Friday, July 23, 2010

How can you afford a home in USA

In USA mortgage shopping is difficult and very confusing. It needs many guidance for the borrowers for the mortgage purposes.

The Treasury Department of United States has recently announced that it is trying to make home affordable to every citizen. The eligible borrowers can refinance or modify their mortgage loans. This will make more affordable payments for them. US Bank Home Mortgage has been fully supporting the efforts to help families to have lower mortgage payments monthly. The eligible borrowers can redefine or modify their pre-existing first mortgage.

Now there are few conditions to be fulfilled. The borrower should not be late by thirty or more days on the mortgage payment during the last twelve months. You need to have Freddie Mac or else Fannie Mae loan. Loan modification is possible when a home is occupied as the primary occupance. The first mortgage amount should be equal or less than seven lakhs twenty thousand seven hundred fifty dollars.

For Bank of America the loan is composed of the following:
1. Mortgage Banking
2. Banking
3. Capital Markets
4. Global Operations

Loan production department has to originate and fund new loans. It has to acquire already funded loans by the process of getting from other lenders. Mortgage loan is provided by loan production by the four divisions of Wholesale Lending and correspondence lending, Full sprecturm lending, Consumer Markets etc. In Wholesale lending loans are offered to consumers whose loans have been originated by another mortgage broker.

Thursday, July 22, 2010


Every year many people suffer from obsolete and questionable credit information. Now this may happen and this fact will stand as an obstacle when they will further apply for credit. Now a good credit repair or debt consolidation service will help to clear the report for credit and in future there will be no problem to get the next credit. Today there are many credit repair services but it is hard to relay on all. Someone should go with only that organisation which has proven results and is experienced. Sometimes these credit repair organisations may keep hidden fees which will be associated with their service. Any credit company of repute will go for improving the credit rating of the client.
Good credit repair organisation will develop a plan repairing the credit and will make discussion with the client. Without a definite plan if any organisation goes for credit repair it will be like a radderless boat in the big sea. There will be different client and for them different credit repair system have to be applied. Flexible and adjustable credit repair policies are to be applied by the different credit repair organisations.

Thu a good credit repair service will make the client educated on repairing the credit of the client. This policy will definitely improve the credit rating of the client.

Finally client has to make it sure that he educate himself on the laws of credit before they seek any kind of help for the improvement of their credit rating.

Friday, July 16, 2010


In auto insurance the liability of the insurance insures the cost of damage and injury caused in an automobile accident. There are two policies here appllicable. One is of bodily injury and another is of property damage. In USA the insurance regulations vary from place to place. It varies on the basis of living, coverage and purchasing types.

The Bodily Injury Covers the injury that is caused to others in an auto accident. In the first case there is the coverage which covers the cost of injury caused to per person. The second case the policy covers the total dollar amounted for injury coverage.

The medical coverage will pay the medical bills of every person injured in the accident. Then there comes the property coverage which covers the damage done to another’s property which are the other’s cars, houses, poles etc.

The collision policy covers to pay for the repairs to be made for the damaged car.

Flood insurance covers the losses caused to the property by flooding. The standard flood policy will cover structural damage, household items, cleanup of the debris caused by flood.

In USA only twenty percent of the houses are covered by flood insurance.In USA claimants are more in number than that of the number of people interested for protecting their own property from the peril of flood. Ultimately this makes it sure that insurers are not able to recover the cost of flood insurance. To obtain flood insurance coverage people must live in any of the communities which have an agreement with the Federal Government.


Mortgage may be defined as a security interest on real property granted to the lender.There are many factors which defines the characteristics of mortgage. These factors are Interest, Term, Payment amount and its frequency and Prepayment factors. The interest applicable here may be either fixed or variable. Interest may change at certain periods. Generally there will be a certain period of time when loan can be paid which is known as the term of mortgage. In some cases the amount paid per period may change as per the frequency of the payment. In American property law a mortgage occurs when the owner pledges his or her interest as security for the loan. As Mortgage have the rate of interest this is supposed to be amortize over a particular scheduled period of time. Here the properties are secured along a mortgage bearing an interest rate which is supposed to be reflecting the risk of the lender. While purchasing a property by taking mortgage loan lenders makes it sure that the borrower makes a downpayment. Downpayment is the contribution of a portion of the cost of the property. Downpayment may be defined as the portion of the value of the property. In U.S.A. when a mortgage is secured by a borrower the process is known to be origination. The borrower has to submit a loan application and the documents relating to the financial history of the client to the underwritter. In many cases the banks offer "no-doc" or few -doc offer. In this case the borrower is required to submit only minimal financial documentation and information.