Mr and Mrs Smith go online, as internet technology moves from fantasy to normalityWritten by Rachel Lane
Whilst not all Smiths lead glamorous technological lifestyles of Brad Pitt and Angelina Jolie, number of British consumers using online financial services continues to grow rapidly.According to NOP World, 48% of all Internet users researched or purchased financial products such as insurance and loans on internet, or used online banking facilities. In April, NOP World had already recorded estimates of 28 million people online in Great Britain, with 13.5 million exploiting Web for their financial requirements. NOP World’s report showed that of financial activity, most was research related; as 84% of Internet users seeking financial services used Internet to gather information, utilising sites such moneynet.co.uk and moneysavingexpert.com. Over half of users surfing Web for financial information were happy to contact suppliers via their websites and e-mail. Although only 3.3 million consumers bought loans and insurance online last year, NOP state that confidence in buying such products over internet is growing, with recent figures showing an increase of 43% in people researching, then purchasing online.
| | Home Buyer Beware – Know the Signs of Real Estate Market TroubleWritten by Charles Essmeier
Lots of articles have appeared recently about booming real estate market in United States. Home prices, especially on East and West coasts, are not only at record levels, but are increasing at record rates. In some areas around Washington, D.C. and San Francisco, home prices have tripled in last five years. While many homeowners have been enjoying huge increases in their equity, realized when they either sell their home or borrow against it, market has become increasingly difficult for those trying to buy homes. It may get worse, as there are now some strong signs that market may be near its peak:
The prices of homes in many markets are so high that few buyers can purchase them using traditional mortgages. In Washington, D.C., for instance, 48% of new mortgages are of interest-only variety, where buyer pays only interest on loan for first few years. This keeps payments low enough that buyer can qualify for loan. The problem is that buyer is only paying interest and not actually contributing to purchase price of home. The fact that so many buyers are obtaining interest-only loans suggests that prices in those markets may be too high to be sustained.
Many home appraisers have complained that lenders are constantly pressuring them to “make numbers” when appraising homes. Appraisers in some modestly-appreciating markets, such as Buffalo, NY, say that they are often given a value when assigned an appraisal, with unspoken understanding that their appraisal is expected to come in at or above that figure. The lending industry is competitive, and lenders want to issue as many loans as possible. It would appear that quite a few of them are even willing to lend money when home doesn’t appraise for asking price. Appraisers point out that if they don’t provide “requested” figures, then lenders will simply hire other appraisers.
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