Texas Veterans Land Board (TVLB)
Weekly Rate Sheet (Effective March 28, 2008)
Base Rate for all housing loans: 5.51%
Base Rate applies to all loans with a term greater than 15 years. The TVLB mortgage rates are effective for all rate lock applications received by CitiMortgage, Inc. after March 28, 2008 5:00 p.m. CST.

Available Discounts to Base Rate*

Discount for loans with a term of 15 years or less:  -.25%
Qualified Veterans with Disabilities Program Discount: -.35%
Qualified Service Era Discount (Restricted Pool): -1.05%

*One or more of the above discounts may apply if qualifying criteria are met.

Note: All VLB mortgage rates and discounts are subject to change at any time. Also note that the Base Rate and Qualified Service Era Discount (Restricted Pool) are subject to adjustment on the first business day of each week.

For more information contact Texas Agents Roman or Randy of Mission Realty, Inc. at 210-734-5590 or the Texas Veterans Land Board at 1-800-252-VETS online www.texasveterans.com

A borrower has certain responsibilities to take care of, once a loan is negotiated. In order to keep your loan in good standing, it is important to fulfill all your obligations. A lapse in making a single payment indicates delinquency. You could get into the default record if you continue to ignore your loan repayments. If you face any trouble in arranging funds for paying back your student loan, you need to contact the organization that provided the loan. There are chances that you may qualify for forbearance, deferment or any other form of payment relief.

In most of the cases, student loans do not require repayment until after graduation. Many fresh graduates do not find a suitable placement very quickly. However, after graduation, there is a six months grace period before the repayment schedule begins. Even though a student may identify a good job, he could initially be underpaid, leading to issues with the repayment of the loan.

There are several strategies that could be adopted to help you repay the loan. Student loan lenders and service providers offer several repayment options. You should check with your creditor to gather details on any such available plans. Repayment plans offer the following options:

- Graduated repayment: The payment is lower in the beginning and increases steadily over a period of time.
- Standard repayment: Interest payments and principals are due each month, throughout the repayment term.
- Income sensitive repayment: A percentage of the borrower’s monthly income forms the basis of calculating the monthly repayment, although this plan applies for certain account borrowers.
- Extended repayment: This incorporates lower monthly payments for an extended period of 25 years.
- Loan consolidation: You can consolidate several loans into one new loan, with a low interest rate and easy finance management opportunities.
- Prepayment: This can reduce your total cost of borrowing because most private student loans allow you to make payment of a part or your entire loan before the scheduled payment. This can be done anytime during the life of the loan.

In addition you should check:

- Your state might be offering programs that reduce or even cancel your loan if you perform certain services like, nursing or teaching. You can get in touch with the state agency for postsecondary education, to check if there are such programs available in your state.
- There are religious and civic organizations that provide certain benefits and aid in repayment.
- Your personal expenses may need to be analyzed and kept minimum. Try to keep your living expenses low initially.
- It is possible to apply for forbearance, deferment or any other payment relief programs.

Deferment: It is the temporary suspension of the loan payment if you re-enroll yourself in a school, are unemployed or facing any economic hardship.

Forbearance: This is also a reduction or postponement of the loan payment, temporarily, while you are in any financial difficulty.

Other forms: These may include graduate or income sensitive loans.

If you are facing financial difficulty and it is impossible for you to repay the loan immediately, you can always take refuge in these options. They not only help you to repay your loan easily, but also help you maintain a good credit report.

Joe Kenny writes for the UK Loans Store for loans UK and offer more information on student loans and other loan topics available on site.

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Source:http://aboutmicrosoftsurface.com/blog/lybhasblog4023/2008/03/31/a-guide-to-paying-back-a-student-loan/

Many mortgage analysts are currently recommending purchasing a tracker mortgage However, although trackers may be a good option, you would be advised to move quickly to secure a good value tracker.

For example, last week Halifax increased its tracker rate by 0.2%, despite the base rate cut by the Bank of England. This seems rather counter intuitive but actually reflects the detoriorating conditions in the capital markets that help finance mortgage lending. The Halifax tracker offered very good value and they were overwhelmed by people wishing to take out the product.

