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Posts Tagged ‘HOMEOWNERS’

Shortening loan terms






LOW interest rates are making it easier for homeowners to reduce their mortgage payoff times considerably. Almost a third of those who refinanced in the first quarter cut the duration of their mortgages to 15 or 20 years from 30, according to a recent refinancing report by Freddie Mac. The 31 percent who shortened their terms represented the second-highest level since 2002, when 35 percent took out shorter-term loans, the data showed. In the fourth quarter of 2011, 34 percent had reduced their mortgage terms. The all-time high occurred in 1992, with 42 percent refinancing into shorter mortgages.


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A village comes alive in los angeles

WEDGED between the communities of Glendale, Los Feliz and Silver Lake in East Los Angeles, lesser-known Atwater Village was nothing more than a poppy field until the early 20th century. As the decades passed, a neighborhood was established; streetcars arrived and Spanish-style houses were built. The Tam O’Shanter inn, dating from 1922, was frequented by Walt Disney himself. Today, this tiny area continues to attract aspiring homeowners looking for historic fixer-uppers and a sense of community. On weekends, the neighborhood’s hub of activity, Glendale Boulevard, comes alive: locals line up for tacos, to catch a yoga class or to gather for brunch at the longtime fixture Canele. In the last few years, that strip, and the area around it, has continued to see the addition of businesses, shops and restaurants, cementing Atwater’s status as a bona fide pocket of Angeleno-style bohemia. TANVI CHHEDA

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Mortgage plan gives billions to homeowners, but with exceptions

As state and federal authorities announced the details of their $26 billion mortgage settlement with big banks on Thursday, millions of American homeowners were hoping that this time they would finally get relief. Some, like Jessica Cooper of Toledo, Ohio, will discover the program’s limitations. [ABSTRACT FROM AUTHOR]

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An easier path to refinancing

It is only a first step toward healing the economy’s biggest open wound, but President Obama’s new mortgage refinancing plan could provide considerable relief for millions of homeowners shackled to high interest rates. If Congress approves it — unlikely, with resistance already mounting from Republicans — the plan could also put money in pockets and cash registers at a time when that is desperately needed. Interest rates are now at historically low levels, but banks refuse to let millions of homeowners refinance, because their credit is not stellar or because their homes are worth less than what they owe. High fees and intimidating red tape have kept many borrowers from even trying. [ABSTRACT FROM AUTHOR]

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Mortgage relief plan aims at refinancing

CORRECTION APPENDED President Obama, in announcing new mortgage relief on Wednesday, acknowledged that previous efforts to help homeowners had fallen short of expectations. And he tried to explain how his new effort, much of which would require Congressional approval, would fare significantly better. In making his case, Mr. Obama framed the changes as a round of improvements that would build on previous efforts to make it easier to refinance mortgages. [ABSTRACT FROM AUTHOR]

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A mortgage investigation

In the State of the Union address, President Obama promised a fresh investigation into mortgage abuses that led to the financial meltdown. The goal, he said, is to ”hold accountable those who broke the law, speed assistance to homeowners and help turn the page on an era of recklessness that hurt so many Americans.” Could this be it, finally? An investigation that results in clarity, big fines and maybe even jail time? [ABSTRACT FROM AUTHOR]

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A reprieve for the unemployed

FANNIE MAE and Freddie Mac’s recent extension of forbearance programs will give short-term aid to unemployed homeowners, but housing counselors warn that these borrowers will need to look at longer-term solutions. In a forbearance program, a lender agrees not to foreclose on a property and gives a borrower several months’ grace from or reduction in monthly mortgage payments. The programs work best for temporary setbacks, like job loss, health problems or natural disasters. [ABSTRACT FROM AUTHOR]

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Helping Homeowners Dig Out

WITH interest rates at historic lows, the expansion of a federal refinancing program could help more homeowners who owe more than their property is worth move out of higher-rate or adjustable loans into something more affordable and stable. The biggest change to the plan, called the Home Affordable Refinance Program, or HARP, raises the debt limit at which such borrowers can obtain a new mortgage. Those who owe more than 125 percent of their home’s value are now eligible; the previous limit for many government programs was 97 percent to 125 percent. The percentage ratio is known as loan-to-value, or LTV. The government also reduced some fees. [ABSTRACT FROM AUTHOR]

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A New Shot at Mortgage Relief

CORRECTION APPENDED Like millions of other homeowners, William D. Compton would like to refinance his mortgage so that he pays less each month for his three-bedroom house in Gulf Breeze, Fla. With the savings, he figures he could afford a few extra movies and restaurant dinners or he could buy a new stove and brakes for his car, purchases he has postponed because finances are so tight. Although he would appear to be a good candidate, Mr. Compton, 57, has been turned down twice for a federal refinancing program aimed at homeowners like him. [ABSTRACT FROM AUTHOR]

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A lift raft

The author discusses U.S. president Barrack Obama’s proposal to help those homeowners whose mortgage balance is larger than the current value of their home and who have made regular payments, an opportunity to refinance at the current low interest rates.

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