Home Loans – Identity Theft Protection Could Hurt Home Sales

Written by Charles Essmeier

Identity theft has been a hot topic inrepparttar news duringrepparttar 150531 last few years. Just a month or so ago, forty million credit card numbers were compromised due to a computer attack on a credit card processor. Consumers are rightly concerned, as it can take years to unravelrepparttar 150532 problems created when someone’s identity is stolen. New legislation in Texas and California, also proposed elsewhere, is designed to protect consumers by letting them put a “freeze” on their credit reports. Those inrepparttar 150533 real estate industry are worried, however, that doing so may make it difficult for some people to buy homes.

The concept of freezing credit reports is a simple one. Every time someone applies for credit,repparttar 150534 lender contacts on ofrepparttar 150535 three main credit bureaus and requests a copy of his or her credit report, which containsrepparttar 150536 applicant’s FICO score. The score, a number ranging from 300 to 850, indicates how worthyrepparttar 150537 applicant is to qualify forrepparttar 150538 loan or credit. The new laws allow consumers to “freeze” their credit reports, effectively blocking any attempts by anyone to view his or her credit score. Ifrepparttar 150539 score can’t be viewed, then credit can’t be issued, thus protectingrepparttar 150540 consumer from fraudulent activity.

The process is a simple one, and can be initiated or canceled with

Home Equity – Let the Market Eliminate Your Private Mortgage Insurance

Written by Charles Essmeier

In decades past, most people who were interested in obtaining a home loan were required to put down at least 20% ofrepparttar purchase price. Those days are gone, and as home prices have risen faster than incomes,repparttar 150503 average down payment required by lenders has dropped. In fact, it is often possible to buy a home with no down payment at all. Nationally,repparttar 150504 average down payment is a 3%. It’s nice to be able to buy a home with such a small amount of ready cash, but there is a downside – ifrepparttar 150505 down payment is less than 20%,repparttar 150506 lender requires that private mortgage insurance (PMI) be added torepparttar 150507 house note.

No one likes to pay PMI;repparttar 150508 payment doesn’t go towards paying offrepparttar 150509 house andrepparttar 150510 payments aren’t tax deductible. Andrepparttar 150511 PMI payments aren’t trivial;repparttar 150512 monthly PMI payment on a home priced atrepparttar 150513 U.S. median price of $206,000 with a 3% down payment is $129. Lenders require that borrowers pay PMI untilrepparttar 150514 borrowed amount becomes less than 80% ofrepparttar 150515 value ofrepparttar 150516 home. In years past, this has meant that homeowners had to pay PMI until they had paid enough ofrepparttar 150517 loan balance to reducerepparttar 150518 debt to less than 80%. Times have changed, however, and many homeowners may be eligible for a faster way

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