Why Can Mortgage Rates increase when Bank of England Base Rates are Cut?

The Bank of England base rate is a guide for the rest of the economy. But, it is by no means the only interest rate in the economy. Another important rate is the three month LIBOR interbank rate. This is important because it is the rate at which banks borrow from each other. This is important during periods of liquidity shortages. If LIBOR rates increase, the banks will have to increase their commercial interest rates.

The reason that the interbank rate and tracker rates are increasing is strongly related to the subprime crisis. In the US there were many mortgage defaults, resulting in many financial institutions (including UK ones) having to write off substantial losses. Because of the losses from mortgage lending, financial institutions are currently very wary of taking on more mortgage debt, (even if it offers reasonable security and low risk)

Liquidity Squeeze. This is known as the difficult of gaining finance due to the factors mentioned above. Because liquidity is in short supply, the cost of borrowing has risen. Banks want a better profit margin in return for their perceived increased risk.

In the past many tracker mortgages offered a rate below the base rate. But, now they offer a rate above the base rate.

Example

Lloyds TSB Tracker Mortgage. At the beginning of December, the tracker rate was the base rate plus 0.36%. (6.11) Now the same interest only mortgage is the base rate plus 1.09. Therefore although the base rate has fallen the tracker rate has increased for prospective customers. (note once you have taken out the mortgage, the tracker rate is fixed) This means that for a £100,000 mortgage the monthly cost has increased from £509 to £528. If the tracker (1)

The Bank of England is aware of this issue and made the point recently that the profit margin on bank’s lending was very low. Therefore, it is hardly surprising that with the liquidity squeeze banks are seeking to increase their margin.

(1) Source Sunday Telegraph, 17th February 2008

However, with some predicting lower interest rates in the coming 12 months, a tracker mortgage can still offer good value in the medium term.

Have the recent cuts in home loan rates by leading financial institutions in the country spurred you on to apply for a home loan? Go ahead, but before you finalise a deal, here are some points you should take into consideration:

1. Speak to your bank about home finance only after you have identified the property you want to buy. Note that some banks do not readily finance a self-constructed property. “Also, if the property is very old or is being developed by a relatively unknown builder, the bank might have an issue with providing a home loan,” says Harsh Vardhan Roongta, Chief Executive Officer, Apnaloan.com.

2. For loan eligibility, talk to several banks to find out which one can give you the maximum amount. Try to seek a bank that allows you to club the incomes of your other close relatives (parents, siblings, children etc.) to increase your loan eligibility.

3. Once you finalise your dream home, the bank will get the cost of the property evaluated by its own experts. Usually, the evaluation throws up a price different (in most cases, lower) from the actual price you are paying for the property. “In such cases, you will need to shell out the difference between the actual price and the bank’s valuation as additional down payment. It makes sense to ask the bank to value the property (on payment of a small fee), especially if it is an old re-sale property,” says Roongta.

4. Shortlist four to five banks and get them to compete for your loan. The cost of your loan also depends a lot on your ability to negotiate.

5. Apart from interest rates, also check various charges like processing fees, pre-payment charges, legal fees, valuation fees and other hidden costs. Take all these factors into account before choosing your bank.

6. The processing fee varies from bank to bank, but is usually around 0.50 to 1.00 per cent  of the total housing loan amount. It is non-refundable. Don’t believe the agents who tell you otherwise.

7. When opting for a ‘fixed interest loan,’ remember that in some cases, it may remain fixed only for a certain period of time, as the bank may have the right to arbitrarily change even the so-called ‘fixed rate’. So, probe further and read the fine print before you sign on the dotted line.

8. If you have signed a floating rate loan, check whether the rates of your chosen lender had moved down in the years when interest rates were dropping. “This is a fair indicator of what you can expect as (not if) and when the interest rates start moving down and the time comes for the bank to pass on the benefit to you,” advises Roongta.

9. It is advisable to take a life insurance and critical illness policy along with a home loan. Life insurance policies provide monetary benefit in case of an unfortunate incident like death and ensure that your family members inherit your home — not your home loan.

http://www.zameen-zaidad.com

Get Preapproval!

