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Understand mortgage risks, rewards
Property foreclosures nationwide are at an all-time high. Headlines in
newspapers and news accounts on TV tell us it’s so.
And,
unfortunately, it’s just as true in our own back yard. You can see the lists
of properties going to Sheriff’s Sale each month published in the legal ads
of the local newspaper. A study by Policy Matters Ohio found that
foreclosure filings in Van Wert County grew 717 percent from 1995-2005, and
the number of local residents who are losing their homes to foreclosure and
sheriff’s sales has continued to grow.
Foreclosures are not only a
disaster for families experiencing the loss of their homes, but also for
communities. Problematic loans are often made in concentrated areas, and
high foreclosure rates of single-family homes can seriously threaten a
neighborhood’s stability and a community’s well being.
Thus, it’s
important for Buyers to understand the risks and rewards of all types of
mortgages before they make a decision on a loan. To become informed
consumers, Buyers should discuss financing options with their real estate
agent as they begin their search for a home, and with a loan officer at a
local lender as they begin the mortgage application process. They can take
advantage of home buying or mortgage education programs that are
occasionally sponsored locally.
And, the
National Association of Realtors has several free brochures that can help
prospective Buyers become better informed on the variety of mortgage options
available to them.
Traditional Mortgages: Understanding Your Options
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With the rise of specialty (non-traditional) mortgage options,
consumers have more choices than ever before when shopping for a
mortgage. While specialty mortgages may help make homeownership more
affordable, they generate more risk and consumers should understand
these risks before they choose a mortgage. This brochure, produced
jointly by NAR and the Center for Responsible Lending, explains that
for most consumers, traditional fixed-rate mortgages and
adjustable-rate mortgages (ARMs) continue to be excellent options.
Learn more
Learn About FHA
Mortgages
The Federal Housing Administration has made
significant improvements to its mortgage insurance programs. Many
aspects of the FHA application process have been streamlined to make
it more user-friendly and efficient. This brochure, produced by NAR,
FHA, and the Department of Housing and Urban Development, outlines
the changes to FHA and how to qualify for an FHA mortgage, and other
resources available from FHA, HUD, and NAR.
Learn more
Specialty (Non-Traditional) Mortgages: What are the Risks and
Advantages?
Produced jointly by NAR and the Center for
Responsible Lending, this brochure can help prospective Buyers make
an informed decision about the kind of home financing that is best
for them. It will help Buyers assess the risks and advantages of
interest-only, negative amortization, payment option ARM, and
40-year mortgages.
Learn more
How to Avoid
Predatory Lending
Finding an affordable home loan with fair terms
and reasonable costs is a crucial step towards achieving
homeownership. Unfortunately, home buyers need to be aware that some
lenders offer predatory loans that take advantage of consumers. This
brochure, produced jointly by NAR and the Center for Responsible
Lending, identifies the warning signs of predatory loans. It also
gives consumers tips on how to avoid them, including questions they
should ask when shopping for a loan.
Learn more |
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