Housing Slide Affects Lenders

The slowdown in the US housing market is leaving many of America's largest mortgage lenders to adapt new business plans.

Many lenders are cutting costs and launching new risk reduction strategies in the face of a slowing market in the $9 trillion home mortgage industry.

Slowing sales have pushed inventories of unsold homes up 39% in the past year. Many areas are seeing slower rates of home price appreciation, with a few reporting depreciation of home prices. Builders recently reported the lowest confidence in the past 14 years for the month of July.

I've never seen a soft-landing in 53 years, so we have a ways to go before this levels out, Countrywide CEO Angelo Mozilo said. Countrywide recently announced plans to cut costs. I have prepared the company for the worst that can happen.

Countrywide plans to cut as much as $500 million in costs over the next year, partly due to the slowing market.

Ameriquest Mortgage Company, the nation's largest subprime lender, announced earlier in the year that it will cut over a third of its 11,000 employees. Washington Mutual is also in the process of cutting mortgage-related employees.

Many lenders are tightening down, yet some are looking at this as an opportunity to expand. Many larger lenders are purchasing smaller mortgage companies. Others are exploring more lucrative mortgage products, such as payment-option ARMs.

Martin Lukac represents http://www.RateEmpire.com and http://www.1AmericanFinancial.com, a finance web-company specializing in real estate and mortgage rates. We specialize in daily updates, mortgage news, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies!

Profit of Investing in Real Estate

The stock markets have crashed and recovered and then crashed again. Similarly for commodities like silver and gold. The overall trend for silver and gold is positive though . Also stock market indices too over the years look positive. But that's an index, only if you buy the right stocks do you get the benefit. Essentially the risks, with an investment like stocks, are huge. Moreover less risky instruments like Mutual Funds have huge entry and exit fees.

Real Estate is the one investment from which you can get a steady income, and at the same time enjoy a steady appreciation. This specially holds good if you buy apartments close to IT parks, railways/metro stations in any big city, close to any place of commercial or industrial activity. A rental income is an assured monthly income with little hassles, all things going right.

It's also a usable investment. You can feel it, touch it, live in it, rent it out.

Currently real estate prices are increasing literally on a daily basis. This is definitely not a trend that is sustainable. If you plan to realistically invest in the real estate market, please ensure that you have a timeframe of a few years. The current real estate increases are hugely attributed to the buying power of IT professionals and their willingness to pay a premium for any piece of property. Places like Kerala too have show steep escalations and the main reason is the money flowing in from the Middle East. Even though Keralites believe that the land prices there are now higher than what they should be, on comparing to cities like Bangalore, Kerala is still very under priced. Similarly for Pune. Land prices in Pune are seriously undervalued compared to Bangalore. In 2005 you could purchase land in Kondhva for around 300 Rs per sq feet and land in Bhugaon close to the IT Park for 400 Rs per sq feet. The prices have increased a 100% within a year. It's still cheap compared to Bangalore !!

High incomes of IT employees, a bull run on the stock market and foreign repatriations have made the Indian real estate market a little volatile at this point. But a country with a billion people and still growing will always have a housing issue, and any investment in the housing market can never go wrong. Real estate; whether land or houses will always sell at a premium.

For most people who live in 3 storeyed apartments that are over 20 years old, builders have offered schemes where current apartment owners sell the land and building to the builder, in return for a bigger apartment. The builder constructs a high rise there and recovers his cost from the fact that in a building where there were 12 apartments, there are now 60. This is a win-win situation. Builders get prime land in the city and the apartment owners get an upgraded apartment that has a lot more market value.

Rents too have been on the increase. Apartments close to work places or transportation hubs rent well. Since most tenants are professionals, owners need not worry about tenants staying for long periods and then refusing to vacate.

Interest rates in India are much much higher than in the US. There it's about 6%, we're close to 9%. Realistically you can expect property to appreciate between 10-15% every year. Holds true more for land. For housing the property price increase usually depends on increase in costs of raw material like steel and cement.