Most homes are financed and that is the largest hurdle facing most buyers today because of the more stringent loan criteria.

What is it?
“Preapproval” means you have met with a loan officer, your credit files have been reviewed and the loan officer believes you can readily qualify for a given loan amount with one or more specific mortgage programs. Based on this information, the lender will provide a preapproval letter, which shows your borrowing power. You can visit as many lenders as you like and get several preapprovals, but keep in mind that each one carries with it a new credit check, which will show up on future credit reports.

Although not a final loan commitment, the preapproval letter can be shown to listing brokers when bidding on a home. It demonstrates your financial strength and shows that you have the ability to go through with a purchase. This information is important to owners since they do not want to accept an offer that is likely to fail because financing cannot be obtained.

How do you get preapproval?
Real estate financing is available from numerous sources, including your local bank or credit union. Based on his or her experience, your REALTOR® may suggest one or more lenders with a history of offering competitive programs and delivering promised rates and terms.

The loan officer will carefully review your financial situation, including your credit report and other information. The lender will then suggest programs which most-closely meet your needs. For instance, a first-time buyer may qualify for state-backed mortgage programs with little money down and low interest rates, while a repeat purchaser (someone who has bought a home before) with more equity (money invested in the home) might want to get a 15-year loan and the lower overall interest costs it represents. Typically, first-time buyers opt for the traditional 30-year loan, with either a floating interest rate or a fixed rate of interest over the life of the loan.

Keeps low-risk priority lending with itself, leaves big financing to arm.

ICICI Bank, the country’s second largest mortgage lender, has decided to split its home loan business between the bank and its wholly owned subsidiary, ICICI Home Finance Company.

The bank plans to finance home loans only up to Rs 20 lakh, which qualify as priority sector lending. Home loans above Rs 20 lakh would be provided by ICICI Home Finance.

“ICICI Bank will focus on home loans with a ticket size of Rs 20 lakh, which qualifies as priority sector loans. The bank will keep the priority sector loan business with itself. Large ticket-size loans will be booked by ICICI Home Finance,’’ said Rajiv Sabharwal, senior general manager, ICICI Bank.

Housing loans up to Rs 20 lakh carry a lower risk weight of 50 % for capital allocation purpose. Banks are required to direct 40 % of their loans towards priority sector, including agriculture and small-scale industries. Larger ticket-size loans carry a higher risk weight of 75 %.

The bank has recently received approval from the Reserve Bank of India (RBI) to infuse capital into the home finance company. Following this, the bank has invested Rs 500 crore in the company, taking the net worth of the company to Rs 800 crore at the end of December 2007.

ICICI Bank is going ahead with a separate subsidiary for home finance, while public sector banks such as State Bank of India, Canara Bank and Punjab National Bank are considering merging their subsidiaries with themselves.

Raising long-term finance is a challenge for banks. The home finance company will have access to different sources of capital, which will be diversified and long term in nature. The home finance company will also be able to set up branches in convenient locations, said Sabharwal.

Housing loans up to Rs 20 lakh form about 60 % of the banks’ mortgage portfolio. The average home loan ticket size is around Rs 10 lakh.

The total assets of the housing finance company stood at Rs 4,610.78 crore at the end of March 31, 2007. In the third quarter of 2007-08, the home finance company booked less than Rs 1,000 crore of home loans.

ICICI Bank’s home loan book grew 12 % year-on-year to around Rs 60,000 crore at the end of December 2007. If the disbursement done at the end of the quarter in the home finance company were to be included, the growth in the home loan portfolio would be around 13-14 %.

This is a deceleration from the elevated levels of 40 % year-on-year growth that the bank had reported in its mortgage lending portfolio in the previous year.

Housing finance companies are required to maintain a capital adequacy ratio of 12 %. However, while banks have to keep aside Rs 32.5 of every Rs 100 raised to meet cash reserve ratio and statutory liquidity ratio requirements, non-deposit taking housing finance companies are not subject to these requirements.

Housing finance companies are regulated by the National Housing Bank set up by the RBI. While banks can issue infrastructure bonds to raise long-term resources, HFCs can raise long-term funds through issue of bonds and debentures.

