Your FREE ACTIVE REAL ESTATE FORECLOSURES FOR SALE IN MOBILE AL – 06/05/2012 list has been posted.
These are Single Family Homes ‘Active’ on the Mobile AL MLS. These homes are ripe for the picking. DO NOT LET THEM PASS YOU BY…ACT NOW….BEFORE IT IS TOO LATE!!!
I hope you have an awesome day, packed with smiles while searching for your active Mobile AL Real Estate Dream.
Along with many other observers of the mortgage scene, I have long attributed the imperfections of the market in large part to information asymmetry — the fact that borrowers have access to less information than the loan originators they deal with. Borrowers enter the market once or a few times in their life, whereas originators are in it every day.
One of the benefits of offering mortgages on my website is that I can provide borrowers with the information I think they should have, and then I can watch to see if they use it properly. Note that I don’t infringe on their privacy by doing this because they are anonymous when I observe them.
I recently decided to check on how borrowers who qualified for both conventional and FHA mortgages were deciding between them. This can be challenging because their interest rates may differ, lender fees may differ, and mortgage insurance premiums will always be different.
In balancing these off against one another, one should consider that interest rates are paid over the life of the loan, lender fees are paid upfront, and mortgage insurance premiums can be either or both. Usually, FHAs have lower interest rates but higher mortgage insurance premiums, while lender fees can go either way.
I advise potential borrowers selecting a mortgage on my website to choose the mortgage with the lowest total cost over the period they expect to have the mortgage, which is a figure we calculate for them. Total cost covers the rate, fees and insurance premiums, and adjusts each for the time value of money. A proviso is that the borrower can afford the initial monthly payment and have the upfront cash required.
Of course, we could eliminate bad impulse-based decisions by eliminating the option, and we carefully considered doing that. We didn’t because it smacks of arrogance, and I hate eliminating options. We decided first to exhaust all the possibilities for improving the way we present information.