Do not always look at real estate just as an investment. A house is always a great place to live in. For first timers, do not look at real estate as an investment, but a home to go to.

David Thomoson, an associated editor to pune360.com , is a contributing author to the http://www.pune360.com for distinct article sites/journals. Please feel free to visit http://www.pune360.com for more information on Real Estate, property and classified issues Or write to him AT pune360@hotmail.com. Any comments and /or suggestions will be highly appreciated.

What Matters in Real Estate Investment: Location Location Cash Flow

The media is full of stories about how Option ARMs and exotic mortgages are the scorage of the real estate industry. Nothing could be further from the facts. Exotic loans have extended the real estate boom, and possibly lower default rates for marginal borrowers.

Option ARMs are tools when used prudently allow a borrower to control their cash out-flow and make payments fit their income. In the past lenders required mortgages payment on their monthly schedule. Option ARMs give the consumer the ability to pay principal and interest when its best for the consumer.

I believe the exotic loans are good tools for borrowers who know how to use them. Interest only payments allow a borrower to pay a smaller payment when cash flow is low, and pay down principal in better times. These loans actually reduce the risk of loan default, because default only happens when a borrower can't make their monthly payment.

Therefore any loan that allow this kind of payment flexibility should be seen as a positive for loan quality and stability, not riskier?

The consumer clearly understands the value to interest only and exotic payment mortgages, this is why they have become the most popular loan options. But few consumers are being interviewed to defend why they choose these loans.

Option ARM mortgages enable savvy consumers to better manage their own personal cash flow.

Bob Waun , Founder & CEO
Vacation Finance
waun@vacation-finance.com

Vacation Finance is America's First Second-Home Lender, and believes in the benefits of real estate ownership for all Americans. Vacation Finance is creating a market for unique cottage, land, condo, condo hotel and fractional ownership loans.

Las Vegas Home Builders

Signature Custom Homes is a full-service design/build company that concentrates on one-of-a-kind homes with greater design and craftsmanship. They are renowned for delivering a home on budget and on time. The team of professionals deployed by Signature Custom Homes will work together with the owner in designing a custom home that meets the exclusive needs of the owner's distinctive lifestyle. Prices start from $800,000

Toll Brothers, Inc. (NYSE:TOL) is the country's leading builder of luxury homes. In 38 years, Toll Brothers has constructed over 47,000 luxury homes offering wealthy single-family homes and elegant town and carriage homes. Building on its well-established brand, Toll Brothers, Inc. (NYSE:TOL) is coming up with urban mid- rise and high-rise condominium product and suburban offerings. Prices start from $350,000.

Las Vegas is one of the rapidly growing cities in the nation, and it is not difficult to see why. Beautiful year round climate and proper access to entertainment mark this area as very desirable. Engle Homes designs and produces communities and homes that keep pace with the requirements of families and individuals in this lively environment. Prices start from $220,000.

American West believes in the importance of family. They see the new home as a reflection of the family's personality and values. From groundbreaking design and superior construction, to homeowner approval, American West's homes offer outstanding quality and bargain prices per square foot of any homebuilder in La Vegas. Prices start from $325,000.

Richmond American Homes, for over three decades, has been constructing and financing the best homes in the city of Las Vegas. With a reputation for excellent craftsmanship, it is no revelation that Richmond American is one of the country's top homebuilders. Prices start from $200,000.

Las Vegas Homes provides detailed information on Las Vegas Homes, Las Vegas Home Sales, Las Vegas New Homes, Las Vegas Home Builders and more. Las Vegas Homes is affiliated with Las Vegas Travel Deals.

Property Renovations: Keys to the FixerUpper

In the realm of real estate, there are numerous ways to go about making profits. One of the most effective methods of achieving financial success is in dealing with a fixer-upper. Home renovations are very important if you are in the business of making profits, so let's overview some of the key points that can help you in your ventures.