HFCs also do not need to obtain licences for opening of new branches or office. They are only required to inform the NHB of their intention to open a new branch or office.

ICICI Home Finance Company was incorporated as a 100 % subsidiary of ICICI Personal Financial Services, the bank’s one-time consumer banking arm in May 1999. Since May 2002, ICICI Home Finance has become a wholly owned subsidiary of ICICI Bank.

The bank charges 12 % interest for home loans above Rs 20 lakh, which is 50 basis points higher than the interest on home loans up to Rs 20 lakh.

INTEREST rates look to be on the way down after the European Central Bank (ECB) yesterday paved the way for the first cuts in nearly five years.

As it dropped its previous threat to raise rates to combat inflation, some analysts said borrowers could benefit from a cut as soon as April.

The ECB left rates unchanged when its governing council met yesterday. But its president Jean Claude Trichet struck a noticeably softer tone in his statement and press conference after the meeting.

He stressed the risks to economic growth from the US slowdown and the global credit crunch.

Unlike last month, the council did not discuss a possible increase in rates.

Some analysts were upbeat about cuts coming sooner rather than later.

David Tilson, head of treasury at Bank of Ireland, said: “The ECB has effectively dropped its threat to raise interest rates.”

He said there could be a 0.25pc cut in ECB rates in April. That would mean most borrowers paying 4.75pc — down from the current 5pc. Mr Tilson also claimed that a cut next month could not be ruled out.

IIB Homeloans economist Austin Hughes said there could be three 0.25pc ECB rate cuts by the end of the year.

However, most analysts think it will be the second half of the year before borrowing costs start to fall.

“The eurozone economy is clearly slowing down, but it will probably be mid-year before we see the first move,” according to John Beggs, chief economist at AIB Global Markets.

The ECB has changed its tune, despite inflation in the euro area hitting a 14-year high of 3.2pc.

Mortgages

Figures yesterday showed Irish inflation was just below the euro average last month, despite the faster growth in the Irish economy.

The ECB measure does not include mortgages, which take up a bigger share of household spending in Ireland than in other countries.

A cut in interest rates would therefore give a bigger boost to Irish consumer incomes and accelerate the fall in Irish domestic inflation.

Financial markets are betting strongly that ECB rates will be 3.5pc (4.5pc for borrowers) by the end of the year.

“There is a greater acknowledgment that risks to growth are on the downside,” said David Owen, chief European economist at Dresdner Kleinwort in London, who also predicts two 0.25pc cuts by year-end.

“The ECB’s not going to cut in the next couple of months, but it is starting to prepare the markets for rate reductions.”

The ECB development unfolded as new figures claim secondhand house prices have fallen by 20pc, with new houses down by 10pc.

The report by analyst Killian Jones for Merrion Stockbrokers found that most housebuyers and sellers now consider that ECB rates will not go any higher.

He said those prepared to cut the prices of a house on the market were selling them quickly.

But those refusing to accept that the housing market had changed and who would not drop their prices were not shifting their properties.

It was also predicted that new-house prices would dip further before the end of the year to match the falls of second-hand homes.

Survey

They carried out a survey of estate agents and found that 77pc of them reported an increase in buying and selling.

But it was not all good news yesterday, as Bank of Scotland said it was increasing the interest rate it will charge some new mortgage customers from next March.

This follows moves by Bank of Ireland, AIB, Ulster Bank, IIB Homeloans and Permanent TSB to increase the rates it charges new customers.

- Brendan Keenan and Charlie Weston

Home equity loans have helped millions of homeowners to get cash from their homes. By applying for equity loans, homeowners have the ability to see the equity in their home become the money that they need. The equity in a home is simply the amount that the home is appraised for minus any outstanding mortgage costs. By applying for these offered home loans, homeowners have been able to receive money needed for home improvements, vacations and even college tuition for their children.

Sites such as Loanguru.org offer much information about the home equity loan process, as well as tips and resources to help homeowners get the cash that they need from their home’s equity. For those needing a lot of cash in a little time, home equity loans seem to be the most popular choice. The money from a home equity loan is the homeowner’s to do with as they please; so many people have opted for an equity loan as opposed to a standard loan.

