching” toward a female employee during a ride to the Atlanta airport in 2003. Some Fuller supporters claim that the firing was due to a change in corporate culture.[24]

Before Fuller’s termination, attempts were made by former President Jimmy Carter to broker an agreement that would allow Fuller to retire with his ,000 salary intact; when Fuller was found to have violated the non-disclosure portion of this agreement, he was subsequently fired.

In response to his dismissal from the project he founded, Fuller has established The Fuller Center for Housing.

In January 2008 a dispute arose between the parent organization and an unspecified number of local Habitat for Humanity affiliate organizations over the terms of their cooperation agreement. These local affiliates contended that the agreement gave the international organization too much power over the assets and operations of the local chapters. One of the affiliates, Habitat for Humanity of San Antonio, reached an agreement with HFHI in July 2008 to “continue working together in their efforts to make affordable housing possible.”[25]

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