First of all, when you're dealing with a fixer-upper home, or any sort of renovation, it's important to keep in mind your main objective: to make a profit. It's an easy to forget, sometimes, that the long-term goal of the project is not creating your dream home. Sure, a big screen T.V. may look great in the living room corner, but making big purchases are unnecessary for a home you may not be keeping for long.

Let the potential buyers take care of the details; your focus is to provide the necessities, not to practice home decoration. Your choices should be neutral and simple, in order to appeal on a basic level to a wide variety of potential buyers. Keeping it simple is a must, but this doesn't mean you should leave the home as a permanent fixer-upper. Home renovations, in this sense, should include a number of basic tasks.

The first thing you should do is go through the property and determine what needs to go. Undoubtedly, there will be various pieces of furniture or other items around the house you may want to clear out. Get rid of anything that isn't working properly, or anything you think doesn't quite fit with the rest of the house. You may choose to leave carpeting for a while, even if you aren't its biggest fan; if you plan on doing any painting, old carpet can serve as the perfect placemat.

In order to catch the eye of a passer-by, you need to have an inviting exterior to your fixer-upper home. If there is a front gate, be sure to paint or replace it. Make sure the hinges and latches are in proper condition. Nothing says Welcome! like a picket fence, so if your home doesn't have one, be sure to get one. If so, make sure it is painted and sturdy. Keeping a healthy lawn is another must, so make sure everything is as green and tidy as possible. Pay attention to the little details, like your mailbox and shutters; these minor details aren't always as obvious, but create just as much of an impression.

Some simple gardening can go a long way, as well. Remove weeds, plant flowers- whatever it takes. This is your chance to be creative for little to no expense. When it comes to painting the exterior of the house, try to keep in the same color scheme as the surrounding homes. Make sure there are no missing or damaged shingles on the roof, and replace any cracked or broken boards. The backyard should be freshly mowed and watered.

Maybe the most important aspect of the home exterior is the front door: the grand entrance. If you have an unappealing front door, no one will want to see what's past it! Make sure to repair or repaint if necessary.In part two on home renovations, we will discuss more of the aspects important for the long term.

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Sal Vannutini is the owner of http://www.fixerupperfortunes.com. Did you know that he is giving away a 14 part e-course for free! Visit now and grab this amazing opportunity, to find out how you too can make profits from your fixer upper home.

Metal Buildings

When considering options for your next construction project, you may want to consider metal buildings. Metal and steel buildings have many benefits when compared to the more traditional wooden structures. To decide if metal buildings are right for you, here is a list of questions.

What are your building needs? There are several types of metal buildings with different purposes. You can find metal buildings designed for storage, such as sheds, garages, and storage warehouses. You can find metal houses, metal office buildings, and options for correctional facilities and the military.

Do you need a specialist? Some companies specialize in certain kinds of metal buildings. Are your needs purely residential, or do you also need some commercial options? If your needs span a few different categories, you may consider going with a company that is more generalized.

What?s your budget? Your budget will often dictate which types of metal buildings to choose. If you have a budget that is too limited, however, you may consider taking out a loan. Contact your financial advisor for help in these matters. Also keep in mind that metal buildings are usually less expensive than their traditional wooden counterparts.

Do you need a structure that is extra sturdy? This can also help you decide on a metal building as opposed to a wooden one. Metal buildings offer an extra level of protection against the environment, including damage from floods, fires, and insects.

Once you decide that metal buildings offer the best option for you, you will need to choose a company. There are so many metal building manufacturers that it is a good idea to ask around in forums and on product review sites. The best way to make sure a company is all that they claim to be is to interview satisfied customers.

Metal Buildings provides detailed information on Metal Buildings, Metal Storage Buildings, Metal Building Kits, Commercial Metal Buildings and more. Metal Buildings is affiliated with Pre-Fabricated Steel Buildings.