A question that is commonly posed to me by Chico Buyers looking for a new home is, “Why do we need to be preapproved for a property?”

Looking for a little approval? by Mike Wiegert, Broker Chico Homes

Many buyers question this common practice and even resent that their Realtor would suggest the necessity of being preapproved. But in the real estate world there are significant reasons that a buyer would want to get preapproved. The bottom line is that even though many of us want to give the benefit of the doubt, people just don’t really trust other people that they don’t know. Having stated this basic premise, here are some important reasons to get preapproved for a mortgage before you make an offer on a home.

1. First and most important is that the preapproval process allows a buyer
to really know what price range he or she should be looking in or what
they realistically can afford. Who wants to make an offer on the home
of your dreams only to be turned down by a lender for reasons such as
insufficient income, poor credit or maybe an inadequate job history. I
promise, you’ll sleep much better if you know what you can afford and
that you can actually get a loan.

2. As a buyer you will be infinitely more comfortable to the Seller if
your offer is accompanied by a preapproval letter from a reputable or well
known lender. This is especially true if you are competing against other offers. If all offers are the same, I can guarantee that the offer that has a preapproval letter attached will be the winner. Also, if the home is offered as a foreclosure by a lender, that lender will probably not even consider your offer if it is not accompanied by a preapproval letter.

3. Preapproved buyers are able to close their escrow more quickly. I recently had a client call me two weeks before her home, which is in foreclosure, was due to go to sale. By the way, if you’re in foreclosure, don’t do this. Foreclosures don’t go away by themselves so call a trusted Realtor or attorney to weigh your options. Luckily, one of my agents had a preapproved buyer interested in purchasing a home in the price range and area of this home. Because of the preapproval, the buyer was able to close the escrow just two days prior to the foreclosure sale. So if you’re in a hurry to get in your new home or you have a Seller that needs to close quickly, being preapproved can really be an asset.

4. Besides minimizing the uneasiness of not knowing if you can qualify, you’ll know what loan programs suit your particular needs. There are literally hundreds of loan programs and a skillful loan agent or broker can really tailor a loan that not only gets you into a new home, but can solve many other financial problems as well.

5. Lastly, your lender will give you a written good faith estimate of closing costs and fees so that you will know exactly what you’re going to need to close your new home. With interest rates well into the fives, it’s not only a great time to buy, but a fantastic time to get yourself preapproved.

The Bush administration appears willing to go along with an agreement by House Democrats and Republicans to boost the conforming loan limit.But while Fannie Mae and Freddie Mac will apparently be allowed to romp in what is now jumbo loan territory, it’s unclear exactly what the ground rules will be, or whether FHA loan guarantee programs will be expanded as well.

In announcing a breakthrough in negotiations on a $150 billion economic stimulus package Thursday, Speaker of the House Rep. Nancy Pelosi’s office originally said a side agreement included a temporary, one-year increase in the conforming loan limit, from $417,000 to $625,500.

Rep. Barney Frank, D-Mass, later said the agreement would raise the conforming loan limit by up to 75 percent in some high cost markets, allowing Fannie and Freddie (”the GSEs”) to guarantee or purchase mortgages of up to $729,750, or 125 percent of the median home price — whichever is less — until the end of the year.

The Associated Press initially reported that the agreement was between House leaders, and that the Bush administration and Senate had not signed on. A Treasury Department spokeswoman told Reuters that the administration had not changed its stance against raising the conforming loan limit until Congress passes legislation strengthening oversight of the GSEs. The White House released a fact sheet on the agreement that is silent on the issue.

But at a press conference Thursday afternoon, Treasury Secretary Henry Paulson told reporters that while he had been opposed to raising the conforming loan without a GSE reform bill, “I got run down by a bipartisan steamroller — I mean, Republicans and Democrats reunited on this.”

So the Bush administration IS playing along. Paulson said that Democrats Rep. Barney Frank and Sen. Chris Dodd promised not to get in the way of a GSE reform bill. Although the administration has now lost a key bargaining chip by agreeing to raise the conforming loan limit, the big stumbling block to GSE reform has been a separate debate over limits on growth in Fannie and Freddie’s combined $1.5 trillion loan portfolios.